POWER!!!! Fortescue Future Industries, page-6087

Now is the time for the ALP to be bold.

Australia is positioning itself to capitalize on the growing global demand for green iron, with a recent report highlighting its potential to become a $400 billion export industry. The push is being led by an economic think tank founded by prominent economists Ross Garnaut and Rod Sims, who argue that significant government support will be needed to secure investment in this emerging sector.

Key Points:

1. Green Iron Potential

   • Green iron is produced using renewable energy (such as hydrogen) instead of coal, drastically reducing carbon emissions compared to traditional iron production.

   • Australia, with its abundant iron ore reserves and strong renewable energy capacity, is well-placed to become a global leader in green iron.

2. $400 Billion Export Opportunity

   • The think tank estimates that green iron could grow into a $400 billion annual export industry for Australia, rivaling current fossil fuel exports.

   • This would help diversify the economy and reduce reliance on coal and gas.

3. Need for Government Support

   • Garnaut and Sims argue that taxpayer funding (via subsidies, tax breaks, or infrastructure investment) will be crucial to attract private investment.

   • Without policy incentives, Australia risks losing out to competitors like the EU, Middle East, or China, which are also investing heavily in green steel/iron.

4. Global Decarbonization Drive

   • As steelmakers worldwide seek to cut emissions, demand for low-carbon iron is expected to surge.

   • Australia could supply green iron to major markets like Japan, South Korea, and Europe, which are pushing for cleaner industrial materials.

Challenges Ahead:

• High costs: Green hydrogen and renewable energy infrastructure require massive upfront investment.

• Competition: Other iron-producing nations are also vying for leadership in green steel.

• Policy uncertainty: Clear, long-term government commitments will be needed to reassure investors.

Bottom Line:

If Australia acts quickly with strategic public-private partnerships, it could dominate the green iron market, securing a major new export industry while supporting global decarbonization efforts. However, delays or insufficient policy support could see the opportunity slip away.