The Future of Green Steel in Australia

Much of the Australian industry is built on steel, and Australia’s booming steel industry is only set to accelerate into the future.

As climate change conversations escalate, there is rising interest in reducing the steel industry’s carbon footprint. It’s no secret that steel can be carbon-intensive. Is there a way to reduce greenhouse gas emissions, create new jobs and work towards a carbon neutral tomorrow?

There’s growing evidence to say it’s possible!

What is Green Steel?

Green steel is carbon-neutral steel, produced using renewable energy sources, rather than fossil fuels. It’s a relatively new discussion, and there is a global race to lead the way.

Green steel would solve a little problem called Australia’s “climate policy conundrum”: balancing the interests of our regional communities, carbon workers, and our vital Aussie steel industry, with strong action on climate change.

It could spell positive news for the Australian economy for a number of reasons. While Australia makes 28% of the world’s iron ore, it only generates 0.3% of the world’s steel supply. If we lead the way and invest in green steel, Australia could be sitting on a multi-billion dollar opportunity.

Manufacturing green steel in Australia lowers our reliance on overseas imports – which is essential post-COVID when the global supply chain is in disarray. It also provides new opportunity for local businesses to export local product. Not only will renewable energy provide a relatively cheap source of local energy, but excess energy can be exported overseas via underwater cables for extra revenue. All of this equals an extra boost for our Australian economy.

Green steel is a huge opportunity. So how might we make it a reality?

Hydrogen Powered Steel Production

Using Hydrogen as an energy source for steel production is a relatively new concept, but the science behind it is strong. If you use renewable energy sources to run an electric current through water to separate the oxygen and hydrogen molecules, you can create “green” hydrogen. So, what do you do with this? Make more green steel, of course.

For true green steel, you need a carbon-free reductant. Currently, Metallurgical coal powers the blast furnaces that transform iron ore into steel. If those furnaces are powered by hydrogen instead, we could make steel with nearly zero emissions. The only by-product of hydrogen power is water, which can be safely used elsewhere.

The technology behind this plan has already been tested and proven in Sweden and Germany, with new hydrogen-powered blast furnaces showing great results. Australia could be the next green steel powerhouse if it changes just one element of the process.

Big Country, Big Opportunity

Renewable power sources like wind and solar are a shortcut to green manufacturing of local commodities – and steel is a prime example.

Mixing both solar and wind power is a more dependable solution. If the suns not out, it’s likely to be windy. With Australia’s abundance of land, there’s plenty of room to tap into this opportunity. A report from the Grattan Institute shows there’s over four million square kilometres of available space that could be used for “good co-existing wind and solar”:

“Australia’s abundant solar and wind resources are well suited to making hydrogen, the key energy input to making green steel from renewable energy,” the Grattan Institute report says.

“And Australia’s lower-cost green hydrogen will make it a better place to produce green steel than places like Japan or Indonesia.”

Green Shoots for Green Steel

Analysts predict that transitioning to this new, renewably-sourced steel landscape will create almost 50,000 new jobs in the industry.

With green steel opening up new market opportunities and growth for local industry, as well as the added benefit of helping Australia reach our climate change targets, it’s no wonder that the technology is drumming up interest.

Stay tuned for more about the exciting future of green steel.

About ShapeCUT

Over the past 25 years, ShapeCUT has been delivering quality profile cutting to metal fabricators and manufacturers servicing the transport, mining and construction industries.

Today, we are Queensland’s largest privately owned metal processing firm with 14 modern machines, the largest stock of steel plates on the market, and a custom-built job processing system all backed by a dedicated and experienced team.

Call us today on 1800 SHAPECUT to discuss your steel cutting requirements.