Simon Nicholas

Australia needs green hydrogen to fulfill its green iron ambition. Smarter subsidies are required that forget targeting green hydrogen exports and instead support realistic, domestic use in sectors that already use hydrogen, including direct reduced iron (DRI).

The South Australian government is being led by gas interests towards technology that cannot fulfill its Green Iron and Steel Strategy.

TotalEnergies is still trying to secure finance for its Mozambique LNG project amid growing controversies and risks. Global LNG markets are poised to enter significant oversupply with a glut of new capacity due to come online, questioning the need for the Mozambique project. The list of reasons the US, UK and the Netherlands should not finance the project is getting longer. Mozambique will likely be better off without it.

The steel technology transition away from coal has accelerated in recent years, with Europe leading the way, but two of Europe's leading steelmakers have recently appeared to be slowing their planned shift to lower emissions technology. This is partly because the cost of green hydrogen production hasn't declined as fast as expected, but investors and governments should question any steelmaker suggesting carbon capture and storage (CCS) will play a meaningful role in decarbonising steel. The cost of producing green hydrogen in Europe may result in a shift to imported green iron from locations that have cheap, clean power as well as suitable iron ore, but while this may involve effectively "offshoring" ironmaking jobs, it could protect far more European steelmaking jobs in the long run.

BHP continues to place high emphasis on carbon capture despite the growing likelihood that this technology will not play a major role in decarbonising coal-based steelmaking. The company may also be overestimating the long-term resilience of metallurgical coal demand. Unlike its peers, BHP is not targeting production of high-grade iron ore suitable for low-carbon steelmaking, a grade seeing growing demand.

Stegra, the world’s leading pioneer of green iron and steel, is considering expanding its investments in territories around the world, but Australia is not on its list.

Although Chinese steel demand is dropping, it is demand for lower-grade ore used for coal-consuming blast furnaces that is entering decline, while demand for higher-grade ore suitable for lower-carbon steelmaking is on the rise.

As more global rivals turn to green iron and steel production, the government’s Hydrogen Headstart funding and tax credits can help Australia compete.

As Bangladesh scales up its energy supply, its leaders face a choice: do they double down on imported fossil fuels, or invest in renewable energy instead?

It has been reported that the Gwadar coal-fired power project, which was thought to be a prime candidate for cancellation following the two announcements, is to continue with higher priority. Further, the Gwadar plant is to be fuelled by imported coal.

China is supporting over 50% of coal power development in largest remaining project pipelines

Pakistan’s new long-term power plan – one step forward, two steps back