The Hunter: a blueprint for economic success

The Hunter region, an industrial centre, is powering ahead in Australia’s transition to a net zero economy.

With its coal-fired power stations scheduled to close by the early 2030s, the region will experience significant change. However, through economic diversification and by capitalising on existing skills and infrastructure, the Hunter is positioning itself to make the most of emerging opportunities. 

Leveraging existing strengths 

The Hunter is Australia’s largest regional economy. Its 2020-21 gross regional product (GRP) was $47 billion, approximately 7.2 per cent of total NSW GRP. 

On a recent visit to the region, the Net Zero Economy Agency (Agency) met with members of the Hunter community to discuss what a net zero future looks like across the region. 

The Hunter, a key part of Australia’s energy story for generations, has the communities, the workers, the skills, the infrastructure, a world class port, import and export markets, as well as the know-how and desire to take advantage of this transition to net zero. 

The coal mining industry is the largest employer in the region (excluding Newcastle). Since the Liddell coal-fired power station closure in 2023, the Hunter Valley has three of the four remaining coal-fired power stations in NSW. It also has 19 Safeguard facilities (facilities that emit more than 100,000 tonnes of carbon dioxide equivalent covered emissions a year), and nearly 30 coal mines. 

Government coordination in the Hunter will support workers through the impending closures of coal-fired power stations and supplying mines and facilitate new industry and employment opportunities while ensuring future benefits are distributed. 

It’s these opportunities that were discussed at the recent Business Hunter Summit - Future Made in the Hunter held at Newcastle City Hall. The Summit addressed themes crucial for growth in the region, industry innovation, workforce transformation, and sustainable development, with a particular emphasis on the net zero economy. 

Happening now 

The Hunter's economic transformation is not just theoretical, it is already taking shape. The region is at the forefront of Australia’s transition to a net zero, and we are there on the ground supporting the region as it happens. The mission of the Agency is to empower communities to share in this future, to facilitate a just transition. 

The Australian and New South Wales governments have provided funding to support the first stage of the Hunter Valley Hydrogen Hub in the Newcastle industrial and port precinct. The hub intends to deliver a safe, reliable, and commercial-scale hydrogen supply chain in Newcastle’s industrial and port precinct.  

Work is continuing to explore the development of a low carbon industrial energy hub at the site of the AGL-operated Liddell and Bayswater coal-fired power stations near Muswellbrook. The proposed AGL ‘Hunter Energy Hub’ development plans to bring together industries that can make a positive contribution to the energy transition, including renewable energy generation and grid-scale batteries, with AGL currently progressing feasibility studies with partners across solar panel manufacturing, solar panel recycling and battery recycling. AGL has already taken a Final Investment Decision on a 500 MW, two-hour duration battery which will be built at Liddell.  

Global competitiveness and economic diversification 

The Hunter is uniquely positioned to compete on a global scale. With access to international ports, airports, and a diverse mix of industries, the region is attractive to investors. The Business Hunter Summit highlighted the importance of early investment and diversification of the region’s economy, focusing on emerging industries such as renewable energy, technology and advanced manufacturing. 

Diversification of the region’s economy also paves the way for new investment opportunities, including offshore wind and battery storage.  

A focus on renewables does not mean starting from scratch. As well as home to the strategic gateway ports, the region also benefits from having already established robust infrastructure, abundant natural resources, and vibrant local business hubs. 

The Agency is committed to supporting workers and their families in the region while enabling investment to generate long-term economic prosperity.