To do so we have to tap into our abundance of low-cost renewable energy resources.
Right now, Australia has an opportunity to meet growing global demand for zero-emissions products as countries and companies commit to eliminating greenhouse gas emissions.
And there’s no time to lose. With other countries eyeing the same prize, we must seize our competitive advantage and establish Renewable Energy Industrial Precincts.
Renewable Energy Industrial Precincts in Gladstone, Queensland and the Hunter Valley, New South Wales will add a windfall of $13 billion to the economy and 45,000 ongoing jobs by 2032.
Read the key findings of new research released by leading economic analysts ACIL Allen, commissioned by Beyond Zero Emissions and WWF-Australia.
Renewable Energy Industrial Precincts in Gladstone, Queensland and the Hunter Valley, New South Wales will add a windfall of $13 billion to the economy and 45,000 ongoing jobs by 2032.
Read the key findings of new research released by leading economic analysts ACIL Allen, commissioned by Beyond Zero Emissions and WWF-Australia.
Renewable Energy Industrial Precincts support clusters of manufacturers powered by 100% renewable energy. Together we can give Australian manufacturers a global edge in growing zero-emissions markets by providing access to low-cost, reliable energy.
These precincts would be located either within Renewable Energy Zones or connected to renewable energy generation through high voltage transmission lines. They will also have access to clean heat and renewable hydrogen production and infrastructure. Precincts will be situated in existing industrial zones, benefiting from skilled workforces and infrastructure including roads, rail freight and seaports.
The Million Jobs Plan shows manufacturing for the zero-emissions economy, including renewable hydrogen, ammonia, green steel, aluminium and other metals, could create 215,000 Australian job-years in the next five years.
Reviving Australian manufacturing is important due its special role in the economy. More than any other sector, manufacturing is a driver of innovation, productivity growth and quality jobs. Manufacturing has a powerful multiplier effect – the ability to create jobs indirectly – due to manufacturers’ reliance on extensive supply chains.
The impact of COVID-19 on international supply chains has reminded Australia that domestic manufacturing capacity is a critical component of national resilience.
Energy-intensive industry will benefit from access to low-cost, clean energy to support decarbonisation. Examples are aluminium smelting, hydrogen production, green steel manufacture, chemicals production, recycling and data centres.
Manufacturers of clean technologies will benefit from shared access to clean energy and infrastructure such as roads, rail and transmission and the opportunity to collaborate in clusters of like-minded businesses. New manufacturing will include wind turbines, batteries, electric vehicle chargers, electric buses and mining equipment.
Communities and workers will benefit as Renewable Energy Industrial Precincts sustain and build resilient local economies and create jobs in communities that are facing a rapidly changing world.
Renewable Energy Industrial Precincts offer a advantages to Australian businesses, such as:
The Hunter is set to become the electric motor of the Australian economy
The Hunter has more than enough potential new energy sources to power a Renewable Energy Industrial Precinct, enough for existing industry giants to decarbonise and enough to fast-track new green industries.
Our report shows the enormous scale of renewable powered industries that could be developed as part of a Hunter Renewable Energy Industrial Precinct, including the build-out of new renewable energy and electrical infrastructure over the next ten years.
Proudly made with Queensland renewable energy
Gladstone could become a major green hydrogen hub, sustaining its manufacturing heritage. Multiple hydrogen projects are proposed. The region will need plenty more renewable energy to power existing industry giants committed to decarbonisation as well as the new green industries.
The Gladstone REIP will provide strong benefits to Gladstone’s energy-intensive businesses including aluminium smelting, hydrogen production, alumina refining, chemicals production, recycling and potentially new cleantech industries such as wind turbine blade manufacture and electrolyser manufacturing.
Beyond Zero Emissions is currently seeking expressions of interest from proponents interested in locating in two Renewable Energy Industrial Precincts.
These industrial zones have all the ingredients necessary to become renewable energy manufacturing and export superpowers, with their existing heavy industry infrastructure, export capacity, skilled workforces and close proximity to universities. They have an unmissable opportunity to create jobs, revitalise manufacturing and secure Australia’s position as a zero-emissions manufacturing nation.
While Beyond Zero Emissions is currently focusing on these two locations there are many more regions around Australia that would suit a Renewable Energy Industrial Precinct.
Some of Australia’s most exciting and innovative manufacturing and technology companies have already given support for Renewable Energy Industrial Precincts.
Significant potential in regional Australia, shifting markets and collaboration across government and industry will pave the way for large-scale projects. Prominent industry leaders discuss change, investment in renewables and more.
Renewable Energy Industrial Precincts have the potential to reinvigorate Australian manufacturing and fast track emissions reduction. Government investment is needed to plan and build the common user infrastructure required to accelerate this regional economic opportunity and unlock $37.8 billion in private investment.
Read our REIP Policy recommendation.
Read our 2023-24 pre-budget submission to Treasury.
Read our 2022-23 pre-budget submission to Treasury.
Read our 2021-22 pre-budget submission to Treasury.
To make Renewable Energy Industrial Precincts a reality, Australian governments should commission a roadmap to establish these precincts, then provide streamlined planning and approval processes and coordinate land use and infrastructure planning.
Governments can also accelerate the development of Renewable Energy Industrial Precincts with significant funding. A $2billion grant program, in collaboration with state governments, to deliver several Renewable Energy Industrial Precincts around Australia should be made available in two streams.
Manufacturing stream: financial incentives for projects enabling manufacturers to use or switch to renewable energy. This would include equipment upgrades and implementation of innovative processes, energy storage technologies and flexible demand programs.
