27 September 2024

CLIMATE POLITICS

‘NATO of critical minerals’ deal to hit China dominance (Australian Financial Review): ?Australian critical minerals projects could be funded by more than a dozen like-minded nations after Australia, United States and other allies signed on to establish a joint financing body in an escalation of efforts to break China’s supply stranglehold. Known within the federal government as the “NATO of critical minerals”, the deal means development and export agencies in Australia, US, European Union, the United Kingdom, Canada, Japan, South Korea and India could contribute to develop the projects both in Australia and elsewhere.

New Senate committee to focus on transparency and accountability of energy regulators and operator (Renew Economy): ?The roles of functions of the main regulatory bodies that govern Australian electricity and gas markets is to come under scrutiny under a new Senate Committee to be led by former Liberal and now independent Senator David Van. The committee was established last week in a Senate vote that was supported by the government, the Greens and the Teals, and opposed by the Coalition, One Nation and other independents.

Climate Change Authority head Matt Kean contradicts Peter Dutton's claim on nuclear and renewables working together (ABC News): The head of the Climate Change Authority has contradicted the claim of Opposition Leader Peter Dutton that renewables and nuclear power can be 'companions not competitors', a claim that suggests a commitment to nuclear power will not derail the current transition to renewable energy. Matt Kean is a former NSW Liberal energy minister and Treasurer, appointed by the Albanese government to chair the Climate Change Authority (CCA) earlier this year.

Dick Smith weighs in on the nuclear energy debate, saying Australia is ‘dumb’ (The West Australian): Businessman Dick Smith has thrown his support behind an overhaul of Australia’s energy system, saying nuclear power is “the only answer.” Mr Smith has long maintained that renewables alone could not keep electricity flowing across the country, despite independent modelling suggesting otherwise.

Coalition nuclear policy relies on coal for longer than experts expect (Australian Financial Review): Opposition Leader Peter Dutton has conceded the Coalition’s nuclear energy plan relies on many of Australia’s ageing coal-fired power stations running for at least another 12 years, which is a timeframe most energy experts agree will not work because most will be shut down by 2035. Gas power would also be “a huge feature” of the energy mix under a Coalition government, Mr Dutton said, confirming the fears of critics that the nuclear policy would mean significantly extending the use of fossil fuels.

Energy giant issues warning on Dutton nuclear plan (WA Today): Power giant AGL says Australia has reached a critical juncture in the renewable energy transition and has no time to waste on the Coalition’s controversial pitch to build nuclear generators. “The cost and the time of delays involved in nuclear assets are such that we simply cannot wait,” AGL chair Patricia McKenzie said on Wednesday. “We need to move ahead” with the rollout of renewables, she added.

“Shocking, shameful, abhorrent:” Coal mine approvals slammed for reckless disregard of climate (Renew Economy): The Albanese government has given the green tick to three major thermal coal mine expansions in New South Wales, in a move that critics say lays bare the blatant disregard of climate change in Australia’s federal environmental laws. Environment minister Tanya Plibersek signed off on Tuesday to extensions to two coal mines in the Hunter Valley – stage three of Whitehaven’s Narrabri underground mine and Ashton Coal’s Ravensworth mine – and to Mach Energy’s Mount Pleasant optimisation project in the state’s north-west.

Labor shrugs off flat battery projects with $25m investment (Australian Financial Review): The Miles government will sink $25 million into Queensland’s first plant to build large-scale batteries for the power grid, shrugging off a series of financial failures of battery-related companies in the state. The investment – split roughly evenly between debt and equity – will go into the $70 million plant being developed in Maryborough in the Fraser Coast region north of Brisbane. It will manufacture iron flow batteries to be used at state government-owned electricity provider Stanwell Corporation.

