Morrison government lays down five technologies for its clean energy investment


Michelle Grattan, University of Canberra

The Morrison government will tell its refocused clean energy agencies and the clean energy regulator to give priority to investment in five low emissions technologies and report how they are accelerating them.

The technologies are clean hydrogen, energy storage, low carbon steel and aluminium, carbon capture and storage, and soil carbon.

The government last week announced it would legislate to extend the remit of the Australian Renewable Energy Agency (ARENA) and the Clean Energy Finance Corporation (CEFC) beyond renewables.

On Tuesday it will indicate the “priority low emissions technologies” they, and the Clean Energy Regulator (CER) – which is responsible for administering the government’s emissions reduction fund – should concentrate on.

Energy Minister Angus Taylor, in a Tuesday speech on low emissions technology, will say the government is putting technologies into four categories. Apart from the priority low emissions technologies, the other categories are emerging and enabling technologies, “watching brief” technologies, and mature technologies.

Priority technologies “are those expected to have transformational impacts here and globally and are not yet mature,” Taylor says in his speech, released ahead of delivery.

“They are priorities where government investments can make a difference in reducing costs and improving technology readiness.

“Technologies where we, as a government, will not only prioritise our investments but where we will streamline regulation and legislation to encourage investment.

“Investors will have confidence that identified priority technologies are of long-term strategic importance for the government.”

Emerging and enabling technologies, such as those for energy efficiency and infrastructure for electric and hydrogen vehicle charging/ refuelling, will also be included in the mandate of the government’s investment agencies.

In the “watching brief” category are those that are for the longer run or are longer odds, such as direct air capture and small nuclear modular reactors. (There is a moratorium on nuclear power in Australia at the moment but the government is watching developments in Europe and the United Kingdom.)

Notably, key renewables and key fossil fuels are in the “mature” category, which includes coal, gas, solar and wind.

The government says it will only invest in them where there is market failure or where such investments secure jobs in key industries.

Last week Scott Morrison threatened to build a gas power station in the Hunter region if private investors left a supply gap for when the Liddell coal-fired station closes, while he also indicated renewables could now stand on their own feet.

Taylor will release an overarching technology roadmap, which he says “arms the government with “four levers to enact change”: an investment lever, a legislative lever, a regulator lever, and international co-operation and collaboration.

“The roadmap will guide the deployment of the $18 billion that will be invested, including through the CEFC, ARENA, the Climate Solutions Fund [which will evolve from the Emissions Reduction Fund] and the CER.

“This will turn that into at least $50 billion through the private sector, state governments, research institutions and other publicly funded bodies. That will drive around 130 000 jobs to 2030,” Taylor says.

The legislative level “is about flexibility and accountability.

“We don’t currently have that. Our agencies are restricted by legislation and regulation to invest in the new technologies of 2010 not the emerging technologies of 2020.”

The regulator lever “is about enablement”.

Taylor says the government’s plan is not based on ideology but “balance and outcomes”.

The government is announcing several “stretch goals” (see table for details). Stretch goals are the point at which new technologies become competitive with existing alternatives. The government announced the hydrogen stretch goal earlier in the year.

“Getting these technologies right will strengthen our economy and create jobs,” Taylor says.

“This will significantly reduce global emissions, across sectors that emit 45 billion tonnes annually.

“Australia alone will avoid 250 million tonnes of emissions by 2040.”

He says “Australia can’t and shouldn’t damage its economy to reduce emissions”.

The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

‘A dose of reality’: Morrison government’s new $1.9 billion techno-fix for climate change is a small step



Dean Lewins/AAP

Frank Jotzo, Australian National University

The Morrison government today announced A$1.9 billion over ten years to develop clean technology in industry, agriculture and transport. In some ways it’s a step in the right direction, but a far cry from what’s needed to drive Australia’s shift to a low emissions economy.

The big change involves what the money is for. The new funding will enable the Australian Renewable Energy Agency (ARENA) to support technologies such as green steel production, industrial processes to reduce energy consumption and somewhat controversially, carbon-capture and storage and soil-carbon sequestration.

This is a big move away from ARENA’s current investment priorities. Importantly it means ARENA will continue to operate, as it is running out of money now.

However technology development alone is not enough to cut Australia’s emissions deeply and quickly – which is what’s needed to address the climate threat. Other policies and more money will be needed.

