Taku Ide

I've been thinking a lot lately about a seminal report referred to previously as the 'Advanced Biofuels Study: Strategic Directions for Australia' (2011), authored by LEK Consulting and funded by the Australian Renewable Energy Agency (ARENA), that sought to map out the prospects for the liquid fuels sector moving forward. Given this report is now 13 years old, it seems pertintent to revisit some of the critical findings to ensure we are not reinventing or overlooking the recommendations within despite the changes that have occurred in the market since? For me, this study ultimately tried to make the point that in order to be truly 'strategic' in mapping out a path through the energy transition, we need to prioritise and focus on matching sources/forms of energy, to needs/uses of energy in the future. Put another way, which are the 'hard to abate' sectors of the economy that should therefore be prioritised/incentivised/supported for decarbonisation (in this study, it was aviation, shipping and therefore defence also)? This is a critical lesson that I see too often lost, which leads to a raft of unintended consequences, wasted resources, lost opportunities, time wasters and good old fashioned 'red herrings'! In this way, we can see that attempting to electrify absolutely everything is neither practical, desirable, affordable nor achievable, and that hydrogen is best prioritised for use for renewable fuel production and in-situ transformation of high temperature heat applications, and therefore makes little sense for injection/blending into pipelines. So, what does this mean for policy, industry, stakeholder and investor dialogue? Well, perhaps I'm putting too much faith in the 'sector-led' approach that has been promoted by the Federal Government, but this at least gives an opportunity for a sober reset and a reflection on the true meaning of 'horses, for courses'? When you start to re-look at the clean energy transition through a more strategic lens, it becomes clear that we can't achieve everything we want, tomorrow, with a single, 'silver bullet' approach, or indeed make grandiose leaps into the unknown, but rather need to look at the assets/skills/infrastructure that we already have that will be useful to us, moving forward. In so doing, we must also think about short, medium and long term prospects for different technologies, and have the courage to revisit and reinvent traditional business models, in order to avoid some pretty nasty outcomes. There's an old adage, "if you don't know where you are going, then anywhere will do" and I see this currently playing out in many respects in the clean energy sector. On one hand, I see many jumping on to the next best shiny thing without full consideration of the consequences, while others cling desperately to the old way of doing things. One assumes that we all want to achieve decarbonisation as the end goal, but I fear that we've lost a sense of the strategic pathway to get there?

20

1 Comment

"Three things developers should know before embarking on the renewable energy journey" is a practical guide tailored for renewable energy professionals in Australia, including development managers, engineers, and land acquisition specialists. This resource highlights the critical challenges developers face—such as accessing land, obtaining approvals, and connecting to the grid—and offers insights into mitigating risks in a complex and evolving landscape. In this eBook, Tristan Cockman addresses these gaps, including policy and operational hurdles. This guide will equips readers to make informed decisions and to navigate the energy transition with greater confidence and strategic foresight. Read more: https://lnkd.in/e8Qp3KTa #renewableenergy #energytransition #construction

13

1 Comment

𝐇𝐨𝐰 𝐜𝐚𝐧 𝐦𝐢𝐧𝐞𝐬 𝐛𝐞𝐬𝐭 𝐜𝐮𝐭 𝐨𝐧-𝐬𝐢𝐭𝐞 𝐞𝐦𝐢𝐬𝐬𝐢𝐨𝐧𝐬 𝐛𝐲 𝟐𝟎𝟑𝟎? Australia-based BHP recently confirmed it was on track to cut its Scope 1&2 emissions by at least 30% by 2030 vs FY2020 levels. Much of BHP's success has come through a switch to renewable power, with the company also looking at the electrification of its mining fleets in the coming years. ☀ According to a recent survey by Mining Technology & MINE Magazine on-site renewables are seen as the main way in which emissions reductions could be achieved up to 2030. Other solutions include battery-electric vehicles, which were marginally ahead of hydrogen (fuel cell vehicles). Interestingly, purchased renewable energy was only chosen by 23% of respondents. Check out the full results 👇 https://lnkd.in/enQg8eiC #ESG #mining #renewables #hydrogen #decarbonisation #sustainability

6

The Australian Energy Market Commission (AEMC) has engaged CutlerMerz to develop a functional map for the roles required to operate the energy value chain in a high Consumer Energy Resources future. It was great to interact with Energy Networks Australia, Australian Energy Market Operator (AEMO), Australian Energy Regulator, and others on this project. Watch this space! As we provide updates on the status and impact of this seminal piece of work. Ryan Dudley, Neeraj Bhagwatula, Tim Edwards

