Gladstone can lead clean industry but delivery delays risk $7.8b investment

● Australia’s climate target fails the credibility test, offering neither industry or regional communities the certainty they need.

● New research flags serious risks threatening jobs and Gladstone’s industrial future.

● Queensland Energy Roadmap’s continued reliance on fossil fuel generation is out of step with market dynamics and the demands of Gladstone’s biggest power users.

Despite a strong pipeline of projects and bold industry ambition, just 12% of the renewable energy capacity needed is currently operational or under construction.

That’s the central finding of Powering Up Gladstone, a new regional insights report that assesses the region’s readiness to seize the global clean industry opportunity. Developed under BZE’s National Action Plan, the report highlights that with the right coordination and support, Gladstone could unlock $7.8 billion in new investment, generate 11,000 local jobs, and become a leader in clean commodities.

Despite uncertainty on the ground, the people and businesses of Gladstone are ready. The window is fast closing for the region to secure the benefits. However, Queensland’s new Energy Roadmap risks this opportunity. Scrapping coal power plant closure timelines, increasing gas generation, and delaying new targets creates uncertainty for investors, workers and communities.

Key findings‍

● Industry ambition is strong: Major players including Rio Tinto and Orica have set bold emissions targets backed by renewable power purchase agreements.

● Delivery delays threaten Gladstone’s industrial future: Only 12% of the renewable generation capacity needed for Gladstone is currently under construction, and just 14% of the required energy storage capacity is underway. Transmission upgrades planned to date will not be sufficient to electrify existing industries and enable new green exports.

● $7.8 billion opportunity at stake: A dedicated Renewable Energy Industrial Precinct in Gladstone could unlock $7.8 billion in new investment, create 11,000 local jobs, and generate an additional $2 billion in annual revenue, while protecting existing manufacturing jobs.

● Conflicting policy signals: While the federal government has made record investments in clean energy, ongoing fossil fuel support and shifting state targets are undermining investor confidence.

‍Headline recommendations from Powering Up Gladstone

● Accelerate renewables and infrastructure: Streamline approvals, expand transmission and storage, and plan for industrial demand at scale.

● Provide stability for industry and investors: Deliver renewable energy on time and at competitive prices, tighten emissions policies, and remove conflicting signals.

● Set one clear, consistent direction: Align federal, state and local commitments to give industries and communities confidence in the pathway forward.

Queensland-based Dr Heidi Edmonds, Senior Researcher at Beyond Zero Emissions, said,

“As someone who grew up in Gladstone and is now raising my children as a proud Queenslander, I know first-hand how deeply we care about securing jobs and opportunities for the next generation. We have what it takes, but this crisis of coordination is putting our community at risk.

“Rio Tinto’s decision to bring forward the closure of Gladstone Power Station is a powerful signal of industry ambition. Gladstone can lead the world in clean aluminium, green ammonia and green iron, but only if we match ambition with delivery, not just announcements.

“Gladstone can be a place where clean energy powers world-leading manufacturing, and where our kids and their kids can enjoy secure livelihoods right here.”

Meredith England, Systems Innovation Director at Climate-KIC said

“Gladstone already has all the ingredients it needs to transition to net zero - without coming at a cost to its skilled workforce and thriving local industries. Gladstone’s path to net zero is not straightforward, and real challenges exist, like the historical disconnect between industrial growth, community wellbeing and social infrastructure. At the same time, we know a fair and inclusive transition is in reach. The good news is that taking coordinated action now could provide an opportunity for Gladstone to take a global step-up in unlocking a clean industrial future.”

Click here to read Powering Up Gladstone

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Media contact:
Michelle Lee
Communications Manager
Beyond Zero Emissions
Email: michelle.lee@bze.org.au
Mobile: 0432 398 850