18 October 2024

CLIMATE POLITICS

Energy, manufacturers urge Bowen to rethink on gas (Australian Financial Review): A call by the Coalition to include gas in the Albanese government’s renewable energy investment scheme has exposed divisions between the industry and Energy Minister Chris Bowen who argues gas-fired power should not be underwritten by the taxpayer. The Capacity Investment Scheme, or CIS, underwrites renewable energy projects as well as renewable baseload providers such as batteries and hydroelectricity, to provide back-up when there is no wind or sun.

“Making it up as he goes:” Bowen slams O’Brien’s plan to put existing gas into capacity scheme (Renew Economy): Federal energy minister Chris Bowen has hit out at the federal opposition’s plan to include gas power generation – including existing facilities – in the Capacity Investment Scheme, arguing that Labor’s flagship energy policy is working “exceptionally well” under current settings that exclude the fossil fuel. Under Labor, the Capacity Investment Scheme is seeking a total of 23 gigawatts (GW) of new wind and solar and 9,000 MW (36,000 megawatt hours) of battery storage as part of its efforts to deliver Australia’s target of 82 per cent renewables by 2030.

Opposition’s pledge to include gas in Capacity Investment Scheme welcomed (Media Release – Australian Energy Producers): Australian Energy Producers welcomes the Federal Opposition’s plan to include gas in the Capacity Investment Scheme (CIS) to help secure urgently needed investment in gas power generation capacity. Australian Energy Producers Chief Executive Samantha McCulloch said the announcement sent a strong signal about the critical, long-term role of gas in Australia’s energy mix and would redress a policy failure of omitting gas from the scheme.

Green hydrogen guarantee of origin scheme urgently needed, inquiry told (Renew Economy): Time is running out for investors in genuine clean industries, but a time-stamp for green hydrogen could track production down to the hour to prove its credentials, an inquiry has been told. Proposed Future Made in Australia laws being considered by parliament would track and verify emissions associated with hydrogen, renewable electricity and potentially other energy sources. ‘We need to see this get through,” Australian Hydrogen Council chief executive Fiona Simon told the inquiry on Tuesday.

Environmental approvals reforms pass parliament (Business News): Environmental reforms designed to slash green tape have passed parliament, in a bid to avoid duplication and aid the approval of major renewable energy projects. The Environmental Protection Act Amendment Bill 2024 passed parliament yesterday, after an overhaul of the approvals process has announced late last year.

WA’s environment watchdog stripped of power to assess big polluting projects (WA Today): Environment Minister Reece Whitby has announced plans to strip the state’s environmental watchdog of the power to assess greenhouse gas emissions on big polluting projects as it hunts for green tape duplication. The major change to the Environmental Protection Authority’s remit was included in the state’s new greenhouse gas emissions policy for major projects, which was tabled in parliament on Tuesday.

NSW sets new long duration storage target as it readies for grid after coal (Renew Economy): The New South Wales (NSW) Labor government has announced a new target for long duration storage as it prepares the country’s biggest state grid for life after coal. The state has already set a target of 16 gigawatt hours of long duration storage by 2030, but to help fill the gaps between wind and solar output, and shorter duration storage, it has now announced a new target of an additional 12 GWh by 2034.

Adelaide launches bid to host Cop31 climate conference in 2026 (The Guardian): South Australia has launched a bid to host a major UN climate conference in 2026 in Adelaide, with the premier, Peter Malinauskas, declaring it would draw more than 30,000 people and could be worth $500m to the state. Australia is vying with Turkey to host the year-ending climate summit known as Cop31, with a decision expected next month at this year’s conference in Azerbaijan. The Albanese government’s existing bid is that it would co-host the event with Pacific nations.

Germany earmarks $3 billion for decarbonisation subsidies (Reuters): The German government has earmarked up to 2.8 billion euros ($3.1 billion) to support 15 industrial companies in their bid to decarbonise under its first round of "climate protection contracts", the economy ministry said on Tuesday. As part of Germany's goal to become climate-neutral by 2045, Berlin will award 15-year subsidies to companies in sectors such as glass, paper and chemicals in return for them reducing carbon emissions in production.

