$200m to future-proof steel manufacturing and regional jobs through the Powering the Regions Fund

We’re co-investing $200m in two transformative projects to help secure the future of Australian steelmaking.

This targeted support for Australia’s primary steel producers will help ensure a continued supply of locally produced steel. This is essential for our clean energy industries, with steel the main material used in wind turbines, solar panels, and energy transmission infrastructure.

Total steel demand for the energy transformation from 2022 to 2050 will be almost 5 billion tonnes. And in a decarbonising world that steel will need to be green steel.

  • $136.8 million funding for BlueScope supports the No. 6 Blast Furnace reline and upgrade project at the Port Kembla Steelworks (NSW).
    This is a contribution to BlueScope’s $1.15 billion investment in the future of the Port Kembla Steelworks and the businesses and jobs it supports. The project will employ approximately 250 additional workers on site, and help secure the local Illawarra workforce over the long term.
  • $63.2 million for LIBERTY Steel supports the purchase and installation of an electric arc furnace.
    This is a contribution to the Whyalla Steelworks Green Steel Transformation Program which will enable green steel production and supports LIBERTY’s commitment to carbon neutrality by 2030.

This funding will help maintain domestic steelmaking capability and support the Illawarra and Upper Spencer Gulf regions during the net zero transformation.

This is the first funding approved under the Powering the Regions Fund (PRF) which was announced alongside the Safeguard Mechanism reforms last year.

These grants are part of the PRF’s Critical Inputs to Clean Energy Industries program. The program provides targeted support for hard-to-abate sectors to help maintain Australia’s domestic manufacturing capability during the transition to net zero.

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Joint media release: $200 million to help future-proof regional steel manufacturing

Powering Australia