Weekly Decarbonisation and Climate Update (13 June)

Climate Politics

Labor MP Jerome Laxale pushes to force climate considerations into environmental laws (ABC News): The Albanese government is facing pressure from its backbench to move quickly on sweeping changes to environmental laws after a contentious gas project was granted provisional approval. Labor MP Jerome Laxale has said he will lobby the government to ensure Australia's climate targets are considered when future coal or gas projects seek approval. Almost a fortnight ago Labor provisionally approved Woodside's bid to extend the life of its North West Shelf gas plant through to 2070. The approval is critical for the company's greater aim of developing the Browse gas field, Australia's largest untapped gas resource.

Labor is adrift on gas policy.  Here’s why that’s bad (The Australian Financial Review): A critical environmental decision and an enthusiastic industry conference have exposed several issues that must be high on the agenda for the second Albanese government. In its first term, the government struggled to be clear on the role of gas, which left gaps to be filled by advocates with strong interests. Current developments demand a different approach. The gas industry celebrated Minister Watt’s decision to extend the life of the North West Shelf gas project to 2070 as evidence of an open door to gas. The terms of the Environmental Protection and Biodiversity Conservation Act did not allow the minister to reject the project based on its climate change impact. A final decision depends on unreleased conditions related to the impact of the project on important indigenous rock art.

Gas review will consider stability of Australia’s international reputation (The Australian): A wide ranging review leaves the door open to Commonwealth intervention while focusing on affordable gas for users. Here are the three things it will examine.

Wake-up call on green energy a hydrogen bombshell (The Australian): The initial cost of producing green hydrogen from Australia’s two largest projects will be more than four times the price of rival energy sources, posing a fresh setback for Labor.

EV tax breaks, costly climate policies targeted in productivity review (The Australian Financial Review): The Productivity Commission is preparing to urge the Albanese government to phase out tax breaks for electric vehicles that have blown a hole in the federal budget and to drop other expensive climate change policies. Instead, expanding the “safeguard” carbon emissions cap to more businesses and industries, such as transport and electricity, is expected to be recommended by the government’s productivity adviser in a report due ahead of a summit in August.

Cost of net zero by 2050 may determine whether Coalition abandons emissions goal, shadow minister says (The Guardian): The financial cost to reach net zero by 2050 may shape the Coalition’s decision on whether to retain or abandon the target, the new shadow minister, Dan Tehan, says, as he prepares to lead a heavily contested internal review of the policy. The opposition is poised for a protracted brawl over climate targets after the new Liberal leader, Sussan Ley, put all of its policies up for debate after the Coalition’s federal election defeat. The Coalition remained deeply torn on net zero, with Nationals such as Matt Canavan and Barnaby Joyce campaigning for the commitment to be dumped and Liberals including Andrew Hastie – touted by some as a future leader – expressing fresh scepticism about the goal.

A battle is on to own pole-mounted EV chargers – and make users pay (The Australian Financial Review): A battle has erupted between energy network companies and power providers over who will control pole-mounted electric vehicle chargers that could become commonplace in Australian suburbs, with prices and availability for drivers at stake. Electricity network companies are pressing in NSW and Victoria to change or waive rules to allow them to directly own pole-mounted chargers and count them as part of the network, speeding up their installation.

Australia opens door to Pacific climate refugees weeks after approving gas “carbon bomb” (Renew Economy): Almost 300 Tuvalu citizens will be able to move to Australia each year under a new pact agreed with the climate-threatened Pacific nation. The first Tuvaluans to resettle in Australia under the groundbreaking Falepili Union treaty can apply from next week. Citizens of the climate change-threatened Polynesian nation are being encouraged to apply to move to Australia by the High Commission in Funafuti.

