4. Current and emerging green energy opportunities

Overview

4.1The Committee received evidence of a wide range of current and emerging opportunities for Australia to establish export-oriented green energy industries to underpin its transition to a green energy superpower. These opportunities seek to maximise and capitalise on Australia’s strengths and comparative advantages discussed in Chapter 2 of this report.

4.2The pursuit of many of these opportunities is already underway – some in the early stages and others may be longer term prospects. Many of the opportunities identified focussed on the importance of value-adding to Australia’s raw materials and critical minerals.

4.3This chapter summarises the current and emerging green energy opportunities discussed in the evidence received by the Committee. It focuses on activities broadly falling into six categories:

• Solar and wind energy generation
• Extraction and processing of raw minerals, including critical minerals
• Value-added manufacturing in the critical minerals value chain, including battery manufacturing and solar panels
• Direct energy exports, such as renewable electricity, hydrogen and ammonia
• Green metals, such as green steel and green aluminium; and
• Carbon capture and negative emissions technologies.
  4. The Committee received a wealth of evidence on current and emerging opportunities in Australia’s transition to a green energy superpower, and is aware of many other activities and technologies that may ultimately have a role in Australia’s green energy transition, for example geothermal energy and natural hydrogen. The Committee has not attempted to canvas all potential opportunities; the report has focused on those that are most relevant to supporting the development of export-oriented green energy industry and meeting the needs of Australia’s major trading partners.

Solar and wind generation

4.5Australia will need to further develop its solar and wind generation capability to underpin its transition to a green energy superpower and creation of export-oriented green industries. Australia’s abundance of natural solar and wind resources was discussed in Chapter2.

Solar generation

4.6Solar photovoltaic (solar PV) technology converts the energy created by the heat and light of the sun directly into electricity.[1] The most common form of solar PV is solar panels, installed on residential and commercial buildings, or aggregated into large-scale solar farms.[2]

4.7Solar generated ten percent of Australia’s total electricity generation in 2022.[3] MrWilliam Tan, Acting General Manager, Manufacturing and National Reconstruction Fund Division at the Department of Industry, Science and Resources (DISR), said Australians are ‘… among the most enthusiastic adopters of household solar, and there are extensive solar farms…’[4] More than 30per cent of Australian homes have rooftop solar PV and the number of large-scale solar farms across Australia is growing.[5]

4.8The Australian Government, through the Australian Trade and Investment Commission (Austrade), is supporting 27 large-scale solar projects through its green economy investment pipeline.[6] Austrade also works with Neon, a French renewable energy company, that has invested more than $3 billion in Australian wind, solar and battery storage projects. Neon’s investments support Australia’s ability to meet its emissions reductions targets and build new capability for Australia’s renewable sector.[7]

4.9Australia’s opportunities to develop its solar panel manufacturing capability are discussed in more detail later in this chapter.

Wind generation

4.10Wind energy refers to electricity generated by harnessing the wind, most commonly through wind turbines.[8] According to Geoscience Australia, wind energy contributes 1.4percent to the total amount of energy produced in Australia.[9] Australia is already pursuing opportunities to increase its wind generation capacity, which will support its transition to a green energy superpower.

4.11In June 2022, the Offshore Electricity Infrastructure Act 2021 (Cth) established a legislative framework to enable the development of offshore renewable energy projects in Commonwealth waters, including offshore wind projects using Geoscience Australia’s marine data.[10] This legislative framework is implemented by the Department of Climate Change, Energy, the Environment and Water (DCCEEW).[11] DCCEEW is also preparing guidance for the offshore wind sector in collaboration with the National Offshore Petroleum Safety and Environmental Management Authority.[12]

4.12DCCEEW’s submission explained that in August 2022 its Minister proposed an area offshore from Gippsland, Victoria, as the first of six priority areas potentially suitable for the development of an offshore renewable energy industry, and that such a declaration provides:

… investment certainty to international developers and support Victoria’s ambitious clean energy target which looks to establish 9 GW of offshore renewable energy supply by 2040. Other priority areas will be assessed over the next 18 months. As these areas are declared, this will open up Australia’s marine estate for the clean energy industry development with the potential to scale rapidly and address Australia’s energy security and the development of new renewable energy exports.[13]

4.13The Committee received evidence from Star of the South Wind Farm Pty Ltd (Star of the South), which is based in Gippsland, Victoria, and employs local workers, supports local businesses and is invests in the local community.[14] Its submission said:

