Fortescue: China’s Green Steel Threatens Pilbara Mining
Australia stands to earn $386 billion annually by 2060 by exporting green iron. A Superpower Institute report highlights the Pilbara region’s potential as a key hub for this burgeoning industry. The shift to green iron could transform Australia’s economy adn reduce emissions from the steel industry. News Directory 3 covers how government action, like tax credits and infrastructure investment, will be crucial for seizing this possibility. What are the next steps for this global movement?
australia Could Earn $386 Billion From Green Iron Exports by 2060
Updated May 25, 2025
Australia has the potential to generate up to $386 billion annually by 2060 by replacing iron ore with green iron as its largest export,according to a new report by the Superpower Institute. While the technology for green iron production is currently more expensive than conventional coal-intensive methods, Australia’s abundant iron ore, wind, and solar resources position it favorably, said Rod Sims, chair of the Superpower Institute.
The report identifies the Eyre Peninsula in South Australia, Gladstone in Queensland, Kwinana, Geraldton, and the Pilbara in Western Australia as prime locations for green iron production. These areas offer the necessary solar and wind generation capacity and existing infrastructure for expansion. Sims emphasized the need for urgent government action to create a level playing field, recommending tax credits and grants for early green iron projects, as well as investments in essential infrastructure.
The global steel-making industry is a notable source of global warming, accounting for at least 8% of global emissions. Fortescue is investing heavily in green hydrogen and plans to build a commercial-scale green iron plant in the Pilbara. BHP and Rio tinto have partnered with BlueScope Steel to build an electric iron-making furnace at Kwinana near Perth.
“The potential is enormous,” Rod Sims, Superpower Institute said.
What’s next
The Superpower Institute’s report urges the federal government to implement policies that support the growth of a green iron industry in Australia, including tax incentives and infrastructure investments.