Green steel given pride of place in major govt projectsJennifer Dudley-NicholsonAAPMon, 10 November 2025 10:46AM
Major government projects from railways to hospitals will be expected to use green steel in Western Australia after the government announced requirements to support the emerging industry.
Infrastructure projects must preference green steel made in the state under the changes announced on Sunday, which have been described as an “if not, why not” approach.
The move comes after the federal government announced a $1 billion Green Iron Investment Fund to support the industry and after applications for grants opened in September.
Green iron is produced using renewable energy resources such as solar and wind power rather than coal or gas, and has the potential to cut 90 per cent of emissions from the steelmaking process.
Green metal projects are currently under way in the Pilbara, Geraldton and Kwinana in WA, with Fortescue’s Christmas Creek project expected to begin production of green iron late in 2025.
Under the rule changes, green steel produced in WA should be used in major government infrastructure projects to support local manufacturers, Premier Roger Cook said.
“This announcement is a signal of intent to this new green steel industry – we want you here,” he said.
“We want to decarbonise and we want the jobs it creates to kick off a whole new industry for WA by using the power of government procurement.”
The green metal could be used in developments including railways, roads, transmission lines and hospitals, he said, and the government would also issue directions to energy companies Western Power, Synergy and Horizon Power.
The change in policy would send a clear signal to manufacturers about the potential of green metal investments, WA Energy Minister Amber-Jade Sanderson said.
“Seizing this opportunity will show that decarbonisation and industrial strength go hand in hand,” she said.
“We do not need to choose between clean energy and jobs.”
The announcement was welcomed by Superpower Institute chair Rod Sims, who called the move a big step towards Australia’s development of a green metals industry.
“While the focus is on green steel in WA’s government-funded infrastructure projects, this will create market confidence in building out WA’s green iron industry,” he said.
The nation could generate $386 billion a year by 2060 and cut about four per cent of global emissions by investing in the environmentally friendly metal, a report into Australia’s green iron prospects by the institute found.
The production of green iron has been hampered by the failure of green hydrogen projects, however, with plans cancelled in Queensland and South Australia.
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