New report finds domestic wind tower manufacturing could create thousands of jobs and boost local steel industry
Australia could create over 4,300 direct jobs and stimulate its steel sector by manufacturing wind towers locally, according to new research by the Centre for Future Work.
Australia has the potential to generate more than 4,300 jobs in wind tower manufacturing and thousands more in related industries, such as steel production, by producing wind towers domestically rather than relying on imports, a new report by the Centre for Future Work has found. Currently, all wind towers used in Australia are imported, with the majority coming from China.
The Australia Institute's Centre for Future Work report, An Industrial Strategy for Domestic Manufacturing of Onshore and Offshore Wind Energy Towers and Equipment outlines how establishing a domestic wind tower manufacturing industry could result in the production of over 800 towers annually, with a cumulative economic value of up to $15 billion over the next 17 years. This could also lead to an incremental demand for 700,000 tonnes of Australian-made steel per year, offering a pathway for revitalising the country’s steel plants with low-carbon technologies.
Additionally, by cutting down on the need for imported wind towers, the country could avoid 2.6 million tonnes of CO2 emissions, which would otherwise come from the shipping of these heavy structures across long distances.
Phil Toner, the report’s author and an Honorary Senior Research Fellow at the University of Sydney, challenged the conventional economic approach of focusing on Australia’s comparative advantage in raw material exports. He argued that this mindset risks locking Australia into a position where it exports raw resources, only to import the finished products at a premium.
“It’s conventional in traditional economic circles to say Australia should stick to its so-called ‘comparative advantage’ in determining its role in the emerging net-zero global economy,” Toner said. “But if we follow the advice of conventional economists we will lock Australia into once again being just a supplier of raw resources to other, more technologically sophisticated countries.”
The report also highlighted the growing global competition in manufacturing renewable energy equipment, stressing that Australia should not miss the opportunity to participate in this sector. Many industrial countries are already heavily investing in the manufacturing of energy transition technologies. Toner added: “Manufacturing our own wind power equipment represents an enormous opportunity for Australia to attain a more balanced industrial structure and create good quality well-paid jobs.”
He also pointed out the potential boost for Australia’s green steel sector, stating, “Anyone concerned about the climate should be up in arms at the fact we’re importing huge heavy steel towers from China when we could be producing them here.”
The report recommends that the federal government, along with state governments, commission a comprehensive engineering and financial study to assess the viability of establishing a domestic wind tower manufacturing industry along Australia’s east coast. This aligns with the Future Made in Australia manufacturing policy, which seeks to promote the growth of domestic manufacturing industries.