WA beefs up state environmental watchdog with more funding for new hires (Renew Economy): Western Australia is putting more funding into its hard-pressed Environmental Protection Authority (EPA), almost a year after major reforms were passed to speed up decision-making. The state will spend $5 million over three years to fund the new board positions added by the reforms passed in October last year. The EPA board was expanded from five to nine members to improve the agency’s frontline assessment capacity, and it also got a new CBD office hub in Perth.  

WA emissions have risen but premier insists it’s necessary in global fight against climate change (ABC News): Western Australia’s gas is a golden ticket, a sought-after transition fuel helping to displace coal in Asia and lower global emissions. At least that’s the story WA Premier Roger Cook has been selling. Amid public backlash to the federal government's decision to approve a 40-year extension to Woodside's North West Shelf Karratha gas project, something the WA Government green lit in December, the premier is sticking to his talking points. The project's extension is good for the economy, it's good for jobs, it's good for regional WA — and it's good for the energy transition, he says.  

WA draft guideline released on community benefits from renewable energy projects (PV Magazine): Energy and Decarbonisation Minister Amber-Jade Sanderson has released the Draft Guideline on Community Benefits for Renewable Energy Projects as the Cook Government works to ensure that all Western Australians benefit from the energy transition. Regional communities located where there are strong renewable resources will play a key role in the energy transition. The development of renewables projects will provide significant benefits, delivering clean electrons across our State as well as creating jobs and supply chain opportunities. The release of the Draft Guideline at a WA Local Government Association Renewable Energy Forum follows calls by local governments, industry, and communities for guidance.

Industry inquiry aims to make sugar cane fuel a sweet success (The Courier Mail): Officials in one of North Queensland’s sweetest industries have welcomed a push by the state government to turn their business into a powerhouse by generating alternative fuel sources.

NSW Budget delivers Newcastle logistics precinct to support energy investment (PV Magazine): The Minns Labor Government is investing $115.5 million (USD 75 million) to build the Newcastle Logistics Precinct (NLP) – a critical new hub that will support the delivery of more reliable and affordable renewable energy to homes and businesses across NSW. The investment in the 2025-26 NSW Budget will see the Precinct developed next to the Port of Newcastle, at the former BHP Steelwork’s Intertrade Site. It will provide portside storage for equipment, including wind turbines and transformers, that is needed to build renewable energy projects across the state.

NSW confirms rescue talks for Tomago aluminium smelter (The Australian): State and Federal Labor governments are under mounting pressure to prevent the collapse of one of Australia’s largest manufacturers.

Victorian grid under pressure after coal and gas outages (The Australian): Victoria’s two largest power stations are running at reduced capacity, increasing the state’s reliance on gas. But supplies are under pressure after a fault at the east coast’s dominant supplier.

Corporate Social Responsibility

Empire Energy tweaks fundraising docs after activist group complaint (The Australian): The move highlights growing scrutiny of gas developers by environmental activists, who are increasingly turning to regulatory and legal channels to stall or challenge fossil fuel projects, and the burden of such complaints.

Woodside gas expansion plans – and approvals – face fresh legal challenges (Renew Economy): Woodside’s plans to continue gas extraction on the Burrup Peninsula in the far north of Western Australia are facing fresh legal challenges including an eleventh-hour bid to challenge approvals to extend the life of the North West Shelf gas processing facility. The federal court has ruled that a legal challenge brought by Raelene Cooper, a Mardudhunera woman and founder of the organisation Save Our Songlines, will be heard the week of 14 July. Cooper is seeking to compel Federal Environment Minister Murray Watt to make a decision on a Section 10 application under the Aboriginal and Torres Strait Islander Heritage Protection Act.

Unions push for public ownership of Whyalla steel, to keep green dream alive (Renew Economy): The Whyalla steelworks should be placed into public ownership, given the necessary investment and turned into a global showcase for green iron and steel production, according to a new report released by SA Unions. The report released on Tuesday outlines a blueprint for how the town might respond after the South Australian government took control of the steelworks and forced out its owner, Sanjeev Gupta as part of a $2.4 billion rescue plan. As a former white knight investor, Gupta’s company group, GFG Alliance, previously promised to revitalise the steelworks by producing green steel but ran into trouble when his business empire began to collapse under the weight of its debts.