Star of the South has established an Industry Capability Network… Gateway to enable suppliers to register their interest in working on the project and participating in the emerging offshore wind industry. We currently have over 100 expressions of interest from the Gippsland area specialising in different areas of the supply chain including electrical equipment, steel and transport. More than 1,000 suppliers have registered to date.[15]

4.14The Western Australian Government is also seeking to develop its wind generation capacity and has established a Local Industry Participation in Wind Farm Supply Action Group.[19] A submission from the Western Australian Department of Jobs, Tourism, Science and Innovation explained:

The Group provides advice and recommendations on the establishment and development of a wind turbine manufacturing industry in Western Australia. This initiative is underpinned by cross-sector collaboration and is a showcase of partnership to achieve a wind turbine manufacturing industry in Western Australia that will contribute to more affordable clean energy and future-proofed jobs.[20]

Extraction and processing of raw materials, including critical minerals

4.15While Australia is already producing and exporting large quantities of raw materials, including critical minerals, many submitters and witnesses emphasised the sector’s significant potential to expand as the green energy transition accelerates.[21]

4.16Australia is well-placed to pursue opportunities to develop extraction and processing of raw materials, including critical minerals, due to its natural abundance of many of the key resources necessary to develop the products and infrastructure in the future green energy economy. For example, Australia has the world’s largest lithium reserves and is the largest producer of lithium, accounting for almost half of the world’s production.[22] Australia is also a significant producer and exporter of other commodities required in greater volume to support the green energy transition, namely copper and nickel.[23]

4.17Australia’s abundance of raw materials and critical minerals resources was outlined in Chapter 2 of this report. A list of the 26 resource commodities identified by the Australian Government to be critical minerals is available in AppendixC.

Demand for Australia’s critical minerals

4.18Demand for Australia’s critical minerals[24] is anticipated to significantly increase during the global green energy transition to support the deployment of low and zero emissions technologies.[25] For example, DISR noted Australia’s exports of lithium, nickel and copper, are expected to increase by a third and reach a value of $31 billion by 2024.[26]

4.19The Grattan Institute estimated that if Australia maintains its market share of critical minerals as demand grows over coming decades, the market will be worth double the present-day value of the coal market.[27] Similarly, Tesla emphasised that the size of the lithium market is projected to grow ‘over 25-fold by 2035.’[28]

4.20In addition to increasing current production, further potential for expansion lies in underdeveloped and undiscovered reserves.[29] The Electric Vehicle Council (EVC) observed that:

There remains significant, unrealised potential for Australia to capture more of the critical minerals market share as global demand for battery minerals increases. The strength of Australia’s mining sector is demonstrated by its existing production of lithium relative to the rest of the world, however this is not represented in domestic nickel or cobalt production, which is significantly lower relative to existing reserves.[30]

4.21Geoscience Australia also highlighted this point and told the Committee there were ‘… vast areas of Australia that remain underexplored and unexplored, including the 80% of our landmass where the resources may be buried deep underground.’[31] Geoscience Australia also outlined programs underway to assess the technological and economic factors in the extraction of critical minerals from mine waste, which may further add to Australia’s critical minerals potential.[32]

Refining and processing of Australia’s resources

4.22Australia’s resources sector has historically focussed on extraction and exporting raw materials to be processed overseas. This largely remains the case with minerals and metals required for low emissions technologies such as lithium, cobalt, nickel, copper and rare earth elements.[33] For example, while Australia is a global leader in lithium production, most Australian lithium spodumene, the ore from which battery grade lithium hydroxide is refined, is exported to be processed overseas.[34] As a result, a large proportion of the potential value of Australia’s lithium deposits are not retained onshore.[35]

4.23Many submitters and witnesses acknowledged the importance of capitalising on opportunities to value-add to Australia’s raw materials, with the first step being an expansion of refining and processing for critical minerals and metal ores.[36]

4.24Some stakeholders proposed refining and processing opportunities could be underpinned by reduced energy costs where energy is provided by low-cost wind and solar, including co-location of generation.[37] It was also suggested that Australia’s ability to utilise renewable energy to reduce emissions from extraction and processing has the potential to further increase demand for Australia’s minerals and metals as export customers seek lower emissions supply chains.[38]

4.25The Australian Conservation Foundation pointed to potential advantages for companies focussed on extraction to expand through vertically integrated operations:

Mining companies that expand down the value chain into refining have competitive advantages from secure supply of raw materials, reduced input costs for the raw material over companies that are not integrated, and lower logistics costs from on-site refining, and of course strengthening domestic supply chains without the need for increasing competitive inputs. Furthermore, transportation of raw materials is often highly inefficient, since often the ore contains a very small percentage of the final metal.[39]