Interior of steelworks
Cutting emissions from industry will be a focus of the new spending.
Dean Lewins/AAP

New role for ARENA

ARENA will receive the lion’s share of the money: A$1.4 billion over ten years in guaranteed baseline funding. ARENA has spent A$1.6 billion since it was established in 2012. So the new funding is lower on an annual basis. It’s also far less than what’s needed to properly meet the challenge, in a country with a large industrial sector and huge opportunities for zero carbon production.

To date, ARENA’s investments have focused on renewable energy supply. Prime Minister Scott Morrison today said the renewables industry was enjoying a “world-leading boom” and no longer needs government subsidies. Critics may be dismayed to see ARENA steered away from its original purpose. But it is true solar parks and wind farms are now commercially viable, and technologies to integrate large amounts of renewables into the grid are available.

So it makes sense to spend new research and development (R&D) funding on the next generation of low-emissions technologies. But how to choose what to spend the money on?

A few simple principles should inform those choices. The spending should help develop new zero- or low-emissions technologies or make them cheaper. It should also enable the shift to a net-zero emissions future, rather than locking in structures that continue to emit. The investment choices should be made by independent bodies such as ARENA’s board, based on research and expert judgement, rather than politically determined priorities.

For the industrial sector, the case for supporting zero-emissions technologies is clear. A sizeable share of Australia’s total emissions stem from fossil fuel use in industry.




Read more:
Government targets emerging technologies with $1.9 billion, saying renewables can stand on own feet


In some cases, government-supported R&D could help lay the foundation for zero-emissions industries of the future. But in others, what’s needed is a financial incentive for businesses to switch to clean energy or zero-emissions production methods, or regulation to require cleaner processes.

Green steel is a perfect example of the positive change that is possible. Steel can be made using clean hydrogen and renewable electricity, and the long term possibility of a green steel industry in Australia is tantalising.

Steel being made
Steel could be made cleanly using hydrogen instead of coking coal.
Dean Lewins/AAP

A future for fossil fuels?

The government’s support for carbon capture and storage (CCS) will be highly contested, because it’s a way to continue using fossil fuels at reduced – though not zero – emissions. This is achieved by capturing carbon dioxide before it enters the atmosphere and storing it underground, a technically feasible but costly process.

CCS will not perpetuate fossil fuel use in the energy sector, because renewables combined with energy storage are now much cheaper. Rather, CCS can be an option in specific processes that do not have ready alternatives, such as the production of cement, chemicals and fertiliser.

One step further is so-called “carbon capture and use” (CCU), where carbon dioxide is not pumped underground but turned into products, such as building materials. One program announced is for pilot projects of that kind.




Read more:
Yes, carbon emissions fell during COVID-19. But it’s the shift away from coal that really matters


A different proposition is the idea of hydrogen produced from coal or gas, in which some resulting emissions are captured. This method competes with “green” hydrogen produced using renewable electricity. It seems the government for now intends to support fossil fuel-derived hydrogen.

Reducing fossil fuel use, and using CCS/CCU where it makes sense, will not get the world to net-zero emissions. Emissions from other sources must be cut by as much as technically possible, at justifiable cost. Remaining emissions must then be negated by drawing carbon dioxide from the atmosphere. Such “negative emissions” can be achieved through technological means, and also by permanently increasing the amount of carbon stored in plants and soil.

The new funding includes support for increasing the amount of soil carbon. This method may hold promise in principle, but in practice its effectiveness is uncertain, and hard to measure. At the same time, the large emissions from agriculture are not yet addressed.

Gas flaring from an industrial plant
Reducing the burning of fossil fuels is not enough to get to net-zero emissions.
Matt Black Productions

A piecemeal effort

The spending amounts to A$140 million per year for ARENA, plus about A$500 million all up through other programs. A dose of reality is needed about what this money can achieve. It will create better understanding of options, some technological progress across the board and surely the occasional highlight. But a much greater effort is likely needed to achieve fundamental technological breakthroughs. And crucially, new technologies must be widely deployed.

For a sense of scale, consider that the Snowy 2.0 scheme is costed at around A$5 billion, and a single 1 gigawatt gas power plant, as mooted by the government for the Hunter Valley, would cost in the order of A$1.5 billion to build.

As well as additional spending, policies will be needed to drive the uptake of low-emissions technologies. The shift to renewables is now happening in the energy sector without government help, though some hurdles remain. But we cannot expect the same across the economy.

