Australia is a major global player in the steel, aluminium and critical energy mineral value chains, with mining and processing industries being major contributors to the Australian economy. The value chains are emissions intensive and will require significant innovation and effort to decarbonise.
ARENA aims to focus on value chains where there is the potential to deliver significant impact as a result of decarbonisation and where grant funding can help to accelerate progress. These priorities are continually evaluated and may change as technologies mature, the market progresses or new challenges arise.
ARENA is currently focused on supporting projects that help deliver the following objectives:
- Accelerate the transition to a low emissions steel value chain
- Accelerate the transition to a low emissions aluminium value chain
- Support development of low emissions critical energy mineral value chains.
1. Accelerate the transition to a low emissions steel value chain
Steel production in Australia currently accounts for ~24MT (5%) of domestic CO2e emissions and contributes to ~1,500MT of CO2e emissions outside of Australia from overseas processing of Australian Ore.
ARENA aims to accelerate the transition to a low emissions domestic iron and steel value chain by targeting the following levers:
- 1.1 Enable zero emissions mining
Enable zero emissions mining through the elimination of on-site fossil fuel usage and integration of renewable energy.
ARENA is currently looking to fund ambitious projects that enable zero emissions mining through the elimination of on-site fossil fuel usage and integration of renewable energy.
Decarbonise Fleets
Support fuel switching of heavy mining vehicle to renewable hydrogen or electricity. This may include innovation related fast charging for battery electric vehicles and fleet management systems.
Light vehicles and biofuels are not areas of focus.
Optimise the uptake of renewable energy
ARENA is focussed on supporting projects that evaluate and demonstrate key technologies that enable significant renewable energy integration such as alternative forms of medium to long duration storage.
The development or installation of commercial renewable energy generation (eg solar and onshore wind) or offsite commercial renewable energy generation for PPAs is not an area of focus.
- 1.2 Decarbonise domestic steelmaking
Evaluate and demonstrate innovation in steelmaking processes, technologies, and equipment for green steelmaking in Australia.
ARENA is seeking ambitious projects that could enable a step change in emissions reduction in Australian steelmaking. We will aim to fund projects that evaluate and demonstrate innovation in steelmaking processes, technologies, and equipment for green steelmaking in Australia.
Decarbonise iron and steel processing
Support feasibility and engineering work as well as pilots and demonstration scale projects that are on a pathway to green steelmaking. This includes, but it not limited to HDRI + EAF*, HDRI + SAF**, electrolysis and other novel technologies.
* Hydrogen Direct Reduced Iron + Electric Arc Furnace
** Hydrogen Direct Reduced Iron + Submerged Arc Furnace - 1.3 Secure the role of Australian iron ore in green steel value chains
Research, demonstrate and scale the use of Australian iron ore in green iron and steelmaking processes.
ARENA is interested in innovative projects that research, demonstrate and scale the use of Australian iron ore in green iron and steelmaking processes.
Beneficiation
Support for novel beneficiation technology and processes that enable the use of Australia Haematite ore in green ironmaking pathways.
Green iron production
Supporting the feasibility and engineering work as well as pilot and demonstration scale deployment of novel green iron processing using Australian ore.
2. Accelerate the transition to a low emissions aluminium value chain
Alumina refining and aluminium smelting in Australia currently account for ~35MT (6%) of domestic CO2e emissions.
ARENA aims to accelerate the transition to a low emissions domestic aluminium value chain by targeting the following levers:
- 2.1 Decarbonise alumina refining
Aim to accelerate the transition to net zero alumina refining through the trial and demonstration of low emissions processing technologies using renewable energy and hydrogen.
ARENA is seeking ambitious projects that could enable a step change in emissions reduction in Australian alumina refining. ARENA aims to support projects that evaluate and demonstrate green alumina refining technologies in Australia and significantly increase the level of renewable energy integration.
Decarbonise the Bayer process
Aim to support the trial, demonstration and scale up of technologies that produce steam from renewable energy such as MVR, and electric boilers and thermal storage.
Decarbonise calcination
Aim to support the trial, demonstration and scale up of technologies that enable net zero alumina refining including electric or hydrogen calcination.
- 2.2 Decarbonise aluminium smelting
Aim to support projects that reduce onsite energy consumption and emissions in line with our mandate.
ARENA aims to support projects that reduce onsite energy consumption and emissions for aluminium smelting in Australia. While most decarbonisation will occur through scope 2 emissions reduction as electricity contracts are replaced with renewable energy supply agreements, ARENA is focused on the process or technology change required at the facilities to enable this switch to renewable energy.
Reduce Scope 1 emissions
Focused on supporting innovation that substantially improves the energy efficiency of existing aluminium smelting processes or demonstrates alternative technologies, processes and/or pathways that enable green aluminium production.
Energy efficient equipment that is commercially available is not an area of focus.
Reduce Scope 2 emissions (switch to renewable energy)
Focused on supporting projects that evaluate and demonstrate key technologies that enable significant renewable integration such as load flexibility and alternative forms of medium to long duration storage.
The development or installation of onsite commercial renewable energy generation (eg solar and onshore wind) or offsite commercial renewable energy generation for PPAs is not an area of focus.
3. Support the development of low emissions critical energy mineral value chains
Australia is a large producer of critical energy minerals and will play an important role in supplying the world with enough low emission minerals to enable the global energy transition.
ARENA aims to support the decarbonisation of existing critical energy mineral value chains and development of new net zero critical energy mineral value chains. ARENA is seeking projects that demonstrate innovative technologies and pathways for difficult to decarbonise processes.
- 3.1 Support the development of low emissions critical energy mineral value chains
Aim to support projects that evaluate and demonstrate technology for net zero emissions processing of critical energy minerals including copper, nickel, silicon, lithium, cobalt, manganese, REEs (Rare Earth Elements, eg neodymium), graphite, PGEs (Platinum Group Elements) and vanadium.
The feasibility of mining projects is not an area of focus.