Australia’s only wind tower manufacturer goes out of business

By Jo Nova

More proof that wind power can’t be used to make wind turbines

The one and only Australian manufacturer of wind turbine towers is going out of business, despite Australian electricity reaching 35% glorious renewable, and the Prime Ministers big plan to have the $22 billion dollar Future Made in Australia, as well as our galloping Net Zero fantasy to reach 82% renewable by 2030. We are, in theory, supposed to install 40 new wind towers a month somewhere in Australia, but none of the towers, it turns out, will be Australian made.

Imagine what we could do if Australia were the largest exporter of iron ore and coal in the world?  The government could still screw it up.

Right now, we ship the iron and coal 7,000 kilometers away with heavy fuel oil, to be made into windmills to save the world, only to ship them right back, rather than make them here.

Future Made in Australia

Renewables are the cheapest source of electricity on Earth, they say, and Australia has twice as much as China (proportionately). But China makes 65% of all wind turbines globally, and soon Australia will make 0%.

The company Keppel Prince don’t mention the cost of electricity, although the boss of Glencore claims Australian prices are double or more the cost in China, which can’t be good for any business. Instead the company blames Chinese subsidized competitors for dumping, which may have some truth to it, but Keppel Prince has been living off renewable energy subsidies themselves in Australia for years. In 2009 the company warned of job losses if the government didn’t set a bigger renewable energy target (which it did), but then they had to sack 100 staff in 2014 when the target was cut. After that they got help from the Victorian State Energy Targets, and the requirement that 60 per cent of the manufacturing was done locally. The truth is there has probably never been a wind turbine built in Australia that wasn’t subsidized. The only question is “how big were the subsidies?”.

The Opposition here, are naturally making fun of the abject failure of the Future Made In Australia plan:

China subsidies smash Australian wind tower builder, signalling end of last major player Keppel Prince

The Australian

“They’ve got to look really bad that they are losing the only tower manufacturer accredited to build the things,” Stephen Garner [the Executive Director of Keppel Prince] told The Australian.

“The federal government continues to say, like Albanese says, we want to get back to manufacturing. Here we have a manufacturing facility already in place.

“It’s set up for renewable energy, which is what the government talks about every day of the week, and yet we’ve got to mothball it because we can’t compete with China because our government won’t do anything about it.”

Mr Tehan said the government’s pledge to build Australia’s manufacturing base was in disarray. “What a complete embarrassment,’’ the member for Wannon said. “Their renewables only policy has been such a success it has closed our last remaining wind tower manufacturer.

“So the government is not in breach of its own misinformation and disinformation laws, it needs to immediately pull its Made in Australia ads that proudly displays a wind farm. “It would actually be funny, if workers weren’t losing their jobs…”

We don’t like seeing any Australian business go under, but there is an element of live-by-the-sword, die-by-the-sword as the saying goes. Hopefully the expertise in Keppel Prince can be put to better use manufacturing things the market wants, instead of what the government wants.

Ultimately, no Australian business can compete with slave labor and cheap coal fired and nuclear power. The only thing more stupid than that would be competing in an industry to make things the market doesn’t want, the country doesn’t need and which won’t save the environment.

 

9.7 out of 10 based on 126 ratings

68 comments to Australia’s only wind tower manufacturer goes out of business

  • #
    KP

    The Govt learnt nothing form the local car manufacturing, and what happens the moment you subsidise a company. Instantly they start planning on the next, greater round of subsidies, because that is easier than competing in a marketplace. Its simpler and easier to buy a politician or bureaucrat than to buy customers.

    If China is subsidising their manufacturers they will have the same problem, the companies turn into ossified, expensive dinosaurs that are not competitive, and meanwhile the Govt is making life more expensive for everyone else to find the money for subsidies.

    If we could stop all Australian Govts from subsidising anything we would be a lot more efficient. You need new, hungry, energetic businesses entering the market with bright new ideas, not ancient factories that are just old mens clubs at the local Chamber of Commerce. Subsidies attract the wrong sort of people, people who are just experts at sliming their way into Govt money, like Cannon-Brookes, not real business experts like Dick Smith.

