The Chamber of Minerals and Energy Western Australia (CME) has examined Western Australia’s potential to play a role in decarbonising the emissions-intensive steelmaking process, following the release of its ‘Realising WA’s green iron potential’ report.
The report, based on an analysis by Mandala Partners, uncovers the opportunities and actions required to capitalise on the state’s green iron production.
The CME found the large-scale production of green iron in Western Australia could reduce global emissions by 1.2% by 2050 — effectively offsetting nearly every tonne of CO2 currently produced in Australia — while generating $74 billion in economic value and supporting 19,600 direct jobs.
CEO Rebecca Tomkinson says Western Australia has a long history as “the world’s largest iron ore exporter” and has an opportunity to advance down the value chain if the state can begin refining green iron.
“Steelmaking accounts for between 6-9% (sic) of global emissions, with ironmaking alone generating up to 90% of that CO2,” Tomkinson says.
Transformational reductions in ironmaking emissions require low emission energy and the commercialisation of new technologies and processes.
Under a prospective hydrogen-based ironmaking process examined in the report, a $37.5 billion investment is required by 2030 to produce an initial 4.5 million tonnes of green iron.
The CME says the combined public and private investment would be spent on new energy infrastructure, green hydrogen and green iron production facilities, desalination plants, and upgraded ports and roads.
Tomkinson adds that not only would this create new jobs and safeguard the future of the iron ore industry, but it would remove hundreds of millions of tonnes of global emissions.
Further, the report’s 2030 action plan outlines three priority areas for the Australian Government, including expanding research and development support, tax incentive grants, and boosting investments to lower the cost of low-emission energy, alongside developing common-user infrastructure.
Fortescue executive Chairman Andrew Forrest says the world needs green iron and it helps to ensure the world can avert the most catastrophic, irreversible impacts of climate change.
“For Australia, it presents a once-in-a-generation economic opportunity to build what could be our largest ever single industry, generating billions of dollars annually and creating thousands of highly paid jobs for generations of West Australians,” Forrest says.
“This report, in our view, provides a very conservative perspective on the economic opportunity for Western Australia. Our recent discussions in China make us feel confident that the opportunities are in fact much greater.
“With the right vision and support from the government, we could be producing very significant quantities of green iron before 2030, securing Western Australia’s prosperity for generations to come.”
Write to Aaliyah Rogan at Mining.com.au
Images: CME
