Albanese pledges another $750 in funds for green industry and metals

The Federal Government has announced it will invest another $750 million into the development of lower-emissions metal technologies – with the latest funds to focus on making the mining and refining of critical metals – including alumina, aluminium, iron and steel – cleaner and greener.

Australian metals exports are worth over $150 billion annually, but the mining and production of these metals, in particular steel, which is made by refining iron ore, make up a significant portion of Australia’s domestic greenhouse gas emissions.

The move comes on the heels of a February announcement in which the Albanese government committed $1 billion to a new Green Iron Investment Fund, with $500 million of that money earmarked for the Whyalla steelworks transformation.

The Whyalla steelworks provides about 75 per cent of the steel used in infrastructure and railways in Australia.

Australia is the world’s largest produce of iron ore, and the iron and steel sectors support at least 100,000 jobs, but steel industry emissions average about 1.87 tonnes of CO2 per tonne of steel produced – globally, the steel industry contributes between six and seven per cent of global emissions.

The Albanese government said the funding would support the development of new technologies and help to fund pilot and demonstration projects that showed promise in decarbonising the metals industries.

The Future Made in Australia plan includes a heavy focus on making Australia’s metal industry greener so that the country can become a global powerhouse in supplying the metals and materials needed to power the green revolution.

The unfortunate irony of green technology is that so much of it relies on materials that are emissions-intensive to mine, refine, and produce. Several pilot programs are underway in Australia and around the world to make the mining, refining and production of various metals lower-emitting. 

Fortescue Metals and ArcelorMittal’s H2-Hub Steel pilot, in the Pilbara, aims to use green hydrogen, produced using renewable energy, as a replacement for coking coal in the production of steel.

Meanwhile BlueScope, Australia’s largest steel manufacturer, has partnered with HyProc to test the use of hydrogen in its steelmaking facilities in Wollongong, New South Wales.

Rio Tinto has ambitions (and signed contracts) to ultimately supply power to its Australian aluminium refineries and smelters from wind and solar, including the Boyne smelter, Australia’s second-largest. 

“Jobs up and emissions down, that’s our goal and investing in our world-class Australian made metals know-how is helping make that happen,” said Minister for Industry and Science Ed Husic.

“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.

“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.”

Meanwhile Minister for Climate and Energy Chris Bowen used the announcement as an opportunity to take a swipe at the Opposition.

“While we are getting on with the job and delivering solutions for hard-to-abate sectors to decarbonise right now, Peter Dutton’s Coalition is championing a $600 billion-dollar nuclear scheme that relies on a smaller economy and Australian industry being forced to shut down,” Bowen said.

“Helping some of Australia’s largest industrial emitters, like alumina refining, capture the benefits of a global clean energy economy, cut fuel bills and remain competitive is at the centre of a Future Made in Australia.”