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    • #
      Geoff

      All they were doing was copying someone else’s tower design.

      This is NOT competing.

      They needed to invent a new windmill. This takes neurons. They chose to rent seek and found out guv is full of bull.

      The LNP is extremely bad at what they do. The ALP is suicide. This is our “choice”.

      10

  • #

    “Future Made in Australia”. LOL. The future is already here and what is made in Australia? Less and less by the minute by the looks of it.

    Vale Australia.

    460

  • #
    Graeme No.3

    With Trump getting out of the Paris Agreement (for the second time) my check of those ACTUALLY doing anything about emissions is about 11% whereas 86% aren’t.
    I should have added another column to the spreadsheet listing those who wanted money.

    430

  • #
    GlenM

    Australia, some years ago had a fairly good base manufacturing setup which was spurred on by WW2. Due to our geographic isolation and lack of initiative in following years we find ourselves unable to compete. Unfortunately the domestic market is small and labour costs are high. Now we have one of the highest energy costs in the world. Now we are captured by an aggressive trading partner and a supine government which seems intent on destroying it.

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    • #
      RickWill

      Australia’s electricity production increased by 75% in a decade from 1978 to 1988. The State governments encouraged a lot of heavy industry into the country, most notably, electricity hog aluminium production. The Queensland government had the sense to electrify their coal trains.

      Aluminium smelters were buying electricity for a few cents per kWh. They were highly competitive internationally. The heavy industries, businesses and households all benefited from the increasing scale with large power stations being built on coal fields.

      All that efficiency was sacrificed by subsidising intermittent electricity generators into the market. That single decision has been an economic disaster for Australia.

      Those in the generating and distribution industry were going through rapid changes in the 1990s as the national market was created and State monopolies being streamlined to remove productivity hurdles in these business. It was going really well but, as far as I know, there was no one in the industry condemning the decision to allow intermittent generators into the market on highly favourable terms.

      The mandated theft is now taken for granted by almost all in the Federal and State governments because it is not a budget item. Making the retailers the bagmen was an inspired idea. No one in the LSM uses the term consumer theft to rightly identify what the retailers take from consumers to buy LGCs from the grid scale wind and solar black markets..

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      • #
        Philip

        All that efficiency was sacrificed by subsidising intermittent electricity generators into the market

        People, especially the young, just do not understand this. That if you’re producing reliable electricity from a furnace or reactor, you just do not need intermittent supply, because the power produced is so cheap it makes no sense to add solar cells to your roof. All it can do is save you a few litres of fuel at an enormous expense.

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        • #
          ozfred

          That if you’re producing reliable electricity from a furnace or reactor, you just do not need intermittent supply,

          Alas you have discounted the (greedy) transmission line companies.
          Assuming the wind does not blow my roof (and solar panels) off, I can still reduce my overall energy bill. And besides the costs of connecting to the grid outside of “recognized” developments is almost to the point of the cost of an off grid system.

          53

          • #
            Sceptical Sam

            I’d like to see your figures there ozfred.

            Do your calculations again and include:
            1. depreciation over 20 years:
            2. opportunity cost over 20 years:
            3. inverter replacement every 8-10 years; and
            4. reducing FITs at cents in the kWh
            5. annual servicing.

            And then tell us that you can reduce your “overall energy bill”.

            60

          • #
            Hivemind

            But you only reduce your energy bill by a noticeable amount because the energy companies are forced to pay ridiculous subsidies for it.

            40

      • #
        ianl

        … there was no one in the industry condemning the decision to allow intermittent generators into the market …

        There were, and are, many of us. The core reason such advice is ignored by Boards is the availability of generous subsidies, protected by “commercial in confidence” ring fencing to keep the extent these circular extravaganzas from the general public.

        Subsidies are much easier to aquire than efficiency-honed production lines when governments decide to splather tax money around. Does the planet feel saved yet, one wonders ?