4.26High purity alumina was also discussed as an opportunity supporting the development of Australia’s future green exports.[40] Demand for high purity alumina is growing due to its use in new technologies.[41]

4.27The Committee also heard from Alpha HPA, which is supporting the global decarbonisation effort through its work with high purity aluminium materials, including high purity alumina and high purity aluminium salts.[42] Ultra-high purity aluminium oxides, nitrates and sulphates can be used for LED lighting, synthetic sapphire and lithium-ion battery markets.[43]

4.28Several stakeholders mentioned the continued role for nuclear power in the global energy mix.[49] Subsequently, it was noted there is potential for Australia to increase its uranium exports.[50] For example, the University of Queensland (UQ) explained that ‘A key green export growth market is uranium and Australia has the world’s largest known reserves.’[51] Similarly, Save Our Surroundings suggested that ‘Demand for nuclear materials is a future long-term growth industry of which Australia should take greater advantage of now.’[52]

Value-added manufacturing

4.29Submitters widely identified that to fully capitalise on its advantages and to realise green energy superpower ambitions, Australia needs move further along the value chain beyond extraction and processing, to explore downstream opportunities in manufacturing of intermediate and ultimately final products.[53]

4.30For example, the Smart Energy Council highlighted:

Australia has a long history of successfully mining raw materials and exporting them for value-add overseas. In this next phase of Australia’s story, we must move up the value chain and produce more of the end products onshore capturing more of the benefits from these minerals for the advancement of all Australians.[54]

Battery manufacturing

4.31Many stakeholders identified the opportunity for Australia to move further down the critical minerals value chain and develop a significant battery manufacturing industry across a range of battery chemistries for applications including transport, industrial and stationary storage.[55]

4.32For example, UQ stated that the manufacture of batteries in Australia ‘plays to all its strengths and could become the cornerstone of a resurgence in manufacturing capacity across Australia’.[56]

4.33Mr Shannon O’Rourke, Chief Executive Officer, Future Battery Industries CRC (FBICRC), outlined Australia’s opportunity across the battery value-chain:

About the battery industry, we produce roughly 50 per cent of the world’s battery minerals, but only receive a small percentage of that total industry value. It would be our view that Australia’s not adding enough value to its resources. We can capture more value by building a diversified battery industry.

There are critical minerals, and Australia is the only country in the world which has leading resources of the breadth of critical minerals required for manufacturing batteries—so this is nickel, cobalt et cetera. From the point of mining there’s refining, then advanced materials which take the refined products and turn them into specialty, very high technology particles and materials. After that, cell components and cells and then packs and systems.[57]

4.34Dr Lynette Molyneux, Director at the Advanced Materials and Battery Council (AMBC), expressed a similar view that Australia could be doing a lot more local manufacturing of batteries, in turn capturing greater value from critical minerals before they leave Australia:

On the basis that about 10 to 15 per cent of the value of a lithium-ion battery is associated with the minerals, we could be doing far greater in terms of manufacturing locally and capturing the value of the lithium-ion battery before it leaves our shores so that we can actually build a significant manufacturing sector as the cornerstone to additional manufacturing in Australia.[58]

4.35The Western Australian Department of Jobs, Tourism, Science and Innovation advised that two processing plants are currently under construction in the state, in addition to the existing five lithium mines in operation.[59] Further, DISR noted that ‘Australia is fast developing downstream processing capacity’ and that within the next five years Australia is forecast to produce up to one-fifth of the world’s battery grade lithium hydroxide.

4.36Building Australia’s battery manufacturing capability creates opportunities for Australia to contribute to EV batteries and components. DCCEEW suggested:

Governments and industry could unlock further growth and innovation in the full lifecycle of the EV value chain, which could include expanding extraction, processing and refining of critical minerals for global demand, and developing, designing and manufacturing EV components, control systems and batteries.[60]

4.37DISR’s submission drew attention to Australia’s minerals sector being a major supplier of key inputs to electric vehicle manufacturers.[61] For example, Australia supplies 75percent of the lithium and 40 percent of the copper used in their vehicles globally, as noted by Tesla, the world’s largest electric vehicle manufacturer.[62]

4.38Tesla acknowledged the expansion, while indicating that more is needed: ‘There are three lithium refineries underway in Australia, with more under construction but a great number more will be required to absorb a larger portion of domestic spodumene production.’[65]

