Why Western Australia is well placed to become a global clean energy producer and export leader

On behalf of the Government of Western Australia it is with great pleasure to welcome you all to our beautiful State for AOG Energy 2023.?

For over 18 years the Western Australian Government has supported AOG Energy and the platform it provides to showcase local jobs, opportunities and innovation in the energy sector.

But most importantly, this conference allows for collaboration between industry, research institutions and government.

Coming together helps to reinforce our commitment to achieving a net zero future.

We know the world will undergo a great transition over the coming decades.??Decarbonisation to address climate change is a responsibility we all share.

Gas will play a crucial role in this transition - but it will increasingly be replaced with cleaner, renewable sources of energy.?

Western Australia’s energy sector

Western Australia has enjoyed decades of strong economic growth thanks to our booming resources and export industry.?

The growth of the liquefied natural gas (LNG) industry in WA provides an opportunity for complementary industries to put down roots in our State. ?

With the right investment, WA is well placed to become a global clean energy producer and export leader.

Why?

Because we can draw on the State’s abundant resources…?

We have a track record in building large scale energy industries…

We have excellent infrastructure…

And we have the technical knowhow in commodity development.

Let’s also no forget WA is a stable and secure partner with strong environmental, social and governance (ESG) credentials.

We also have a highly skilled workforce and long-term relationships with overseas energy companies.

All these factors are being leveraged to grow our renewable energy sector.

A key component of the State’s energy generation system will be a sensible and managed transition toward greater use of renewables.

This will occur alongside our commitment to retiring the remaining State-owned coal power stations by 2030.

The work of transition will require massive investment in building new physical assets and modifying existing ones. This is why we have committed to investing an estimated $3.8 billion in new green power infrastructure.

This is expected to result in a 40% reduction in emissions on the State’s main grid, the South West Interconnected System.

Gas will still have a key role to play in our transition as a flexible source of energy – providing peaking power today and continuing to provide firming power.

In the short to medium-term, our massive natural gas reservoirs will help displace the use of coal and feed industrial processes.

Gas will help to smooth the transition to renewables while guaranteeing energy security… both for Western Australia….and for our core trading partners in the region.

Carbon Capture, Utilisation and Storage

Carbon Capture, Utilisation and Storage will play an important role in addressing the carbon emissions from gas.

By managing emissions from oil and gas production, carbon capture presents an opportunity to decarbonise energy exports.

Particularly in gas processing, LNG and potentially hydrogen.

Carbon capture will also become essential if we are to manage emissions for industrial processes that have no known technological alternatives … ?such as cement and some chemical manufacturing processes.

It’s a challenge … but there are also enormous opportunities.

There is a lot of work to be done to ensure the sector reduces its emissions.

But we have to acknowledge the significant efforts that are already taking place by industry and government.

Western Australia has the largest operating facility in the world - ?Chevron Australia’s Gorgon CCS project - ?which has successfully injected and permanently stored more than seven million tonnes of carbon in the North West.

Through the LNG Jobs Taskforce, a study on the opportunities and benefits of developing a Carbon Capture and Storage …. and Carbon Capture Use and Storage Hub … is being conducted to help inform the future of the State’s existing gas industry - and the development of new industries and projects.

The lessons learned from Gorgon and other CCS research and development projects such as the South West Hub Carbon Capture and Storage project, puts WA in a good position for future CCS projects and hubs.

Battery and Critical Minerals

We also possess extensive experience and skills in the resource sector, which are directly transferable to low emissions technology.

WA is already a major supplier of critical minerals; accounting for around half of global lithium production, and a major supplier of nickel, cobalt, manganese and rare earths.

I am delighted to note that in less than a decade Government has been successful in growing this opportunity.

Western Australia now hosts a multi-billion dollar critical minerals processing industry.

This includes global scale investments in battery-grade lithium hydroxide and nickel sulphate plants, essential for the manufacture of rechargeable batteries.

There are also strong partnerships between government, industry and the research community to support the energy transition and to grow the battery industry.

WA is set to play a central role in helping our international partners meet their own clean energy ambition - ?as a reliable, ethical and cost-effective supplier of battery and critical minerals and clean energy products.

Renewable Hydrogen

WA also has an extraordinary opportunity to become a global renewable hydrogen leader.

Capitalising on our solar and wind resources and other strengths, the State is a natural place for the growth of the hydrogen industry.

The WA Government and industry are partnering to identify ways to produce, export and use renewable hydrogen, including through the establishment of hydrogen hubs in the Pilbara and Mid-West.

In 2019, the Western Australian Renewable Hydrogen Strategy set out four strategic focus areas for the State

-??????transport

-?????Blending

-??????Export

-??????And remote applications.\

We ?also set targets for 2022 and 2030 for each area.

All four of these areas are either under construction or commissioned - - as per the goal - ?demonstrating we can achieve our targets.

Recent hydrogen project announcements like the Yuri Project currently under construction in the Pilbara; Woodside’s H2Perth hydrogen and ammonia production facility in Kwinana; the 50GW Western Green Energy Hub on south coast and the massive Australian Renewable Energy Hub planned for the Pilbara – they all signal global confidence in WA’s renewable energy credentials and ambitions.

With continued investment, by 2040 the renewable hydrogen industry could be worth $5.7 billion nationally and generate 8,000 direct and indirect Western Australian jobs.?

We are also well positioned to play a key role in servicing the entire renewable hydrogen supply chain - given our reserves and the range of minerals required for the manufacture of electrolysers, wind turbines, electric vehicles - and de-carbonised products such as green steel and green aluminium.

Aboriginal Capability Pavilion

The State’s energy transition will provide social and economic benefit to all Western Australians, including socially inclusive economic growth.

In particular, the WA Government is committed to facilitating greater Aboriginal involvement in the energy sector and empowering the next generation of jobs and opportunities for Aboriginal people, families and communities.

I am proud that this year, AOG Energy will host an inaugural Aboriginal Capability Pavilion to help us to realise this commitment.

I encourage you all to visit and engage with these Aboriginal businesses.

Conclusion

Our resources industry, including the oil and gas sector, has played such an important role in our past and it is even more important for our present and our future.

Western Australia’s energy sector is continually striving to ensure the delivery of innovative and sustainable solutions that meet the needs of both local and global energy users.

Across the energy sector, businesses of all sizes are:

-??????establishing ambitious emission reduction targets

-?????delivering innovative renewable energy projects

-?????scaling-up critical minerals and battery storage capability

-??????implementing low-carbon technologies

-??????and exploring opportunities to capture, sequester and utilise carbon.

As I have noted, there are challenges but -?more importantly - there is so much opportunity with this energy transition.

I look forward to our State continuing to be a secure and reliable supplier of energy for many further decades to come and working with our global network to achieve great things together.

Thank you all for making your way to Perth for the AOG Energy Conference.

Please enjoy the next few days and the insightful, fascinating conversations to come.

?* This was the opening address at the AOG Energy 2023 Conference, Perth Convention and Exhibition Centre on 15 March 2023.