        60

    • #
      IWick

      A lot of the cost, small market stuff, etc. is nonsense. Policy decisions by Australia’s ever so talented (sarc) politicians doomed manufacturing starting with the Lima agreement in 1975 which had a profound effect on Australia’s manufacturing industry, leading to significant economic changes and decline.

      170

  • #
    Graham Richards

    Someone with brains & the resources please ensure this news regularly made very public!

    This Net Zero insanity has got to be stopped before it stops the whole country!!

    270

    • #
      Philip

      Hopefully it will be resolved at the coming election. If not, this will be one rare example of accelerationism that I support. A huge blackout will be the only thing that wakes up sleepy Aussies.

      240

      • #
        Graham Richards

        You have more faith in the electorate than me.

        After all it’s the same electorate that voted this mob of morons that identify as a government into power. The electorate have the memory capacity of goldfish. Since the days of Hawke the ALP has degenerated into a mob of woke fantasists. Surely they can remember the decline of the political scene. This applies to the the current “ conservatives “ as well that have degenerated into into a centre left mob obviously bereft of direction!

        110

    • #
      John PAK

      GR
      I keep hammering the idea that we are already at “Net Zero” in Au due to our tiny population and massive green areas. In fact we’re a “Net Minus” nation but that’s too complex an idea for the converted !
      Some of my “greenie” contacts relish the idea that we are miscreants. In some ways the Global Warming™ idea grafts in neatly with the dying back of Roman Catholic ideas in-which we are all miserable sinners begging forgiveness from a universal authority and paying penance for our sins. Even non-religious folk in Au have been brought up with many ideas which are fundamentally from the religions. AGW has co-opt concepts already embedded within society. Peter Sawyer’s Newsletter (1986) talked about a New World Order with a tax on the air we breath. I thought it daft but here we are in 2024 taxing a gas we exhale.
      Some people really are gullible.

      30

  • #
    Neville

    Again toxic W & S only generate 30% and 15% of every day, month and year. Of course they’re replaced every 15 to 20 years and thousands of klms of our wilderness are destroyed forever.
    So why would you waste trillions of $ on this fra-dulent toxic lunacy when we could have cheaper base-load power that generates 24/7, 365 days a year and lasts beyond 2100?
    Obviously a no brainer, but even Labor, Greens and Teals manage to stuff it up.

    230

    • #
      wal1957

      Neville, I think your first sentence should read something like…

      Again toxic W & S only generate sometimes/intermittently 30% and 15% of every day of the year.

      Also I realise that you didn’t mention the Liberals regarding this mess but I have no faith in them fixing this idiocy. The Libs and Labor created this debacle together and are still 100% for net zero.

      251

  • #
    Philip

    Australians seem to want manufacturing here, but they also want really high wages and really high energy prices. The great Aussie conundrum.

    How about we put a tariff on the Chinese windmills, that’ll fix it right? Aussies would make them good right? This idiocy, in my experience at least, is about the level of an average conversation on the issue.

    And yet another painfully persistent argument, “I reckon if the wind is there and the sun shines, we may as well use it”. And that one is used by the Minister.

    210

  • #
    Neville

    Australia generates just 12.1 % of our energy from Wind. Except when it doesn’t.

    https://ourworldindata.org/grapher/share-electricity-wind

    180

  • #
    Neville

    Australia generates about 17% of our electricity from Solar. Except when it doesn’t.

    https://ourworldindata.org/grapher/share-electricity-solar

    190

  • #
    Philip

    I saw a tweet on X yesterday, “why do people vote for these far left idiots?”. Thats easy, because they’re far left idiots themselves.

    Australians are by default rank socialists. They get it from their British working-class origins who are outright socialists. The result is they vote for their political representatives who in turn produce woeful results like this windmill debacle. You get the government you deserve.

    And it is not a modern phenomena. For Australia not to be a full blown all out socialist state is the real miracle. I’ve been reading on the early Prime Ministers recently. Once that Labor party formed Australia had a real problem on its hands, recognised by Deakin, and those early guys were even more left wing than the clowns we have today. The big difference though was the old guys were loyal to Crown and their people, now completely gone from the left.

