Gas-backed rescue of Whyalla steelworks ‘entirely uneconomic’, thinktank warns
Jonathan Barrett
Taxpayers will need to pay up to $2bn in additional subsidies if the federal and South Australian governments support an “entirely uneconomic” gas-backed plan to rescue the ailing Whyalla steelworks, according to new analysis by Climate Energy Finance.
The warning comes ahead of a decision by administrators over the future of the steelworks, one of only two major integrated steel projects in Australia and the only local manufacturer of rail.
The decision is seen as a defining choice for Australia between reverting to manufacturing powered by gas, and developing renewables-based industrial capacity.
Climate Energy Finance calculated that it would cost between $1.7bn and $2bn over a decade in gas supply subsidies and hundreds of millions in pipeline infrastructure to help a gas-based plant compete with overseas manufacturers.
It says:
The SA and Australian governments have a time-critical opportunity to deploy targeted, national interest public capital to strategically invest in pivoting the steelworks to Australia’s first-of-a-kind green iron and steel production hub powered by large-scale firmed renewables.
A consortium including manufacturer BlueScope is seen as the leading bidder to take over Whyalla.
Earlier in 2025, the steelworks received a $2.4bn state and federal government bailout package to help keep it afloat and save jobs.
There are concerns that billions of dollars of public money may be used to prop up power-hungry manufacturing operations around Australia that prove to be unsustainable.
Key events
Ley says she’s been ‘underestimated a lot’ in her life amid questions about leadership threat
Opposition leader Sussan Ley has batted away concerns that she could face a leadership challenge from the likes of Andrew Hastie.
Ley spoke to 2GB earlier today, where host Ben Fordham confronted her with a list of callers who said they’d prefer the Coalition be led by Hastie instead of her. The opposition leader said she wasn’t guided by her “ego”, but rather a need to represent hardworking Australians. She added:
I’ve been underestimated a lot of my life.
I remember when a lot of blokes told me I couldn’t fly an airplane, and did a lot to keep me out of the front seat, and I flew an airplane. I flew a mustering plane in very small circles, very close to the ground, and that was pretty tough at the time.
And I did many things, and I have done many things. But once again, it’s actually not about me, it’s about the Australian people, and they’re what motivates me every day.
Ley went on to say that “everyone” in the Coalition had a role to play in opposition.
We’re all in opposition. We all agree on this energy policy because we all signed it off just yesterday and we’re all out there fighting the fight that actually matters. The fight for Australians, for their values and for our values which are about down so that Australians can actually deal with the cost of living.
Patrick Commins
Are Australians really paying more for electricity than other countries?
“Everybody knows Australians are paying way more for electricity than they were a few years ago. We used to have the cheapest energy in the world but we have squandered this advantage. And the push to renewable energy is to blame.”
Many of us believe these things are all true. But are they? The answer, as they say, may surprise you.
Strap yourself in, this is about to get technical.
Littleproud says Coalition focused on business and families after dumping net zero targets
David Littleproud, the leader of the Nationals, has said the Coalition is focused on businesses and families, when it comes to its abandonment of the net zero targets.
Littleproud and Sussan Ley have both been speaking this morning about their plan to craft a “cheaper, better, fairer” way to address energy, with general swipes at the Labor party and Albanese’s leadership. Littleproud said the opposition would be “technology agnostic” if in power, but brushed off claims that industry may be spooked by the backtrack from net zero targets.
He told RN Breakfast earlier this morning:
This government is putting us on a trajectory that we can’t afford and we can’t handle. And industry is the living experience of that, but so too are households. When you look at there’s people tonight that won’t be able to afford to put dinner on the table.
That’s an indictment on our country, as rich as what we are.
Penry Buckley
No schools in NSW closed after play sand recall
The NSW Department of Education has confirmed that there are currently no school closures in the state following the recall of children’s sand products amid fears they contain asbestos.
A spokesperson said the department issued a safety alert in Friday as a precaution to all NSW public schools “to immediately and safely remove these sand products if they have them”.
The health, safety and wellbeing of students, staff and the school community is the department’s highest priority.
As we reported earlier, the ACT has closed 71 public schools today, amid concerns about the children’s coloured play sand sold at Kmart and Target.
You can see up-to-date closure statuses for NSW public and independent schools here.
Adam Morton
Factchecking five Coalition claims about net zero, from power prices to the $9tn cost
As Liberals join Nationals in abandoning a 2050 emissions target, we unpick some of the opposition’s talking points.
Will the net zero emissions target cost taxpayers $9tn? Has the net zero target caused electricity price rises since 2022? Could Australia stay in the Paris agreement if it abandoned emissions targets?