CARBON MARKETS

Wind and solar developers warn of market crash as Tasmania chases windfall gains for old hydro assets (Renew Economy): The Australian wind and solar industry is in uproar after state-owned Hydro Tasmania this week pushed for changes that could deliver windfall profits to it and the federal government owned Snowy Hydro for their decades-old hydro assets. The new controversy centres over the design of Renewable Energy Guarantee of Origin certificates (REGOs), which will be used to certify that electricity has been sourced from green sources, and will be particularly important for newly emerging industries such as green hydrogen, ammonia and green iron and steel. The REGO scheme is also seen as a replacement for the current LGC (large scale generation certificates) that will effectively expire when the renewable energy target officially comes to an end in 2030.?

CORPORATE SOCIAL RESPONSIBILITY

Qantas accused of greenwashing as climate advocates lodge complaint over sustainability, net zero claims (ABC News): Tick this box, pay a few extra dollars and poof! — your flight has just been made carbon-neutral. This is what Qantas customers are led to believe, and we might be about to find out whether it stacks up. Flying is one of the most emissions-intensive forms of travelling and will be one of the most difficult sectors to decarbonise, but that doesn't stop airlines from spruiking their sustainability credentials.

Mining giant Rio Tinto breaks ranks to back Environment Minister Tanya Plibersek nature protection reforms (ABC News): One of the world's largest mining companies has broken ranks with much of the industry to support Environment Minister Tanya Plibersek's stalled push for a national environmental regulator. The proposed regulator would set clear standards for habitat and wildlife protection and account for the carbon emissions of new projects. Rio Tinto late on Tuesday lent support to federal government legislation that would prioritise and reform 25-year-old environmental laws that better protect "Australia's national environmental and culturally significant places and species" while allowing for "more efficient and effective approvals".

Woodside boss urges states to join WA in ending emissions regulation (Australian Financial Review): Woodside Energy Meg O’Neill has lauded the West Australian government for handing responsibility for policing greenhouse gas emissions to the federal government, urging other states and territories to do the same. The WA government this week stripped its Environmental Protection Agency of the ability to assess major projects on their emissions, citing constitutional legal advice it claims made state powers redundant after the Albanese government legislated its so-called safeguard mechanism last year.

Gas imports might be eastern Australia’s only choice, says Woodside (WA Today): Energy giant Woodside says setting up floating gas-import terminals in south-eastern Australia may be the only option left to prevent a domestic gas crisis this decade as old production fields in Bass Strait rapidly dry up with scant new supplies to replace them. Although vast amounts of gas produced in Queensland are exported overseas, authorities have been dialling up warnings that homes and businesses in Victoria, NSW and South Australia are heading for a shortage of the fossil fuel in as little as three years unless urgent measures are taken.

Fortescue pushes for diesel fuel credit to be tied to emission cuts (Australian Financial Review): Fortescue says the Albanese government should consider tying a lucrative fuel tax credit to decarbonisation efforts for Australia’s mining giants, but insists it is not advocating for the subsidy to be scrapped for farmers and minor players. The Commonwealth diesel fuel excise covers the costs of maintaining public roads, and all users, including mining companies, pay it. But companies can claim a tax rebate when the diesel is used on private roads – such as those on mine sites or farms – as these are maintained by their owners.

World-first test gives Alcoa two stars for Australian environmental performance (WA Today): ?The first independent non-governmental assessment of Alcoa’s impact on Western Australia’s landscape over the past 60 years baldly states that the US mining giant has not rehabilitated the state’s jarrah forests and will not be able to. The peer-reviewed paper is the result of two years’ work by an international authorship team, published this week in the journal Restoration Ecology, and is the first to assess Alcoa’s performance against international mining rehabilitation standards, giving Alcoa two of a potential five stars for its attempts to restore the forests of state’s south-west.

GREEN PROJECTS AND INITIATIVES

Gold giant to biggest off grid solar farm yet as its combines renewables to slash remote mine diesel costs (Renew Economy): Australian off-grid power specialist Pacific Energy says it will deliver its biggest solar farm yet, as part of ambitious plans to power a remote Western Australia gold mine with more than 70 per cent renewable energy. Pacific Energy said on Friday it has signed an agreement with global resources giant, Gold Fields, to design and construct a 35 megawatt (MW) solar farm for the St Ives gold mine, located around 80km south of Kalgoorlie. The solar farm is a part of Gold Fields’ $A296 million St Ives Renewables Project, announced in March, which will include 42MW of wind power to take the mine site beyond 70% renewables, and cut its emissions in half.