Advocacy group calls for national CER body to boost participation in the NEM (PV Magazine): To lower barriers to consumer energy resources (CER), a new report commissioned by Sydney-based advocacy group Energy Consumers Australia (ECA) is calling for the establishment of an independent national CER body. The body would have powers to set targets for CER and coordinate reforms to existing national electricity market (NEM) processes. The Opportunities for CER Participation in wholesale markets and grid services report forms part of the ECA’s submission to the ongoing NEM Wholesale Market Settings Review.

Two cheers for cheaper home batteries, as anger emerges over rebate mash-ups and VPP twists (Renew Economy): It’s been a big couple of weeks for the Cheaper Home Batteries rebate, with announcements from Western Australia last week and New South Wales this week on how the game-changing federal subsidy will work alongside existing state schemes. Industry expectations had been high – perhaps unrealistically so – that consumers might be able to stack the federal and state rebates, making the up-front cost of investing in solar storage very, very low and the decision to bite the bullet a complete and utter no-brainer. In the case of the NSW Peak Demand Reduction Scheme (PDRS), for instance, the state rebate savings added to the federal offer of a roughly 30% up-front discount might have shaved close to $8,000 off the price of a Tesla Powerwall.

Extended battery support welcomed by peak body (PV Magazine): Australian Energy Council Chief Executive, Louisa Kinnear, said, “We welcome initiatives that lower the barriers to battery adoption and encourage participation in Virtual Power Plants. Such programs allow consumers to actively contribute to the energy system while being rewarded for their flexibility. “The expanded support that has been announced by states in tandem with the Federal Government will help unlock the full potential of consumer energy resources, while delivering benefits to both energy users and the broader grid. It is worthy of consideration by other jurisdictions given the benefits.” Kinnear noted the importance of ensuring access to the benefits of energy transition for a wider group of Australians.

Cannon-Brookes’ $40b SunCable capital raising frozen out (The Australian): Mike Cannon-Brookes wants to deliver one of the world’s biggest renewable energy projects. But a maiden $US100m capital raising campaign has failed to convince outside investors to back his decarbonisation dream.

NZ climate minister sued over “risky and cavalier approach” to emissions reduction (Renew Economy): New Zealand’s leading environment lawyers are suing their government over a plan to deal with its greenhouse gas emissions by mass planting non-native pine trees and a “slash and burn” approach to existing climate policies that may have actually helped. Lawyers for Climate Action NZ and the Environmental Law Initiative, which represents more than 300 lawyers, filed an application for judicial review on Tuesday alleging that the government’s current plan to address climate change does not follow the country’s climate laws. Jessica Palairet, Lawyers for Climate Action NZ executive director, said the government had been “taking a risky and cavalier approach” to climate policy in the 18 months since it was elected.

Green Projects and Initiatives

Horizon Power unveils results of carbon capture trial (Utility Magazine): Horizon Power has completed a pioneering trial to test the application of carbon capture, usage and storage technology to decarbonise diesel generators. Findings from the three-month trial in Perth will inform the potential deployment of this novel technology more broadly across Horizon Power’s regional footprint. Horizon Power partnered with Kapture, a Melbourne-based start-up, on the pilot trial. The pilot tested the application of Kapture’s carbon capture technology that can directly capture CO2 emissions from the exhaust of a diesel generator and store the CO2 as a sediment for later sequestration into concrete. Kapture has successfully demonstrated the permanent sequestration of captured CO2 into concrete production through its partnership with Permacast in Perth.

