Western Australia may use only green steel for major government construction projects

The Western Australian government says it will consider using locally made green steel for major government projects such as railways, roads, and hospitals.

WA’s Cook Labor government released an open-market expression of interest (EOI) for local green steel to be used on major government projects as part of new local sourcing requirements.

The move was billed as part of the government’s effort to diversify the state’s economy by increasing local manufacturing and support its burgeoning green steel industry.

Western Australia has already poured millions into developing a green steel industry, considering the export of green iron precursors to green steel a major opportunity for the state to add further value to its existing raw iron ore exports.

Government support has already been provided for green steel projects in Kwinana, the Mid West, and the Pilbara.

Procuring green steel for government projects will also provide an additional opportunity to develop a locally manufactured green steel recycling industry fed by feedstock from decommissioned mining and offshore oil and gas plants.

The move to consider locally made green steel will be supported by soon-to-be-introduced local sourcing requirements that will see the government introduce what it describes as a “if not, why not” approach to procurement that will explicitly preference WA-made green steel.

The new procurement requirements will be backed by a new Western Australian Industry Participation Strategy (WAIPS) Addendum for steel, introducing stronger expectations for local sourcing, acknowledging the role of recycled and low-emissions steel, and insisting on value-for-money assessments.

Supply of local steel to government projects including those in the health, transport, and clean energy sectors will be increased, and an open-market EOI for a green steel product to supply those projects and programs will be released by the government.

The WA government will also issue directions to its state-owned energy companies Western Power, Synergy, and Horizon Power, to drive local content procurement.

Locally made green steel could soon, then, be used in a number of major government works projects, including railways, roads, transmission lines and even future hospital building projects.

“Locally made green steel is a key part of my vision to become a renewable energy powerhouse and make more things here,” said Roger Cook, WA premier.

“This announcement is a signal of intent to this new green steel industry – we want you here. We want to decarbonise, and we want the jobs it creates to kick off a whole new industry for WA by using the power of government procurement.”

“We promised action on green steel, and we are delivering,” added Amber-Jade Sanderson, state minister for energy and decarbonisation and manufacturing.

“This is a clear signal to proponents and manufacturers that the Cook Labor Government is determined to set up a green steel industry.”