BlueScope targets renewable energy, defence sectors in Port Kembla realignment

BlueScope is advancing its plans to adapt processes at the Port Kembla steelworks so it can make a more diverse range of products under its $217 million-plus Advanced Steel Manufacturing Precinct (ASMAP).

The company says this project itself will create 140 new permanent jobs for the wind tower manufacturing facility, 450 jobs in the construction phase, 16 new jobs in steel manufacturing and about 1000 new jobs in related industries once the ASMAP is operating.

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Towers for wind farms and steel for the defence sector are named in planning documents as the markets in the steelmaker's sights.

"The project will help build Australia's sovereign manufacturing capability and assist BlueScope in making a substantive investment to make essential components for the clean energy transition - wind, solar and pumped hydro - and the defence sector," the company's scoping report states.

"The proposed project is also highly complementary to BSL's (BlueScope's) broader vision for a potential hydrogen ecosystem for the Illawarra, leveraging BSL's green hydrogen projects that are under development at PPSW (Port Kembla Steel Works)."

BlueScope wants the new manufacturing abilities to be operational within four years, which would place it well for offshore wind farm projects which have stated a target of construction being underway by 2028.

About $55 million has been granted from the Federal Government towards the project under its Modern Manufacturing Initiative.

BlueScope's established product is hot rolled coil steel, continuously cast slabs of steel which can then be processed further into plates or strips, or shipped off in rolls.

This has limited the company's abilities to benefit from industries such as construction, which uses heavy beams and tube steel.

The pivot towards manufacturing the giant wind farm towers, which can be 70-120m tall, shows the steelmaker recognising and preparing to take advantage of the coming boom in renewable energy generation.

BlueScope has lodged its scoping report for the ASMAP under the State Significant Development process, which means the state's planning minister will decide on its approval.

It says the planned new Wind Tower Manufacturing Facility would be mostly located within the existing KW building on the steelworks' northern side.

"The proposed location of the Wind Tower Manufacturing Facility is however subject to detailed road and transport studies being completed to confirm the site's suitability to overcome complex road logistical challenges," it states.

"The facility will include infrastructure to support plate cutting, joining and rolling, areas allocated for welding, blasting, painting area, internal fit out and storage of internal components. The works will include the installation of additional overhead cranes, realignment of internal rail lines."

Comment was sought from BlueScope for this story.