Huge wind farm cleared to add another seven turbines in state nearing 100 pct net renewables (Renew Economy): Neoen has been cleared to add seven more turbines and increase the footprint of its massive Goyder North wind farm in South Australia, with the federal environment process approving the expansion. The developer says the overall impact of the now 99 turbine project will be lower because it’s taken an alternate transmission line, included just in case its preferred line wasn’t possible, out of the design. The EPBC confirmed the project would come under its purview in November last year, given a number of flora and fauna are set to be affected by the build – notwithstanding Neoen’s gift of 2000 hectares at the World’s End Gorge in 2023 to create a new national park.

Squadron and Vestas force ahead with huge Queensland wind projects, in chilly political conditions (Renew Economy): Renewable energy developers continue to persist with major projects in the increasingly challenging state of Queensland, with both Vestas and Squadron Energy pushing forward on respective new wind farms. Squadron, owned by mining billionaire Andrew Forrest, is in the early stages of planning a new wind farm in south-central Queensland called the Pikedale project. The developer is proposing to put up to 200 turbines with capacity of up to 1.3 gigawatts (GW), and a supporting battery, hard up against the 923MW MacIntyre wind farm.

First turbines start spinning at massive Queensland wind and battery project (Renew Economy): The first bursts of renewable electricity are being sent to the grid from the Wambo wind farm in Queensland’s Western Downs region, as the process of energisation and commissioning gets underway at the huge project. Joint venture developers Cubico Sustainable Investments and state-owned Stanwell Corporation said on Thursday that project’s principal contractor, Vestas, had kicked off the process of energisation and commissioning of the first group of six wind turbines on May 30. The commissioning and testing process of the first turbines would take several months, the companies said, and once complete, would see around 36 megawatts (MW) of electricity flowing into the grid. The wind farm is expected to enter commercial operations late this year.

Billion-dollar boost for CopperString (Energy Magazine): The Queensland Government has reinforced its support for CopperString 2032, announcing that the upcoming state budget will commit a record investment in the project. The 2025–26 Queensland Budget will lock in an additional $1.4 billion for CopperString, bringing the State Government’s total commitment to $2.4 billion. The Queensland Government said it is saving what is set to become the biggest energy project in North Queensland’s history, which will deliver jobs and growth in the region, providing certainty to communities and councils ahead of the official release of the state budget on 24 June 2025.

Biggest winner of Bowen’s capacity tender secures state approval, subject to conditions (Renew Economy): A huge wind farm proposed for central western New South Wales – and the biggest project among the 19 winners of the federal government’s first generation capacity auction – has been given approval for development by the state’s Independent Planning Commission (IPC). Acen Australia is seeking to construct the 943 megawatt (MW) Valley of the Winds project in the Central Western Orana (CWO) Renewable Energy Zone (REZ), around 40 km north of Gulgong, alongside a 320 MW, two-hour big battery. The project was sent to the IPC after attracting more than 50 public objections during the state planning assessment process. The Warrumbungle Shire council also objected to the proposal.

ACEnergy secures connection approval for 250 MW battery (PV Magazine): ACEnergy announced the Australian Electricity Market Operator (AEMO) has provided an agreement of performance standards for the connection of the 250 MW Joel Joel battery energy storage system (BESS) being developed in Victoria’s Wimmera region. The Joel Joel project, being developed on a 10-hectare site about 25 kilometres east of Stawell in northwest Victoria, had secured planning approval for a 350 MW / 700 MWh battery energy storage system. The 5.3.4A notification from AEMO provides approval for the connection of a 250 MW battery sized to provide four hours of storage capacity and featuring grid-forming inverters. ACEnergy’s Head of Grid Joel Prata said the connection approval is a major milestone for the Joel Joel project that is set to play a significant role in the state’s renewable energy future.

