Understanding the demand for Green Steel, page-437

Australia must act quickly as overseas competition for green iron grows | IEEFA


Key takeaways
1) Australian iron ore faces growing competition in the emerging green iron market from countries and regions that produce higher-grade ore better suited to non-coal-based steelmaking.

2) The cost of shipping green hydrogen means it should be used at the place of production wherever possible. Australia has an opportunity to shift towards onshore processing of iron ore using green hydrogen to produce low-carbon iron for export.

3)The global steel sector is considering a future that involves shipping green iron rather shipping both green hydrogen and iron ore. Brazil, the Middle East and Africa are in a prominent position for producing green hydrogen-reduced iron.

4) Technology developments that allow the use of Pilbara iron ores in low-carbon ironmaking using direct reduced iron (DRI) processes need to be accelerated to prevent Australian iron ore losing market share to other countries and regions that are also eyeing this opportunity.