Green steel supply chain options between Australia and Japan

Output Type: Exploring for the Future Extended Abstract

Short Abstract: The global push towards decarbonisation may disrupt existing steelmaking supply chains. While this presents opportunities for Australia, it remains an open question as to what the country’s role should be within new international value chains. Here, we examine green steel production and export strategies between Australia and Japan, comparing different exports from raw material feedstocks to end products. We assess five scenarios in 2030, involving Australian exports of green steel, hot briquetted iron, green ammonia, liquid hydrogen, and/or iron ore pellets. The export of iron ore pellets for Japanese processing using offshore wind is most expensive (~AU$1500/tonne). Although, direct steel production is most economical (~AU$1000/tonne) due to lower energy costs from holistic system optimisation, exporting hot-briquetted iron or HBI (~AU$1032/tonne) balances Australia’s resources with Japan’s steel manufacturing expertise. The liquid hydrogen and ammonia pathways incur substantial energy losses from conversion and reconversion processes, making them less competitive. Trade partnerships across the value chain enhance sustainability and economic feasibility of international green steel manufacturing.

Citation: Wang, C., Walsh, S.D.C., Haynes, M.W., Weng, Z. & Feitz, A., 2024. Green steel supply chain options between Australia and Japan. In: Czarnota, K. (ed.) Exploring for the Future: Extended Abstracts, Geoscience Australia, Canberra, https://doi.org/10.26186/149413