EVALUATION COMPLETE
The proposal supports Australia’s Net Zero targets and transition to a clean energy economy by enabling the transformation of Australia’s only long steel manufacturing site into a low-emissions, green iron and steel hub. Upgrades to water, energy, and port infrastructure will support the adoption of renewable energy and hydrogen, directly addressing national priorities for decarbonisation, sovereign manufacturing, and regional economic growth. The proposal supports the Australian Government’s Future Made in Australia initiative and South Australia’s Green Iron and Steel Strategy, positioning Whyalla as a leader in sustainable iron and steel production and export.
PROPOSAL DESCRIPTION
The proposal seeks to upgrade energy, water and port infrastructure at Whyalla to enable the transformation of the steelworks into a low emissions industrial precinct, supporting low emissions iron and steel production, regional export growth, and long-term sustainability for South Australia’s resources sector.
Whyalla’s existing utility and logistics infrastructure is unable to meet long-term demand and the site’s port infrastructure is forecast to reach capacity by 2031, limiting regional export growth. Key constraints include insufficient electricity grid capacity, limited gas supply via Port Pirie Lateral Pipeline, constrained water supply and ageing port infrastructure.
INVESTMENT RECOMMENDATION
The Australian Government should note this proposal as an opportunity for future investment in the 2-4 year pipeline.
This would be complementary to the $2.4 billion invested by the Australian and South Australian Governments to stabilise the facility since it went into administration, to maintain operations and support the transition to new ownership to ensure the steelworks’ long-term operational and environmental sustainability.
OPPORTUNITIES AND OUTCOMES
This proposal has the potential to:
- Support Australia’s renewable energy transition – enabling infrastructure for low emissions iron and steel production would support investment in renewable energy and hydrogen.
- Support national emissions reduction – upgraded enabling infrastructure would support the decarbonisation of steelmaking.
- Support regional economic growth – enabling infrastructure that supports the Whyalla steelworks transformation would strengthen the region’s economic resilience and position Whyalla as a centre for low carbon manufacturing.
NEXT STEPS
Proponent to develop potential investment options (Stage 2 of Infrastructure Australia’s Assessment Framework), including:
- a multi-agency governance structure for coordinated planning and stakeholder engagement
- robust demand forecasting and options analysis for each infrastructure component
- project sequencing based on timing, interdependencies, and funding mechanisms
early and consistent engagement with public/private stakeholders and the new owner of the steelworks
- a place-based, programmatic approach considering the interrelated infrastructure needs of the region to identify how and when enabling infrastructure should be delivered.