Weld Australia prioritises local content in renewable energy transition

Weld Australia is urging administrative and state legislatures to lay out local content procurement strategies, requiring 60% of all created steel utilised in renewable energy projects to be manufactured locally by Australian welders.

This follows the new extension of the Federal Government’s Capacity Investment Scheme, which expects to drive roughly $10 billion worth of interest in renewables.

The plan was extended in November 2023 to bring $40 billion up in private speculation, adding another 32 GW of ability to the National Energy Market.

Weld Australia CEO Geoff Crittenden commended the expansion of the Capacity Investment Scheme and emphasised the significance of including local and First Nations content requirements in the tenders for the scheme.

“The Federal Government must commit to building sovereign manufacturing capability for renewable energy projects by legislating local content policy. Local content legislation must specify that 60% of all fabricated steel used in our renewable energy projects is manufactured in Australia by local welders,” said Crittenden.

Businesses in Australia have been calling for specific, measurable local content requirements to be included in government contracts for a long time.

“This local content legislation must be drafted in conjunction with industry to eliminate the loopholes that so often arise in these types of policies. The Federal Government must also mandate that all wind towers are constructed, erected and inspected according to Australian Standards,” Crittenden added.

Local welding and manufacturing businesses can be certain that enough orders will be secured by these mandates for them to invest in the necessary workforce, plant, and equipment to produce high-quality, cost-effective renewable energy assets.