CARBON MARKETS

‘Entirely inappropriate’: Top scientist slams watchdog interference in carbon review (WA Today): ? The top scientist who led an inquiry into Australia’s multibillion-dollar carbon market has slammed the carbon watchdog’s interference in his review after it was revealed senior executives repeatedly contacted scientists to alter their submissions. Professor Ian Chubb told this masthead that approaches by Clean Energy Regulator executive Shayleen Thompson to the CSIRO and the Wentworth Group of Scientists during his review of Australian carbon credits were “entirely inappropriate”.

Safeguard ACCU holdings continue to grow as issuance climbs (Carbon Pulse): Entities covered under Australia’s Safeguard Mechanism have continued to hoard carbon credits to meet their expected compliance demand as unit issuance grows, albeit not as fast as the Clean Energy Regulator (CER) previously expected.

Safeguard Mechanism baselines likely to tighten in upcoming review, bank predicts (Carbon Pulse): The legislated review for Australia’s Safeguard Mechanism will likely see the scheme’s baselines tighten to meet more ambitious emissions reduction targets, which would ultimately be bullish for carbon credit prices, according to a bank’s analysis.

Shell says ‘dysfunctional’ rules putting energy transition at risk (Australian Financial Review): Shell, the oil and gas giant with billions of dollars invested in Australia, says a dysfunctional and enormously complicated system of regulations is putting the transition to clean energy at risk even as it readies to spend big on renewables. Shell Australia chairwoman Cecile Wake said obstacles for gas developments and large renewables projects threatened to derail progress towards 2030 climate targets. Labor wants to cut carbon emissions by 43 per cent on 2005 levels by the end of the decade, a goal that appears increasingly unreachable.

CORPORATE SOCIAL RESPONSIBILITY

Record $12.9m greenwashing penalty puts fund managers on notice: ASIC (Australian Financial Review): The corporate watchdog has warned fund managers that outsource ethical screening of their investments to “do their own homework” or face greenwashing penalties, after the Federal Court fined Vanguard a record $12.9 million for failing to do so. Australian Securities and Investment Commission deputy chairwoman Sarah Court said the fine was “a significant deterrent” for any other wrongdoers. Federal Court Justice Michael O’Bryan slammed Vanguard’s lawbreaking as “serious” and revealing of “a very substantial failure” in its legal compliance.

Super funds withdraw climate push against BHP (Australian Financial Review): BHP has vowed to disclose its investments in green steel making and produce a five-year financial plan related to its emissions’ reduction strategy, averting a potentially contentious annual meeting after two large shareholders threatened to challenge its climate credentials. Denmark’s PFA Pension Fund and Melbourne-based Vision Super filed a resolution, along with the Australasian Centre for Corporate Responsibility, calling for detailed disclosures relating to the carbon footprint of BHP’s customers, known as “scope three” emissions, and BHP’s plans to reduce them. That resolution was withdrawn on Monday.

“Net zero is a con:” Forrest outlines how Fortescue mines will eliminate fossil fuels by end of decade (Renew Economy): A day after unveiling a $4 billion plan to buy hundreds of electric haul trucks, dozers and excavators, and unveiling the world’s most powerful EV fast charger, iron ore billionaire Andrew Forrest has outlined in detail how his iron ore company plans to eliminate fossil fuels from its operations by the end of the decade. Forrest’s push for “real zero” emissions by 2030 is in stark contrast to the “net zero by 2050” targets adopted by nearly every other major corporate. Most doubt he can pull it off, but at a UN-sponsored event in New York he released a 90-page document explaining in detail how it will be done.

Investors quit Woodside as shares languish (Australian Financial Review): Woodside Energy is facing investor dissatisfaction compelling some funds to exit the stock amid concerns over the stability of its dividend, and frustration that it squandered the opportunity to buy back its own shares by striking two deals in the US. Blackmore Capital, a long-only Australian equities manager, revealed on Friday it sold out of Woodside in August, citing “concerns” over the company’s sizable acquisitions in the US, and the demands they would put on its balance sheet.

