The New South Wales government has promised a “manufacturing renaissance” in the state to help workers who will lose their jobs as a result of coal-fired power plant closures.
The state’s treasurer, Matt Kean, responding to the early closure of the Eraring power station in Lake Macquarie in 2025, announced a jobs package that would create 3,700 roles in clean industries.
It included 2,700 construction jobs associated with delivery of transmission infrastructure that is needed to connect new sources of generation such as the renewable energy zones in the New England and Central West Orana regions and the Hunter transmission project.
The state will invest $250m over five years to boost local manufacturing of components for the renewables sector such as wind towers, electrolysers and batteries, which Kean said would create a further 500 jobs.
An additional $300m would be spent over 10 years to create 500 more jobs to expand the state’s clean manufacturing base – in particular the green hydrogen industry – via programs that were established as part of the state’s net zero strategy.
“We know some existing industries face challenges as the world decarbonises,” Kean said.
“That’s why we need to make sure the low carbon economy thrives in NSW to create the jobs of tomorrow.”
Kean said the replacement of ageing energy infrastructure would create a once in a generation investment boom around the world.
“I want to turn it into a manufacturing renaissance for NSW, particularly our industrial heartland,” he said.
Saturday’s announcement builds on an earlier promise made on Thursday to build the “biggest battery in the southern hemisphere” to support transmission lines.
Origin Energy’s decision to bring forward the closure of the Eraring power station by seven years shocked some workers when it was announced on Thursday, unions have said.
Warrick Jordan, the coordinator of the Hunter Jobs Alliance – a coalition of unions and environment groups – said the challenges for the Hunter had been recognised and the priority now was the pace at which new investment occurred.
Companies have already shown strong interest in investment in the Hunter renewable energy zone, with the government confirming this week it had received expressions of interest worth more than $100bn.
“Downstream manufacturing and renewables and hydrogen components manufacturing are exactly the type of jobs we need to attract to the Hunter,” Jordan said.
“We need to get the right policy and investment and we need to get moving otherwise we’ll miss out on those jobs and they will go offshore.”
Jordan said the government’s announcements were a welcome start.
“This is a good investment because it starts to provide real and tangible job opportunities and put infrastructure on the ground,” he said.
“It won’t happen overnight and there’s a critical imperative to make sure as many jobs as possible are located in the Hunter.”
Sam Mella, the Hunter program manager for Beyond Zero Emissions, said the state was embracing sustainable job opportunities in clean industries.
“The NSW government has acted swiftly and this investment will help create thousands of jobs in clean industries and renewables concentrated in the Hunter Valley when we need them,” Mella said.
WWF-Australia said it demonstrated that energy and manufacturing jobs could thrive in the regions when governments showed leadership.
“It is a big step towards the Hunter and Central Coast becoming a centre of renewable-powered manufacturing,” said Nicky Ison, WWF-Australia’s energy transition manager.
