South Australia seeks partners for major green iron plans 

The South Australian government is planning to establish a hydrogen-based direct reduction iron (DRI) plant in the state by the end of the decade and is seeking partners to get the project off the ground.

South Australian Premier Peter Malinauskas announced that an expressions of interest process would commence in June, seeking involvement from businesses to jointly investigate the development of a hydrogen-based DRI plant in South Australia.
“The world needs steel, and as it seeks to decarbonise, it will increasingly need green iron and steel,” he said. 

“We have the key ingredients for a DRI plant in the Upper Spencer Gulf – an unrivalled resource of magnetite, and soon, a supply of renewable hydrogen, produced using our spectacular wind and solar resources. 

“This is our moment – an opportunity to build a new industry, to deliver exactly what the world needs, growing jobs and prosperity in our state.” 

The SA Government will undertake a commercial de-risking study, a crucial first step in using the State’s natural endowment of quality iron ore to provide green iron to the world.

Findings will help determine the specialised industrial precincts and supporting infrastructure required to de-risk investment in green iron and steel in South Australia. 

South Australian Mining Minister Tom Koutsantonis says “South Australia has an incredible opportunity before it to grow the state’s wealth on the back of a green re-industrialisation, featuring critical minerals like copper, and green iron and steel”. 

“But it won’t just happen – we are not resting on our laurels,” he said. 

“We are actively looking to partner with industry to make sure South Australia is the best place for investors to do business.” 

DRI plants provide an alternative to using coal fired furnaces to convert iron ore to steel using renewable sources, such as hydrogen, to reduce emissions from the process by 95%.??
The output of DRI, hot briquetted iron, also has significant advantages in the steelmaking process, including higher iron content, lower impurities, and improved process efficiency, when compared with using traditional iron ore in producing steel.

The South Australian Government says it is well placed to take advantage of the green steel opportunity, through its access to magnetite (the type of iron ore used in DRI technology) and its leadership in establishing an advanced hydrogen industry (the type of fuel used in DRI technology).