WA’s peak mining lobby group has welcomed a $750 million commitment for green metals projects, announced by Anthony Albanese during a visit to Perth today.
WA’s peak mining lobby group has welcomed a $750 million commitment for green metals projects, announced by Anthony Albanese during a visit to Perth today.
The funding will be used to support development of new technologies, and fund pilot and demonstration projects supporting Australia’s green metals industry.
It forms part of the $1.7 billion Future Made in Australia Fund, and will be administered by the independent Australian Renewable Energy Agency.
Announcing the commitment at Curtin University in Perth today, Mr Albanese said the WA election showed there was support the Future Made in Australia plan.
“I met with the WA premier Roger Cook yesterday, he's just received a significant mandate from the Western Australian people for a future made in WA,” he said.
“We'll be seeking a mandate in May for a future made in Australia, because whilst we must continue to dig up resources and export them, we can value add, we can create more jobs here in Australia, that is the way of the future.
“We also know when it comes to trade, including overcoming some of the trade issues which are there, we can have a competitive advantage if we are smart, if we seize the opportunities that come from the transition to net zero that the global economy is moving towards.”
Mr Albanese was flanked by Industry and Science Minister Ed Husic, who said the funding would be used to translate research into tangible benefits.
“The work of our scientists and researchers can sharpen our competitive edge but getting that work into our mills and smelters quickly is a challenge, and that’s where this investment comes in,” he said.
“Demand for green metals is expected to account for a third of the global metals market in coming years, this is an opportunity we cannot afford to miss.
“For a century, metal-making has been the spine of Australian industry, and this investment is there so it continues to underpin our economic and national security resilience for decades to come.”
The Chamber of Minerals and Energy WA chief executive Rebecca Tomkinson was quick to welcome the funding.
“Decades of sustained investment in our upstream mining capability means WA has built a strong competitive advantage and is well positioned to be a first mover in the green metals space,” she said.
“However, transformational breakthroughs in green metals production requires both the development and commercialisation of new technologies and processes.
“Commercialisation is particularly important, as even the best technologies cannot solve the world’s emissions challenge if they cannot be produced at a competitive cost.”
Steelmaking accounts for between 6 to 9 per cent of global emissions, with ironmaking alone generating up to 90 per cent of that CO2.
In December, the CME released a report which found large-scale production of green iron in WA could reduce global emissions by 1.2 per cent by 2050 – which it said would offset nearly every tonne of carbon currently produced in Australia.
The report found the new industry had the potential to generate $74 billion of economic value, supporting 19,600 direct jobs.
Ms Tomkinson said many of the major miners were already moving towards commercialising green iron and should be prioritised through the support package.
BHP, Rio Tinto, Woodside Energy and Bluescope steel cemented a partnership in December for an electric smelter ironmaking pilot project in Kwinana as part of a green iron push.
The Neosmelt consortium settled on a15-hectrate site in Kwinana for the smelter, with the state government chipping in $75 million to the project.
The proposed plant would test technology to enable the use of Pilbara iron ore in the manufacture of iron without the need for blast furnaces, in an effort between the competitors to decarbonise steelmaking.
If it gets legs, the Kwinana plant would aim to prove Pilbara ore could be used to produce lower carbon molten iron with the hope of fetching a ‘green premium’ for the product.
It hopes to produce 30,000 to 40,000 tonnes per annum of molten iron from 2028, initially using natural gas before looking to hydrogen.
The joint venture will begin feasibility studies on the plant in the second quarter of next year, targeting a final investment decision in 2026.
That however, Mr Tomkinson said, was reliant on further action to bring energy prices down.
“Just as important as proving these technologies is ensuring industry has access to the affordable, reliable and low-emission energy that will inevitably be required to run it,” she said.
“Without cost-competitive electricity, Australia has no hope of attracting the investment required to move into green metals manufacturing.
“Bringing down energy costs, slashing project assessment timeframes, providing clarity over environmental reforms and unwinding harmful recent industrial relations changes must all be first order priorities for the next federal government.”
Ms Tomkinson's claims were supported by Fortescue Metals chief executive Dino Otranto.
"Green iron production is critical to the world’s transition to a zero emissions future," he said.
"However, Australia’s role in this new industry is not guaranteed and this financial support announced today by the Federal Government makes all the difference.
"By incentivising the production of green metals, this will accelerate innovation, drive job creation and position Australia as a leader in the green metals revolution."