Approval for $200m Wellesley battery (Business News): Sunrise Energy Group has moved ahead with its $200 million plan to build a battery in Wellesley, after a development assessment panel unanimously backed the proposal. The Regional Development Assessment Panel today approved the group’s plan to build a renewable energy facility comprising battery inverters and lithium-ion battery containers in the Kemerton strategic industrial area.

Wind training centre slated for Rockingham (Business News): Wind farm developer Wind With Purpose plans to build a multi-million-dollar wind innovation and skills park on a Coogee-owned site in Rockingham as it seeks to scale up the sector’s WA growth. The company says the proposed facility, which is estimated to cost between $7 million and $8 million, is planned for land to be leased by Wind With Purpose in the Rockingham industrial area from Coogee over a 30-year term.

OX2 buys proposed battery energy storage system north of Perth (PV Magazine): Sweden-headquartered global renewable solutions company OX2’s purchase of a proposed Western Australia (WA) 1 GW wind farm, includes an indicative 100 MW battery energy storage system (BESS) north of Perth. The first wind project in Australia for the company, it is described as being in its early stage of planning, the project is located a few hours north of Perth and OX2 will work with existing project developers will work closely with OX2 to continue to manage the approval process, as part of the acquisition.

Energy company renews Kimberley gas project bid (The Australian): Black Mountain Energy quietly withdrew its Federal environmental application but has flagged it will return with an expanded proposal for its Valhalla gas project.

Plans advanced for Australia's largest battery, with eight times more storage than current biggest (Renew Economy): Neoen Australia has advanced plans for what would be the biggest battery project in any of Australia’s main grids – a 3,600 megawatt hour (MWh) proposal that would have eight times more storage than the current holder of the biggest battery title. The project is being proposed at Goyder North, along with an adjoining 1,000 megawatt (MW) wind project, north of Burra in South Australia. It is separate to the neighbouring Goyder South project, which could combine 1,200 MW of wind, 600 MW of solar and 900 MW, 1800 MWh of battery storage, and where a 412 MW first wind stage is already being built.

South Australia regions earmarked for large-scale renewable energy projects (PV Magazine): The South Australia (SA) government is seeking feedback on two areas earmarked for release for development of large-scale renewable energy projects in the Whyalla and Gawler Ranges regions, 385 and 560 kilometres, respectively, northwest of Adelaide. The release areas, as determined by the SA government’s Hydrogen and Renewable Energy Act 2023 (HRE Act), which expedites the development of hydrogen projects, include Native Title Determination lands, pastoral lands, prescribed Crown lands, and state waters.

Construction begins on Australia’s fifth largest battery energy storage system (PV Magazine): The 150 MW / 300 MWh Stage 1 of Amp Energy’s multi-stage Bungama battery energy storage system (BESS) will be built with Finland-headquartered W?rtsil? quantum high energy storage technology. The balance of plant (BOP) will be managed by South Australian (SA) renewable projects construction company Enerven.

Green Gravity’s long-duration storage solution attracts $9 million in funding (PV Magazine): Wollongong-based energy storage company Green Gravity has secured $9 million (USD 6 million) in funding for its utility-scale long-duration energy storage solution, which repurposes legacy mineshafts. Financing has come from HMC Capital, BlueScopeX, Pacific Channel and Sumisho Coal Australia Holdings (SCAP H).

ARENA tips $5.4 million into community electrification trial (PV Magazine): The Australian Renewable Energy Agency (ARENA) has announced it will provide $5.4 million (USD 3.63 million) in funding to support the electrification of 500 homes on the northern beaches of Wollongong as part of a project that will accelerate the energy transition in homes to help understand the impact on consumers and the network. The $11.8 million Electrify 2515 community pilot program, initiated by a group of residents in the 2515 postcode area and driven by energy finance provider Brighte, Rewiring Australia, and distribution network service provider Endeavour Energy, will test the impacts of electrification within a community and within the constraints of Endeavour’s local electricity network.