Governments will need to help drive uptake through policy. The most efficient way is usually to ensure producers of emissions pay for the environmental damage caused. In other words, putting a price on carbon.

The funding announced today is merely one piece of a national long-term strategy to deeply cut emissions – and not a particularly big piece.




Read more:
Carbon pricing works: the largest-ever study puts it beyond doubt


The Conversation


Frank Jotzo, Director, Centre for Climate and Energy Policy, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Government targets emerging technologies with $1.9 billion, saying renewables can stand on own feet


Michelle Grattan, University of Canberra

The government has unveiled a $1.9 billion package of investments in new and emerging energy and emission-reducing technologies, and reinforced its message that it is time to move on from assisting now commercially-viable renewables.

The package will be controversial, given its planned broadening of the remit of the government’s clean energy investment vehicles, currently focused on renewables, and the attention given to carbon capture and storage, which has many critics.

The latest announcement follows the “gas-fired recovery” energy plan earlier this week, which included the threat the government would build its own gas-fired power station if the electricity sector failed to fill the gap left by the scheduled closure of the coal-fired Liddell power plant in 2023.




Read more:
Morrison government threatens to use Snowy Hydro to build gas generator, as it outlines ‘gas-fired recovery’ plan


Unveiling the latest policy, Scott Morrison said solar panels and wind farms were commercially viable “and have graduated from the need for government subsidies”.

The government was now looking to unlock new technologies “to help drive down costs, create jobs, improve reliability and reduce emissions. This will support our traditional industries – manufacturing, agriculture, transport – while positioning our economy for the future.”

An extra $1.62 billion will be provided for the Australian Renewable Energy Agency (ARENA) to invest.

The government will expand the focus of ARENA and the Clean Energy Finance Corporation (CEFC) to back new technologies that would reduce emissions in agriculture, manufacturing, industry and transport.

At present ARENA can only support renewable energy and the CEFC can only invest in clean energy technologies (although it can support some types of gas projects).

The changes to ARENA and the CEFC will need legislation.

The government says it will cut the time taken to develop new Emissions Reduction Fund (ERF) methods from two years or more to under a year, involving industry in a co-design process.

This follows a review of the fund, which is a centrepiece of the Coalition’s emissions reduction policy. The cost of the changes is put at $24.6 million. The fund has had trouble attracting proposals from some sectors because of its complex administrative requirements.

Other measures in the policy include a new $95.4 million Technology Co-Investment Fund to support businesses in the agriculture, manufacturing, industrial and transport sectors to take up technologies to boost productivity and reduce emissions.

A $50 million Carbon Capture Use and Storage Development Fund will pilot carbon capture projects. This technology buries carbon but has run into many problems over the years and its opponents point to it being expensive, risky and encouraging rather than discouraging the use of fossil fuels.

Businesses and regional communities will be encouraged to use hydrogen, electric, and bio-fuelled vehicles, supported by a new $74.5 million Future Fuels Fund.

A hydrogen export hub will be set up, with $70.2 million. Chief Scientist Alan Finkel has been a strong advocate for the potential of hydrogen, saying Australia has competitive advantages as a future hydrogen exporter.

Some $67 million will back new microgrids in regional and remote communities to deliver affordable and reliable power.

There will be $52.2 million to increase the energy productivity of homes and businesses. This will include grants for hotels’ upgrades.

The government says $1.8 billion of the package is new money.

Here are the details of the package:

The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

No, Prime Minister, gas doesn’t ‘work for all Australians’ and your scare tactics ignore modern energy problems


Samantha Hepburn, Deakin University

The federal government today announced it will build a new gas power plant in the Hunter Valley, NSW, if electricity generators don’t fill the energy gap left by the Liddell coal-fired station when it retires in 2023.

The government says it’s concerned that when the coal plant closes, there’ll be insufficient dispatchable power (that can be used on demand) because the energy sector is focused on accelerating renewable energy at the expense of reliability. So electricity generators are required to come up with a plan to inject 1,000 megawatts of new dispatchable energy into the national grid.




Read more:
Morrison government threatens to use Snowy Hydro to build gas generator, as it outlines ‘gas-fired recovery’ plan


This is tantamount to an ultimatum: if we must have renewables, then prove they generate the same amount of electricity as fossil fuel or we will go back to fossil fuel.

The government’s joint media release has this to say:

This is about making Australia’s gas work for all Australians. Gas is a critical enabler of Australia’s economy.

