Steel and mining sectors get $750m safeguard in push to go green

Some of NSW’s biggest employers will get a massive cash injection to aid their efforts in cutting carbon emissions and going green.

An unprecedented $750 million injection of funds will be given to help mass-employing big businesses across NSW drop emissions and develop greener ways of working.

In a move heralded as having the potential to keep thousands of jobs in heavy-industry reliant regions like the Hunter and the Illawarra, the state government will roll out its Net Zero Industry and Innovation fund to keep major regional employers such as BlueScope, Fortescue and Tomago Aluminium in NSW.

Energy and environment Minister Matt Kean (left) at Bluescope's Port Kembla site in 2020 alongside Australian steel chief executive John Nowlan (right). Picture Supplied

It is welcome news for big companies under pressure to become greener, with 30 per cent of NSW’s carbon emissions currently created by the state’s top 55 industrial facilities. For regions such as the Hunter and the Illawarra, heavy industry has been a defining part of their identities and workforces.

Illawarra-based BlueScope, whose Port Kembla headquarters pumps out 2.6 million tonnes of steel a year, directly employs 3000 people in the region, with up to 10,000 drawing a wage from the producer during peak operations.

Slabcaster at Port Kembla Steelworks. Picture Supplied

BlueScope’s chief executive of Australian steel, John Nowlan, said the move would “certainly help to save and protect jobs” in the regions.

“Even though BlueScope is not as big as it used to be, we’re still a big part of the picture of the economics of the Illawarra,” Mr Nowlan said.

He said any available funding would be used to “accelerate” moves to produce more steel with less energy.

BlueScope itself has already committed to lowering the amount of its emissions by 12 per cent before 2030.

“These funds give us the opportunity to go beyond that in Port Kembla,” Mr Nowlan said. “We’ve got quite a challenge but we’ve committed to doing what we can, while at the same time keeping ourselves competitive. There’s a lot of people depending on us.”

Minister Matt Kean at Port Kembla Steelworks Picture: Supplied

Energy and environment Minister Matt Kean said the move was aimed at ensuring local jobs and economies will not lose out amid pressure to become greener, in the biggest indicator yet of the government chasing its commitment to net zero emissions by 2050.

“This is about ensuring that NSW industry and NSW jobs are the big winner as the world moves to decarbonise,” Mr Kean said.

The funding will be split into three areas, with $380 million to go towards helping industries explore low emissions alternatives and “future proof” their businesses.

A further $175 million will go towards setting “green hydrogen” industries, such as wind and solar farms, to create jobs in the future, while $195 million will go to research and development on new technology for heavy industry.