A Whyalla wipeout is finally going to occur, a decade on

The town became a flashpoint of the climate wars that ultimately helped bring down the Labor government.

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After Julia Gillard introduced a carbon tax, breaking her election commitment not to do so, her trade minister Craig Emerson went viral with a video singing in off-tune manner, “No Whyalla wipeout, there on my TV” to the tune of Skyhooks’ 1970s hit Horror Movie.

The carbon tax proved short-lived after it was repealed in 2014 following Abbott’s election.

Abbott first introduced the safeguard mechanism to stop industrial emissions increasing, but until now it did not have enforced limits.

Under the Albanese government reforms, it has become a carbon trading scheme to help the nation reach its legally binding climate target to cut greenhouse gas emissions 43 per cent by 2030.

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Climate Change and Energy Minister Chris Bowen said Liberty’s investment showed that the safeguard mechanism would reduce emissions and grow jobs in clean industries.

“This announcement is exactly the kind of investment that industry will make following our safeguard reforms that safeguard our industry, our climate and our economy,” Bowen said.

Gupta also weighed in.

“Today marks the beginning of a new era placing Whyalla at the heart of a global revolution in the steel industry, moving it from being the most polluting of all industries to among the cleanest and greenest,” Gupta said.

The company is also installing a direct reduction plant to process magnetite ore to produce low carbon iron. Liberty will initially use a mix of natural gas and green hydrogen as the reducing agent, before transitioning to green hydrogen only as it becomes available at scale.

The low carbon iron can be fed into the electric arc furnace with scrap metal to produce high-quality steel.

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