But under a rapidly changing climate, the issue is not just about keeping the lights on. We not only want energy, we also want to breathe clean air, have enough food, have clean and available water supplies, preserve our habitat and live in a sustainable community. So no, gas doesn’t “work for all Australians”.

Adapting to a new energy future is a complex process our national government must not only support, but progress. It should not be hijacked by fossil fuel politics.

Scare-tactics won’t resolve the climate emergency

The government’s scare tactic completely ignores the two fundamental imperatives of modern energy.




Read more:
4 reasons why a gas-led economic recovery is a terrible, naïve idea


The first is the critical importance of decarbonisation. Energy production from fossil fuels is the most carbon intensive activity on the planet. If we are to reach net zero emissions by 2050 and stay within 2℃ of global warming, we cannot burn fossil fuels to produce energy.

The government shouldn’t revert to outdated fossil fuel rhetoric about “reliable, dispatchable power” during an accelerating climate emergency.

The second is it’s in the public interest to support and invest in energy that’s not only environmentally sustainable for the future, but also economically sustainable. Demand for fossil fuels is in terminal decline across the world and investing in new fossil fuel infrastructure may lead to stranded assets.

We need to address the ‘energy trilemma’

The question the government should instead focus on is this: how can the government continue to supply its citizens with affordable, reliable electricity but also maintain a reduction in greenhouse gas emissions and high air quality standards?

Answering this question involves addressing a three-part set of tensions, known as the “energy trilemma”:

  1. sustainable generation that is not emission intensive
  2. infrastructure reliability and
  3. affordability.

The energy trilemma is a well-known tool in the sector that powerfully communicates the relative positioning of each tension. No single axis is necessarily more important than the other two. The aim is to try to balance all three.

Constructing a new gas plant seeks to address the second pillar at the expense of the first. This isn’t good enough in the face of the climate emergency.

Gas fired electricity can emit methane. Over a 20-year period, methane is 84 times more effective than carbon dioxide in trapping heat, and 28 times more effective over 100 years.




Read more:
Australia has plenty of gas, but our bills are ridiculous. The market is broken


The affordability pillar is also important. Morrison says constructing the plant will prevent energy price spikes. But research clearly confirms renewable energy generation is cheapest.

What is it with the federal government and gas?

After first informing us gas will help bolster the economy after the COVID-19 pandemic, this new announcement makes it clear the federal government is firmly wedded to gas.

This may be because the federal government regards adherence to gas as a compromise between the renewable sector and the demands of the fossil fuel industry.

In any case, we cannot and must not revert to fossil fuel energy generation. We must abandon past behaviours if we’re to adapt to a changing climate, which is set to hit the economy much harder than this pandemic.

Most Australians have derived their assumptions about energy security from fossil fuel dependency, because this is what they have known. The good news is this is changing.

Increasingly, the global community understands it’s not sustainable to burn coal or gas to generate energy just because we want to be “sure” we can turn the lights on. Consumer preference is shifting.




Read more:
Why it doesn’t make economic sense to ignore climate change in our recovery from the pandemic


This is something BP recognises in its 2020 Energy Outlook report, which outlines three scenarios for the global energy system in next 30 years.

Each scenario shows a shift in social preferences and a decline in the share of hydrocarbons (coal, oil and natural gas) in the global energy system. This decline is matched by an increase in the role of renewable energy.

I’ll say it again: renewable energy is the future

The technology underpinning renewable energy production from clean, low-cost generation such as wind, solar, hydro-electricity, hydrogen and bio-mass is advancing.

Renewable energy generation is sustainable, better for the environment, low in emissions, and affordable. Reliability is improving at a rapid rate. A recent report indicates electricity generated by solar photovoltaic (PV) and onshore wind farms from 2026 will overtake the combined power production from coal and gas.

The combined solar and wind capacity will grow to an estimated 41.4 gigawatts in 2023 from 26.4 gigawatts this year. By contrast, coal and gas capacity will shrink to 35.3 gigawatts in 2023 from 39.1 gigawatts this year.

The report is based on the Australian Energy Market Operator (AEMO) Step Change Scenario, which models a shift to renewables. It includes rapid adjustments in technology costs and a “well below 2℃” scenario as part of its 20-year planning blueprint.




Read more:
Here’s what the coronavirus pandemic can teach us about tackling climate change


Yes, there are challenges in shifting from a centralised grid and developing new transmission capacity.