    I’d like to know more about the colonial government era hoping to find it was far more fiscally sensible, but information is short. Apart from the divide of NSW’s free trade and Victoria’s protectionism – still unresolved – and Eureka stockade, the early warning signs of the coming devastating labour movement, I find little information.

    230

    • #
      GlenM

      Coming from rural stock that operated a mixed sheep/wheat property in northern NSW we had constant battles with shearing teams. We had one union delegate who said that we wont shear because of scotch thistle ( as it was called) in the wool. The old man was sick and tired of their continual class warfare nonsense that he hopped in his light plane and flew out to Walgett and hired a Kiwi team. They wanted to work and earn a bob.

      140

      • #
        Philip

        Excellent story. Sums it all up – the Aussie attitude. Workers have zero sympathy for the fiscal reality of the employer or respect for them. Not the values I was raised on, but there you go.

        We still call it Scotch Thistle. Though I note it’s never called that on chemical labels, I can never find it.

        20

      • #
        old cocky

        That sounds like old Cec.

        It was a bit dearer to use one of the local contractors rather than line the team up ourselves, but it avoided a lot of hassles with stroppy shearers and union reps.

        10

      • #
        Sceptical Sam

        They used wide combs too.
        Productivity gains that the socialists hated.

        20

  • #
    STJOHNOFGRAFTON

    A big concern is that the Albanese Socialist government is only keeping their insane renewables energy superpower scheme alive because it is on long-term life-support from coal and gas fired base-load inputs. Unfortunately for most of us we’re not only paying dearly for the subsidised base-load inputs but also the NDIS style financial support for Bowen’s handicapped renewables nightmare of separate electricity grid, eyesore wind farm towers, and land blanketing solar farms. The indictment of Bowen’s mad renewable energy scheme is on one sheet of paper: YOUR ELECTRICITY BILL!

    320

  • #
    David Maddison

    The only Aussie wind generators ever to be profitable came from a different era and for a different purpose.

    These were Dunlite generators which, unlike modern wind turbines, were designed to produce electricity, not harvest subsidies.

    They were intended for remote area (e.g. Outback) application where grid electricity wasn’t available and before solar panel technology.

    Here is a Canadian Web page about them.

    https://www.pearen.ca/dunlite/Dunlite.htm

    As real Australian and other history is no longer taught in “schools” and most people have no interest in history generally, sadly few Australian people will have heard of them.

    (Posted from Thulo Shyaphru, Nepal.)

    290

  • #
    David Maddison

    The ONLY purpose of wind or solar plantations is to harvest subsidies.

    In Australia the subsidies (for generation) are harvested directly from consumer electricity bills. Illegally as RickWill has pointed out.

    In the United States, subsidies are in the form of tax credits as Warren Buffett has pointed out:

    We get a tax credit if we build a lot of wind farms. That’s the only reason to build them. They don’t make sense without the tax credit.

    (Posted from Thulo Shyaphru, Nepal.)

    240

  • #
    Mooka

    Chris Bowen is building one of the greatest white elephants in world history, all for the sum of $1 trillion.
    This will destroy our living standards and not change the weather at all.
    And he has the hide to accuse the LNP of being irresponsible to suggest that we use nuclear instead.
    We should just be burning coal for all our electricity, but we can’t have that because most of the voters in Australia are morons.

    350

    • #
      David Maddison

      This will destroy our living standards

      And that, exactly, is the purpose. They want to lower our standard of living.

      It’s one of the Left’s strategies to destroy the West, just like how Obama and Biden deliberately weakened the United States, the leader of Western Civilisation, the leading successor to Greco-Roman Civilisation.

      (Posted from Thulo Shyaphru, Nepal.)

