INDUSTRIAL
DECARBONISATION

A Greener Future for Australian Heavy Industries

Developing Industry For A Net Zero Australia

Heavy industry is a cornerstone of Australia’s transition to a net zero economy, with mining alone contributing over 8% of the national GDP in 2023–24. Sectors, including steel, aluminium, cement, and fertilisers collectively produce more than one-third of Australia’s domestic emissions. As global markets shift toward low-emissions products, decarbonisation is necessary to remain competitive.

With abundant renewable energy resources, vast mineral reserves, and advanced industrial capabilities, Australia is uniquely positioned to lead this global transformation.

Powering Australia partners with government, industry, and researchers to de-risk, accelerate, and scale clean industrial technologies and manufacturing. Our priorities are to maximise onshore value, reduce investment risk through knowledge sharing, and coordinate infrastructure to connect renewable energy supply with industrial demand.

20%

of global green iron supply could come from Australia by 2050

62M t

of low-carbon aluminium is expected to be in demand by 2030, rising from 26 million tonnes

2x

global demand for green ammonia and other hydrogen-based products is expected to more than double by 2050

SECTOR OVERVIEW

Australia has a unique capability, and a responsibility, to facilitate global industrial decarbonisation. Our abundant renewable energy resources, vast mineral reserves, and advanced industrial expertise position us to lead the transition toward a cleaner future.

Exporting raw minerals alone will not meet growing global demand for low-emissions steel, aluminium, cement, fuels, and fertilisers. By harnessing our renewable energy to process these materials domestically before export, Australia can deliver significant emissions reductions worldwide, cutting the embedded carbon of downstream products, and create more value and jobs at home.

Opportunities include using Australia’s rich iron ore reserves and green steel technology to decarbonise global steel production; leveraging vertical integration to reduce emissions and costs across the aluminium supply chain; producing low-carbon clinker and pioneering methods to reduce concrete emissions; and using renewable energy to produce green hydrogen-based fuels and fertilisers.

Renewable energy zones and emerging technologies such as hydrogen and electrification position Australia to drive this global shift. Acting now means attracting investment, creating future-focused jobs, and securing long-term economic resilience.

MAKING IT HAPPEN

We are building the ecosystem for Australia’s clean industrial future. This means supporting the development of green iron supply chains, reducing the cost stack of green hydrogen as a key enabler of heavy industry decarbonisation, lowering clinker content in cement production, and advancing the electrification of industrial processes.

We are also promoting waste heat recovery, integrating energy storage solutions, and fostering the collaboration needed to scale these innovations across sectors.

Start-ups, scale-ups, and research institutions are pioneering clean technologies that turn Australia’s abundant renewable energy and industrial expertise into lasting prosperity and resilience.

The focus now turns to delivery. By aligning technology, infrastructure, and market demand, we help industry transition swiftly and confidently. Powering Australia connects key participants across sectors to commercialise innovations and drive this industrial transformation with confidence.