By Alex Zelinsky. As printed in The Daily Telegraph 6 August 2025
As someone who lives and works in Newcastle, I see first-hand how closely the prosperity of the Hunter Region is tied to the strength of our major industries.
The Hunter is a hub of manufacturing, energy, defence and agriculture.
The University of Newcastle is deeply connected to these industries. Our graduates and the outcomes of our research contribute to the prosperity and sustainability of our largescale industries.
Yet, these industries - and the communities that rely on them - are at a critical juncture. Rising costs and uncertain supply of natural gas on Australia's East Coast are placing enormous pressure on the industries of the Hunter.
While the transition to renewable energy is necessary and inevitable, natural gas remains a critical part of the energy mix. For many local industries, gas is not just a source of power, but an essential input into chemical and operational processes, with no viable alternative in the short to medium term.
Take Orica, for example. Its Kooragang Island plant uses natural gas to produce ammonia, which supports the production of chemicals, fertilisers, explosives, and CO2 vital to Australia's mining, agriculture, and food and beverage sectors.
While Orica is actively working to decarbonise the plant cannot remove natural gas overnight and switch to renewable energy. Powering Orica's plant entirely on renewable electricity would require all of NSW's renewable energy production and would leave no capacity for any other users. An impossible proposition.
Tomago Aluminium, Australia's largest aluminium smelter and one of our region's major industrial employers, requires a constant, reliable and affordable energy supply, including drawing heavily on coal fired-generated electricity.
The plant uses about 10 per cent of NSW's power supply to run its operations around the clock, and even with a strong commitment to sustainability, its operational requirements cannot yet be met by intermittent renewable energy sources, such as wind and solar with gas replacing coal.
Companies such as our partner Brickworks, Australia's largest brick manufacturer, are also feeling the pressure. Brick manufacturing relies on natural gas to fire kilns at high temperatures and there is currently no commercially viable renewables alternative that meets this need.
Meanwhile, as we continue to export the vast majority of our natural gas, Brickworks is paying up to three times more for gas than they do for their brick factories in the US. These higher prices are affecting the construction sector through rising material costs, adding pressure on housing affordability, which affects us all.
If the rising costs and constrained domestic supply of natural gas force our anchor industries to scale back or move offshore, the economic blow to the Hunter would be severe and longlasting - similar to losing any major economic sector.
Local jobs would be lost. Our university's research collaborations, student placements and graduate employment pathways would diminish. We seek to underpin the Hunter's transition to a clean energy future.
As we saw with the demise of steelmaking in Newcastle and the loss of car manufacturing in Adelaide, once these industries go, they will not be rebuilt. The ripple effect of losing the Hunter's key industries would be felt across the country, making fertilisers, mining explosives, and construction materials more expensive.
The prospect of needing to import bricks, despite our country's abundance of natural gas and resources, could become a possibility.
Our challenge is clear. We must decarbonise without deindustrialising.
We welcome the government's review of the gas market to ensure longterm access to affordable gas. Natural gas must remain available to Australian industries at a fair price. A national gas reserve prioritising heavy industry, alongside ongoing investment in energy research that aligns with manufacturing, will help safeguard industries and regional economies during the energy transition.
At the University of Newcastle, we are committed to supporting this transition. Collaborating with local industry, we are helping to decarbonise the economy while protecting jobs and communities.
Our Newcastle Institute for Energy and Resources is delivering innovative, practical solutions in partnership with industry and government.
For example, our researchers are developing technologies that convert organic waste into sustainable fuels and extract pure water from the atmosphere using solar heat for green hydrogen production. We are also leading a major project to create lowcost, low-emission jet fuel from renewable hydrogen and CO2.
Our partnership with Orica through our world-leading spin-off, Mineral Carbonation International (MCi), is another strong example of how regional innovation can deliver carbon capture and utilisation technologies to reduce emissions from Orica's Kooragang Island facilities, while producing new building materials with embedded carbon that has been captured.
Such solutions will work in tandem with green energy inputs.
This is not gas versus renewables. Both have a role in the journey to building a cleaner, more secure energy future on the road to net-zero. In the Hunter Region, that future must be anchored in energy security to protect jobs, support our economy and ensure that our children and grandchildren can build a life and career in our region.
Professor Alex Zelinsky AO is vice-chancellor and president of the University of Newcastle