Cannon-Brookes’ Grok fails to back AGL board on exec pay (Australian Financial Review): AGL Energy’s biggest shareholder, Mike Cannon-Brookes’ Grok Ventures, has refused to back the board on executive pay, two years after a spectacular boardroom upheaval forced by the software billionaire. Grok, which owns about 10.4 per cent of AGL, abstained from voting on the utility’s remuneration report at its annual general meeting on Wednesday.

GREEN PROJECTS AND INITIATIVES

Largest land-based wind farm outside China proposed for southern WA (ABC News): A renewable energy company has released plans to build the largest land-based wind farm outside of China in Western Australia's booming energy corridor. Spanish-owned Acciona Energy wants to build about 400 6.2-megawatt turbines as part of its 3-gigawatt Bellwether project in the state's south-west.

Macquarie offshoot to build its first wind farm after $740 million project reaches financial close (Renew Economy): Aula Energy, a newly launched offshoot of finance giant Macquarie, is to build its first wind farm after reaching financial close with the joint owner of the $740 million project. The 228 megawatt (MW) Boulder Creek wind farm, located around 40 kms south-west from Rockhampton, on land that will continue to be used for cattle grazing, is jointly owned by Aula Energy and Queensland state owned generation company CS Energy.

EnergyAustralia signs PPA for Vic wind farm (Energy Magazine): EnergyAustralia will recieve a significant share of energy capacity from TagEnergy’s Golden Plains Wind Farm under a new ten-year renewable power purchase agreement (PPA). The agreement will provide EnergyAustralia with around 40 per cent offtake, or up to 345MW, of Stage 2’s 577MW capacity, equivalent to more than 55 turbines.?

Tasmania’s major renewables approval pathway streamlined by fresh approach (PV Magazine): The Tasmanian government is chasing new, major investment in renewable energy projects through its Renewable Energy Approvals Pathway (REAP) program, creating improved processes and better resourced agencies. Investing $10 million (USD 680,000) in REAP as part of its 2020 Strong Plan for Tasmania’s Future to facilitate new energy generation developments and boost the resources of regulators and agencies involved in the assessment processes for large energy projects.

Alinta, Parkwind snag first offshore wind licence in Southern Ocean zone that could power smelter (Renew Economy): Alinta Energy and Parkwind have snagged the first feasibility licence for the Southern Ocean offshore wind zone, for their 1.2 gigawatt (GW) Spinifex project that could form a key part of powering the local smelter with renewable energy. The federal government has awarded the licence on preliminary grounds, subject to consultation with First Nations groups before a final decision is made.

Australia's biggest grid-connected sodium sulphur battery to be installed at old coal hub (Renew Economy): What is being described as the biggest grid-connected sodium sulphur battery installation in Australia may be installed in one of Queensland’s main clean energy hubs as the state continues to explore alternative storage technologies to support the transition to renewables. The state owned CleanCo says it is looking to commission a 1.5 MW sodium sulphur battery with at least six hours storage at Swanbank, a former coal generation site near the city of Ipswich that is being rapidly transformed into a clean energy hub.

Forrest strikes $4 billion deal for electric trucks and dozers to eliminate fossil fuels at giant mines (Renew Economy): Iron ore billionaire and green energy evangelist Andrew Forrest has struck a $4 billion deal that will see hundreds of giant electric trucks, excavators and dozers installed at its huge iron ore mines to help eliminate the burning of fossil fuels. Forrest has set a target of reaching “real zero” terrestial emissions for the Pilbara iron ore operations of Fortescue Metals, and he wants to achieve that by 2030. The deal announced overnight with Leibherr – the biggest in that company’s history – will take a big step towards that goal.

