$1 billion Green Iron Fund announced, with half earmarked for Whyalla Steelworks

The federal government has announced a $1 billion Green Iron Fund, aimed at encouraging investment in green iron and steel production at new and existing sites, with half of this money to aid in the transition of the collapsed Whyalla steelworks in South Australia.

In a statement on Thursday – coinciding with a broader package of support announced for Whyalla – prime minister Anthony Albanese and industry minister Ed Husic said the Green Iron fund will “boost green iron manufacturing and supply chains by supporting early mover green iron projects” and unlock private investment.

Husic said the fund “will enable Australia to take advantage of our existing iron ore supply chain, renewable energy potential, world class research and high-skilled workforce.”

Cited was a report from Accenture suggesting a green metals industry could deliver up to $122 billion annually through export revenues by 2040, and another from the Minerals Institute of Western Australia claiming a single green iron plant could add $85 billion to gross domestic product.

No details were mentioned in the statement about the size of individual grants (or if the support would be in the form of grants) or conditions for applicants.

“At least $500 million” of the $1 billion would be open to applicants around the nation with support for “both existing facilities and greenfield projects”. The fund is both competitive and designed with input from the Green Metals Expert Panel, the statement added.