Infrastructure stream: funding the early works of critical infrastructure required for successful precincts, such as transmission connections, hydrogen pipelines and shared industrial heat networks.
The precincts would depend on a large and reliable supply of renewable energy. This would be assisted by:
Renewable Energy Industrial Precincts are defined by ambitious environmental performance targets laid out by the following principles:
We are accepting expressions of interest from a diversity of precinct participants:
Different criteria apply to new and existing facilities as shown in the following transition schedule:
This ambitious schedule reflects the real opportunity that is available to Australian manufacturers as we harness the full potential of our abundant renewable resources. These targets are a strong statement of intent to domestic and international markets of our commitment, securing investment and opportunities.
For each applicant, Beyond Zero Emissions would draw on its strong network of industry partners, investors and government contacts to help achieve these targets and the vision of a thriving zero-emissions manufacturing sector.
Renewable Energy Industrial Precincts closely align with nine of the United Nations’ Sustainable Development Goals. These represent guiding principles and goals for Renewable Energy Industrial Precincts and create added benefits by attracting customers, investors and partners who value sustainability and corporate social responsibility.
Gender equality: committed to work protocols that ensure diverse opportunities for employment.
Affordable clean energy: committed to a timetable of 100% renewable energy at a low cost.
Decent work and economic growth: committed to employing local workers and content including upskilling the workforce in the highest environmental practice, waste and management processes, energy systems and manufacturing.
Industry, innovation and infrastructure: committed to advancing, testing and rolling out new energy technologies, with an emphasis on making these resources widely available to neighbouring industrial zones and their supply chains.
Sustainable cities and community: close proximity to universities and R&D and innovation hubs, training programs to ensure surrounding communities and cities reap the benefits.
Responsible consumption and production: committed to transitioning linear forms of consumption (energy, waste, recycling, economy) into circular zero-waste economies.
Climate action: committed to 100% renewable energy by 2030. Precinct infrastructure and industry would be built for future climate conditions.
Life on land: committed to the protection and restoration of local biodiversity.
Partnerships: committed to building sustainable partnerships between communities, industries and governments, both locally and globally.
Governments should provide incentives for manufacturers to set up or remain in Renewable Energy Industrial Precincts. To receive these incentives, businesses would need to commit to the development principles of the Renewable Energy Industrial Precinct.
The Renewable Energy Industrial Precincts Program would be a new $2 billion grant program to deliver, in collaboration with state governments, at least five Renewable Energy Industrial Precincts around Australia. The grant fund is proposed to be split into two funding streams:
This funding would be administered by state and federal governments for one precinct per participating state, backed by investors and research partners. Applicants would use these funds to help meet the Development Principle requirements of the precincts as outlined above, for example:
This funding would be tendered for and matched by up to five state governments to support necessary R&D, planning and precinct development. This funding would also be available to pay for critical infrastructure including:
Clean, reliable, low-cost energy: Beyond Zero Emissions is encouraging renewable energy developers and utilities to support the development of the precincts by offering low-cost renewable energy supply to users within the precincts
Business grants: Grants funding would be available to businesses that create at least 30 new full-time equivalent jobs by 2025. The grants are for fixed capital investments that support a business’ aim of achieving zero-emissions production.
Loans: Interest-free loans are available to eligible businesses that invest fixed capital within a Renewable Energy Industrial Precinct.
Infrastructure provision: Governments would lead the development of the precincts, ensuring strategic land use and infrastructure planning and coordination of precinct development. Governments would support the provision of energy transport and recycling infrastructure with dedicated funding. Governments would award privileged access to investors by land allotment at competitive prices.
Fast track planning: Streamlined planning and approval processes via government agency and/or the Renewable Energy Industrial Precinct Business Concierge. This would support investors in Renewable Energy Industrial Precinct to navigate the regulatory framework and effective use of existing funding sources and investment facilitation services including:
Research and development: Delivered by a Renewable Energy Industrial Precincts Taskforce (REIPT) in the Department of Industry, Science, Energy and Resources. The Taskforce would provide public and private R&D support and training programs including:
Renewable energy industrial precincts would help Australian manufacturers capitalise on rising global demand for low-emissions products.
More than 1,000 companies including huge global brands Electrolux, Sony and Tesco have set emissions reduction targets through the Science Based Targets initiative (SBTi). Signatories to this initiative commit to reducing not only their own emissions but those of their supply chain.
To achieve these aims many such companies audit the energy use and emissions of their suppliers. For example, global carmakers Toyota, Volkswagen, Ford and Mercedes have committed to carbon-neutral production and are already prioritising suppliers with lower emissions.
Manufacturers cannot ignore the emission commitments of the major corporations that buy their products. Nor can they overlook the increasing pressure to reduce emissions from governments, investors and consumers. Producers of some of the most emissions-intensive products have already responded with their own ambitious targets, for example:
Australian manufacturers need support to keep and attract low-emissions production on Australian shores. Other countries are already providing such support. For example, the EU is helping its manufacturers to decarbonise through its Industrial Strategy, an integral part of Europe’s Green Deal, and the UK is subsidising low-carbon industrial clusters.
Australia’s extensive land and high quality renewable resources create an opportunity to produce some of the lowest cost zero-emissions electricity and hydrogen in the world. We cannot risk being outspent by other countries and waste our comparative advantage.
For media coverage of Repowering Australian Manufacturing please visit our Beyond Zero Emissions in the media page.
Powering jobs and economic growth after the disruption of the COVID-19 pandemic
