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illuminem summarizes for you the essential news of the day. Read the full piece on The Washington Post or enjoy below:
🗞️ Driving the news: Australia, historically one of the largest global suppliers of iron ore, faces a critical transition as demand from China wanes and global markets push for lower-carbon steel
• South Australia, with ample magnetite deposits and renewable resources, is aiming to lead by producing "green iron" using green hydrogen, offering an eco-friendly alternative to conventional steelmaking
🔭 The context: Traditional steel production is highly carbon-intensive, with Australia’s iron ore industry reliant on emissions-heavy blast furnaces
• New EU and U.S. regulations are set to penalize high-emission imports, pressuring Australia to adapt by moving up the value chain to eco-friendly iron production
🌍 Why it matters for the planet: Steel production accounts for 10% of global CO2 emissions, and a shift to green iron is vital for achieving net-zero targets
• Australia's pivot to green steel production could drastically reduce emissions associated with the industry, setting an example for other resource-heavy economies
⏭️ What's next: South Australia’s Whyalla region plans to open a state-funded green hydrogen plant by 2026, with the goal of commercial green iron production by 2027
• As key players like GFG and Fortescue work on innovative direct reduction methods, Australia's ability to scale green steel production will determine its position in a decarbonized global market
💬 One quote: “We can build the state’s prosperity not on the back of polluting the planet, but rather saving it,” — South Australia Premier Peter Malinauskas
📈 One stat: Three-quarters of South Australia's power already comes from renewable sources, positioning it to reach 100% by 2027
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