4.39The EVC advised that following an expansion of refining and processing capability for battery minerals such as lithium, there are opportunities for Australia to capture more of the EV value chain by moving further downstream into the production of battery cathodes and anodes.[66]

4.40The EVC told the Committee about the work of one of its members: Tritium, an Australian company leading the downstream EV value chain established in Brisbane during the early 2000s.[67] Tritium manufacturers around 5000 DC fast chargers each year and has expanded to the US and Europe.[68]

4.41DISR also told the Committee about firms like Energy Renaissance in Tomago, which is producing lithium-ion batteries and doing battery cell assembly.[69] The Commonwealth Scientific and Industrial Research Organisation also explained that it is supporting Energy Renaissance:

They’ve got their first stage up and running. At the moment they’re assembling packs using batteries from another provider. But in time they intend to produce those in Newcastle. That’s the start of a lithium-iron industry in Australia.[70]

4.42A submission from the AMBC discussed Redflow, an Australian based global flow battery company, that is already deploying energy storage projects across Australia and internationally.[71]

4.43Tesla agreed, stating that: ‘If Australia can successfully ramp up lithium, nickel and other critical minerals refining in the coming years it can build a strong foundation for further progress in the EV value chain.’[72] Tesla further emphasised that following an expansion of refining on shore, Australia should plan for cathode precursor production at scale.[73]

4.44Ms Natalie Thompson, Policy Officer at the EVC, underlined the importance of initial value-added processes to capturing further downstream opportunities:

There is significant opportunity in exporting our raw minerals, but we're missing out on this value-adding opportunity. The critical problem is that without developing downstream onshore-processing and refining of those battery minerals, we're very unlikely, further downstream, to be manufacturing any battery cells and components as well. That midstream processing and refining is going to play a really key role.[74]

4.45Mr Shannon O’Rourke, Chief Executive Officer of the FBI CRC, highlighted the need to retain lithium onshore to develop downstream capabilities:

I think the most important point is that we need to retain some level of lithium within Australia to make the most of that because lithium is then used, in the second stage, in making cathode materials… We won’t be able to do those things unless we retain some feedstock in Australia.[75]

Solar panel manufacturing

4.46Enhancing domestic solar panel manufacturing capabilities was identified by some stakeholders as another opportunity to capture greater value from Australia’s critical mineral resources.[76] China currently produces approximately 80percent of the world’s solar panels.[77] Given Australia’s resource and industrial strengths, supported by its highly skilled workforce, Australia is looking for opportunities to build its own solar PV manufacturing capability.

4.47For example, Mr Wayne Smith, External Affairs Manager at the Smart Energy Council told the Committee about the work of one of its member companies, SunDrive. SunDrive, based in South Sydney, is working to manufacture solar cells and solar panels in Australia using technology developed at the University of New South Wales.[78] South Australian based company Tindo Solar is already producing solar panels from its Adelaide factory using components from imported from overseas.[79]

4.48Westpac Group highlighted the case of Tindo Solar, Australia’s only domestic solar panel manufacturer, to demonstrate that Australia is missing out on the economic benefits of value-added opportunities:

Despite Australia’s extensive supply of critical minerals that go into the solar panel manufacturing process, Tindo is required to source its components from overseas providers. In practice, Australia is mining many of these critical minerals, only to ship them overseas to be manufactured and then imported back by Tindo Solar.[80]

4.49Fortescue Future Industries (FFI), together with Windlab, has commenced work to create a North Queensland Super Hub. FFI submitted that the Super Hub will be ‘… one of the largest wind and solar generation projects ever undertaken in Queensland which stands to generate ~10GW.’[81]

4.50The Committee also received evidence from Transgrid, who operates and manages the high voltage network that connects electricity generators in New South Wales and the Australian Capital Territory, with connections to Victoria and Queensland.[82] MrCraig Stallan, Executive General Manager, Delivery at Transgrid, explained as part of its network, it has ‘… 17 gigawatts of large-scale wind and solar already connected to the network and five gigawatts of rooftop solar…’[83]

4.51Ms Marghanita Johnson, Chief Executive Officer at the Australian Aluminium Council, noted the potential for Australia’s aluminium industry to produce solar panel components:

… aluminium represents more than 80 per cent of the metal used in solar panels and Australia's aluminium extruders already have the capability to produce both solar frame and solar racking for the sector. It's an area where we should have comparative advantage as the solar panel industry develops in Australia. But we must ensure that Australia's solar panels are Australian made with Australian content.[84]

Direct energy exports

4.52The Committee received evidence that Australia has opportunities for direct export of energy or energy carriers, such as renewable electricity, hydrogen, and natural gas.