We’re here to help:
NSW police operation targeting domestic violence offenders results in 752 arrests
NSW police charged 752 people in a four-day domestic violence crackdown, as the agency continues to grapple with curbing violence against women, AAP reports.
Officials laid 1,629 charges, conducted 1,464 bail checks and made 13,369 apprehended domestic violence order checks across the operation that concluded on Sunday, police said in a statement on Monday.
Authorities said 395 breaches of court orders were identified in the blitz.
Police said they also conducted 120 firearms prohibition order searches, seizing 87 firearms and 30 weapons.
One in four women in Australia has experienced violence from an intimate partner since the age of 15, according to official data, with the social and economic cost estimated to be $26bn annually.
NSW police minister, Yasmin Catley, said Operation Amarok sent “a powerful message to every victim-survivor that you are not alone and police are working every day to protect you”.
With more than 150,000 calls for help every single year, police understand the urgency and the heartbreak of this crisis.
Tom McIlroy
Government to pay for removal of gas from 20 student residential buildings
The federal government will pay to remove gas from 20 student residential buildings in Sydney, Melbourne, Brisbane and Adelaide, part of what is being dubbed Australia’s largest apartment electrification project.
The assistant minister for climate change and energy, Josh Wilson, has announced the $50m project, set to be delivered with accommodation owner Scape Australia and the Clean Energy Finance Corporation, and designed to reduce energy usage for more than 17,000 students.
The plan is also expected to boost efficiency measures including improved insulation in new student accommodation and an energy metering pilot to better manage buildings’ energy use, providing students with more comfortable homes. Wilson said:
Electrifying residential accommodation is essential to the task of reducing emissions and future-proofing Australian homes; it also makes them cheaper to run and more comfortable to live in.
As Australia’s renewable, reliable and sustainable energy transition picks up speed, it’s great to get behind a project that will benefit today’s students as they complete their education while living in these newly electrified residential buildings.
In advancing the decarbonisation of Australian apartments, the Albanese government is delivering on its promise to act on climate change, which is what Australians, and especially young people, expect us to do.
Albanese to call trade a ‘bulwark against conflict’
Tom McIlroy
Prime minister Anthony Albanese will talk up the economic opportunities of Australia’s trade relationships around the world, days after the US president, Donald Trump, signed an executive order winding back his tariffs on food imports including beef, coffee and bananas.
Under pressure over consumer prices, Trump conceded at the weekend that “current domestic demand for certain products” and capacity to produce certain products had influenced the decision.
In a speech at the Apec Study Centre in Melbourne on Monday, Albanese will say a quarter of Australian jobs are in industries that are reliant on overseas trade.
He calls trade a “bulwark against conflict”:
It can incentivise de-escalation – even at the highest levels. Because trade doesn’t happen in isolation.
For the economic benefits to flow at home, you need to be able to trust partners overseas. That reliance on trust and mutual benefit encourages nations to work out their differences with dialogue.
To work it out rather than to have it out.
Albanese is getting ready to head to the G20 in South Africa later this week, after making a stop in Western Australia, likely to include a cabinet meeting and events with the WA premier, Roger Cook.
Sussan Ley maintains immigration numbers ‘need to be lower’
Sussan Ley told RN Breakfast earlier that immigration numbers “need to be lower”, saying Australians are facing issues in their communities including difficulties finding “the right commute to work” and challenges at schools, hospitals and on public transport.
She told RN:
If you look at all of the remarks that I’ve ever made on this subject, you will find that I’ve always said this is not the fault of any migrant or migrant community.
[I’ve] consistently said that it’s the failings of governments, often state governments, to build the infrastructure to support the population.
Ley was questioned if she was concerned some groups would be “put offside” by her remarks, which did not play well during the May election.
I addressed that at the time and I’ve addressed it since by always reminding our wonderful migrant communities of the value that they add to this country. I have my own migrant story.
I deeply appreciate communities and individuals who’ve made the choice to come to Australia, to build their homes. To build their families, to build their future, to work hard, to take risks and to give back.
New concerns over play sand in ACT, with 71 public schools closed today
The ACT has closed 71 public schools today amid concerns more children’s coloured play sand may contain asbestos.
The ACCC said yesterday Kmart and Target had issued a voluntary recall notice for four additional brands of the sand, saying the dangerous material had been detected in some samples after laboratory testing. It said respirable asbestos had not been detected, adding the risk of the asbestos found to be airborne or fine enough for inhalation is low.
