The government of the State of Western Australia (WA) will purchase low-emission steel from local producers to support the developing industry.
Today it became known that the state has expressed interest in the production of ready-to-use steel products with low emissions. The Washington State government will use steel in infrastructure projects and public works.
The government also announced plans to change procurement rules in favor of local steel producers.
Currently, there is only one low-emission steel production project in Washington State. In April, Australian manufacturer Green Steel of WA (GSWA) received permission to build a mini-plant based on an electric arc furnace. Construction of the plant will begin in 2026, and from 2027 it will produce 450,000 tons of rebar per year using scrap steel.
WA's low-emission steelmaking industry focuses on the production of direct reduction cast iron based on hydrogen and natural gas (DRI). and hot briquetted cast iron (HBI) — unlike scrap-based EDP projects - in recent years. DRI and HBI are the raw materials for steel production.
The new Washington state government plan will strengthen confidence in creating an environmentally friendly steel industry in the state, the Australian think tank Superpower Institute said today.
Over the past year, Australian state and federal governments have provided direct support to several WA-based HBI and DRI projects.
The Washington State government has invested $75 million ($49 million) in the Australian NeoSmelt Clean Iron Consortium — manufacturing up to five major steel and energy companies — in late 2024 to support a 30,000-40,000-ton-per-year DRI plant.
In June, the federal government similarly awarded NeoSmelt a grant of $19.8 million. In February, the $1 billion Green Iron investment fund was also established to support early-stage projects.
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