JEREMY LEE: Look, Federal Labor earlier this week announced a $2 billion investment in the Australian-made aluminium industry. They're calling it a new green aluminium production credit with smelters being eligible for support tied to how much renewable energy they're using. Ed Husic is the Federal Minister for Industry and Science and is going to be visiting the Portland aluminium smelter today, I understand, to explain how the new policy will benefit this - what's already a pretty heavily subsidised industry, is with you this morning.

Minister Ed Husic. Welcome to you.

ED HUSIC, MINISTER FOR INDUSTRY AND SCIENCE: Jeremy, how are you?

JEREMY LEE: Very well, thanks. So, for those who missed the announcement earlier this week, just remind us what exactly the government is proposing here.

ED HUSIC: Well, what we're working to do is set up a long-term future for aluminium making in the country. We want more Australian-made aluminium. It's really important, as you know, for listeners particularly around Portland, provides great jobs and what we do need to do is encourage, as part of that long-term plan where there's a world and our competitors are looking to decarbonise and change the way they make aluminium too, we can't be left behind. So, we worked with industry and unions and researchers looking at, well, what do we need to do to encourage the faster uptake of renewables and have determined that this is the way we can set up for as the energy contracts for smelters start to end, we can work with them to find ways to get on to renewable energy quicker. And that is the important thing; the sustainability of production and finding ways to make aluminium with less of an emissions footprint really critical, and from our perspective it allows regional communities to have confidence about the fact that we can still keep making aluminium and that we can still remain as one of the top six producers in the world. And that we can fully take advantage of in this final point, that we can fully take advantage of the fact that we're across the entire supply chain, we use the resources, we value add, we make for local use and we export for others.

JEREMY LEE: So, is it designed to really encourage the industry to be making this investment in more renewable energy?

ED HUSIC: Absolutely. It helps give it a bit of a - it helps give it a bit of a push along for that to happen quicker. It's what the industry said that, you know, like if you can shape up a scheme like this, you tip in, we tip in and everyone wins.

JEREMY LEE: Alright, so in the case of the Portland smelter, where do you expect the energy is going to come from? Obviously, there are quite a lot of wind farms in our region already, what else are we looking at here to provide what's going to be required?

ED HUSIC: So, it's important to emphasise, we'll talk with each individual smelter, because as you rightly point out, circumstances differ in different regions and what's available and what isn't. So, in the case of Portland, you're right, there are a number of sources of renewable energy, but the important thing is, too, people often think that they have to have a solar farm or a wind farm right near a facility to make that happen. It's not the case. As long as there's somewhere in the system, the electricity grid, those renewably generated electrons are going in. And the contract recognises, the power purchase agreement, recognises that that is a good thing because it's encouraged the uptake of supply somewhere else in the system. So, it's a good thing. And with Portland, we look forward to working with them on shaping up what they need to be able to get ready. Their contracts are a bit longer term, I think, in terms of the way that they've got a number of contracts. They all come off at different points, but we'll be able to work with them on that.

JEREMY LEE: Okay. There are proposals for offshore wind energy, of course, in our part of the world as well. Would you expect that that could play a part in this?

ED HUSIC: Oh, absolutely. I think if you can have renewable energy generated right on your doorstep, is fantastic. The big thing is to have more of it in the system. We know we've got to find more ways to generate energy and be able to have it done renewably, sustainably. And so having that power in the grid, really important. And even better if you've got it right on your doorstep. I was talking with Energy Minister Chris Bowen. He said he's visited - I understand he's visited Portland quite a few times and particularly talk about offshore wind, which will provide a huge boost. It's a massive shot in the arm for renewable energy supply, not only in Portland, but for the country, frankly.

JEREMY LEE: Yeah. My understanding is that aluminium smelters do require access to a lot of electricity and there are sort of figures often bandied around about just the amount of electricity that the Alcoa facility in Portland does use. When we talk about Victoria's supply, and a pretty constant supply required as well. So, when we talk about renewable technologies, of course, we always have this discussion about, you know, about when the sun is shining, when the wind is blowing and so on. So, what are we talking about here to make sure that the supply is consistent, which is another thing, I understand, something like a smelter needs. Are we talking about a big battery facility or something like that?

ED HUSIC: In terms of what Portland might sign up for and how they work with their energy suppliers, if you don't mind, I might leave that to them, right? Because I'm not going to cut across that. I'm a Minister, not an energy contract negotiator, so I'll leave that to them. But to your point, you're absolutely right. One, they use a lot of energy. Two, with what we're doing with renewables, it's not just about putting in wind and solar, and I'm very grateful that you also reflected on the fact about batteries, because as Industry Minister, I've pushed for the development of a national battery strategy, which we've done. We have a program called Battery Breakthrough, which is designed to increase local manufacture of batteries so that we can create the big batteries that you referred to in your question that industry, in particular, will benefit from. And a lot of them are flow batteries, a lot of lithium. There are a range of different energy storage systems that can not only supply to industry, but are important as well for grid stabilisation. We'll have in different parts of the country, we'll get energy transmitted around, but in local areas where we can store energy and then release it at times it's needed most will be really important. So - but you're absolutely right, smelters, just by virtue of the way you have to make aluminium using electricity, need a lot of power. We need to get that to them.

JEREMY LEE: Okay, is there any thought as well at this stage when we talk about this credit? I mean, is there a monetary value on this?

ED HUSIC: So, we've allocated 2 billion as a scheme. It'll run for 10 years. It'll start from 1 July, 2028, which is when we expect that some of these energy contracts I mentioned earlier, Jeremy, will start to come off. Because you can't break the contract to start a new one, understandably. So, we have to wait for some of those to expire. And as well, just to reinforce a point I made earlier, we'll work with the individual smelters as their contracts turn up, to work out how and what's best in terms of out of that $2 billion allocation of money, what will be allocated to them.

JEREMY LEE: The Portland smelter, my understanding is that it's already pretty heavily subsidised as well. I think back in 2020, the Federal Government, Coalition Government, of course, at the time, made a commitment of 76.8 million to underwrite the Portland smelter. Does it need more subsidies?

ED HUSIC: Well, we're looking in terms of the nature of that versus what we're doing are two different things. From our point of view, we want to be able to ensure that one of the biggest inputs into the production process, electricity, that it's a lot greener, a lot more renewably based. And so that's what this is about. This is to encourage smelters to do the uptake and to help them get on as quickly as possible. And the flow-on effect, obviously, is to encourage greater renewable supply to be scaled up, put into the system, connected and passing on those green electrons to big users of energy like smelters.

JEREMY LEE: All right, we'll leave it there, Ed Husic, but thanks very much for your time this morning.

ED HUSIC: Right, just one more thing. I know the answer to your question about which song it is. Can you give me the SMS number again? I'm old enough to remember the tune.

JEREMY LEE: So, if you can be at the Lighthouse Theatre in two weeks, sure. It's 0467 842 722.

ED HUSIC: Terrific. I'm texting right now.

JEREMY LEE: Good luck. Alrighty, thanks. Talking to the Federal Minister for Industry and Science who will be in Portland today talking more about these green production aluminium credits and how that's going to, well, potentially work with something like the Portland facility.