Can Australia be a Green Metal Manufacturing Powerhouse?
Imagine a world where we create new value in both the manufacturing and mining sectors by leveraging our state’s abundant clean energy and mineral resources and strong industrial skills base? Can Australia revive this declining sector and be the next Green Metal Manufacturing Powerhouse?
Metal Manufacturing has a dear place in my heart, it is where I started my career, and it built the foundations for the Engineer I am today. In the past however, I have had my doubts that we would ever see this industry in Australia bounce back to even a fraction of what it once was, but I am feeling optimistic that there are signs that we might just find our niche – Green Metal Manufacturing.
CSIRO and QUT Centre for Future Industries have put out a fabulous report on how we can leverage Queensland’s strengths to create new economic opportunities for our state, it is called A New Chapter.
In the report, they identified nine emerging knowledge-driven industries that have the “potential for strong, sustained growth IF supportive eco-systems can be established for them.” We must not undervalue the importance of this statement. In order for these emerging industries to succeed, it is imperative that a collaborative, connected eco-system where industry, government, education and research can work together to support a common vision is created.
One of the emerging industries they identified is Green Metal Manufacturing.
Although Australia is a leading producer of the two key inputs required in steel manufacturing, namely metallurgical coal and iron ore (Grattan Institute, 2020) it only produces around 0.3% of the world’s steel (World Steel Association, 2020).
Green Metals are manufactured utilising renewable energy sources and can dramatically reduce carbon emissions associated with the process. Additionally, access to cheap renewable energy has the potential to reduce production costs. As outlined in A New Chapter, “Queensland’s natural strengths in having abundant raw commodities, access to renewable energy sources and capabilities in advanced manufacturing provide the state with a strong national, and potentially global, comparative advantage for green metal manufacturing.” A very exciting opportunity!
Excerpt from A New Chapter, 2021
One of the things that excites me the most (and you don’t often hear discussed about manufacturing) is the flow on impacts that it creates within the community. Metal Manufacturing creates highly skilled, long term stable employment and creates a new network of businesses to support it.
What often happens with manufacturing of this scale is that it creates a natural cluster of businesses which tend to grow faster in a highly innovative way. This occurs because of the employment multipliers in this type of industry. US data suggests that for every 1 job in Steel Mills there are 9 additional jobs created as a result (Economic Policy Institute, 2019). These additional jobs create spin off businesses both directly in the supply chain and indirectly in the community to support the staff. Additionally these industrial clusters creates an environment of innovation and triggers collaborative research with local universities which helps the businesses maintain their global competitiveness.
In the case of Green Metal Manufacturing, it also will create flow on impacts in the Renewables Supply Chain! Creating this internal demand for renewable infrastructure such as Hydrogen production facilities and Battery storage, will inject growth opportunities into this sector as well.
The cluster of knowledge and flow on effects into other industries is significant.
I am excited by this potential opportunity and do truly believe that if we are to play to our strengths, we should be leveraging our strong industrial heritage, rich renewable energy assets and applying those skills and expertise to design the green energy supply chains of the future.
