BHP, the world’s top miner, says that creating a green iron industry in Australia powered by hydrogen or biomass is currently twice as costly as similar efforts in China or the Middle East—even with federal aid . Despite a A$1 billion government subsidy, Australia’s remote geography, high energy costs, and labour expenses undercut competitiveness. Still, BHP joined Rio Tinto and BlueScope in a joint pilot plant initiative, targeting green iron production by 2028. The company will not fully integrate into green steel itself; instead, it plans to partner strategically. Meanwhile, Fortescue continues to ramp up its own green iron efforts. This shift highlights the global challenges of building cost-effective, hydrogen-powered steel production outside lower-cost regions.