26

EnergyQuest has just released a report on the Australian CCUS industry. Australia is falling behind and could lose a golden opportunity in carbon capture. Australia is already home to two world class carbon capture and storage (CCS) projects - one at the Chevron operated Gorgon project, WA, and the other operated by Santos at Moomba, SA. Development of more carbon capture, utilisation and storage (CCUS) projects is still lagging a long way behind Australia’s own needs and jeopardising its opportunity to become a major international storage hub. The report notes that, even with the successful start-up of the Moomba CCS project, Australia has only two operational CCS projects. Furthermore, EnergyQuest expects the total CO2 storage capacity to significantly shortfall the projected requirements. This reflects risks associated with five key components for successful execution, namely source, transport, injection, cost and timing. Only seven of the 19 CCS projects under development have publicly announced a start-up date. This uncertainty, combined with the low level of government incentives relative to other major countries, mean Australia is at risk of not realising the potential of carbon capture. By 2035, total CO2 storage rate capacity is expected to be only 34 million tonnes per annum (Mtpa), or 23% of the required 150 Mtpa as modelled by Net Zero Australia in 2023. By comparison, in 2022 Australia’s top nine emitters produced 42 Mtpa. If Australia cannot even meet its own needs for carbon storage, it would struggle to realise an opportunity to become a major provider of CCUS services to the Asian region and the rest of the world. We need unprecedented collaboration both within the industry and with government, particularly around carbon hubs, to reach critical mass and keep costs low. More here: https://lnkd.in/gKtrEmK9

11

3 Comments

Climate Impact Corporation and GE Verona plan hydrogen plants that draw water from the air Climate Impact Corporation (CIC) and GE Verona have announced plans for two massive hydrogen projects in outback South Australia and the Northern Territory that would draw water from the atmosphere for electrolysis for conversion to hydrogen. They plan two 10MWH green hydrogen projects that are modular in design, each with atmospheric water generators, solar panels and electrolysers. The technology opens up new areas with good solar radiation but poor water supply or areas not connected to the grid to potential solar hydrogen development and would require a local manufacturing supply chain. The companies recently met SA Deputy Premier Hon Susan Close (pictured) to seek her support and said: “CIC and its partners including GE Vernova discussed how module development in Australia would include a local supply chain, with the electrolysers and other critical elements of the modules to be potentially manufactured in Adelaide. ”#hydrogen #RenewableEnergy #manufacturing Climate Impact Corporation https://lnkd.in/gPfgnY3H

8

1 Comment

We welcome the passing of legislation that supports the future development of Western Australia’s future Carbon Capture and Storage (CCS) industry. The legislative changes aim to enable transport and storage of greenhouse gas in WA, and encourage greenhouse gas storage projects including the Angel CCS project, a proposed large-scale, multi-user CCS Hub near Karratha. Woodside sees CCS as a strategic opportunity for Australia, and one of the key methods to abate large-scale industrial emissions. The International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC) have both identified CCS as an important emissions reduction technology in achieving net zero by 2050 or sooner. We look forward to working with the WA Government as they develop the supporting regulations and guidance so CCS projects in WA can be operationalised.

223

1 Comment

Our Managing Director, Michael Davis was featured in another AFR article regarding biomethane, which is quickly gaining momentum as one of the best ways to reduce industry emissions and as an integral component of our net zero journey. He remarks in this article, “From our experience at Optimal there is rapidly growing demand for reliable renewable gas, especially biomethane, which can be delivered via existing infrastructure”. Davis also pointed out the important role technological advancement plays in improving the efficiency and scalability of renewable gas production and for this reason, ORG chooses to work with leading technology suppliers to implement state-of-the-art anaerobic digestion and biogas upgrading systems. “We work with our European technology supplier that has developed over 450 plants around the world”, Davis states. Many feel that when it comes to decarbonisation, all options should be on the table – a sentiment that Davis echoes: “Biomethane is 100 per cent compatible with our existing pipeline infrastructure providing a ready option while we wait for other fuels, like hydrogen to come online”. Moreover, when it comes to biomethane, Davis comments that “we are laggards against our international peers – Europe, China, US, India, Brazil and others. We’re falling behind and it’s a crying shame when you look at the available resources here in Australia.” Read the full article here: https://lnkd.in/gVp_HAKc

