Billionaires back Adelaide Uni’s push for ‘green steel’ research hub to cut resource industry carbon emissions

Billionaires Sanjeev Gupta, Andrew Forrest and Gina Rinehart are backing a push for a new Adelaide ‘green’ steel and iron research hub that would create hundreds of jobs.

Three of the nation’s biggest resources billionaires – Sanjeev Gupta, Andrew Forrest and Gina Rinehart – are backing a new research hub to be built in Adelaide aimed at slashing carbon emissions to transform Australia into a ‘green’ steel and iron giant.

It could put South Australia at the heart of the race to develop technological solutions to combat climate change.

Adelaide University, which is driving the bid to establish the hub, estimates the research would help Australia pivot to producing ‘green’ materials that could create $48.7b a year for the economy.

It also predicts 92,000 new jobs could be created over the next decade through companies transitioning to the low-carbon processes.

Producing more ‘green’ steel, iron, cement and zinc could also help grow Australia’s exports to countries like Japan and Korea, which have declared goals of reaching ‘net zero’ by 2050.

Sanjeev Gupta, executive chairman of the GFG Alliance. Picture: Renee Nowytarger / The Australian

Mr Forrest’s Fortescue Metals Group, Ms Rinehart’s Roy Hill company and Mr Gupta’s Liberty Steel Group are core partners financially backing the Heavy Industry Low-carbon Transition Cooperative Research Centre [HILT CRC].

Mr Gupta, owns the Whyalla steelworks, has previously declared he wants his global steel production to be carbon neutral by 2030.

About 2500 jobs could be created in SA, WA and Tasmania through new research on magnetite pellets, Adelaide University’s Centre for Energy Technology director Gus Nathan said.

It’s estimated new hematite iron ore products could create 1000 jobs in WA and SA, while premium alumina products could help retain 3600 jobs in WA and Queensland.

Developing alternative construction materials could also generate about 250 jobs in SA, New South Wales and Queensland. 

Roy Hill chair Gina Rinehart. Picture: Supplied

About 30 PhDs and 50 researchers will also be employed on the research program.

“The driver is that the world is now generally committed to carbon neutral by 2050, and this means that there’s investment to make the transition,” Professor Nathan said.

Australia’s abundant mineral and renewable energy resources would give it a competitive advantage to ‘value-add’ to products such as steel, cement, zinc and iron, he said.

“Already we’ve got green buildings, and we know that people will pay more for six-star buildings – that doesn’t yet include carbon-neutral cement, but it will do,” Prof Nathan said.

“Also, you can’t yet buy a carbon-neutral car because our steel is not carbon neutral … but the market for that will come.

“Being able to make all those things ‘green’ means that there’s going to be higher value for green cement, green steel, green aluminium and Australia’s well placed to capitalise on it, and South Australia is absolutely one of the potential beneficiaries because we’ve got great renewable energy resources.”

In SA, the Whyalla steelworks and Adelaide Brighton Cement, the nation’s largest cement producer, which is based at Port Adelaide, could benefit from the research.

Andrew Forrest touring the RM Williams manufacturing floor in Salisbury. Picture: Keryn Stevens

The HILT CRC could be based at Lot Fourteen or near Adelaide University.

It’s one of five short-listed proposals being considered by an independent panel to receive Federal Government funding.

Industry and research partners have already signed on to contribute almost $40 million, and the CRC is seeking an additional $40 million in Commonwealth funding through the CRC Grants Program.

Alcoa, Boral, the CSIRO, Adelaide University, Curtin University, the Australian National University, Adbri, South 32 and Grange Resources are also core partners for the CRC.

The Federal Government is expected to announce a decision in March or April.

Research projects will begin by September if the bid is successful.

FMG chief executive Elizabeth Gaines said: “Climate change is the most pressing issue facing our generation and Fortescue is committed to tackling this challenge with our ambitious goal to achieve net-zero operational emissions by 2040.

“Promoting a culture of ongoing collaboration is critical to ensuring we are in a strong position to take the lead and tackle the challenges associated with climate change.”