Renewable energy

4.53Direct transfer of renewable electricity generated in Australia to South-East Asia, transmitted by subsea high voltage direct current (HVDC) cable was identified as an export opportunity.[85]

4.54Sun Cable stated that direct export of renewable electricity is ‘… an industry with potential to be one of the world’s largest, with hundreds of billions of potential value for Australia in revenue, foreign investment and IP [intellectual property] developed through harnessing our renewable resources.’[86]

4.55Some submitters noted economic, engineering and security challenges with direct export of renewable electricity.[87] Notably, the distance required to reach export markets, greater security risks of a cable as single piece of infrastructure, and the absence of appropriate regulatory frameworks.

Green hydrogen and green ammonia

4.56Hydrogen can be produced using a range of energy sources and processes, which are commonly referred to by colours. The Climate Council explained:

• Green hydrogen is produced from renewable energy (e.g. wind and solar)
• Brown hydrogen is produced from brown coal
• Black hydrogen is produced from black coal
• Grey hydrogen is produced from natural gas
• Pink hydrogen is produced from nuclear power
• Blue hydrogen is produced from fossil fuels (e.g. coal and natural gas) accompanied by carbon capture and storage (CCS).[88]
  57. This report does not propose to traverse in detail each of the different ‘colours’ of hydrogen. The Committee received evidence on ‘green’ hydrogen primarily, thus this is the focus of the Committee’s consideration. The term ‘renewable hydrogen’ refers to green hydrogen, while ‘clean hydrogen’ is generally used to refer to both green and blue hydrogen.
  58. Green hydrogen is produced through a process called electrolysis, in an electrolyser, using renewable electricity (e.g. from wind or solar) to split water molecules into hydrogen and oxygen.[89] As the electricity is sourced from renewables, the process does not generate emissions.
  59. As a zero-emissions source of energy, submitters and witnesses suggested green hydrogen will play a considerable role in decarbonisation. Consequently, demand is expected to increase dramatically as the world transitions to a net-zero economy.[90] Green hydrogen is likely to be of particular interest to countries that do not have their own capacity to generate high amounts of renewable energy and will likely continue to be energy importers.[91]
  60. For Australia, green hydrogen has been identified as an important means to decarbonise domestic industrial sectors such as chemical manufacturing, heavy and long-distance transport and steelmaking.[92] It may have a particularly important role in decarbonising industrial sectors where electrification is difficult.[93]
  61. Green hydrogen is also widely considered to have significant export potential for Australia.[94] Japan, Korea, Singapore, and Taiwan were consistently identified during the inquiry as key export destinations for Australian produced green hydrogen.[95] FFI said: ‘… Australia is well positioned as a prospective green hydrogen exporter.’[96]
  62. FFI outlined a wide range of potential applications for green hydrogen:

Green hydrogen is an increasingly important part of the climate transition. It has a high energy-density, which makes it suitable for energy generation either through combustion or as a substitute for gas in pipeline networks. Green hydrogen can also be used within fuel cells to cleanly and efficiently produce electricity, which has applications across transportation, industrial, residential, and commercial buildings, and long-term energy storage for electricity grids.

… Hydrogen produced from renewable energy is a critical enabler for future-facing goods such as green iron for decarbonised steel-making and green ammonia for decarbonised fertiliser and presents a substantial export opportunity for Australia.[97]

4.63It was broadly acknowledged that Australia has a comparative advantage in the production of green hydrogen and is well-placed to develop a significant green hydrogen industry. This advantage is based on access to low-cost renewable energy and suitable land as well as existing infrastructure, expertise, and supply chains developed by the resources and LNG sectors.[106] Proximity to key Asian export markets is also an important factor for the development of an export industry.[107]

4.64The production of ‘green ammonia’ by combining green hydrogen and nitrogen is significant to the hydrogen export opportunity, as it offers an energy efficient, low cost and safe way to transport green hydrogen over long distances (it can then be converted back into hydrogen).[108] The Ammonia Energy Association advised that: ‘liquid ammonia carries 1.69 times the energy of liquid hydrogen and 2.5 times the energy of compressed hydrogen.’[109]

4.65Green ammonia may also have existing and new domestic applications in decarbonising the production of fertiliser, the manufacture of chemicals, and transport as a replacement for diesel fuel. It may also have considerable demand as an export product, particularly in Asian markets, where potential applications also include use as a maritime fuel and in electricity generation.[110]

