W Australia announces low-CO2 steel support plan

Market: Metals
10/11/25

Western Australia's (WA) state government will buy low-emission steel from local producers to support the developing industry.

The state has issued an expression of interest for offtake-ready low-emission steel products, it said today. WA's government will use the steel in infrastructure and government works projects, it added.

The government has also announced plans to change procurement rules to favour local steelmakers.

There is currently only one low-emission steel project in WA. Australian producer Green Steel of WA (GSWA) got approval to build an electric arc furnace-based mini mill in April. It will start building the plant in 2026 and produce 450,000 t/yr of rebar using scrap steel from 2027.

WA's low-emission steelmaking effort has been focusing on hydrogen and natural gas-based direct reduction iron (DRI) and hot-briquetted iron (HBI) — rather than scrap-based EAF projects — over recent years. DRI and HBI are iron inputs into the steel production process.

The WA government's new plan will create confidence in building out the state's green iron industry, Australian think tank the Superpower Institute said today.

Australian state and federal governments have directly supported multiple WA-based HBI and DRI projects over the last year.

WA's government invested A$75mn ($49mn) into Australian green iron consortium NeoSmelt — made up of five major metal and energy companies — in late-2024, to support a 30,000-40,000 t/yr DRI plant.

The federal government similarly awarded NeoSmelt a A$19.8mn grant in June. It also created a A$1bn Green Iron Investment Fund to support early-stage projects in February.

By Avinash Govind

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W Australia announces low-CO2 steel support plan

Related news posts

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