17

Things of note here: - The delayed decision on Senex was a result of *the company putting the project on hold because of the gas price cap introduced by the government to protect Australian industry.* - Senex subsequently *secured an exemption to the government’s $12-a-gigajoule cap on wholesale gas prices last November* - Not mentioned in the article, but this gasfield will be a "new entrant" to the Safeguard mechanism, but of course, Plibersek's decision takes no consideration of its role in fueling climate change and what that means for Australia's natural heritage. So, 151 new coal seam gas wells will be drilled, hundreds of hectares of koala habitat cleared, 6.8 billion litres of groundwater removed and 38,000 tonnes of salt produced in the Upper Dawson catchment all to sell gas to Australian industry at a higher price than it can afford, while the voracious LNG export terminals *increase* the volume of gas they're pulling out of the east coast of Australia.

14

3 Comments

Methane is a potent #greenhouse gas, but one with a relatively short lifespan. Taking action for #emissions reduction now will have a big and rapid impact. At this year’s Australian Energy Producers Conference and Exhibition, Bernadette Cullinane chaired a session on methane emissions reduction with experts from around the world. The panel discussed the new technologies that are enabling better #methane measurement and management, as well as the many global initiatives underway to achieve step change improvement. It was great to hear from all the panellists: Ronan BESCOND, TotalEnergies, Julien Perez, OGCI (Oil and Gas Climate Initiative), Yvette Manolas, Woodside Energy, Prof Andrew Garnett, The University of Queensland Explore more: https://deloi.tt/44QACms #NetZero

63

Australia Looks to Couple Natural Gas Development With Net-Zero Goals https://ift.tt/LqH0EUN Australia’s government has included initiatives for substantial natural gas development with the launch of its Future Gas Strategy plan intended to help the country transition to cleaner energy by 2050. The latest plan assures global energy partners and foreign investors that the Australian government is a committed, reliable supplier of liquified natural gas. “It is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies,” said Resources Minister Madeline King. [Inside the Political Firestorm: NGI sits down with Neil Chatterjee, a former FERC chairman and commissioner, to discuss the impacts of President Biden’s LNG pause on authorizing new liquefied natural gas export projects in the U.S. Tune into NGI’s Hub & Flow podcast now.] King told news media that the country could  not rely on “past investments to get us through the next decade, as existing fields deplete.” The 60-plus page document includes plans for increasing investment in domestic natural gas production to avoid both domestic and export supply gaps. It also includes detailed forecasts of LNG demand from Australia out to 2035. Australia is currently the third largest LNG exporter in the world after the United States and Qatar. Future gas projects will rely on carbon capture, utilization and storage (CCUS)  to help meet Australia’s net-zero targets, although the government  has yet to publish its full decarbonization plan. The Australian Energy Producers (AEP) supported the new plan. However, AEP CEO Samantha McCulloch said significant investments are needed to avoid future market shortfalls. Australia’s LNG export demand to Asia is forecast to grow significantly by 2050, according to the AEP. It would be short-sighted, McCulloch said, “and at odds with Australia’s commitment to global emissions reductions if we were to stifle LNG exports and miss out on the significant economic opportunity on our doorstep.” Natural gas exploration in Australia has fallen over the last decade. In response, the government has introduced controversial short-term measures, including the Australian Domestic Gas Security Mechanism, which orders the diversion of feed gas intended for export to meet local gas supply shortfalls. For April, Australia exported 6.70 million metric tons (mmt) of the super-chilled fuel, according to EnergyQuest. In March, producers shipped 7.24 mmt, slightly more than the 7.06 mmt shipped in February. Environmentalists opposed plans to increase drilling for gas, saying it will delay Australia’s net-zero goals. Woodside Energy Group Ltd and Santos Ltd. are currently facing environmental opposition to oil and gas projects off the coast of northwestern Australia. “Placing a long-term commitment to this… climate-polluting fue...

1

Renewable gas produced from Auckland's organic waste is flowing into New Zealand's gas pipeline network for the first time today. https://lnkd.in/gjWgaXrJ GasNZ congratulates its members Clarus and Ecogas on achieving this significant milestone for New Zealand. Globally, renewable gas is seen as a critical pillar of decarbonisation. Leading the charge in Europe, Denmark has made significant progress, supplying nearly 40% of its natural gas grid with biomethane, and targeting 100% biomethane by 2030. The global demand for biomethane is soaring, with 2023 seeing over $5 billion in investments in the technology, signaling its growing importance in reducing carbon emissions globally.

