Renewable Energy Industrial Precinct in Gladstone could add $2 billion to economy, 11,000 jobs by 2032

A new precinct would offer low-cost energy with 100 per cent renewable electricity to groups of Gladstone manufacturers and capitalise on growing global demand for zero-emissions products, a new report says.

A Renewable Energy Industrial Precinct – a cluster of manufacturers powered entirely by renewable energy – would add $2 billion to the economy and provide nearly 11,000 ongoing jobs by 2032 if built in Gladstone, new research indicates.

Economic analysts ACIL Allen, commissioned by Beyond Zero Emissions and WWF-Australia, completed the Renewable Energy Industrial Precincts report in July.

The report encouraged existing and new manufacturers in several locations across the country to adopt low-cost 100 per cent renewable electricity to capitalise on growing global demand for zero-emissions products.

Beyond Zero Emissions CEO Heidi Lee said a renewable precinct would “protect and sustain Gladstone’s and Central Queensland’s industrial heritage”.

“Manufacturing precincts offer an incredible return on investment,” she said.

“More than any other sector, manufacturing delivers innovation, productivity growth, and high-quality jobs.

“Manufacturing has a particularly powerful multiplier effect – the ability to create jobs indirectly – due to manufacturers’ reliance on extensive supply chains.

“Renewable Energy Industrial Precincts join the dots between the government’s Modern Manufacturing Strategy, the Technology Investment Roadmap, the National Hydrogen Strategy and development of Renewable Energy Zones.”

Gladstone mayor Matt Burnett said he saw the opportunities in diversifying and growing manufacturing jobs powered by renewable energy.

“I‘m immensely proud of Gladstone’s manufacturing industry – it’s the backbone of our economy,” he said.

“Establishing a Renewable Energy Industrial Precinct in Gladstone and diversifying our energy sources is vital if we are to maintain our heritage as an industrial powerhouse.”

“The work by Beyond Zero Emissions proves that Renewable Energy Industrial Precincts will create jobs and shore up Gladstone’s economic prospects for decades to come in the face of huge changes in the global economy.”

Gladstone mayor Matt Burnett.

Member for Gladstone Glenn Butcher said Gladstone was “perfectly placed” to become Queensland’s hydrogen hub and make the most of new technology.

“We know that Gladstone offers significant competitor advantage for growth and the development of new industries,” he said.

“Renewable energy development has been a huge focus for the Palaszczuk Government so it makes perfect sense to bring that together to support our state’s growing manufacturing sector.

“For residents, regional Queensland’s power prices have been dropping for the last four years; having these energy infrastructure projects in our backyards means job security and a lower cost of living.

“This study provides an opportunity to further discussions about growing Gladstone’s manufacturing industries so we can continue to create good, secure jobs and build back better from the global COVID-19 pandemic.”

Mr Butcher said he would meet with Beyond Zero this week to discuss the precinct proposal.

Member for Flynn Ken O’Dowd said he welcomed the analysis.

“This will provide options to reduce emissions in our existing and new manufacturing industries long term,” he said.

“Research into cleaner energy programs will always be welcome.

“Gladstone is positioned well for diversifying its energy and manufacturing mix, with new opportunities in hydrogen, ammonia, high purity alumina and even wind turbine blade manufacture having the potential to support innovation and employ our community in a Renewable Energy Industrial Precinct.”

Gladstone Engineering Alliance general manager Chantale Lane.

Gladstone Engineering Alliance general manager Chantale Lane said a renewable energy precinct in Gladstone was “just one of several energy diversifications projects slated for the region”.

“GEA is committed to ensuring that our local business community has the capability, capacity and ability to innovate, adapt and prosper,” she said.

“We encourage major investment in our region and promote the need for new and upgraded infrastructure in Central Queensland.

“GEA continues to encourage and advocate for the establishment of new projects that mean additional work opportunities for local companies and for increased job creation.”

ACIL Allen principal Guy Jakeman said the average annual incomes for all residents in the Gladstone region would be $20,000 higher by 2032 if a renewable precinct were built.

“While Australia’s extensive land and high quality renewable resources mean we have the ability to produce some of the lowest cost zero emissions electricity and hydrogen in the world, we are at risk of being outspent by other countries, squandering our comparative advantage,” he said.

“Our modelling demonstrates that, if we can get the infrastructure and regulatory conditions right, Renewable Energy Industrial Precincts could not only protect Australia’s regional economies but increase their status as export powerhouses, create tens of thousands of good quality regional jobs, and attract billions in new capital investment to regional communities.”