Still, the ACT said out of its regulatory obligations and “ in the interest of the safety of our students, staff and community” it would close some schools to allow for assessment, clean-up and remediation.
The closures follow others last week after a range of colourful sand products imported from China were recalled amid similar concerns.
Read more here:
Gas-backed rescue of Whyalla steelworks ‘entirely uneconomic’, thinktank warns
Jonathan Barrett
Taxpayers will need to pay up to $2bn in additional subsidies if the federal and South Australian governments support an “entirely uneconomic” gas-backed plan to rescue the ailing Whyalla steelworks, according to new analysis by Climate Energy Finance.
The warning comes ahead of a decision by administrators over the future of the steelworks, one of only two major integrated steel projects in Australia and the only local manufacturer of rail.
The decision is seen as a defining choice for Australia between reverting to manufacturing powered by gas, and developing renewables-based industrial capacity.
Climate Energy Finance calculated that it would cost between $1.7bn and $2bn over a decade in gas supply subsidies and hundreds of millions in pipeline infrastructure to help a gas-based plant compete with overseas manufacturers.
It says:
The SA and Australian governments have a time-critical opportunity to deploy targeted, national interest public capital to strategically invest in pivoting the steelworks to Australia’s first-of-a-kind green iron and steel production hub powered by large-scale firmed renewables.
A consortium including manufacturer BlueScope is seen as the leading bidder to take over Whyalla.
Earlier in 2025, the steelworks received a $2.4bn state and federal government bailout package to help keep it afloat and save jobs.
There are concerns that billions of dollars of public money may be used to prop up power-hungry manufacturing operations around Australia that prove to be unsustainable.
Ley defends abandoning net zero by 2050 target and says renewables too expensive
Opposition leader Sussan Ley spoke with RN Breakfast this morning to stress she cares about the climate, but “when energy is unaffordable, everything is unaffordable”. Her comments come after the Liberal party dumped its net zero emissions targets last week.
Ley was asked repeatedly how the Coalition could assure voters it took climate change seriously after the move, and how she responded to findings that renewable energy remains the lowest cost new build electricity generation in Australia. She said:
I want to reassure people listening who care about the climate that I do too, which is why we have dedicated emissions reduction goals in our plan. And I want to make this clear: emissions will be reduced on average year on year for every five-year period under our nationally determined contribution. And we’ll do our fair share. …
There will always be renewables under our plan. But in rushing the transition, what we’re doing is pushing prices up.
The CSIRO said in July renewables are the cheapest option for new-build electricity generation.
Tom McIlroy
Government funds $200m in weather resilience projects
The federal government has announced $200m in new funding for projects to help communities in every state and territory become more resilient to severe weather events.
Ahead of the summer bushfire season, the minister for emergency management, Kristy McBain, said 96 projects will receive new support from the government’s $1b Disaster Ready Fund.
“Australians are no stranger to the floods, bushfires and cyclones that impact us year-on-year,” she said.
Examples of the new funding including:
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NT: $594,000 for an Emergency Coordination Facility that will be developed for the Alice Springs Town Council, enhancing local disaster response capabilities.
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NSW: $14,174,095 for the Narrandera Urban Stormwater Upgrade to mitigate the impacts of 1 in 100-year flood events.
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WA: $895,114 for increasing Karajarri Ranger Capacity to mitigate extreme wildfire risks.
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VIC: $6,454,104 for the Numurkah Flood Mitigation – construction of two ring levees.
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QLD: $14,620,000 for the Palm Island Cyclone Shelter – an 800-person cyclone shelter and evacuation centre.
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SA: $1,600,634 for the Building Wakefield’s Flood Resilience – an infrastructure project to protect Townsvale Estate, Balaklava.
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TAS: $540,000 for the Launceston Flood Mitigation Plan.
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ACT: $421,240 for the Flash Flood Warning System – using flood data and modelling to provide timely, location specific, relevant warnings to the community.
Good morning
Good morning, and welcome to Monday. Nick Visser here to dive into the week’s news. Here’s what’s on deck:
71 public schools will be closed in the ACT today after the Australian Competition and Consumer Commission (ACCC) said more children’s sand products may contain asbestos. The sand, sold at Kmart and Target, is now subject to a voluntary recall. The ACT said “in the interest of the safety of our students, staff and community we have decided to close some schools that have this product to allow for assessment clean-up and remediation to occur”.
NSW police arrested and charged 752 people with domestic violence offences during a four-day operation across the state. Officials said the effort, Operation Amarok, “sends a powerful message to every victim-survivor that you are not alone and police are working every day to protect you”.
Stick with us.