Limitations of green hydrogen

4.66Rewiring Australia suggested that producing green hydrogen is an inefficient use of renewable energy resources compared to electrification using renewable electricity and battery storage:

Hydrogen is an incredibly inefficient energy storage or delivery mechanism. More than twice the electricity needs to be used to power practically anything with hydrogen compared to electricity stored in a battery. The idea that hydrogen will play a large role in the energy future does not make economic or thermodynamic sense. It will play a small role, but attempting to carve out a large role for it represents a wasteful way to achieve clean energy goals. Three times as much electricity will be needed to produce the hydrogen that eventually powers a machine that could have been powered with just one third of the starting electricity if it was stored in a battery not a hydrogen cell. Over-investment in hydrogen is likely to leave Australian homes and Australian businesses with less economic savings and fewer emissions reductions.[111]

4.67Some submitters were cautious about the potential for green hydrogen as an export product.[112] Some suggested uncertainty about the size and viability of export markets, while others advocated that Australian produced green hydrogen should be used to decarbonise domestic industry including to underpin high-value manufacturing opportunities such a green steel and aluminium. Green steel and aluminium are discussed in more detail later in this chapter.

4.68The University of Adelaide’s Institute for Sustainability, Energy and Resources (ISER) stated that as the export potential of hydrogen as a molecule will last a decade at best, it is ‘better to export decarbonised commodities and value-added products from green hydrogen rather than the bulk molecule or some low-value derivative of it.’[113]

4.69Star Scientific Ltd suggested that the scope for export may be limited because the renewable energy resources required to produce green hydrogen are more widely available than fossil fuels. Its submission stated ‘…you can make hydrogen in a lot more places than you can find fossil fuels, and it will be cheaper to acquire.’[114] Star Scientific Ltd also suggested the value of green hydrogen ‘…is as embedded as process heat or energy in our manufactured and agricultural exports.’[115]

4.70Rewiring Australia suggested there would be greater economic benefit in utilising abundant renewable energy domestically, for example in the refining of metal ores, rather than to produce green hydrogen for export.[116]

As a large fossil fuel exporter it is natural for Australia to identify another fuel we can export, which has been identified by some to be hydrogen. However, Australia has a far better opportunity in the export of embodied energy rather than exporting energy as fuel.[117]

…

Australia being an island at great distance from most hydrogen customers means the delivery cost of any hydrogen produced in Australia could be higher than locally produced hydrogen elsewhere. It is questionable that Australia can really deliver cheaper hydrogen to other continents at a cheaper price than renewable production on those continents can produce it.[118]

4.71The Australian Aluminium Council recognised green hydrogen’s export potential, but proposed that domestic application should be prioritised ‘… to capitalise on [Australia’s] strategic advantage and maximise economic value.’[119]

There has been considerable focus on the creation of an internationally traded hydrogen export industry… The Council believes that while Australia is well placed to be a major exporter, increased focus needs be on hydrogen as an input into downstream products in Australia, reducing emissions associated with their production...

… The Council believes Australia should seek to maximise its own value adding domestic sectors, providing them with internationally competitive zero emissions hydrogen, prioritised over exports; including through a domestic hydrogen reservation scheme. This would capitalise on Australia’s national advantage providing jobs and value to the economy.[120]

4.72UQ concluded that work needs to be done to better understand Australia’s hydrogen export opportunity:

Like Australia, many countries have ambitions to produce and export their own hydrogen energy carrier. Further analysis is required to assess the realistic scale of an export market, both the scale of production and requirements to achieve scale, as well as the contribution to global supply and potential replacement of current energy export earnings.[121]

Manufacturing electrolysers

4.73Some submitters identified an opportunity for Australia to develop its manufacturing equipment, such as electrolysers, to support green hydrogen production.

4.74The Australian Government, through the Modern Manufacturing Initiative grant agreement, is supporting a Green Hydrogen Gigafactory Electrolyser Manufacturing Facility in Gladstone executed by Gladstone FFI.[122] The National Reconstruction Fund also includes funds to invest in hydrogen electrolysers.[123]

4.75FFI’s submission explained that electrolyser capacity remains a challenge, even though the cost of generating the renewable energy required to produce green energy hydrogen has decreased substantially over recent times:

According to the IEA’s Net Zero by 2050 scenario, more than 700GW of installed electrolytic capacity will be required by 2030. This gap in electrolyser capacity provides Australia with an opportunity to manufacture and supply both domestic and global markets with electrolyser and associated green hydrogen and green electricity supply chain inputs. As Australia develops large scale renewables and hydrogen generating capacity it in turns becomes an attractive location for manufacturing of electrolysers.[124]

Blue hydrogen

4.76In addition to Australia’s green hydrogen opportunities, Australia also has a comparative advantage in the production of blue hydrogen due to its substantial coal and natural gas resources as well as strong potential for geological storage.[125] Many of the advantages with green hydrogen exports regarding infrastructure, expertise and supply chains also apply to blue hydrogen.

