The Chamber of Minerals of Energy of WA (CME) acknowledges today's announcement of a $2 billion production credit for aluminium smelting, which shows the Federal Government is serious about supporting the decarbonisation of heavy industries.
Aluminium has been made in Australia for 70 years. The industry generated $18 billion in 2024 and employs thousands of Australians in regional communities, including in WA through bauxite mining and alumina refining.
CME Acting Chief Executive Officer Adrienne LaBombard said the credit was a positive step towards safeguarding Australia's aluminium industry but additional measures targeting other commodities were also required.
"We hope this announcement is the first of more to come, specifically supporting the development of other green materials in WA, such as green iron and green alumina," Ms LaBombard said.
"Maintaining Australia's existing upstream and downstream industry while seizing the new opportunities on offer through the energy transition will require ongoing and holistic policy support.
"It's pleasing to see the aluminium incentive is structured to be stackable with other incentives proposed as part of the Future Made in Australia Plan.
"CME is continuing discussions with the Federal Government for a green iron production credit that is also stackable with other proposed incentives, such as the $2 per kilogram hydrogen PTI."
A CME report released in December found large-scale production of green iron in WA had the potential to slash global CO2 emissions by 1.2 per cent, create nearly 20,000 jobs and generate $74 billion in economic value.
However, establishing a green iron industry of that scale requires the commercialisation of new technologies and processes as well as significant public and private investment in low-emission energy and supporting infrastructure such as ports, roads and desalination plants.
"Our report found WA-made green iron, produced with hydrogen instead of coal, has the potential to offset nearly all of Australia's 465Mt of domestic CO2 emissions by 2050," Ms LaBombard said.
"Industry is already investing to unlock the immense potential on offer but will require government support.
"That must include an expansion of R&D funding, further tax incentives and substantial additional investment in lowering the cost of low-emissions energy and the rollout of common-user infrastructure."
