The Australian government has released guidelines for the National Development Stream of the Green Iron Investment Fund, providing eligible businesses with an early opportunity to prepare their applications. The program offers $500 million in grant funding to support the growth of a domestic green iron industry, aiming to position Australia as a leader in sustainable manufacturing.
The broader $1 billion Green Iron Investment Fund is designed to attract private investment and build a robust green iron sector. Half of the fund is allocated to applicants across Australia through the National Development Stream, while up to $500 million is reserved for transforming the Whyalla Steelworks. The National Development Stream will specifically support early-mover projects ready to begin commercial-scale green iron production by 2031, helping cover capital costs for new manufacturing facilities.
With global demand for green iron increasing, the initiative represents a strategic opportunity to develop a multibillion-dollar manufacturing industry in Australia. According to a 2023 Accenture report, a domestic green iron and steel industry could contribute up to $96 billion annually to the country’s export revenue by 2040. Producing green iron locally will also help Australia meet global and domestic decarbonization targets, as conventional ironmaking contributes significantly to global greenhouse gas emissions.
The Whyalla Steelworks stream will provide up to $500 million to support the establishment of a green iron facility under new ownership. This initiative aims to enable the long-term transformation of the South Australian steelworks, which is currently in administration, with details of the investment subject to negotiation with prospective buyers.
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