But these are the challenges we need to be investing in. Not a new gas plant that’s likely to be a stranded asset in the not-too-distant future.The Conversation

Samantha Hepburn, Director of the Centre for Energy and Natural Resources Law, Deakin Law School, Deakin University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Grattan on Friday: Morrison signs up to the gas gospel, but the choir is not in tune


Michelle Grattan, University of Canberra

If Labor were threatening to build a power station, the Liberals would likely be screaming “socialists”.

As for a Coalition government contemplating such a thing — well, to say the obvious, it hardly fits with the Liberals’ stated free market, private enterprise philosophy. But hey, neither does the hyper-Keynesian support package to cushion the economy through the pandemic.

Only a few within its own ranks would dispute the government’s COVID mega spending, whatever the ideological contradiction. And they’re keeping their voices to private whispers.

The gas power plant is another matter, and it will be fascinating to see how the debate plays out if the threat turns into reality.




Read more:
Morrison government threatens to use Snowy Hydro to build gas generator, as it outlines ‘gas-fired recovery’ plan


The threat is part of the go-with-gas policy unveiled by Scott Morrison this week, spruiked as driving a “gas-fired” recovery, especially for manufacturing. This sounds suspiciously like a three word slogan that promises more than it is likely to deliver.

But Morrison has signed up to the church of gas, whose pastors include Nev Power, chairman of the prime minister’s COVID-19 commission and Andrew Liveris, the head of its (now defunct) manufacturing taskforce, which delivered a pro-gas report. Morrison this week referenced his discussions with Liveris at Kirribilli House.

Much of the gas plan is broad and aspirational at this stage. But the threat is specific enough, and Morrison adopted a grim, school teacher tone when he delivered it in his speech at Newcastle unveiling the policy.

He said the electricity sector must lock in by April investments to deliver 1,000 megawatts of new dispatchable energy to replace the Liddell coal-fired power station before it closes in 2023. Or else. The government-owned Snowy Hydro was working on options, Morrison said.

Going back to Malcolm Turnbull’s time, the government conducted — and lost — a bitter battle with AGL over the planned Liddell closure. It exerted maximum pressure on the company to extend the life of the station, or alternatively, sell it, but to no avail.

The gas policy, especially the threat, hasn’t gone down well — with the energy sector or environmentalists. And it’s come under criticism from experts and even within Coalition ranks.

The Australian Energy Council, representing investors and generators, warned the spectre of a government gas generator could put off private investors.

Environmentalists are against gas anyway, whoever produces it, because it is a fossil fuel and therefore has emissions, albeit not as bad as coal.

The Nationals Matt Canavan, who not so long ago was resources minister, says if a new power station is to be built in the Hunter region it should be coal-fired.

And the director of the Grattan Institute’s energy program, Tony Wood, says the government’s claim that 1000 megawatts of new dispatchable capacity is needed isn’t supported by the advice from its own Liddell taskforce.




Read more:
Politics with Michelle Grattan: Angus Taylor on the ‘gas-fired’ recovery


More generally, Wood argues the idea of a gas–led recovery “is a mirage”.

He says east coast gas prices are unlikely to fall to very low levels and anyway, even very low prices would not stimulate major economic activity. “Investing in more gas infrastructure in the face of climate change looks more like a herd of stampeding white elephants,” is Wood’s blunt assessment.

“Gas is very likely to have a role for some time to balance solar and wind. This role will be important but diminishing in volume and the pace of change will be determined by the relative economics of gas versus storage technologies and hydrogen.”

Some see the government’s big takeup of gas as a way of walking away from coal, without fanfare. The government denies this, but it would fit with Morrison’s middle-course pragmatism.

That pragmatism is reflected in the week’s other major energy announcement, for $1.9 billion investment in new and emerging technologies to lower emissions.

Morrison explicitly spelled out the government’s view that renewables, notably solar and wind, have boomed commercially and can take care of themselves.

The policy looks both backwards and forwards.

Backwards, with its support for carbon capture and storage (CCS) which — leaving aside its problems as a technology — is an encouragement to fossil fuels.

Forwards, by extending support to a wide range of technologies of the future.

Critics don’t like the proposed expansion of the remit of the Australian Renewable Energy Agency (ARENA) and the Clean Energy Finance Corporation (CEFC) beyond supporting renewables.

If the government can get the legislation through the Senate, these bodies would be able to back a wide range of projects, including CCS.

