Save our steel: union issues industry SOS

Australia’s steel industry could be wiped out and lost to countries with poor environmental records unless the Albanese government speeds up decarbonisation across the sector.

The One Steel plant in Whyalla, South Australia. Picture: Simon Cross

Australia’s steel industry could be wiped out and lost to countries with poor environmental records unless the Albanese government speeds up decarbonisation across the sector and provides urgent funding support to steelmakers.

Australian Workers Union ­national secretary Daniel Walton says without government intervention, global competitors will squeeze out local steelmakers.

Ahead of the launch of a John Curtin Research Centre report on future-proofing the steel industry, Mr Walton said “if we don’t start aggressively investing in clean steel, the whole industry is at risk”.

“Our competitors in Asia and Europe aren’t twiddling their thumbs. They’re moving aggressively to transition their steel production to clean steel,” he said.

“Australia should be a 21st-­century steel powerhouse, but if we don’t start moving decisively we’re going to get dusted by our competitors. There’s no way of flicking the switch to a clean steel industry. It’s a long and complex process that has to start now if we’re going to make it in time.”

The AWU national conference on Monday backed a resolution stating that if urgent action wasn’t taken, Australia’s steel manufacturing capability risked “being lost altogether to countries with poor environmental records, resulting in a net loss for the sector and the environment”.

“National conference calls on all Australian governments to establish a taskforce with government, industry and the AWU to develop and implement a national clean steel roadmap aimed firmly at ensuring Australia’s steel industry can survive and thrive throughout the energy transition,” the resolution states. The motion says the Albanese government must set ambitions for green steel and green iron production, including government procurement targets, and accredit low-emissions hydrogen and steel products.

The report by Nick Dyrenfurth and Dominic Meagher, titled Clean and Mean: New Directions for Australia’s Steel Industry, says the sector’s future is “bleak unless the government acts now”.

It states that with Sweden, Japan, India, Britain and others increasing their focus on clean steel, governments must use their purchasing power to “ensure our steel industry can make the investment needed and prioritise low-­emissions steel over cheap and nasty imports”.

It suggests investments by clean energy, renewables and manufacturing government bodies to help decarbonise operations sooner at the Port Kembla and Whyalla steelworks. The report says BlueScope should receive support to integrate its blast furnace with hydrogen technology.

Mr Walton said Australia had “unique natural advantages” in clean steel production. “One day in the not-too-distant future the only steel most customers will want is clean steel. We have to make sure we can produce it economically and at scale,” he said.