The timelines for Pillar One of the AUKUS partnership forecast that Australia will host the Submarine Rotational Force - West (SRF-West) at HMAS Stirling from as early as 2027; operate US Virginia-class nuclear-powered submarines during the 2030s, and then build, sustain and operate SSN-AUKUS nuclear-powered submarines in the 2040s and beyond.
While Royal Australian Navy personnel are on exchange with the US Navy and Royal Navy to obtain operational and sustainment experience with nuclear-powered vessels, Australia’s defence industry is also sending staff to the US and UK to develop the sovereign nuclear infrastructure experience necessary for these timelines to be met.
One company already involved in these exchanges is BMD Group. From its first project in Queensland over 46 years ago, BMD has grown into a diversified business with over 2,600 employees and annual revenues exceeding $2.4 billion. Operating across Australia, the Philippines and the UK, BMD brings a sovereign Australian capability to Defence projects, operating as a direct contractor or subcontractor as required.
“Defence holds high expectations, which pushes us to deliver,” BMD’s Group Director and CEO Scott Power said. “BMD has built our reputation by successfully delivering major projects across diverse sectors, and we bring that same proven capability to Defence. Our ability to self-perform, engage First Nations workforces, partner with local supply chains and build specialised capability through BMD Group entity Empower — including the nuclear expertise we’re developing in the UK — ensures we can consistently meet those standards. That reliability in consistently meeting those standards and delivering sustained, reliable outcomes often gets rewarded with repeat opportunities.”
Becoming nuclear ready
With the announcement of AUKUS in 2021 and, later that same year, the introduction of the Australia-United Kingdom Free Trade Agreement, BMD identified the opportunity to develop Australian nuclear capability through workforce rotations to the UK. Since commencing UK operations in 2023, Power notes that BMD were able to provide value due to Australian engineers bringing a dynamic and collaborative approach to the delivery of projects.
“We recognised that AUKUS would be a serious change and step up in Defence commitment and spending that would have a huge impact from a technological and economic industry level. For BMD, it was clear we needed to position early, building capability, developing nuclear expertise and strengthening our track record in delivering complex projects so we can play a leading role in this transformation,” he said.
“The free trade agreement introduced a much greater degree of mobility for workers aged up to 35 years old which, in turn, gave us an opportunity to get ahead on AUKUS by setting up in the UK,” Empower’s General Manager, Peter Anusas said.
BMD’s approach, which Anusas referred to as “the AUKUS trail,” is to bring mid-career professionals with infrastructure delivery experience to the UK for three years, immersing them in the local nuclear industry to develop knowledge and experience of the UK’s approach. This provides the opportunity to work in nuclear- licensed sites under the mentorship of the professionals. In return, Australian employees are able to bring their experience working with regulated industries - such as rail or mining - that provide transferable skills to the UK market.
The company is working at civilian and military nuclear sites including the Sizewell C Nuclear Power Station and HMNB Devonport with other sites in their targets. Anusas says that the UK has a strong nuclear community with members rotating between civilian and military sites as the nuclear training and discipline is transferable and both generally involve land and marine based infrastructure.
“We're three years in the making already, building the skill base in the UK then bringing that expertise back to train our people here in Australia,” BMD Constructions’ National Head of Defence, Travis Wilson said. “It's been a deliberate strategy to ensure we’re positioned to deliver on the significant pipeline of defence nuclear work expected over the next 10 to 15 years.”
Setting up AUKUS foundations
AUKUS will require large levels of investment and preparations across multiple disciplines to ensure Australia has the facilities, frameworks, processes and skilled resources to support nuclear sustainment and development, including regulatory matters, nuclear controls, skilled resources, and defence security requirements. A much larger nuclear industry is required to support AUKUS than is currently encountered in Australia. This industry will extend from major organisations down through multiple layers of suppliers and into the education sector.
The UK government’s Nuclear Advanced Manufacturing Research Centre works closely with industry and universities to ensure there is a steady supply of suitably skilled graduates entering the market. According to Anusas, the centre has been engaging with universities in Australia to help establish the engineering curricula required so Australia can build nuclear capability in local industry and supply chains.
BMD have stated that, given the AUKUS time frames for supporting US and UK nuclear submarines operating from SRF-West, it will be necessary to rely on international organisations while Australia establishes its expanded nuclear industry. As such, government support will be necessary to drive the long-term benefits associated with Australian-owned capability across all parts of the supply chains and sustainment programs. This support can be provided through meaningful Australian Industry Capability requirements being required in all contracts to prevent the country becoming entirely reliant on US or UK companies.
The company has also noted that Australia is in a position to leverage its engineering expertise in mining, transport and construction in combination with experience gained from foreign nuclear sectors. This will allow Australia to develop a sovereign nuclear industry that can not only support defence needs but also expand into the civilian world. AUKUS provides the opportunity to learn from the mistakes made by Australia’s partners and deliver significant outcomes in a relatively accelerated time frame, but it will require support from all levels of government over multiple election cycles.
“The AUKUS endeavour is of an unprecedented scale for a nation of our size,” said Power. “We are lobbying for greater involvement of sovereign Australian contractors who have capability to participate in the major infrastructure programs it requires such as Osborne Submarine Construction Yard and the Henderson Consolidation Program in Western Australia. It’s critical that we harness the capability and capacity of local industry to build the essential infrastructure that underpins our national security.”