How a $72m centre could reshape Illawarra industry and energy exports
UOW-led centre targets steel decarbonisation, renewable fuels and long-term export potential.
Newly-appointed director of the $72 million ARC Centre of Excellence for Renewable Fuels, Professor Gerry Swiegers is clear-eyed about the opportunity and the timeframe ahead. Here he outlines how the centre could help protect the Illawarra’s industrial base, build sovereign fuel capability and support the next generation of high-value jobs - over years, not months.
Professor Gerry Swiegers. Images via UOW, created with Gemini
With its concentration of heavy industry, port infrastructure and engineering capability, as well as its innovation edge, the Illawarra is positioning itself to remain a significant industrial centre as the global economy moves toward net zero.
Key to that transition will be the $72 million Australian Research Council (ARC) Centre of Excellence for Renewable Fuels announced late 2025.
The multi-million-dollar centre, to be based at the University of Wollongong, is intended to provide a long-term transition pathway for steel, heavy manufacturing and emerging renewable fuel industries, according to centre director Professor Gerry Swiegers.
“When we set out to propose this centre of excellence for renewable fuels, we specifically wanted to have impact, and wanted to design it so that it would have real outcomes – for our local community, for our state, for Australia and beyond,” he said.
As global industries move away from fossil fuels, he argues the centre’s role is to address what he describes as the ‘energy density’ challenge — the difficulty of replacing fossil fuels in applications that require high-intensity, transportable energy.
Traditional blast furnace steelmaking requires energy-dense fuels, making decarbonisation particularly complex. The centre’s focus on green hydrogen and methanol is intended to offer alternative pathways for companies such as BlueScope, one of its industry partners.
Other hard-to-abate sectors, including shipping and aviation, are also in scope. This is reflected in the involvement of Japanese multinational Mitsubishi Heavy Industries, including its shipbuilding division. Swiegers points to sustainable aviation fuel and renewable methanol for maritime shipping as potential long-term opportunities for the Illawarra.
Building sovereign capability, export power
A recurring priority for Swiegers is the transition from Australia as a fossil fuel exporter to a renewable energy exporter.
In his view, this would gradually reposition regions such as the Illawarra from reliance on imported refined fuels toward domestic production of higher-value energy carriers.
Australia currently imports about $45 billion in refined fuels annually. Swiegers sees the centre as a potential catalyst for reducing that exposure, using local wind and solar resources to produce energy-dense fuels at industrial sites such as Port Kembla.
“Our vision is to make Australia a world leader in renewable fuels, driving our transition from a major exporter of fossil fuels to the world’s leading exporter of renewable energy,” he said. “We’re one of the largest fossil fuel exporters in the world — coal, natural gas, and even the iron ore we export is very carbon intensive. With renewable fuels, we could provide export partners with alternatives they can adopt over time.”
For that to happen, Swiegers is adamant the centre must “leapfrog” existing technologies, with a strong focus on improving energy efficiency and reducing cost. He cited four decades of solar electricity development in Australia as a reference point.
“New technologies have emerged taking over from old technologies in that field. Now they’re leapfrogging themselves — and that is what created the opportunity with solar.”
The centre’s longer-term ambition is to help drive green hydrogen production costs below $2 per kilogram — a level that would significantly change global competitiveness. Recent forecasts place costs at around $5.70–$6.10 per kilogram in 2025, with expectations of approximately $4.50 by 2030.
The ‘human capital’ legacy
While acknowledging his close involvement with the technology, Swiegers also frames the centre as a vehicle for workforce transition. He rejects a binary choice between “old” and “new” jobs, instead arguing for redeployment of the Illawarra’s existing industrial skill base.
Skills in areas such as high-pressure gas handling, chemical engineering and industrial safety - already embedded in the regional workforce - are directly applicable to renewable fuel production, he said.
“We are looking to create new jobs and new opportunities for people for the next generation, including pathways for workers in fossil fuel industries to transition into new sectors and apply their existing skills.”
With the centre headquartered at the UOW Innovation Campus, Swiegers argues a solid research-to-industry ecosystem will be critical.
“It isn’t just about training PhDs. It’s about creating the engineers and technicians who will build and maintain hydrogen plants.”
What’s next?
Attention now turns to formally establishing the centre, finalising legally binding agreements and setting up its headquarters at the Innovation Campus. That process Swiegers expects to take six to nine months.
The centre’s early focus will be on developing “step-change” renewable fuel technologies that reduce production costs and improve efficiency. Success, Swiegers said, will be measured by whether those advances can be commercialised with industry partners and investors, leading to real-world adoption over the next 15 years.
The centre will also work on safety standards and practical expertise for the handling, storage and transport of renewable fuels, helping to establish the operational foundations of a new industry.
Beyond technology, Swiegers sees community confidence as essential.
“It’s not just about industry or providing information. It’s about clearly explaining the economic, employment and broader community benefits — and bringing people with us.”
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