4.77While some countries are focussed on green hydrogen, other countries such as Japan have shown interest in blue hydrogen as part of their decarbonisation strategies.[126] Woodside Energy pointed to estimates that blue hydrogen using natural gas and CCS will account for half of global hydrogen production by 2030.[127]

4.78Low Emission Technology Australia (LETA) advised that blue hydrogen presents a significant export opportunity for Australia and suggested that it has a role to play in meeting the increased demand in the development of storage and transport infrastructure, building demand and establishing supply chains for the future green hydrogen industry.[128] In its submission, LETA explained:

The most competitive sources of clean hydrogen are from hydrocarbons including coal, gas and biomass coupled with CCUS [carbon capture, utilisation and storage][129]… Fossil fuel-based hydrogen with CCS can also be scaled up to meet the likely commercial demands in the near future, providing a platform for export markets to develop as costs come down for renewable energy-based hydrogen.[130]

Commercial ready LETs [low emission technologies], such as those that produce hydrogen from fossil fuels with CCUS, will be the precursor to green alternatives, and will establish supply chains and embed a new cleaner energy market globally. To move towards being a green energy superpower, Australia must harness this energy momentum whilst utilising our existing resources to stake a market position in the race to net-zero.[131]

Natural gas and liquified natural gas

4.79Several submitters observed an ongoing role for natural gas in the energy transition both globally and in Australia.[132] Natural gas was mentioned in particular as being a lower emissions energy source compared to coal, bridging the gap in energy demand while renewable energy generation expands, and playing a role in firming renewable electricity generation.[133] Natural gas was also mentioned as a source of producing blue hydrogen, in combination with CCS.[134]

4.80Geoscience Australia provided an overview of the role of natural gas. It referred to predictions of future global energy supply and demand indicating that while the consumption of fossil fuels will peak at around 2030 and then begin to decrease with an upswing in renewable and other green energy sources, fossil fuels, and natural gas in particular, will remain part of the energy equation:

… natural gas remains the most in-demand energy resource, replacing other, more emissions intensive fossil fuels (fuel switching), providing dispatchable electricity, and potentially providing feedstock for the generation of (blue) hydrogen.

… Greenhouse gas emissions from the consumption of natural gas are less than half of the emissions from the consumption of coal. Technologies such as… (CCS) used in conjunction with the extraction and/or consumption of gas/LNG resources can further reduce the generation of greenhouse gas emissions from this fuel source.

These considerations are important for noting the value of LNG exports to Australia’s economy and the role it has in supplying energy and decarbonising Australia and the Asia-Pacific region, by providing a lower emissions fuel than the alternatives (such as coal and oil).

Australia has a wealth of gas resources, and further opportunities for trade and investment. Enabling technologies, such as CCS, to decarbonise the scope 1, 2, and potentially scope 3 emissions, can be instrumental to supporting Australia and the region’s future net zero emissions target.[135]

4.81Submitters noted continued demand for natural gas/liquified natural gas (LNG) as an export product.[136] Woodside Energy described Australia’s trading partners in the Asia-Pacific region, including Japan, as being ‘… clear that they need Australia to continue as a secure, affordable supplier of energy, including liquified natural gas (LNG) as a key transition fuel in their economy.’[137]

4.82UQ observed that Australia could capitalise on the continued role of natural gas in the global energy mix:

Australia’s relatively low gas emissions intensity compared to other suppliers could be considered in trade policies favouring inward investment in Australian gas, with regulations aimed to promote greater decarbonisation than alternative suppliers with higher emissions intensity gas. Being lowest emitter should benefit Australia’s energy export trade position. To support this, Australia should also develop auditable/verifiable emissions intensity reporting to differentiate its industry in the export market.[138]

Biogas and biomethane

4.83Some submitters and witnesses discussed biomethane as a possible ‘green’ substitute for natural gas.[139] Biomethane is created by converting organic matter, such as food and agricultural waste, into biogas through a process known as anaerobic digestion. Biogas can be used to produce heat and generate electricity and once upgraded to biomethane it can be used as a substitute for natural gas without any upgrades to gas infrastructure or changes in equipment or appliances.[140]

