Study weighs up Pilbara’s green iron age opportunity  

A report released by think tank Climate Energy Finance (CEF) has claimed that decarbonising the Pilbara region of Western Australia is key to doubling Australian iron exports by value to $250 billion.

The report, SUPERPOWERING-UP, was released on Tuesday and warns against continued inaction in greening the Pilbara’s energy supply. 

According to the report, only 2 per cent of the region’s electricity is from renewables, with “[f]ragmented corporate energy production and grid transmission structures” standing in the way of progress.

It identifies a single common-user electricity grid infrastructure (CUI) as the key ingredient in decarbonising the region, unlocking “$50-100bn of new investment in renewables, battery firming and transmission” and “”embodying decarbonisation” in exports, according to a statement from CEF.

“A common-user infrastructure grid in the Pilbara would enable investment at speed and scale, and encourage collaborative efforts to value-add our iron ore ‘rivers of gold’ whilst they are still world-leading,” said the report’s co-author, Tim Buckley, who is also the CEF Director.

“The opportunities for Western Australia to lead and accelerate the development of a green steel global supply chain are huge. But the current 2% renewables grid shows Australia is lagging, stuck in the dig-and-ship mentality of the last century.

“The Pilbara is [also] strategically challenged by low-grade high-impurity haematite. It is critical that Western Australia embrace this challenge and turn it into a massive value-add opportunity.”

Among recommendations are that the federal government urgently prioritise the region for strategic national-interest public investment under the Future Made in Australia Act, as well as work with the Clean Energy Finance Corporation (CEFC) to enable concessional financing committed to WA “under Rewiring the Nation – a full year ago in August 2023 – to unlock private capital financing of a Pilbara CUI.”

SUPERPOWERING-UP can be accessed here.

Picture: credit Rio Tinto

Further reading

Trends back rebirth of Australian green iron and steel sector

Miners join manufacturers and researchers into green iron

Now Port Pirie plans to be a green iron production hub

Gupta plans expansion of Whyalla iron ore and green steel – reports