The government is also clinging to its Emissions Reduction Fund, which has had trouble attracting proposals. It plans to reform the fund’s processes.

Taken as a whole and leaving aside the arguments about their efficacy, this week’s decisions have a clear political element. They are relatively risk averse within the Coalition, the threatened power plant notwithstanding.

Energy has been such a fraught area for the government that Morrison is very aware of juggling the conflicting forces within his ranks.




Read more:
Government targets emerging technologies with $1.9 billion, saying renewables can stand on own feet


The internal coal lobby, spearheaded by Canavan but wider than him, will continue to mutter. The crunch will come when the government’s feasibility study for a Queensland coal-fired power station is finished. But putting gas at the centre of the picture will reassure some in the Coalition who remain deeply suspicious of renewables.

The Liberals in seats where climate change is a big preoccupation may or may not find enough to sell in this week’s packages. They can emphasise the “transition” nature of gas — Morrison described it as “a stable transition fuel” — and talk up the support for emerging technologies.

But they will confront the counter argument that the government is not doing enough or proceeding fast enough on climate change.

Meanwhile, Labor struggles with its own energy and climate policies, which caused it such problems last election, when it had dual or confusing messaging in the country’s south and north and lacked costings.

Post election, the spectrum of Labor thinking on these issues has been exposed, and resources spokesman Joel Fitzgibbon, who takes many of his cues from his NSW coal seat of Hunter, frequently speaks out.

Like Morrison, on energy and climate policy Anthony Albanese will be seeking to position himself somewhere in the middle ground for the election. He’ll look to being to the left of the PM — but not way out on a limb.The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Morrison government threatens to use Snowy Hydro to build gas generator, as it outlines ‘gas-fired recovery’ plan


Michelle Grattan, University of Canberra

The Morrison government has threatened to use Snowy Hydro to build a gas generator in the Hunter Valley if the electricity sector fails to fill the gap left by the scheduled closure of the Liddell power plant in 2023.

The threat comes as the government released its plan to place gas at the centre of Australia’s economic recovery, with a package of measures to “reset” the east coast market and “unlock” supply.

Scott Morrison and Energy Minister Angus Taylor said the electricity sector had to deliver 1,000 megawatts of new dispatchable energy to replace the Liddell power station before it closed.

“The Government will step up and back a new gas power plant in the Hunter Valley if the sector doesn’t replace Liddell’s capacity,” they said in an ultimatum to the sector.

“Snowy Hydro Limited is developing options to build a gas generator in the Hunter Valley at Kurri Kurri should the market not deliver what consumers need.”

The government had a long running battle with AGL over its determination to close the Liddell coal-fired power station, trying unsuccessfully to force it to abandon the decision.

Morrison and Taylor said the government’s Liddell taskforce had found closing the plant without adequate dispatchable replacement capacity could mean a 30% price rise over two years, or $20 per megawatt hour to $80 in 2024 and up to $105 per MWH by 2030.

Morrison said such rises were unacceptable – they would be a huge hit to families, businesses and job creating industries in NSW if the energy generated by Liddell wasn’t replaced.

“We won’t risk the affordability and reliability of the NSW energy system and will step in unless the industry steps up.

“To ensure we do not have a scenario without replacement, the government is giving the private sector until the end of April 2021 to reach final investment decisions on 1000 MW of dispatchable capacity, with a commitment for generation in time for summer 2023-24.”

In its announcement of its gas plan, the government says its proposed multiple initiatives will deliver affordable and reliable energy for households, business and industry, and shore up the energy grid’s reliability as renewables form an increasingly larger part of the energy market.

One part of the plan is the creation of an Australian Gas Hub at Wallumbilla in Queensland to bring users and suppliers closer together, delivering a transparent liquid gas trading system.

This is modelled on the Henry Hub located in Louisiana which is a distribution point on a natural gas pipeline system. It serves as the official delivery location for futures contracts.

The concept of a gas-led recovery is highly controversial. It has been strongly pushed by the chair of the government’s national COVID-19 commission Nev Power, and the government argues that gas is much lower in emissions than coal fired power.

But the promotion of gas is resisted by environmentalists, given it is a fossil fuel, and questioned by some in the investment community who doubt it will be possible to achieve gas prices low enough to make a major economic difference.

Outlining the “gas-fired recovery” plan Morrison, Taylor and Resources Minister Keith Pitt said: “The government wants the private sector to step-up and make timely investments in the gas market.”

