Federal Government Supports Decarbonisation of Heavy Industries in Australia
Key Ideas
- The Federal Government announced a $2 billion production credit for aluminium smelting to support decarbonisation efforts in heavy industries.
- CME welcomes the credit as a positive step towards safeguarding Australia's aluminium industry and calls for similar support for other commodities like green iron and green alumina.
- A CME report highlighted the potential of WA-made green iron produced with hydrogen to significantly reduce CO2 emissions, create jobs, and boost economic value.
- Establishing a green iron industry at scale necessitates technological advancements, public-private investment in low-emission energy, and infrastructure development.
The Chamber of Minerals of Energy of WA (CME) has expressed appreciation for the Federal Government's allocation of a $2 billion production credit for aluminium smelting aimed at aiding the decarbonisation of heavy industries in Australia. This move is seen as a commitment to supporting the existing aluminium industry, which contributes significantly to the country's economy and employment in regional areas, particularly in WA through bauxite mining and alumina refining.
Acting Chief Executive Officer of CME, Adrienne LaBombard, praised the initiative as a crucial step but emphasized the need for additional measures to support the development of other green materials such as green iron and green alumina in Western Australia. The industry is advocating for ongoing policy support to maintain and expand the sector while capitalizing on the opportunities presented by the energy transition.
CME is engaging with the government for the introduction of a green iron production credit that aligns with other proposed incentives, including the $2 per kilogram hydrogen Production Tax Incentive (PTI). A recent CME report highlighted the potential benefits of large-scale production of green iron in WA, including a significant reduction in global CO2 emissions, job creation, and economic growth.
The report underscores the importance of innovative technologies, substantial investments in low-emission energy, and the development of supporting infrastructure like ports and desalination plants for establishing a green iron industry. The shift towards producing green iron with hydrogen presents a promising avenue for significantly offsetting Australia's domestic CO2 emissions by 2050.
Industry stakeholders are already investing in unlocking this potential but stress the necessity of government support through expanded research and development funding, tax incentives, and investments in cost-effective low-emission energy and infrastructure.
Topics
Oceania
Technology
Job Creation
Economic Development
CO2 Emissions
Policy Support
Government Collaboration
Aluminium Industry
Green Materials
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