Victoria switches on what will be world’s biggest onshore wind farm (The AGE): Twenty years ago, a small group of sheep farmers in Victoria’s central west had a vision to drought-proof their farms with a few wind turbines. On Friday, farmer Kevin Blake finally pressed a button summoning to life one of those turbines – one element of what will be the largest wind farm in the Southern Hemisphere, and the biggest onshore wind farm in the world.

CSIRO and Essential Energy to trial vehicle-to-grid tech (PV Magazine): Essential Energy and CSIRO have launched a project that will explore vehicle-to-grid (V2G) technology to better understand how to use electric vehicles (EVs) as battery storage as part of home energy management while assisting the network during times of peak power demand. “At the moment you can buy a battery and connect it to your home, but those batteries have small storage capacities compared to an EV which has as much as five times more storage,” said Dr Sam Behrens, senior research engineer at CSIRO’s Newcastle Energy Centre and technical lead for the collaboration with Essential Energy.

New venture promises to slash power costs using solar, battery storage and "radical transparency" (Renew Economy): A new Adelaide-based company offering solar and battery storage “as a service” for commercial and industrial customers has launched under the leadership of former SwitchDin CEO Andrew Mears. The company, Tesseract ESS, is a subsidiary of Tesseract Energy, which formed in 2018 as a pioneer of residential power purchase agreements that allow households to install solar and battery storage at zero upfront cost, paying it off through a fixed rate for electricity.

Albanese’s domestic solar manufacturing hero strikes China pact (Australian Financial Review): One of China’s biggest solar panel manufacturers may cash in on the Albanese government’s $1 billion photovoltaic subsidy program after partnering with a leading Australian solar start-up backed by billionaire Mike Cannon-Brookes and former Prime Minister Malcolm Turnbull. Chinese giant Trina Solar and Sydney company SunDrive have formed a joint venture which will apply for taxpayer support for a local manufacturing hub under the Solar Sunshot program. The scheme is part of the Future Made in Australia policy that was allocated $22.7 billion in the last federal budget.

Newcastle port progresses clean energy precinct plans (PV Magazine): The Port of Newcastle has signed off on agreements for Front End Engineering Designs (FEED) and Environmental Impact Statements (EIS) for the proposed Clean Energy Precinct which is slated to be developed across a disused site on Kooragang Island in the New South Wales (NSW) Hunter region. The 220-hectare parcel of Port land has been earmarked as a production, storage, domestic distribution and export hub for clean energy products and technologies, including hydrogen and green ammonia.

OTHER MATTERS OF INTEREST

How the world’s biggest isolated grid is dealing with the growing “potential” of 100 pct wind and solar (Renew Economy): As mentioned in a recent episode our weekly Energy Insiders podcast, Renew Economy is fascinated by the energy transition occurring in Western Australia’s main grid, mainly because of its huge solar and wind potential, its rapid additions of massive battery storage facilities, and because it is the world’s biggest isolated grid. W.A. has no links to any other grid or geographies, which makes it unique in the world for its size. It has morphed from a renewable laggard – where a former energy minister once vowed never to open another solar farm, having opened the country’s first – to a region which is now looking at a step change in response to surging green energy demand.

New evidence says gas exports damage the climate even more than coal. It’s time Australia took serious action (The Guardian): The claim that Australian gas exports are “clean” and needed to drive the transition to net zero greenhouse gas emissions has become an article of faith for significant parts of the country’s industry, media and political classes – often repeated, only occasionally challenged. It has buttressed a massive expansion of the liquified natural gas (LNG) industry in the north of the continent over the past decade, with major new developments in Queensland, Western Australia and the Northern Territory.

Global energy outlook released (Energy Magazine): The International Energy Agency (IEA) has released its World Energy Outlook 2024 report, revealing that Australia has seen a significant reduction in the use of fossil-fuelled power sources, with low-emissions electricity generation doubling between 2018 and 2023.

Rebates for buying e-bikes and e-scooters are good but unlikely to greatly boost sustainable transport on their own (The Conversation): Queensland has joined Tasmania as the second Australian state or territory to offer a A$500 rebate for buyers of new e?bikes. The pre-election announcement includes a smaller $200 rebate for e?scooters. The Queensland e?mobility rebate scheme is first come, first served, until its $2 million budget ($1 million was added last week) is used up. The Tasmanian scheme has closed for this reason.