17 May 2024

BUDGET SPECIAL

Hydrogen, solar and batteries – did the 2024 federal budget deliver on clean economy investment? (The Guardian): Business groups such as ours, alongside investors, unions and climate campaigners, have been calling out for a big push on clean economy investment. So what should we make of the 2024-25 budget and have those calls been answered? The government’s Future Made in Australia policy includes a strategic framework to set priorities; $22.7bn of spending, mostly via long-term subsidies to get initial production going; and facilitation policies to lift roadblocks.

This year's federal budget offers a preview of what the next decade of climate wars will look like (ABC News): Below the radio grabs for this budget — the $300 power bill rebate for every household and the extra rent assistance and the tax cuts and the inevitable "does my budget look inflationary in this?" back-and-forth that will no doubt accompany its release to economists everywhere, including the ones at the Reserve Bank that really matter — there thrums a fascinating and revelatory story. Two stories, actually.

Arena to receive $5.1b to back renewable energy (Australian Financial Review): The transition to a net-zero economy is good for the bureaucracy and the biggest winner is the Australian Renewable Energy Agency, a body threatened with abolition a decade ago. Arena will receive $5.1 billion in extra money to oversee key aspects of the drive to make Australia a renewable energy superpower, the largest slice of the many federal agencies with a finger in the $24 billion pie.

Green industry yes, conservation no: a budget for people, not for nature (The Conversation): Last night’s budget is another missed opportunity to arrest the poor and deteriorating state of the Australian environment. Subsidising green industry in Labor’s Future Made in Australia policy may offer economic advantages if implemented well, but there is nothing in this budget to help address the immediate environmental crisis facing Australia.

The game changer on battery-making is still to come (Australian Financial Review): The founder of Australia’s only lithium-ion battery maker says a $523 million “battery breakthrough” budget allocation for manufacturing will help underwrite a boom in critical minerals. Newcastle-based Energy Renaissance imports electrochemical cells for its high-end batteries, which sell to defence and remote microgrids and must meet strict cybersecurity and resilience standards. But bringing the making of the cells to Australia would increase local content to 100 per cent from 50 per cent-70 per cent.

Hydrogen credit could blow its $6.7b budget (Australian Financial Review): Hydrogen projects backed by large companies like Fortescue and Woodside are set to be early beneficiaries of the federal budget’s $6.7 billion production tax credit, but one developer says the measure will attract a lot of international investment and could blow past its allocation. Michael Myer, a member of Melbourne’s wealthy Myer family and chairman of Sunshine Hydro, said two projects the developer is pursuing in Gladstone and northern NSW could yield enough hydrogen to earn $730 million in production tax credits at the $2 per kilogram rate.

Can Australia become a green energy superpower? Five charts that say yes (Australian Financial Review): The Albanese government is taking a big punt on turning Australia into a renewable energy superpower, powered by green hydrogen, critical minerals processing and green commodity exports. And while Treasury has its reservations, Prime Minister Anthony Albanese is also taking side-bets on making solar panels and batteries here as well.

CLIMATE POLITICS

Government strikes deal with Greens to pass emissions laws for new vehicles (ABC News): Car makers will be forced to reduce their emissions for new vehicles as the federal government strikes a deal with the Greens to pass its climate laws for the industry. The Greens have agreed to pass the New Vehicle Efficiency Standard, as well as reforms to taxes on offshore gas known as the Petroleum Rent Resource Tax, in exchange for the government agreeing to scrap an amendment that could fast-track gas project approvals.

Qld Gov announces $75M hydrogen expansion for Barcaldine Power Station (Energy Magazine): The Barcaldine Power Station (BPS) is set to receive a 30MW hydrogen-ready generator as part of a $75 million upgrade investment from the Queensland Government. This additional generator – only the second of its kind to be announced in Queensland – would add to the existing 37MW gas turbine and would be capable of using a gas-hydrogen fuel blend to produce low to zero emission electricity.

