The Federal Government will invest $500 million in Australian steelmakers and manufacturers to help them scale up and seize the opportunities the energy transition offers.
Australia’s energy transition is well underway – 2024 was a record year for investment in renewables, driving more demand for wind turbines and other electricity infrastructure.
Hundreds of tonnes of steel are in every single wind turbine, and with more than 100,000 workers employed by the steel industry, the Federal Government said investing in onshore manufacturers means more good jobs for Australian workers.
The Federal Government said it has put in place strong requirements – like local content targets in the Capacity Investment Scheme – to make sure renewable projects employ local people and use Australian manufacturing through its plan to delivering the modern, affordable and reliable energy system Australians deserve.
While Australia makes around 5.7Mt of steel each year, the Federal Government said it needs more investment in expanding fabrication capacity.
The $500 million investment is expected to drive new jobs in manufacturing and secure economic resilience.
Through ARENA, the $500 million allocation from the Future Made in Australia Innovation Fund will provide merit-based grants for manufacturing opportunities, including projects which build new capability in wind tower steel fabrication and related sectors.
Along with wind industry manufacturing, funds could be directed to clean energy technology manufacturing, including:
- Battery and storage technologies
- Hydrogen electrolysers
- Energy efficiency and electrification technologies
- Other components critical to the clean energy transition, like cables
This is the first allocation from the broader $1.75 billion Future Made in Australia Innovation Fund.
ARENA will build on its strong industry connections and track record of success to help commercialise these new-to-Australia onshore manufacturing capabilities.
The Federal Government said the investment is part of capitalising on the opportunities that the energy transformation and a Future Made in Australia brings – more industry, cheaper and cleaner power, with more Australian jobs.
Prime Minister, Anthony Albanese, said, “The Federal Government has made it clear – we will always stand up for Australian steel and Australian aluminium.
“We will always stand up for Australian jobs and Australian industries.
“And we will back Australian industry to compete and succeed, so we can create the next generation of good local jobs.”
Federal Minister for Climate Change and Energy, Chris Bowen, said the energy transition is driving a manufacturing jobs boom.
“Australian manufacturing workers today – from the software lab to the steelworks and smelters – have so much to gain from the transformation underway.
“We’re ensuring Australian manufacturers directly benefit from the renewable energy investment boom by investing in local industry to manufacture the technology we need for the transition, right here.
“This is what a Future made in Australia is all about – securing our place in the world, from our critical minerals in the ground, to harnessing the sun in the sky – and building the infrastructure we need to unlock it all here on our shores.”
Federal Minister for Industry and Science, Ed Husic, said, “We want a new generation of good, blue collar and engineering jobs to add value to the resources under our soil, on our shores.
“To build our economic resilience, our self-reliance and our sovereignty, and to make sure that in an age of global uncertainty, we can stand on our own two feet.”