      220

    • #
      Ross

      Today, as a follow up to his Tuesday night hit piece on Australia’a energy transition, Chris Uhlmann has also written a similar story in today’s (Saturday) Australian. Go to the comments and mostly the contributors praising CU’s article. But there are still some AGW fanatics pushing the old “science is settled” lies about climate change. Usually it’s the likes of ” sillyfilly”, who I noticed was once a contributor to this blog. Again, the crazy comments about CO2 and CH4 being a powerful greenhouse gas etc, etc. Maybe Jo could ghost write for Chris- because he was once at the ABC and now migrated, his voice has a little more impact to the majority of Australians who still believe in the AGW/CC garbage.

      160

  • #
    David Maddison

    I’ll have much more to say on this later but here in Nepal, claimed by the Left to be a “Net Zero” country, you get a real idea of how the Left want we (non-Elites) to live. Nepal is the 17th poorest country in the world.

    Up here in the mountains, there is:

    Intermittent grid electricity, if available, that comes and goes either due to scheduled load shedding or random reasons.

    A standard of living roughly equivalent to Australia/NZ, Canada, USA, UK of about the 1850’s.

    No hot water for the locals for showering or washing dishes etc.. You can’t use detergents in cold water so that affects hygiene.

    Rarely, hot water in tourist guest houses. It’s either solar hot water which runs out after a few showers and usually luke warm in any case but usually unavailable. Sometimes there is gas hot water from cylinders carried up the mountain on the back of man or beast.

    No heating, except at the dining areas of guest houses for a couple of hours at night so foreign tourists can socialise and eat. Wood fired.

    Cooking with wood or animal dung. Much pollution from this, indoor and outdoor.

    Water, untreated, gravity fed from streams higher up. Can’t be drunk by Westerners without making them sick.

    Some guest houses have a few small solar panels and about a 100Ah or less lead acid battery for some night time lighting. They may have an unreliable grid connection or none at all.

    Some guest houses have WiFi but extremely unreliable. Cell towers are solar powered and often go flat at night or stop working for other random reasons.

    No high power use of electricity it tends to be only for lighting or WiFi for tourists.

    I brought my own electricity in the form of lithium ion battery packs and charge them whenever electricity is available.

    It is the “dream” (nightmare) the Left want non-Elites to live.

    (Posted from Thulo Shyaphru, Nepal.)

    250

    • #
      John Connor II

      Chitwan, Kasara, Kongde…
      There’s more than backpacker level wilderness accomodation you know…
      But, it’s good to rough it as you appreciate the niceties one takes for granted.

      40

      • #
        David Maddison

        I was referring to the standard of living of the locals and the accommodation they offer, not luxury offerings unaffordable by locals on a Net Zero lifestyle.

        120

    • #

      And in that world, where power – if available at all – is intermittent and expensive, how does the society get things like: –
      * sawn timber? How are trees moved to the saw pit – pit because there will be a man at the top and a man at the bottom.
      * rubber for shoe-bottoms, when the tyres run out? Tyres make acceptable flip-flops, tho flip-flops are rather cool in a UK winter – and spring and autumn!
      * bricks? Muds bricks dry in the Sun. But . . . in England the Sun is fugitive.
      * electric wiring? Of any sort at all?
      I haven’t mentioned things like smart phones, as they’re obviously way out of reach.

      Auto

      10

      • #
        John PAK

        Their “Net Zero” life style means they do not cope with earthquake damage. Only 8 or 9 thousand died in the April 2015 mega-quake as most rural folk were outside. My brother walked outside to rinse out his sweat-soaked shirt so he did not die but he lost everything including his passport and money. They were a full day’s walk from the end of 4WD tracks and had net zero assistance. The new school, officially opened the previous day, was masonry and collapsed into a pile of rubble. He walked back, slowly negotiating many landslides blocking the walking path. Having Parkinson Disease didn’t help.
        Later he raised money from slide talks in UK and he (+ 2 colleagues) arranged for a new school to be built near-by.
        The sorts who crow “Net Zero” simply don’t know what it means cos they’ve never experienced it.

        10

    • #
      John PAK

      We can add High Infant Mortality to the Nepalese life-style. In 1991 when my wife trekked there it was about 91 per 1000 live births. To-day it is down to about 20 and projections are for about 10/1000 in 2040 so life is improving for them. In Au if we had a 1 in a 100 death rate it would be major news.

