21 May 2024
South Australia is perfectly placed to lead the global race to decarbonise steel – widely known as the toughest sector to abate carbon emissions – with a landmark new study demonstrating the economic benefits of shipping SA-made green iron to the world.
A collaboration between Europe’s largest seaport authority, the Port of Rotterdam, and Monash University shows South Australian green iron has a 21% advantage when compared with shipping its raw components to Europe.
The Green Iron Supply Chain study highlights a generational opportunity for South Australia, demonstrating the viability of a local green iron industry that would see the state capture even more economic benefit from its abundant magnetite resources.
South Australia’s comparative advantages stem from the state’s superior magnetite – the form of iron used in the production of green iron and steel – as well as abundant renewable energy generation and the South Australian government's investment in green hydrogen power.
The study also points to South Australia’s established electricity networks and ports, its ‘one-window-to-government’ regulatory framework for energy, hydrogen and mineral resource investments, and the proximity of existing infrastructure to magnetite and hydrogen sources.
The Energy and Mining Minister outlined the findings of the joint study overnight, Adelaide time, at the World Hydrogen Summit in Rotterdam, where the state government delegation is liaising with prospective global partners to accelerate the green iron and steel industry in South Australia.
A formal Expressions of Interest (EOI) process for companies to partner in developing a green iron industry and supply chain in South Australia opens in June.
The EOI will seek interest from companies to jointly investigate the development of a hydrogen-based direct reduction iron (DRI) plant in South Australia before the end of the decade, as announced earlier this year by the Premier.
DRI production can reduce carbon emissions by up to 85%. Savings of this magnitude will be critical in attracting investment from jurisdictions that have carbon adjustment mechanisms in place.
Find out more about about the Green Iron Supply Chain study
A study released in
Monash University Modelling
- South Australian Green Iron Supply Chain Study: Modelling Green Iron Production with Renewable Hydrogen and Magnetite Iron Ore in South Australia (PDF, 4.6 MB)
Monash University, January 2024
Port of Rotterdam case study applying the Monash modelling to Europe
- Green Steel Supply Chain Analysis - South Australia to NW Europe via Rotterdam (PDF, 3.2 MB)
Port of Rotterdam and Government of South Australia Department for Energy Mining, February 2024
Forthcoming Expression of Interest - register to receive more information
Register your interest to hear more about key developments of South Australia's Green Iron opportunities, including:
- the release of the Government’s Green Iron and Steel Strategy
- the launch of the Green Iron Expression of Interest process
- access to a series of industry events that will allow companies to work closely with the Government to advance green iron projects.
Keep up to date with South Australia's Green Iron opportunity
You will find more information about the development of South Australia's Green Iron opportunity in the investment section of the Department for Energy and Mining website