Australia’s whyalla could become global green steel production hub as government faces critical decision

The South Australian city of Whyalla is emerging as a potential world leader in environmentally-friendly steel production, presenting both federal and state governments with a crucial test of their commitment to clean energy manufacturing.

According to industry experts Rod Sims and Baethan Mullan, Whyalla possesses a rare combination of resources that could make it the most cost-effective location globally for producing “green iron” – steel made using renewable energy instead of coal. The city benefits from access to low-cost clean energy, abundant high-quality magnetite ore that’s ideal for green steel production, established port infrastructure for shipping, and a workforce already skilled in steelmaking operations.

Green iron production represents a revolutionary shift in steel manufacturing, replacing traditional coal-fired blast furnaces with hydrogen-powered processes that dramatically reduce carbon emissions. As the steel industry accounts for approximately 8% of global carbon emissions, this transition is critical for meeting international climate goals.

The convergence of these advantages positions Whyalla uniquely in the global race to establish clean steel production. However, realizing this potential will require significant government support and investment in new technologies and infrastructure. The decision facing Australian policymakers extends beyond regional economic development – it’s fundamentally about whether the country will seize leadership in the emerging green manufacturing economy or allow other nations to dominate this crucial clean technology sector. For Australia’s broader energy transition goals and “future made in Australia” vision, Whyalla represents both an opportunity and a defining moment.