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Australia, the land of iron ore exports, faces a green reckoning

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By illuminem briefings

· 2 min read


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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