      10

  • #
    John Connor II

    Albosleazy will just buy ’em out of Tofu-dreg manufacturer, China!

    A taste:
    https://youtu.be/jH1FLn-ATcc?si=kU11JfDQn6h0W9Nv

    30

  • #
    David Maddison

    At want point should what the Left are doing to Australia and the Western world more generally, be considered a crime, probably a war crime of The Left against “we, the people”?

    (Posted from Thulo Shyaphru, Nepal.)

    121

  • #
    Penguinite

    Talk about hard Labor! We have been sentenced to a term not exceeding our natural life by successive Fed/State Governments by Politicians ill equipped with brain power. The United Nations and its off shoot WHO are hell bent on biting the hand that feeds them. What seemed like a good idea after WW2, World Peace, has Frankensteined its way into a monster. The tale is now wagging the dog. It has now reached its UBD and should be put down!

    120

  • #
    David Maddison

    “Energy transition” is as scientifically invalid as “gender transition”.

    80

  • #
    David Maddison

    How can the Left continue to be allowed to get away with the obvious lie that wind and solar are the cheapest form of electricity production?

    How stupid can people be not to see the fact that the more wind and solar plantations we get, the more expensive electricity becomes?

    (Posted from Thulo Shyaphru, Nepal.)

    120

    • #
      AlanG

      I read somewhere that major Australian Super Funds are invested in Renewable projects/companies.
      Is that correct?
      If yes, then Bowen & Albo will never change course as they may ruin Australian Super Fund members investment balances.
      Please advise me if anyone believes I have been given incorrect information.

      70

      • #

        Yes and that is correct.

        So if you are invested in an Industry Superannuation Fund, then you need to look at the investment options and study them. Ask the Fund questions as to which options are invested in Renewables including the Companies that make the stuff. Get your Financial Adviser on the case, if you have one that is. Then, just make sure that the investment options that are invested in are the right investments for you and your Risk Profile.

        QED

        70

  • #
    Neville

    BTW here’s Eschenbach’s summary of replacing our electricity grids with toxic , unreliable W & S or Nuclear.
    His version for Nuclear replacement is the same as Dr Pielke jr.
    Read his summary and then ask why are we governed in the OECD countries by stupid illiterate fools. Here’s his summary….

    “To summarize: to get the world to zero emissions by 2050, our options are to build, commission, and bring on-line either”:

    • “One 2.1 gigawatt (GW, 109 watts) nuclear power plant each and every day until 2050, OR”

    • “4000 two-megawatt (MW, 106 watts) wind turbines each and every day until 2050 plus a 2.1 GW nuclear power plant each and every day until 2050, assuming there’s not one turbine failure for any reason, OR”

    • “100 square miles (250 square kilometres) of solar panels each and every day until 2050 plus a 2.1 GW nuclear power plant each and every day until 2050, assuming not one of the panels fails or is destroyed by hail or wind”.

    “I sincerely hope that everyone can see that any of those alternatives are not just impossible. They are pie-in-the-sky, flying unicorns, bull-goose looney impossible. Not possible physically. Not possible financially. Not possible politically”.

    “Finally, the US consumes about one-sixth of the total global fossil energy. So for the US to get to zero fossil fuel by 2050, just divide all the above figures by six … and they are still flying unicorns, bull-goose looney impossible”.

    “Math. Don’t leave home without it.

    “My very best wishes to everyone, stay safe in these parlous times,

    w.”

    140

  • #
    Tony Dique

    It was never about having renewable energy, nor making this stuff in Australia. It was always about siphoning off another AUD$22 billion from taxpayers to send to the corrupt politicians’ mates.

    110

  • #
    Dennis

    And despite the shipping costs relating to a very large empty internal space.

    50

  • #
    Steve of Cornubia

    So all those green “jobs of the future” that we have been promised will all be in China. Surprise!

    40

  • #
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