the absence of oxygen) production plants with feedstock plantations, both adjacent to green steel plants. Such operations offer an additional carbon neutrality value since perennial crops harvested as feedstock, store more carbon than is later is released through pyrolysis and steel making processes. These operations offer another regional investment opportunity linking agricultural and industrial employment opportunities much as coal mining and coal-fired power plants once created business synergies. Australian researchers recently found step-change efficiencies in electrolysis that suggests green hydrogen as the more likely feedstock for hydrogen-based iron smelting. 29 This will need to be replicated at scale to attract investment required to transition from carbon intensive technologies. For Australia to produce steel at a globally meaningful scale, the carbon offset value, 30 plus reduced shipping costs will need to be greater than the economies of scale of the present system of bulk shipping ore to offshore steel producers.
29 Australian Financial Review (16 March 2022) ”Hydrogen under $2 in reach as Hysata develops revolutionary process” www.afr.com/companies/energy/hydrogen-under-2-in-reach-as-hysata-develops-revolutionary-process-20220315-p5a4te 30 Carbon import tariff savings for some major markets plus the carbon offset value of reduced transport kilometres and the carbon offset value of green steel manufacturing.
36 | WA Investment Prospectus
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