A multi-billion dollar renewable energy package could see the end to BlueScope steel being overlooked when it comes to building infrastructure like wind towers.
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As part of a $32 billion energy plan to upgrade the electricity network, the government is looking towards renewable energy sources through the creation of "renewable energy zones" that would be the modern equivalent of a power station.
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A Manufacturing Renewables Taskforce will be set up to consider the use of BlueScope steel and other NSW products in the infrastructure in those zones.
State Energy Minister Matt Kean said his priority was "finding ways to make sure that the steel and other products that power NSW, are made in NSW by NSW manufacturers".
BlueScope CEO Mark Vassella backed the government's policy decision.
"The NSW government announcement about building NSW into a renewable energy superpower is exactly the right policy direction at exactly the right time," Mr Vassella said.
"The prospect of new sustainable, firmed energy capacity from wind, solar and pumped hydro is a crucial breakthrough for the future of steelmaking in NSW. This is an energy plan that will support our own commitments to carbon emissions reduction."
At present, according to a BlueScope spokesman, the company's ability to contribute to the construction of renewable energy infrastructure had been overlooked, with components instead shipped in from overseas.
"BlueScope can produce the range of steel required for wind towers, solar farm components, pumped hydro, electricity transmission towers, etc," the spokesman said.
"But today 100 per cent of these products are fully imported as pre-fabricated goods, as there is currently no downstream fabricating supply chain in NSW who can build them."
The spokesman said the $32 billion plan could provide the impetus to create that supply chain.
"For fabricators to invest in tooling up to build the capacity of this new supply chain, they need a strong signal from government that they can confidently invest millions of dollars and expect to get a return," the spokesman said.
Labor has criticised the taskforce, saying it provided no guarantee that BlueScope steel would be used.
"The steel industry remains an important part of the Illawarra community and economy," Wollongong MP Paul Scully said.
"I want to see more steel used in renewable energy projects. But what the government is offering is a meeting. A meeting is not a mandate."
'Don't forget about the Illawarra'
The state government's $32 billion renewable energy package is a "quantum leap", according to South Coast Labour Council secretary Arthur Rorris.
But the Illawarra must be included in the deal, he said.
The plan would see a transition away from coal-fired electricity, with new infrastructure to be built - which is where Mr Rorris said the Illawarra can play a part.
"This announcement, even if it comes close to the $32 billion of private investment, will only translate into jobs here in the Illawarra if our industries are directly engaged," Mr Rorris said.
"The only way you can do that is with a requirement for Australian content and the requirement for the development of those new industries and steps towards sustaining those industries in the future.
"It won't happen overnight but clearly the race is on now to develop and build these turbines and solar panels and solar farms and we are very well placed."
Mr Rorris was hoping to meet with NSW Energy Minister Matt Kean to call for legislation to lock in local procurement, including steel from Port Kembla.
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