SARAH FERGUSON, PRESENTER: Part two of the dramatic move to take over the Whyalla steel works in South Australia was unveiled today with the Federal and State governments combining to offer a $2.4 billion package to secure the viability of the plant and assist a future buyer.

Simultaneously, Industry Minister Ed Husic announced a $1 billion 'Green Iron Investment Fund' part of which will be available to the new owner of the Whyalla plant.

Ed Husic, welcome to 730.

ED HUSIC, SCIENCE AND INDUSTRY MINISTER:   Good evening.

SARAH FERGUSON:  How does this bailout work? If someone steps up to buy the Whyalla steel works, does it become a $2.4 billion subsidy?

ED HUSIC:  Not a bailout. First thing to mention, this is not a bailout. This is not an owner in a position where they have sought government assistance to help them, to tie them over.

This is a case where an administration has been triggered because we have had, as governments, federal and state, a concern about the future of Whyalla and we've had a determination to ensure that the steel works continue because of our deep belief that one, it is a sovereign, it is a sovereign capability required for the good of the country into the long term, and two, through working with the private sector, we can deliver a strong future for Whyalla, and ensure that Australian steel making is strengthened as a result of that.

SARAH FERGUSON:  Whyalla steel was meant to be the proving ground for green steel, that was Mr. Gupta's promise. Were you completely misled by him?

ED HUSIC:  Well, they made a number of claims that clearly did not, in the end, materialise, and that is part of the reason why we've had to take the stand that we did, Sarah. We had, both at a federal and South Australian level, been monitoring what was going in on Whyalla over the course of last year, particularly concerned about two events.

One, when the blast furnace, there was an issue during maintenance that took effectively steel making offline in Whyalla, and that affected the workers there.

The other issue was the repeated cases and news we were getting about contractors, suppliers not being paid for work done in good faith. We were increasingly concerned that the bills weren't being paid, the investment promises weren't being fulfilled and concerned about what might happen to the steel works all of a sudden, which prompted the action that we took, but really important to do.

And can I just say there's a human element to this, Sarah. When visiting Whyalla today with the Prime Minister, the Premier and Minister Koutsantonis, can I just tell you, the feeling in Whyalla is enormous relief; concerned that they'd been placed in limbo for quite some time, hesitant about thinking about a future now a clear game plan for Whyalla for steel making, and it's just palpable, the relief in Whyalla and the sense of now, buoyancy, of confidence in Whyalla as a result of leadership that is being shown by the Prime Minister and the Premier.

SARAH FERGUSON:  How much of the funds that have been announced today have been earmarked for the green transition of the steel works?

ED HUSIC:  So, we have been working, Sarah, on the development of a green metals pathway for the nation. You may recall a few weeks ago, we announced the green aluminium component of that in steel. We are and why, we are standing up today, and have announced a Green Iron Investment Fund, $1 billion of which up to $500 million could go to assist in the transformation of Whyalla to be able to promote its development towards green steel.

SARAH FERGUSON:  Can I just ask you this, do you still have confidence in the in the viability of green hydrogen, after so many major hydrogen plans have been abandoned?

ED HUSIC:  I've watched technology, Sarah, and the development of it. You know, through the course of my time as a parliamentarian, I've taken a deep interest in it. I've never been an evangelist, and I've never been dystopian. I've never been, I've seen the way technology tracks in terms of people's predictions. Sometimes it's overhyped. Other times, people believe it'll never work.

What you can be confident of is the world is thinking deeply about the development of hydrogen as a renewable energy source.

Yep, there'll be points at which there are setbacks, but I believe, and I think a lot of others do that at some point this, the problem will be cracked, the ability to produce at scale will be delivered, and it will be an important source of energy, but particularly in terms of what we're thinking about and talking about here, Sarah. In steel making, it'll play a really important role in being able to particularly propel the future of green steel.

SARAH FERGUSON:  But given where green hydrogen is now, and given the failure of a number of projects, Fortescue, Woodside Origin, issues with the Queensland project. Is this the problem with the government picking winners in a very risky energy market?

ED HUSIC:  Well, you know, a lot of government investment goes into basic research and applied research and working with industry to progress ideas. A lot of people talking down hydrogen now, and 12 months ago, it was all being hyped up as to what I was saying, a lot of people talking it up.

I am a believer that this will emerge. I think that hydrogen will emerge as a source of energy. I refuse to just take at face value the scepticism and the cynical views that are being expressed right now. It is important…

SARAH FERGUSON: They're not cynical views being put forward by Fortescue, Woodside and Origin. They are realistic business decisions for now, aren't they?

ED HUSIC:  Look, you are right. You know what? You are absolutely right to make that point to me, that they have reassessed their investment based on where they're at at this point in time.

I don't think anyone is seriously abandoning the development of hydrogen. It has been something that's been worked on for years, and at some point, you can be sure that someone will, as I said a few moments ago, crack this. And when that happens, this will fundamentally change the way in which we have access to a renewable energy source, and it will be important.

So, there are a lot of other parts of the world that are focused on this, but I appreciate that there's a degree of doubt at this point in time. Let's see how it plays out.

SARAH FERGUSON:  And just to be clear, for the foreseeable future, coke and coal right now is used at Whyalla. You're going to rely on gas in the near future, near and midterm future.

ED HUSIC:  So, a number of things. I mean, if you set up an electric arc furnace, there will be a, in terms of the process, there will be elements of gas relied upon. But what you're trying to do is progress to a situation where you're lowering the emissions significantly.

In longer term, gas in particular, will potentially be subbed out by hydrogen, specifically ammonia, and that will play a part of the process.

SARAH FERGUSON:  But for the time being, you think the $500 million earmarked for the green transition of Whyalla is money well spent?

ED HUSIC:  Yeah, well, it's an important incentive to get private, private investors, to be able to back the transition to electric arc furnaces, for instance, and to be able to see Whyalla have that long term future.

It is an important investment. I think again, based on the work that we've done as a government around the development of a green metals pathway, through to being able to signal to Whyalla the future that it has and the transformation that it can undergo to get to that future is really important.

And I particularly think it's important that we stand up and we fight for the future of blue-collar communities.

I mean, I'm a son of a blue-collar worker, a metal worker, who has sat at dinner tables looking at the anxious look in parents faces, wondering whether or not they have a job.

I have said in particular that we need to be able to chart that future for blue-collar communities that are doing important work. Steel and aluminium will be relied upon by economies like ours and others well into the future.

Blue collar workers have a role to play in that and governments, working with industry can deliver that future.

SARAH FERGUSON:  Ed Husic, thank you very much indeed for joining us today. Thank you.

ED HUSIC:  Thank you for your time.