Can Australia green its heavy industry? It’s hard – but necessary |
Australia is rich in minerals, metals, sun and wind. Iron ore, copper and critical minerals are all mined here and largely exported overseas to be turned into products such as steel, fertiliser, fuel and infrastructure. Mining and heavy industries create jobs and wealth. But their emissions are some of the hardest to cut.
This is changing. Steel can now be made without coal. Hydrogen can be made using water and renewable power rather than from gas.
The Australian government wants to create greener export industries. It hasn’t been easy. Green hydrogen is proving difficult to finance and scale, while the development of green iron is moving slowly. Interest has grown in green fuels such as biodiesel during this year’s energy crisis, but progress remains slow.
But hard doesn’t mean impossible. To make new exports competitive, policymakers should create green hubs close to renewables and where resources can be shared.
Precincts, not projects
To make enough green iron, green ammonia and green fuels to export, Australia will need large renewable energy zones, energy storage, hydrogen production, water supply and port infrastructure. Much of this already exists or is being scaled up. The problem is coordination.
If every company builds its own separate systems for power, water and transport, costs rise and........