Heavy vehicle energy transfer system to trial at BHP Australian mine sites (PV Magazine): Melbourne-headquartered resources giant BHP will begin trials at their mine sites of a dynamic energy transfer system developed by United States-headquartered equipment manufacturer Caterpillar. The Cat Dynamic Energy Transfer (DET) system will be trialled on BHP’s battery electric and diesel electric mining trucks and comes after two years of close collaboration to find sustainable and viable energy transfer solutions.

Powercor wins bid to plug in bigger wind, solar and battery projects (Renew Economy): Victorian electricity distribution company Powercor has been granted a transmission licence, an achievement it says will create more competition and faster connections for new wind and solar farms in the state. Powercor, which runs the poles and wires network throughout western Victoria and the western suburbs of Melbourne, says the Essential Services Commission approved its licence application this month, after a period of stakeholder and community consultation.

NSW grants licence to consortium picked to deliver first renewable energy zone (Renew Economy): The consortium of companies picked to build the transmission system for the Central-West Orana renewable energy zone has been awarded an operator’s licence by the New South Wales government, taking the pioneering REZ a step closer to connecting gigawatts of new wind, solar and storage. The Central-West Orana (CWO) renewable energy zone (REZ) will host at least 4.5GW of new wind, solar and storage projects in a region that includes Dubbo, Dunedoo and Mudgee, as NSW races to replace its ageing coal fired generators.

Nari Nari Tribal Council hopes stake in Wilan Wind Farm will help restore culture and country (ABC News): In Nari Nari language "wilan" means wind, and the traditional owners of a vast property in south-western New South Wales hope to harness this natural resource to help care for country, culture and people. The not-for-profit Nari Nari Tribal Council (NNTC) is the custodian of Gayini, an 88,000-hectare property between Hay and Balranald.

OTHER MATTERS OF INTEREST

Not enough demand: Big batteries may be told to stand by on empty to avoid rooftop solar switch-off (Renew Economy): The Australian Energy Market Operator is poised to introduce a significant shift in operating protocols that would involve instructing big batteries to stand by on empty to help address periods of extremely low or even negative operating demand. The proposals have been caucused with industry over the last few months, and are seen as an attempt to avoid more dramatic, and potentially unpopular “solar switch-offs” as the market operator deals with one of the big new challenges of grid management – minimum rather than maximum demand.

AEMO maps cost of market transition (Business News): The Australian Energy Market Operator went $4 million over budget in Western Australia last financial year, as it counted the cost of delivering a new wholesale electricity market. The industry-funded gas and electricity market operator shared its financial year results today, with WA expenses coming in at $70 million against revenue of $59 million.

Households surge ahead in rooftop solar as renewable projects break bottleneck (The Sydney Morning Herald): Consumers are leading the national transition to renewable energy, installing four times more electricity generation through rooftop solar in the first half of this year than all the commercial projects combined. Households added 1.3 gigawatts (1300 megawatts) of power capacity to the national electricity grid through 141,364 new rooftop solar installations in the first six months of 2024, a Clean Energy Council report says, while only 310 megawatts of commissioned large-scale generation projects came online during the same period.

Renewables projects rebound, but still behind target (Australian Financial Review): The Clean Energy Regulator has upgraded its estimate of large-scale wind and solar power capacity likely to come into the system this year as momentum picks up towards 2030 climate targets, despite a poor quarter for renewable generation. The upward revision of almost 30 per cent in expected approvals of large wind and solar farms to between 3 and 4 gigawatts comes after a drop in the contribution from renewables in the June quarter amid a wind “drought” and dry weather in Tasmania.

Energy storage jobs will soon overtake those in coal and gas (Renew Economy): The electricity workforce will need to double in five years to achieve Australia’s 2030 renewable energy target, our new report finds. More than 80% of these jobs will be in renewables. Jobs in energy storage alone will overtake domestic coal and gas jobs (not including the coal and gas export sector) in the next couple of years. The Australian Energy Market Operator (AEMO) updates its Integrated System Plan every two years. It’s a blueprint for the energy transition from coal to renewable energy.