Industry body, Weld Australia, argues that the growing momentum behind local wind and transmission tower manufacturing provides a rare opportunity to expand Australia’s fabrication, steel and engineering sectors.
This followed the Federal Government’s latest round of the Capacity Investment Scheme, which selected 19 projects under Tender 7 and exceeded its original 5 gigawatt target by more than 50 per cent. The successful projects will deliver 7.8 gigawatts of new renewable generation capacity across the National Electricity Market, alongside a further 7.9 gigawatt-hours of energy storage through associated hybrid projects.
According to Geoff Crittenden, Chief Executive Officer at Weld Australia, is excited for the opportunities the renewable infrastructure pipeline will bring to local manufacturing and steel industries.
“This is not an abstract future opportunity. It’s happening now,” Crittenden said.
“Every wind farm needs towers. Every transmission project needs steel. Every major energy project requires fabrication, welding, logistics, engineering and skilled workers. These are exactly the capabilities Australian industry already has.”
The Federal Government affirms the growth potential for local manufacturing. Earlier this year, the Department of Industry, Science and Resources consulted on domestic production of wind and transmission infrastructure, describing the sector as a rare chance to establish a competitive and resilient manufacturing industry.
Building local capability
Weld Australia is advocating for policy settings that encourage greater local participation in the renewable energy supply chain, rather than relying heavily on imported fabricated steel components.
The industry body points to recent projects such as Uungula Wind Farm as evidence of what can be achieved through local procurement. For the project, Western Sydney-based Precision Oxycut fabricated steel plates for 69 wind turbine anchor cages using Australian steel supplied by BlueScope, while Allthread Industries produced the associated bolts.
According to Weld Australia, the project created six new jobs and helped re-establish apprenticeship pathways at the fabrication facility.
“Uungula shows what is possible when Australian steel, Australian fabrication and Australian project developers work together,” Crittenden said.
Policy framework proposed
To support a domestic manufacturing sector, Weld Australia has developed a four-pillar policy framework with industry participants across the steel, fabrication and wind energy supply chains, including Goldwind Australia, Acciona, Nordex and Vestas.
The framework proposes stable long-term demand signals, a 20 per cent local content mandate for wind tower sections, manufacturing production credits and targeted capital grants to support regional manufacturing facilities.
Weld Australia says modelling for a regional New South Wales wind tower facility indicates the potential to generate hundreds of direct and indirect jobs and up to $2.7 billion in additional economic activity between 2027 and 2040.
Crittenden explained that the same manufacturing capability could ultimately support transmission infrastructure and other steel-intensive energy projects.
“Industry is ready. The project pipeline is emerging. Cabinet is engaged. Now we need policy certainty,” he said.
