Federal industrial policy positions Illawarra as clean steel and green energy hub

The federal government's industrial policy framework is concentrating significant attention on the Illawarra as the primary site of Australia's clean steel transition, with the National Reconstruction Fund, the Net Zero Economy Authority, and the Department of Industry working in coordinated fashion to support BlueScope Steel's $2.3 billion green steelworks transformation and the associated industry cluster that will develop around it.

Net Zero Economy Authority CEO Chloe Munro confirmed that the Illawarra had been identified as one of five national Industrial Transformation Hubs — regional economies where the clean energy transition creates both significant structural risk to existing industries and substantial opportunities for new ones if managed well. Wollongong is the only NSW hub in the five selected.

Federal Industry Minister Ed Husic said the designation was not honorary — it came with dedicated NZEA engagement, priority access to NRF investment decision-making, and a commitment to establish a permanent government-industry-community coordination group to oversee the Illawarra's transition over a 10-year horizon. "This is a structural commitment, not a photo opportunity," he said.

The hub designation will benefit companies in the Illawarra's supply chain that are seeking NRF support for investments aligned with green steel production, including companies producing refractory materials, process gases, and materials handling equipment that will be sourced locally rather than imported in BlueScope's preferred procurement model.

University of Wollongong vice-chancellor Patricia Davidson said the hub designation validated the university's decision to invest heavily in materials science and clean manufacturing research, positioning it as the academic partner of choice for the Illawarra's industrial transformation.

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