By: Sameer Usmani

Green steel, produced through the innovative combination of hydrogen and electricity derived from renewable energy sources, stands as a transformative solution for decarbonizing the steel manufacturing sector. This sustainable approach not only aligns with global efforts to combat climate change but also provides a catalyst for the international growth of the hydrogen industry. Australia, with its abundant renewable resources and extensive iron-ore deposits, finds itself in a strategically advantageous position to lead in the production of green steel. This article explores the synergies between Australia's iron-ore industry and the production of green hydrogen from renewable sources, identifying high-potential regions for green steel production. Two key regions, the Pilbara in North-Western Australia and the Eyre Peninsula in South Australia, are selected for more detailed case studies.

Australia's vast renewable resources, coupled with its substantial iron-ore deposits, present a unique opportunity to play a pivotal role in the global transition to green steel. The intersection of these two critical elements positions Australia as a key player in a sustainable and low-carbon future for steel manufacturing.

To pinpoint regions with the highest potential for green steel production, a comprehensive analysis is conducted by cross-referencing current and future ironore extraction sites with areas exhibiting high economic potential for hydrogen production. The goal is to identify areas where both activities can synergize, creating optimal conditions for sustainable and economically viable green steel production.

Case Studies: Pilbara and Eyre Peninsula!

Pilbara Region
Renewable Resource Assessment: An evaluation of the Pilbara region's solar and wind potential is conducted to determine the feasibility of green hydrogen production.
Iron-Ore Extraction Sites: Mapping existing and potential iron-ore extraction sites in the Pilbara region.
Economic Potential: Assessment of the economic viability of green steel production in the Pilbara, considering factors such as infrastructure, labour, and market access.

Eyre Peninsula
Renewable Resource Assessment: Similar to the Pilbara case study, an assessment of solar and wind potential for green hydrogen production is conducted.
Iron-Ore Extraction Sites: Mapping existing and potential iron-ore extraction sites on the Eyre Peninsula.
Economic Potential: Evaluation of the economic feasibility of establishing green steel production in the Eyre Peninsula.

Optimization Strategies
The analysis emphasizes the advantages of a well-optimized generation mix, encompassing wind, solar, battery storage, grid connection, and salt cavern storage. This optimized mix aims to decrease storage requirements and subsequently reduce production costs. Additionally, the article demonstrates how green steel production costs can be minimized by utilizing grid electricity to balance onsite renewable power through participation in the electricity spot market and flexible operational approaches.

Australia's opportunity to lead in green steel production is not only environmentally significant but also economically promising. The synergies between the iron ore industry and green hydrogen production open new avenues for sustainable steel manufacturing. The case studies of the Pilbara and Eyre Peninsula provide valuable insights into the feasibility and potential challenges of establishing green steel production hubs. As the world seeks innovative solutions to combat climate change, Australia's role in pioneering green steel production is paramount. The optimization strategies presented underscore the importance of a well-balanced generation mix and flexible operational approaches to enhance cost-effectiveness. In conclusion, Australia's strategic positioning and commitment to sustainable practices make it a frontrunner in the global transition towards greener and more environmentally responsible steel production.