Australian fossil fuel producer subsidies jump 31 pct to $14.5 billion (Renew Economy): Government subsidies to fossil fuel producers have risen, triggering calls for the Commonwealth to scrap the financial assistance. Research from think tank The Australia Institute reveals subsidies to fossil fuel producers from federal and state governments have increased to $14.5 billion in the 2023/24 financial year.

WA Gov commits $500M to unlock clean energy (Energy Magazine): The funding is designed to expand and unlock renewable energy projects, including Western Power’s Clean Energy Link transmission projects. Funded in the 2024–25 State Budget, the $500 million Strategic Industries Fund is expected to deliver common-user and other enabling infrastructure at SIAs across regional and metropolitan Western Australia.

Too late to turn back dial on energy transition, Penny Sharpe says (Renew Economy): The New South Wales energy minister Penny Sharpe, currently locked in negotiations over the possible extension to the closure date of the country’s biggest coal generator, says it is “too late” to turn back the dial on the energy transition. Sharpe, speaking at the opening of the EEC National Conference in Sydney on Wednesday, was asked about the some of the consumer energy initiatives, electrification, and the state of the overall shift to green energy.

Forrest says hydrogen subsidy makes green iron commercially viable in Australia (Renew Economy): One of the biggest – and most deep pocketed – campaigners for government support for renewable hydrogen has hailed the federal budget’s $6.7 billion in tax incentives for the technology as a “historic moment,” but it is not the production and export of the green fuel that excites him most. “This incentive will fast-track the development of a green iron industry in Australia,” iron ore billionaire and Fortescue Metals chief executive Andrew Forrest said in a statement on Tuesday.

CARBON MARKETS

Aussie budget delivers ACCU cash, huge tax incentives for minerals, hydrogen (Carbon Pulse): Australia's budget will see another A$48 million ($31.7mln) for reforms to the Australian Carbon Credit Unit (ACCU) scheme, in addition to billions of dollars in tax credits for critical minerals and green hydrogen development and another A$41 for a nature repair market, Treasurer Jim Chalmers announced on Tuesday.

Australian carbon project developer partners with investment firm to finance environmental plantings work (Carbon Pulse): An Australian carbon project developer has acquired land funded by an investment firm in exchange for the proceeds of Australian Carbon Credit Units (ACCUs) generated and sold from the property, they announced Thursday.

ClearBlue Markets Launches The Sustainability Leader’s Guide To The Voluntary Carbon Market (Carbon Herald): ClearBlue Markets, a global leader in carbon market intelligence and advisory services, is excited to announce the launch of The Sustainability Leader’s Guide to the Voluntary Carbon Market, a complimentary resource that provides crucial analysis and guidance for sustainability leaders and decision-makers interested in leveraging the voluntary carbon market (VCM) to achieve their goals.

CORPORATE SOCIAL RESPONSIBILITY

ANZ hardens policy against bankrolling oil and gas projects (Australian Financial Review): ANZ has hardened its stance against funding new oil and gas projects, joining other major banks in aligning lending with the Paris commitment to limiting global temperature increases to “well below” 2 degrees Celsius. The change to the top big business bank’s lending policies, revealed in a note buried in its half-year results published Tuesday, practically rules out direct financing of Santos’ troubled $15 billion Papua LNG project, a joint venture with TotalEnergies, the operator, ExxonMobil and JX Nippon.

Partnership to enable Australia’s first offshore wind projects (Energy Magazine): Siemens and Marathon Group have announced a partnership to support the delivery of the proposed offshore wind projects off the coast of Gippsland. Siemens and Marathon have signed a Memorandum of Understanding (MoU), a key intent of which is securing the energy transmission corridor and working collaboratively with the community and local business to support the region through the energy transition, and enable Australia’s first offshore wind projects.

Rio’s gigawatt scale wind and solar deals shrink generation gap for 2030 renewable target (Renew Economy): The huge gigawatt-scale wind and solar deals announced by mining giant Rio Tinto for its Australian refineries and smelters has dramatically reduced the so-called “generation gap” for the country’s ambitious renewable energy target. The latest data released by industry analysts at Green Energy Markets suggest Australia still needs another 29,001 megawatts (MW) of new renewable energy projects, capable of generating around 80,514 GWh of energy per annum, to meet the 82 per cent renewables target for 2030.