Momentum Energy teams with Solargain to empower Australians with solar and battery solutions (PV Magazine): This partnership aims to make solar technology more accessible to homeowners and small to medium-sized businesses, helping them reduce energy costs, lower their carbon footprint, and transition to a more sustainable energy future. The partnership focuses on increasing the adoption of solar power systems and battery storage in Australia. Solargain, will manage key aspects of the transition, including product selection, installation, rebate applications, and ongoing support, ensuring a seamless process for customers. Momentum Energy supports customers in accessing solar and battery solutions through its partnership with Solargain.

Real-time rewards for flexible assets assured by AEMO reform (PV Magazine): The Australian Energy Market Operator (AEMO) has launched its frequency performance payments (FPP) reform, creating a significant shift in how national electricity market (NEM) participants are incentivised or penalised for their impact on frequency stability. Participants helping to maintain system frequency near 50 Hz, which AEMO says is crucial for managing a secure and reliable power system, will receive incentives, which are recovered from those with unhelpful impacts – forming a zero-sum system. The traditional causer-pays system is now replaced by a double-sided mechanism, where participants whose assets have a destabilising impact on frequency will incur penalties, which are recovered every five minutes to pay assets that stabilise the grid.

Other Matters of Interest

Billions of dollars and plenty of jobs at stake in Labor’s gas plans (The Australian Financial Review): While gas reservation has proved workable on Australia’s west coast, doing something similar on the eastern seaboard is a task fraught with difficulty. Somehow, a balance needs to be struck between the interests of east coast energy users and those of multinational LNG exporters inextricably linked to Australia’s prized reputation as a trusted supplier of gas into Asia.

Australia urgently needs long duration energy storage, but first we need a target (Renew Economy): Australia is in the midst of its energy transition, driven by state and federal government targets and the urgent need to decarbonise, and is building world-leading solar and wind capacity. Current forecasts from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and the Australian Energy Market Operator (AEMO) indicate that as much as 95% of the National Energy Market (NEM) would need to come from variable renewable energy (VRE) to meet Australia’s emission reduction goals by 2050. Yet, without a strong backbone of long duration energy storage (LDES), which can provide uninterrupted on-demand energy or heat for 8 hours or more, the grid remains vulnerable to the volatility of weather, demand, and global energy shocks.

“The technology is there:” Batteries are reinventing the grid and leading way to 100 pct renewables (Renew Economy): The head of Tesla Energy in Australia, Josef Tadich, well remembers the day in 2017 that his team learned they had been mandated to build the now famous Tesla big battery in Hornsdale, promised by their boss Elon Musk to be delivered in just 100 days, soon after the statewide blackout in South Australia. “There was kind of a stunned silence in the room,” Tadich says, not so much because of the speed they had promised to deliver the project – although that was challenging enough – but because of the scale. No one had built a battery in the world that big, or anywhere close to it. Tesla Energy itself had only been set up in Australia less than two years earlier – Tadich was the very first employee – and up to then it had deployed a mere handful of C&I projects using a few 50 kW Powerpack batteries.

Fear of big battery fires is experiencing its own kind of thermal runaway. Is it justified? (Renew Economy): When EnergyAustralia held the sod-turning event for its four-hour Wooreen big battery in Victoria’s Latrobe Valley in February, a team from the Country Fire Authority was in attendance. Their presence at the event was likely mostly to do with the smoking ceremony, which was conducted expertly and without incident in a dry and windy paddock by Gunaikurnai Elder, Michelle Dow. But the CFA was also there as a key stakeholder in the Wooreen battery; a major new industrial facility that could, theoretically, be affected by a fire or find itself in the path of one.

Solar waste problem looms following rooftop panel boom, with batteries to add to the pile (ABC News): Australia's rooftop solar revolution has slashed power bills and emissions, but behind the good news story is a growing waste problem in need of an urgent solution. The industry is sounding the alarm, warning Australia is about to be hit with a tsunami of solar waste as more households take up batteries thanks to the federal government's new subsidies. Currently, about 4 million homes across the nation have installed solar, equating to more than 150 million panels nationwide when commercial and large-scale systems are included.