Funding Aims to Strengthen Australia’s Green Iron Industry and Drive Economic Growth
The Australian Government has announced the creation of the $1 billion Green Iron Investment Fund, designed to establish Australia as a global leader in green iron manufacturing. This initiative will support the development of low-emissions iron and steel production by backing greenfield projects and attracting significant private investment.
Up to $500 million will be allocated to transform the Whyalla steelworks, boosting local employment and facilitating the transition to greener energy sources. The remaining $500 million will be available to applicants across the country, supporting both existing facilities and new projects focused on enhancing the domestic iron ore industry’s value.
The competitive fund follows extensive consultations with industry leaders through the Green Metals Expert Panel, ensuring it meets the sector’s needs. In 2023–24, Australia generated over $100 billion in export revenue, with the iron and steel industry supporting more than 100,000 jobs, both directly and indirectly.
Green metals play a crucial role in global decarbonization efforts. Iron and steel production accounts for 8% of global emissions, with iron contributing up to 90% of that figure. Research from the Minerals Institute of Western Australia suggests that a single green iron plant could contribute an additional $85 billion to Australia’s GDP, raise real income by $2.4 billion annually, and create over 1,500 full-time jobs.
Minister for Industry and Science Ed Husic emphasized, “The Australian Government is backing our green metals producers as the world moves towards net zero. This fund will allow Australia to leverage its existing iron ore supply chain, renewable energy capacity, world-class research, and skilled workforce.”
This new initiative is part of the Albanese Labor Government’s broader commitment to strengthening Australia’s energy and mining sectors. The government has already invested $2 billion in Australian-made aluminium and introduced legislation for Production Tax Credits for hydrogen and critical minerals. It has also made significant investments in critical minerals projects through the Critical Minerals Facility and allocated $3.4 billion to Geoscience Australia, alongside funding for Hydrogen Headstart to support the hydrogen and clean energy industries.