GREEN PROJECTS AND INITIATIVES

Neoen to build its biggest battery to shift energy to evening peak in nuclear-dominated Ontario (Renew Economy): French renewable energy company Neoen has announced plans to build its biggest battery project to date – a 400 MW, four hour battery (1600 MWh) to shift excess energy to the evening peak in the nuclear dominated Canadian state of Ontario. Neoen has created a new subsidiary company called Shift Solar to build the Grey Owl battery project, which was one of 10 storage projects that won capacity contracts offered by Ontario’s Independent Electricity Systems Operator (IESO) in the largest battery storage procurement in Canada’s history.

Italian energy giant completes construction of its newest solar farm in Victoria (Renew Economy): Italian energy company Enel Green Power says it has completed construction of the 93MW Girgarre solar project, located about 50km west of Shepparton in northern Victoria, and is beginning the commissioning process. Enel Green Power announced the installation of the final solar panel on their LinkedIn page, with approximately 169,500 solar panels installed across the 250-hectare site located in the Shire of Campaspe, approximately 10km north-west of Stanhope and approximately 50km west of Shepparton.

Huge concrete pour paves way for 122 turbines at Australia’s largest wind project (Renew Economy): The concrete foundations have been laid for all 122 of the turbines that will make up the first 756MW of the massive Golden Plains wind farm in Victoria, paving the way for the project to start generating power later this year. In an update on LinkedIn, project developer TagEnergy says contractor MPC Kinetic has completed its final concrete pour at the site of the up to 1.3GW wind farm in Rokewood, in Victoria’s south west, which will also include a big battery.

Power poles transformed into charging stations to boost EV uptake (Energy Magazine): As part of an Australian-first trial, seven new electric vehicle (EV) charging stations have been installed on local street-side power poles in the Northern Beaches. The project is being led by energy technology business Intellihub, supported by Northern Beaches Council, and with funding from the Australian Renewable Energy Agency (ARENA).

$400m steel recycling plant in coal heartland of Collie wins key State planning approval (The West Australian): A $400 million steel recycling project has been approved for development, adding to a potentially multibillion-dollar pipeline of investment in the State’s coal heartland. Green Steel WA wants to build the plant in the Shire of Collie’s Coolangatta industrial zone and produce about 450,000 tonnes of steel a year from 2026.

Green concrete reducing coal ash in landfill (Energy Magazine): RMIT University has developed a new low-carbon concrete, which is capable of recycling double the amount of ash from coal-fired power plants, compared to current standards. RMIT University has developed a new low-carbon concrete which is modelled to have better recycling applications, lower cement requirement and strong long-term durability.

OTHER MATTERS OF INTEREST

Climate change impact won't play into coal, gas approvals after major court blow for environmentalists (ABC News): The Federal Court has ruled that Environment Minister Tanya Plibersek does not have to consider the environmental impacts of emissions when approving coal and gas projects. The Environmental Council of Central Queensland (ECoCeQ) took the minister to court over two coal mine extensions in New South Wales. Under the current environmental laws, the minister does not have to directly consider the contributions that emissions from a coal or gas project would have on matters of national environmental significance, such as protected animals, plants, and places.

Wind turbines pay back life cycle carbon emissions in less than 2 years, NZ study finds (Renew Economy): Wind turbines in New Zealand pay back their lifecycle carbon emissions after just 1.5 years of operation, researchers from Victoria University in Wellington have found. The researchers looked at data from a Hawkes Bay wind farm covering everything from making individual turbine parts, to transporting them into place, to decommissioning the entire windfarm, and compared that to combined cycle gas turbines.

Clean energy slump – why Australia’s renewables revolution is behind schedule, and how to fix it (The Conversation): For years, the electricity sector has been the poster child for emissions cuts in Australia. The sector achieved a stunning 26% drop in emissions over the past 15 years, while other sectors have hardly budged. The share of renewable energy has gone from 7.5% to more than 30% in that time. But unfortunately, this impressive pace is not fast enough.