The federal government will open applications next month for the first tranche of its $1 billion Green Iron Investment Fund, with at least $500 million available under the National Development Stream to support large-scale projects that can help build a domestic low-emissions iron industry.
The guidelines, released over the weekend, confirm applications will open on October 28 and will close on January 16 next year.
Prime Minister Anthony Albanese first announced the Green Iron Investment Fund in February as part of the government’s Future Made in Australia (FMiA) agenda, which is aimed at reshaping industry policy around critical minerals, green hydrogen, low-carbon fuels and clean manufacturing.
The National Development Stream will back both upgrades to existing facilities and new greenfield projects, provided they can show a clear pathway to commercial-scale production by 2031.
Funding is targeted at big-ticket items like plant and equipment, site works, technology rollout and securing customers. The grants are open to Australian-registered entities, with joint bids allowed under a lead applicant, and must be applied to well-developed projects, defined as “at least at readiness level 7”.
Applicants will also be required to provide a community benefits sharing plan aligned with the Future Made in Australia Act 2024 principles – covering local jobs, skills, First Nations participation, and strengthening local supply chains.
“Green iron is a major opportunity to grow Australia’s iron ore industry and build a new industrial sector,” Industry and Innovation minister Tim Ayres said on Saturday. “This $500 million investment lays the foundation for a multibillion-dollar industry and thousands of good, secure jobs.
“Not only will it boost regional economies, but it will also cut emissions and help Australia deliver on its climate targets,” Senator Ayres said.
The carve-out for green metals earlier this year was announced just days after the Trump administration confirmed new tariffs on Australian steel and aluminium exports.
While these exports making up less than 0.2 per cent of total trade, the move has underscored the government’s continued push to de-risk Australia’s metals sector by shifting to higher-value, low-emissions production that Accenture’s 2023 Sunshot report predicts could be worth $122 billion annually by 2040.
Applications will be assessed in a two-stage process, with a Technical Assessment Panel examining technological viability and decarbonisation potential, followed by a Commercial Viability Assessment Panel to test financial models, partnerships and market demand.
Final grant approvals will be made by Cabinet, with successful applicants required to reach a final investment decision within 18 months of contract execution.
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