Green light for green steel projects in the Pilbara
The Western Australian Government has approved land allocations for green steel and green industrial projects in the state’s Pilbara region. Land in the Ashburton and Boodarie Strategic Industrial Areas has been allocated to companies including South Korean steelmaking giant POSCO and Fortescue Metals Group.
The development is expected to contribute to the diversification of WA’s economy and create new jobs. Growing a local advanced manufacturing industry is regarded as crucial to WA’s economic future. The POSCO and Fortescue land allocations were part of a larger package that provided land to projects to produce renewable energy, green hydrogen, ammonia, methanol, lithium hydroxide and lithium sulphate. These land allocations exemplify the type of international trade and investment partnerships needed to deliver Australia’s commitment to reach carbon net zero by 2050.
POSCO has been buying Australian iron ore and coal for 50 years and is one of the largest private customers of Australian exports. At its site, POSCO plans to use green hydrogen to produce a type of iron pellet known as hot briquetted iron. These pellets can then be processed through renewable electric steel furnaces to produce green steel. POSCO announced in December 2022 that it planned to invest US$40 billion in environmental projects in Australia before 2040, including US$12 billion on green steel production. These investments will form part of POSCO’s efforts to fulfil its net zero pledge. POSCO aims to reduce emissions by 10 per cent by 2030, 50 per cent by 2040, and achieve net zero by 2050 through use of hydrogen and renewable energy in steel production.
Fortescue Metals Group intends to develop a fully integrated green iron production facility as part of a Green Products Precinct at their Boodarie land grant. Fortescue Metals Group has significant interests in green iron production, including a December 2022 memorandum of understanding signed with voestalpine, Mitsubishi Corporation, and Primetals Technologies. It aims to design and engineer an industrial-scale prototype plant in Linz, Austria. Fortescue Metals Group is also conducting research into the technologies needed to produce high-purity green iron ore though its subsidiary, Fortescue Future Industries.
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business envoy
Department of Foreign Affairs and Trade
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