TUESDAY 22 APRIL 2025
Delaying renewable energy in favour of nuclear reactors in Australia could risk the country’s four aluminium smelters and up to 13,500 jobs, as the sector would face high energy prices and a collapse in electricity usage across our eastern states by 2035, new analysis shows.
The analysis, commissioned by Renew Australia for All, has looked at the implications of the Federal Opposition’s modelling that informs their nuclear policy. It shows that under the proposal, industrial electricity usage would halve by as early as 2035. (Down from 45.4 TWh per year currently to 22.8 TWh by as early as 2035).
A collapse in energy usage of this magnitude is equivalent to the closure of Australia’s four aluminium smelters. (They currently use 23.5 TWh of electricity per year).
The risk posed by this collapse is further exacerbated by a nuclear policy that would drive up energy costs and is too slow to meet the decarbonisation timelines required by our environment or those outlined by industry.
Australia’s aluminium industry currently supports 7,594 direct jobs and 5,886 jobs indirectly. We need to ensure the sector’s viability for those 13,500 people who rely on its sustainability for employment by continuing to invest in the pathway we are already on: re-powering the smelters with lowest-cost, firmed renewable energy.
The analysis in this report is clear: nuclear reactors risk our vital regional manufacturing hubs and the thousands of livelihoods that depend on them. These are risks we don’t have to make.
Renew Australia for All understands the importance our aluminium sector and its workers play in our communities. We are calling for all sides of government to back solutions that are fit-for-purpose, realistic and available now. We need a secure, affordable, sensible, renewable energy future that works for our people and our planet.
The report can be found at https://renewaustraliaforall.org/wp-content/uploads/2025/04/Nuclear-reactors-risk-industrial-meltdown-in-Australia.pdf
Founder of Climate Energy Finance, Tim Buckley said: “The real-world impact of the opposition’s nuclear policy will be to create significant investor uncertainty and crowd out private investors who will invariably deter a significant part of the 260GW, $300-400bn in renewable energy investment proposals already in the grid connection queue across Australia.
“This will further erode our manufacturing sector’s competitiveness by forcing our industry to consume high-cost, high-polluting electricity generated from fossil fuels for decades longer, before even higher cost, notoriously slow-to-build nuclear plants are eventually constructed.”
Michele O'Neil, President, Australian Council of Trade Unions (ACTU) said: “This new analysis has confirmed the real price of this policy – that nuclear power is not just expensive – but puts at risk a critical industry and the well-paid jobs of thousands of Australians.
“At a time of global uncertainty, it’s even more important for Australia to have sovereign manufacturing capacity, and aluminium is a critical part of that. It is reckless and dangerous to put such a critical industry at risk to pursue an expensive nuclear pipe dream.
“Workers are looking for policies to secure their jobs, pay and conditions and this analysis confirms that for aluminium workers in the Hunter, as well as Portland in Victoria, Gladstone in Central Queensland, and Bell Bay in Tasmania there’s a real risk that pursuing a nuclear policy will hurt these local communities and jobs.”
About us:
Renew Australia For All is an historic alliance of more than 70 organisations from social services, unions, faith, community and multicultural groups, environment organisations and industry working together to deliver a fairer, better and more secure future for all Australians. Because all of us – no matter where we live, or what we earn – can and should have access to affordable, clean, reliable renewable energy so we can cut household energy bills now, and for good. All our communities also need to be supported to be better prepared for and able to recover from extreme weather events, like bushfires and heatwaves.
Contact details:
Tim Buckley, Climate Energy Finance
0408 102 127
David Imber
0413 274 204