Greens leader Adam Bandt says a $500 million investment in green steel would be a "vital component" of Australia's exit from the coal and gas industry.
Mr Bandt will launch the plan in the NSW Illawarra region on Thursday, looking to establish the financing to kickstart the green metal industry and have things built in the country rather than shipping raw materials internationally.
Green steel is made with hydrogen instead of coal, meaning its by-product is water and delivers the lowest carbon footprint possible.
A Green Steel Innovation Fund, working with the $5.9 billion Green Metals Australia, would drive growth in previous iron and steel areas such as Illawarra, Pilbara and Whyalla, Mr Bandt said.
"Australia should be a nation that manufactures things again," he said.
"We have greater potential than just being the world's quarry ... with almost endless energy available from the sun and wind, we have the capacity to create finished steel, unlocking generations of good jobs and giving us a new export opportunity."
The Greens say their first demand for the coming election should they gain the balance of power is a freeze on new coal, oil and gas projects.
Their climate plan sees them phase out coal altogether by 2040.
"The $500 million Green Steel Innovation Fund will reduce our dependence on coal, allowing us to stop Liberal and Labor's 114 new coal and gas projects in the investment pipeline and take the climate action required to keep Australians safe," Mr Bandt said.
Greens NSW Senate candidate David Shoebridge said Illawarra would benefit greatly from the plan, receiving $200 million of the funding over the next five years.
"Other nations are already investing in green steel, this is the time for Australia to step up and put Wollongong at the forefront of the global transition to green steel," Mr Shoebridge said.
"We have a huge competitive advantage with so much wind and sun, we can drive renewable energy costs close to zero, ensuring that our finished steel is cost-competitive while paying workers good wages."
