Australia stands on the precipice of a $400 billion annual export opportunity but market failures are holding back investment in green iron production. This report demonstrates how – with government policies that address market failures – green iron produced in Australia can compete with fossil fuel based iron production. At full scale, green iron exports could exceed the current value of iron ore exports by a factor of four, delivering long term economic prosperity.

The report presents detailed economic modelling of green iron production across key Australian regions: the Pilbara, Geraldton, Kwinana, Eyre Peninsula and Gladstone. With soundly-based policies, green iron producers in a number of Australian locations would be able to compete with carbon-intensive iron in the international market.

The report is accompanied by an executive summary, a chart data pack and information about the modelling used.

Policy recommendations

• A green iron production tax credit to simulate the effects of a carbon price, with a proposed value of at least $170 per tonne of green iron.
• Capital grants covering up to 30% of investment costs for early green iron projects.
• Public investment in essential shared infrastructure, including electricity transmission, hydrogen pipelines, ports and water supplies.
• Diplomatic engagement to establish international demand for green iron in Japan, South Korea, Europe, China and Southeast Asia.