Want to know more about the history of industry developed in Australia and our region? I've got good news! You can find heaps more in our Forging our Future report launched in December 2024 - www.springmountadvisory.com.au/industry - ThreadSky

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tomquinn.bsky.social • 13 days ago

Want to know more about the history of industry developed in Australia and our region?

I've got good news!

You can find heaps more in our Forging our Future report launched in December 2024 - https://www.springmountadvisory.com.au/industry

Comments

tscmacdonald.bsky.social•13 days ago

Everything you've said is true from a physical perspective, but the economics of green steel remain very challenging at achievable H2 costs of ~AUD$6-9/kg and without an economy-wide price on carbon. Safeguard does nothing here, and the FMIA PTC isn't enough - is there anything Australia *can* do?

tomquinn.bsky.social•13 days ago

Good points - will address this shortly!

tscmacdonald.bsky.social•13 days ago

Cheers. I want to see this stuff work - I think we all do - but without a mandated carbon price, it's just really hard to see voluntary green premiums for commodity steel getting anywhere near where they'd need to be for this to stack up.

tomquinn.bsky.social•13 days ago

Yep, without a carbon price (or an Asia wide CBAM) we need to go the long way around the block with subsidies - but around the block we go regardless.

tscmacdonald.bsky.social•13 days ago

But what's the point of subsidising an export industry with no buyers (yet) and no clear sense of when there will be buyers? Isn't that just throwing money away?

tomquinn.bsky.social•13 days ago

Japan's subsidy will stimulate the demand side - car making consumes ~12% of total global steel production, and the industry is best positioned to recover any price premium from buyers.

Basically, we need to push in from both the supply and demand sides to stimulate green iron production.

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