349

18 Comments

The Coalition’s nuclear policy, announced today, provides a crucial pathway for Australia’s industries to reduce emissions cost-effectively while maintaining access to reliable baseload power. Building a diverse energy mix that meets both environmental and economic goals is essential for keeping vital industries competitive amidst significant cost pressures and ambitious emissions targets. High future demand for reliable and clean energy means that all energy types, including nuclear power will be indispensable in meeting Australia’s future energy needs. The Australian government needs to take the nuclear option seriously, as the rest of the world is, and lift the ban so Australian families and businesses can enjoy cheap, clean, reliable electricity for decades to come. Read: https://lnkd.in/gcMGF4fU

21

Carbon Capture and Storage Bill Passes Western Australian Parliament! A significant milestone for decarbonization in Western Australia, the recently passed Petroleum Legislation Amendment Bill 2023 represents a crucial step forward for decarbonisation in Australia. Building upon the existing petroleum legislation, this bill enables the transportation and geological storage of greenhouse gases (e.g. CO2). in W.A. Key Takeaways: - Decarbonization Opportunities: By allowing organizations to pursue lower-cost carbon capture and storage projects onshore in Western Australia, this legislation opens new avenues for reducing emissions. - Local Industry Impact: The bill provides another potential decarbonization pathway for heavy industries within the state, contributing to a cleaner environment. - Global Collaboration: Beyond the local impact, it also aligns with international efforts to combat climate change. This legislation will support the development of business models to assist in the decarbonization of the greater global community. Western Australia plays a vital role! - Naturally Occurring Hydrogen Exploration: Additionally, the bill accommodates for the exploration of naturally occurring hydrogen—a promising avenue for achieving a low-cost, decarbonized energy future. - Net Zero Emissions Goal: Ultimately, this legislation supports the local Government’s commitment to achieving net zero greenhouse gas emissions by 2050. Let’s celebrate this legislative milestone and continue working together toward a sustainable and greener future! https://lnkd.in/gbCkxAA3 #westernaustralia #australia #ccs #carboncapture #hydrogen #energy #future

20

The latest Quarterly Carbon Market Report (QCMR) explores the state of renewable energy in Australia. In 2023, a total of 5.3 gigawatts (GW) of renewable capacity was added under the schemes we administer. It was the 6th year in a row where more than 5 GW of total capacity was added. This growth is likely to continue with 6.5 GW of large-scale capacity under construction at the end of 2023. Read more in our QCMR 👉 https://bit.ly/4aEWa7m #QuarterlyCarbonMarketReport #QCMR #AustralianCarbonMarket #CarbonMarket #Renewables #Solar #EmissionsReduction

10

The draft GenCost 2024-25 Report, an annual assessment of Australia’s future electricity generation costs, was released today by CSIRO and Australian Energy Market Operator (AEMO).   It estimates costs for new build electricity generation and storage and found renewables continue to have the lowest cost range of any new-build electricity generation technology, for the seventh year in a row.   KEY TAKEWAYS *Large scale solar photovoltaics (PV) capital costs have fallen 8% two years in a row.  *Battery costs recorded the largest annual reduction with capital costs falling 20%.  *Gas turbine costings increased 11%. *Nuclear energy generation would be 1.5 to over two times more expensive than large-scale solar Waiting decades for nuclear energy which is twice as expensive as renewable energy is an exercise in delay in climate action.  The primary winners arecoal and gas, the losers are people and planet. Time to move on and accelerate the renewable energy rollout.  https://lnkd.in/gxAxqXjR

19

4 Comments

Another major step forward for grid connection of large-scale renewable energy in Australia. The Connection Reform Initiative - a collaboration between Australian Energy Market Operator (AEMO) & Clean Energy Council - has been methodically working through the challenges in the grid connection process, and solving them. Thanks Australian Energy Market Commission (AEMC) for your work on this crucial reform & congratulations to Christiaan Zuur & Paul Beaton & the CEC team for your leadership as well as the many smart people across industry who have contributed. This is seriously complex work, but the sort of reform that is crucial to provide greater certainty to renewable energy investors in Australia. https://lnkd.in/gpAQEhWk

124

4 Comments