11 March 2025
8 min read
#Construction, Infrastructure & Projects, #Renewable Energy
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The debate around nuclear power continues as politicians prepare for the upcoming federal election. For decades, the commonwealth has refused to adopt nuclear energy despite its popularity across the globe and Australia’s significant role as a global exporter of uranium. Instead, focus has been placed on the reduction of greenhouse gas emissions through renewable products such as solar, wind and hydro. However, the Coalition has been advocating for the introduction of nuclear into Australia’s energy power mix.
In short, the Coalition has proposed constructing 7 nuclear plants across Australia at sites with existing or former coal-fired power stations. These include 2 in Queensland, New South Wales, Victoria and 1 in Western Australia. The plan involves building 5 large-scale plants and 2 small modular reactors (SMRs), with the first SMR expected to be operational by 2036 and all plants in operation by 2050.
Labelling nuclear energy is difficult. Emissions from nuclear generation ranges from clean steam to dirty long-lived fission products. Unlike coal or gas, uranium ore is not a fossil fuel, but is mined from the ground. Nuclear is also not seen as a renewable energy source, though it produces significant energy from relatively small amounts of uranium ore during the fission process.
Australia has long maintained prohibitions on the building of nuclear power stations and is to date, not considered a nuclear energy producer in the international community. However, recent announcements by the Coalition and the purchase of nuclear submarines suggest a potential shift in the government’s stance, despite significant resistance from most state and territory premiers.
The Coalition’s plan faces significant headwinds in entering a social licence with voters. Arguments against include:
On 10 October 2024, the House Select Committee on Nuclear Energy (Committee) was established to inquire into and report on the consideration of nuclear power generation in Australia. The Committee recently released an interim report outlining evidence on the viability of nuclear power generation based on the deployment timeframe and costs.
The Committee found that establishing a nuclear industry will come with significant delays and costs. There is limited utility in pursuing nuclear power at this point as it cannot be deployed in time to support Australia's critical energy transition targets and climate commitments, or to assist the coal workforce in their transition away from the coal industry. The Committee also found that nuclear energy is more costly to deploy than the readily available alternatives in Australia. Based on these findings, the Committee concludes that nuclear is not a viable option for Australia’s energy needs.
The Committee is due to table its final report by 30 April 2025, which will provide findings upon further examination of the technical, economic and social licence considerations relating to nuclear energy.
Existing legislation at the commonwealth, state and territory levels prohibits the installation of nuclear power plants and other nuclear installations.
Commonwealth
The Australian Radiation Protection and Nuclear Safety Act 1998 regulates the granting of a licence for the construction or operation of any nuclear fuel fabrication plant, power plant, enrichment plant or a reprocessing facility (nuclear installations). This prohibition does not appear to apply to radioactive waste storage or disposal facilities.
The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) makes it a civil offence for a relevant entity to take nuclear action that has, will have or likely to have significant impact on the environment, unless they have obtained the necessary approval or are exempt. The EPBC Act also prohibits the granting of approvals for nuclear installations.
Victoria
The Nuclear Activities (Prohibitions) Act 1983 prohibits a range of activities associated with nuclear, including the exploration and mining of uranium, and the construction or operation of facilities for the conversion or enrichment of nuclear materials, nuclear reactors and facilities for the storage and disposal of nuclear waste from those prohibited activities.
New South Wales and Western Australia
New South Wales and Western Australia have similar provisions to Victoria within the Uranium Mining and Nuclear Facilities (Prohibitions) Act 1986 (NSW) and Nuclear Waste Storage and Transportation (Prohibition) Act 1999 (WA).
Queensland
While the mining and exploration of uranium is permitted under the Mineral Resources Act 1989, government policy has prohibited the granting of mining leases for uranium since 2015.
The Nuclear Facilities Prohibition Act 2007 prohibits the construction and operation of nuclear reactors and other nuclear facilities. However, unlike other prohibition legislation across Australia, the Minister is required to hold a plebiscite if the commonwealth decides to or is likely to take any steps to amend federal law to facilitate the construction of a prohibited nuclear facility in Queensland.
South Australia
The exploration and mining of radioactive materials is permitted in South Australia, subject to approvals under the Mining Act 1971 and the Radiation Protection and Control Act 2021.
The Nuclear Waste Storage Facility (Prohibition) Act 2000 prohibits the construction or operation of a nuclear waste storage facility, as well as the import to or transport of nuclear waste within South Australia for delivery to a nuclear waste storage facility.
The aAct also prohibits the South Australian Government from using public funds to encourage or finance the construction or operation of nuclear waste storage facilities. Further, the South Australian Government is required to hold an inquiry into any proposed construction or operation of a nuclear waste storage facility in South Australia authorised under a commonwealth law.
Northern Territory
The Northern Territory’s Nuclear Waste Transport, Storage and Disposal (Prohibition) Act 2004 contains similar prohibitions and requirements to those as in the South Australian act.
Tasmania
Tasmania does not have its own legislation which prohibits the construction and operation of a nuclear waste storage facility or similar installation, therefore the prohibition relies on the laws at a federal level.
The locations proposed by the Coalition for the construction of the nuclear power plants are all privately owned, meaning a future Coalition Government would need to either negotiate with the landowners or compulsory acquire the lands pursuant to section 51(xxxi) of the Constitution.
The Coalition's push for nuclear energy in Australia faces significant hurdles, including political opposition, social concerns and economic challenges. The Committee’s report supports the view that nuclear power is not a viable option for Australia, citing deployment costs and delays as key issues. For the Coalition to succeed, it would need to win the next election, navigate complex political debate, develop a clear strategy, amend existing legislation and overcome public concerns.
The construction industry should keep informed of any progress of the Coalition’s plan. Whilst unlikely, if the roll out of nuclear energy in Australia is successful, new roles will be created, as well as new regulations and standards which must be adhered to. However, the successful roll out of nuclear will likely cause public financing and investing to move away from renewable projects and to nuclear, which will negatively impact on the renewables industry.
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Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.
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