What is green iron and how can it be made in Gladstone?

The world’s shift to a cleaner economy, and increasing global demand for green materials, creates an opportunity for Australia to capitalise on our natural advantages in renewable energy to supercharge local manufacturing and minerals processing. 

Gladstone, in particular, has all the right ingredients to set up new clean industries that will future-proof the regional economy and secure good, long-term jobs. In fact, a report by ACIL Allen found that turning Gladstone into a hub for clean manufacturing would unlock $7.8 billion of new capital investment for the region and create 11,000 new ongoing local jobs by 2032. 

Companies are lining up to invest in Gladstone because of the region’s impressive renewable energy potential, infrastructure, and long history of being an energy and manufacturing powerhouse. There are proposals in the pipeline to produce renewable hydrogen and green iron close to Gladstone, and the region’s existing heavy industry is turning to renewable energy backed by storage to remain globally competitive. Rio Tinto, for example, has plans to repower its Gladstone smelter and aluminum operations with firmed renewable energy.

So, what is green iron?

At the moment Australia mines and exports a lot of raw ore, including iron ore, but we have the opportunity to create more jobs onshore by processing that ore here using renewable energy. A report by Climate Energy Finance found that Australia could double the value of its iron exports by becoming a global leader in green iron. 

At the moment most iron ore is first processed using coking coal and a blast furnace to create molten iron that can then be turned into steel. This is one of the most emissions-intensive steps on the pathway to make steel. 

But there’s another way to purify iron ore: Direct Reduced Iron (DRI) plants can use renewable hydrogen to turn iron ore into green iron – removing the need for coking coal. 

DRI plants need high-quality magnetite ore to work. Right now Quinbrook Investment Partners is working with Central Queensland Metals, who hold exploration permits for a large magnetite deposit near Gladstone, to explore if it’s feasible to set up a green iron plant locally. 

Gladstone is a strategic location to set up a new green iron industry because there are two major renewable hydrogen projects planned locally – so locally-produced green hydrogen can be harnessed to make green iron. 

How can Gladstone capitalise on these opportunities to future-proof the local economy?

It’s clear Gladstone can have a bright economic future if we seize these opportunities to turbocharge local manufacturing and clean industry. But there’s a key ingredient we need to secure new and existing industry: abundant renewable energy backed by storage. 

Queensland has a strong pipeline of large-scale solar, wind and storage projects – but there’s no guarantee that these projects will proceed in an uncertain policy environment. 

Right now the Queensland Government doesn’t have an energy plan and is considering repealing Queensland’s renewable energy targets. This will send the wrong signal to industry and indicate that Queensland is closed for business. 

What’s more, the federal Coalition’s risky nuclear scheme is nothing but a ploy to stop the renewable energy rollout. The Coalition’s own modelling shows they plan to stop any new renewable energy projects from being installed after next year, forcing us to keep coal and gas running while we wait 20+ years for nuclear.

Under Peter Dutton’s nuclear scheme, heavy industry won’t be able to access the firmed renewable energy they need to remain globally competitive.

Fossil fuels are a finite resource that our communities can’t rely on forever. Investing in Queensland’s natural advantage in renewable energy and new clean manufacturing industries is our chance for long-term security and prosperity. 

Want to take action to secure Gladstone’s clean energy future? Send an email to Queensland’s Energy Minister today. 

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