Australia will begin building conventionally-armed, nuclear-powered submarines, the SSN-AUKUS, in Osborne, South Australia by the end of 2030. Construction will be supported by an expansion of the existing Osborne Naval Shipyard Area to support the facilities and infrastructure required to build the first SSN-AUKUS, referred to as the Nuclear-Powered Submarine Construction Yard (NPSCY).
The site for the NPSCY is situated north of the existing Osborne Naval Shipyard on the Lefevre Peninsula, approximately 19 km north of Adelaide in South Australia.
The major components included within the scope of the NPSCY comprise:
- Submarine fabrication (Area 1) – includes fabrication buildings, workshops and manufacturing areas for the processing of raw steel material to manufacture submarine components.
- Submarine outfitting (Area 2) – includes buildings to accommodate the outfitting of submarine sections and other structures with welded components.
- Submarine consolidation, launching, testing and commissioning (Area 3) – includes the submarine launch facility, wet basin, wharf and supporting facilities, with the nuclear-powered propulsion system expected to be stored and fitted to the submarines in this area.
- Ancillary works include localised dredging works within the Port River.
Key Dates
| Mar 2023 | Project Announcement |
| Dec 2023 | Enabling works commencement |
Funding contributions
| Federal Government | |
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The Federal Government has not confirmed whether the $3.9 billion commitment, announced in February 2026, will be provided as funding, debt financing or an equity contribution to Government-owned Australian Naval Infrastructure (ANI). |
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Procurement
| Procuring Agency: | Australian Naval Infrastructure, in partnership with the Australian Submarine Agency |
| Related contracts: |
PROJECT HISTORY
| Mar 2023 | The Federal Government announced a Submarine Construction Yard would be constructed in Osborne, South Australia |
| Oct 2023 | The Federal Government established Australian Naval Infrastructure (ANI) as an Australian Government Business Enterprise. ANI will work with the Australian Submarine Agency’s to oversee design and delivery of infrastructure to enable submarine building in Australia. |
| Nov 2023 | The Federal Government reached an agreement with the South Australian Government on a land exchange for the new submarine construction yard. Land is also to be secured for a Skills and Training Academy to train Australia’s submarine and naval shipbuilding workforce. |
| Dec 2023 | The Australian Government announced that preliminary enabling works had commenced on the Submarine Construction Yard. Works include the creating of a staging and laydown area, and a pedestrian bridge and road. |
| Mar 2024 | The Federal Minister for the Environment and Water endorsed the Terms of Reference for the Strategic Assessment of Osborne. |
| May 2024 | The 2024-25 Federal Budget noted an equity injection from the Federal Government into Australian Naval Infrastructure to progress design and construction works, including at the Osborne Shipyard. However, the value of the injection was withheld due to 'commercial sensitivities'. |
| May 2024 | The Federal Government announced that Kellogg, Brown and Root (KBR) and an AECOM and Aurecon Joint Venture have been announced as design partners for the project. KBR will design the steel processing and fabrication facilities. The AECOM and Aurecon Joint Venture will deliver the concept design for the rest of the site, which will support outfitting, consolidation and commissioning of Australia’s nuclear-powered submarines. |
| Feb 2026 | The Federal Government announced a $3.9 billion commitment to function as a 'down payment' for the delivery of the project. The Federal Government did not confirm whether the commitment will be provided as funding, debt financing or an equity contribution to delivery partners Australian Naval Infrastructure. |
| Jul 2026 | The Federal Government announced a further $4.6 billion will be committed to the project. |
| Jul 2026 | Australian Naval Infrastructure (ANI) has appointed a Joint Venture (JV) of Laing O’Rourke and Amentum as Capability Partner for the development and delivery of the project. The Capability Partner will work as part of ANI’s Integrated Delivery Office, providing additional expertise and delivery capacity across areas such as governance, assurance, logistics, commissioning, digital engineering, and supply chain quality. The JV will also provide expertise in nuclear-related civil infrastructure, nuclear licensee development expertise, and nuclear safety. |
Estimated Total Cost
(2026)
Sector
Other
Procurement approach
Unconfirmed |
Location
South Australia |
Resources