But “if the private sector fails to act, the government will step in – as it has done for electricity transmission – to back these nation building projects. This may include through streamlining approvals, underwriting projects or the establishment of a special purpose vehicle with a capped government contribution”.

The government says the east coast market needs change because it is not delivering internationally competitive prices for Australian businesses and households.

International prices have fallen but this has not been reflected in lower long term contract offers for Australian customers.
There are also fears of a supply shortfall in the medium term.

Under the measures, new gas supply targets will be set with states and territories and a potential “use it or lose it” requirement will be enforced on gas licences.

The government aims to unlock five new gas basins beginning with the Beetaloo Basin in the Northern Territory and the North Bowen and Galilee Basis in Queensland. This will cost $28.3 million for the plans.

To avoid supply shortfalls, there will be new agreements with the three east coast LNG exporters with strengthened commitments on price.

The government will also “explore options” for a prospective gas reservation scheme “to ensure Australian gas users get the energy they need at a reasonable price”.

To improve the gas transport network the government will identify priority pipelines and critical infrastructure for a National Gas Infrastructure Plan (NGIP) worth $10.9 million . This will also highlight where the government will step in if private investors do not.

The regulations on pipeline infrastructure will be reformed to increase competition and transparency; competition will be further promoted by kick starting work on a secondary pipeline capacity market.

The government will work with the Australian Competition and Consumer Commission to review the calculation of the LNG netback price which provides a guide on the export parity prices.

It will also use the NGIP to develop customer hubs to boost competition and transparency for customers.

HERE ARE THE GOVERNMENT’S DETAILED MEASURES.

It will get more gas into the market by:

  • Setting new gas supply targets with states and territories and enforce potential “use-it or lose-it” requirements on gas licenses

  • Unlocking five key gas basins starting with the Beetaloo Basin in the NT and the North Bowen and Galilee Basin in Queensland, at a cost of $28.3 million for the plans

  • Avoiding any supply shortfall in the gas market with new agreements with the three east coast LNG exporters that will also strengthen price commitments

  • Supporting CSIRO’s Gas Industry Social and Environmental Research Alliance with $13.7 million

  • Exploring options for a prospective gas reservation scheme to ensure Australian gas users get the energy they need at a reasonable price.

It will boost the gas transport network by:

  • Identifying priority pipelines and critical infrastructure as part of an inaugural National Gas Infrastructure Plan (NGIP) worth $10.9 million that will also highlight where the government will step in if the private sector doesn’t invest

  • Reforming the regulations on pipeline infrastructure to promote competition and transparency

  • Improving pipeline access and competition by kick-starting work on a dynamic secondary pipeline capacity market.

To better empower gas consumers, it will:

  • Establish an Australian Gas Hub at our most strategically located and connected gas trading hub at Wallumbilla in Queensland to deliver an open, transparent and liquid gas trading system

  • Level the negotiating playing field for gas producers and consumers through a voluntary industry-led code of conduct, to be delivered by February 2021

  • Ensure Australians are paying the right price for their gas by working with the ACCC to review the calculation of the LNG netback price which provides a guide on the export parity prices

  • Use the NGIP to develop customer hubs or a book-build program that will give gas customers a more transparent and competitive process for meeting their needs.The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Aussie invention could save old coal stations by running them on zero-emissions ‘Lego’ blocks



Authors provided

Erich Kisi, University of Newcastle and Alexander Post, University of Newcastle

As climate change worsens, the future of fossil fuel jobs and infrastructure is uncertain. But a new energy storage technology invented in Australia could enable coal-fired power stations to run entirely emissions-free.

The novel material, called miscibility gap alloy (MGA), stores energy in the form of heat. MGA is housed in small blocks of blended metals, which receive energy generated by renewables such as solar and wind.

The energy can then be used as an alternative to coal to run steam turbines at coal-fired power stations, without producing emissions. Stackable like Lego, MGA blocks can be added or removed, scaling electricity generation up or down to meet demand.

MGA blocks are a fraction of the cost of a rival energy storage technology, lithium-ion batteries. Our invention has been proven in the lab – now we are moving to the next phase of proving it in the real world.

Steam billows from a coal-fired power station
MGA blocks promise to give new life to old coal stations.
Themba Hadebe/AP

Why energy storage is important

Major renewable energy sources such as solar and wind power are “intermittent”. In other words, they only produce energy when the sun is shining and the wind is blowing. Sometimes they produce more energy than is needed, and other times, less.

So moving to 100% renewable electricity requires the energy to be “dispatchable” – stored and delivered on demand. Some forms of storage, such as lithium-ion batteries, are relatively expensive and can only store energy for short periods. Others, such as hydro-electric power, can store energy for longer periods, but are site-dependent and can’t just be built anywhere.




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If our electricity grid is to become emissions-free, we need an energy storage option that’s both affordable and versatile enough to be rolled out at massive scale – providing six to eight hours of dispatchable power every night.

MGAs store energy for a day to a week. This fills a “middle” time frame between batteries and hydro-power, and allows intermittent renewable energy to be dispatched when needed.

Researchers Alex Post and Erich Kisi, look at a MGA block.
Researchers Alex Post and Erich Kisi. The company is looking to built a pilot manufacturing plant in NSW.
Authors provided

How our invention works

In the next two decades, many coal-fired power stations around the world will retire or be decommissioned, including in Australia. Our proposed storage may mean power stations could be repurposed, retaining infrastructure and preventing job losses.

For coal stations to use our technology, the furnace and boiler must be removed and replaced by a storage unit containing MGA blocks.

MGA blocks are 20cm x 20cm x 16cm. They essentially comprise a blend of metals – some that melt when heated, and others that don’t. Think of a block as like a choc-chip muffin heated in a microwave. The muffin consists of a cake component, which holds everything in shape when heated, and the choc chips, which melt.




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The blocks don’t just store energy – they heat water to create steam. In an old coal plant, this steam can be used to run turbines and generators to produce electricity, rather than burning coal to produce the same effect.

Courtesy University of Newcastle.

To create the steam, the blocks can be designed with internal tubing, through which water is pumped and boiled. Alternatively, the blocks can interact with a heat exchanger – a specially designed system to heat the water.

Old coal plants could run on renewable energy that would otherwise be switched off during periods of oversupply in the middle of the day (in the case of solar) or times of high wind (wind energy).

Our research has shown the blocks are a fraction the cost of a lithium battery of the same size, yet produce the same amount of energy.

Coal worker
The technology may help prevent job losses in the coal industry.
KYDPL KYODO/AP

Proving MGA blocks in the real world

Our team perfected the novel material through research at the University of Newcastle between 2010 and 2018. Last year we formed a company, MGA Thermal, and are focused on commercialising the technology and conducting real-world projects.

In July this year, MGA Thermal received a A$495,000 grant from the federal Department of Industry, Innovation and Science, to establish a pilot manufacturing plant in Newcastle, New South Wales. This project is due to start operating in the second half of next year. The goal is to begin manufacturing a commercial quantity of MGA blocks economically, at scale, for large demonstration projects.




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MGA Thermal have partnered with a Swiss company, E2S Power AG, to test the technology in the rapidly changing coal-fired power industry in Europe. Beginning next year, the testing will include retrofitting a functioning coal power plant with MGA storage. This will also verify the economic case for the technology.

We are aiming for a cost of storage of A$50 per kilowatt hour, including all surrounding infrastructure. Currently, lithium-ion batteries cost around A$200 per kilowatt hour, with added costs if energy is to be exported to the electricity grid.

So what are the downfalls? Well, MGA does have a much slower response time than batteries. Batteries respond in milliseconds and are excellent at filling short spikes or dips in supply (such as from wind turbines). Meanwhile MGA storage has a response time above 15 minutes, but does have much longer storage capacity.

A combination of all three options – batteries, MGA/thermal storage and hydro – would provide large-scale energy storage that can still respond quickly to fluctuating renewable supply.

Courtesy University of Newcastle.

Safe and recyclable

MGA blocks are safe and non-toxic – there is no risk of explosion or leakage, unlike some other fuels.

The blocks can also be recycled. They are expected to last 25-30 years, then can be easily separated into their individual materials – to be made into new blocks, or recycled as raw materials for other uses.

Like any new technology, MGA blocks must be financially proven before they’re accepted by industry and used widely in commercial projects. The first full-scale demonstrations of the technology are on the horizon. If successful, they could allow coal-fired power plants to be used cleanly, and provide hope for the future of coal workers.The Conversation

Erich Kisi, Professor of Engineering , University of Newcastle and Alexander Post, Conjoint Lecturer, University of Newcastle

This article is republished from The Conversation under a Creative Commons license. Read the original article.