4.84Biomethane production is limited in Australia but has considerable potential, particularly where there are high quality inputs and proximity to existing infrastructure.[141] For example, Mr Steven Davies, Chief Executive Officer at the Australian Pipeline and Gas Association (APGA), told the Committee:

… as we turn our attention to the prospects of biomethane, we are seeing that there are some areas where there is a lot of potential. If you have a farm in the Bega Valley—famous for its dairies—there's a lot of material right there ready to go. I know that for New South Wales the gas network company runs the Sydney network. You could look at the Australian Bioenergy Roadmap and it might say that New South Wales has about 180 petajoules of bioenergy potential, but Jemena has taken it a step further and had a look at quality of raw materials, proximity to existing infrastructure and it's established that there are materials to make about 34 petajoules of methane, which is roughly the residential demand of Sydney gas now. So there are opportunities.[142]

Gas infrastructure

4.85Evidence from APA Group and the APGA highlighted the role that Australia’s extensive gas pipeline infrastructure can play in transportation and storage to support Australia’s green hydrogen industry. APAGroup and APGA argued that utilising existing infrastructure reduces the need for expensive investment in new energy assets for both hydrogen and electricity.[143]

4.86Dr Mark Hutchinson, Chief Executive Officer at FFI, also commented on the ability to, and the importance of utilising existing gas infrastructure for green hydrogen, emphasising that the goal is to replace the molecule:

There are ways being looked at that you can transport hydrogen as synthetic LNG, which means you could use all the LNG infrastructure globally and you're just replacing a fossil fuel molecule with a green renewable molecule and you're feeding into the same users that use LNG.[144]

Green metals

4.87A widely identified opportunity for new green energy export industries in Australia is the production of green metals, notably in the steel and aluminium value chains.[145] Production processes for steel and aluminium are highly emissions intensive. To be competitive in a global net-zero economy, steel and aluminium production will need to decarbonise.[146] The green metals industry presents Australia with an immense value-adding opportunity, capitalising on resources and renewable energy strengths.[147]

4.88Globally, Australia accounts for around 27 per cent of bauxite production and 38percent of iron ore production.[148] While Australia has significant domestic steel and aluminium industries, most of these ores are exported to be processed into metals overseas.[149]

4.89Producing green metals would enable Australia to produce high energy-intensive, low embedded emissions products. Being high-value exports, green metals could enable Australia to capture the greatest value from its metal ores and renewable energy resources, providing substantial economic benefits.[150]

4.90Many submitters and witnesses discussed green steel and green aluminium production as a possible future trend supporting Australia’s transition to a green energy superpower.[151] For example, Mr Eytan Lenko, Chief Executive Officer at Boundless Earth, stated that:

The thesis of the reindustrialisation component of Australia becoming a renewable energy superpower is that we've got this amazing renewable resource. We've got the world's best solar and wind. If we develop that correctly, we should have access to some of the cheapest electricity and energy in the world… Then, once you've got access to that cheap energy, you've got the opportunity to create energy-intensive products for export—things like green steel, things like aluminium; products that are energy intensive—where we're effectively embodying that cheap, clean energy into those products and exporting them overseas.[152]

4.91Similarly, Rewiring Australia observed that about a third of the cost of making steel is actually the cost of the energy needed to refine the ore, and that as Australia has the ore and the energy, it should be refining its ores with its excess energy:

If we embed our energy in the manufacturing process and export more refined metals (which sell for a much higher price), we have a superpower opportunity well suited to Australia’s natural resource advantages - metal ores and low-cost energy.[153]

4.92Rewiring Australia also estimated that Australia’s steel exports could be worth approximately ten times the value of current iron ore exports, while exporting aluminium could be worth three times the value of bauxite and alumina exports.[154]

4.93The Grattan Institute suggested that using green hydrogen to produce green steel is the largest and most economically viable of Australia’s green energy opportunities.[155]

4.94Ms Nicola Ison, Head of Direct Advocacy at Boundless Earth, identified multiple potential export markets and opportunities for partnerships and stated:

… the green metals space is both an export and an investment opportunity. The best pathway is for us to think about playing a role in renewable iron production, green iron production using renewable hydrogen, but also renewable alumina production, and the opportunities for joint ventures—particularly with partners from Germany, Korea and Japan—I think are significant and substantial.

4.95Mr Andrew Morris, Manager, Trade and Investment at Austrade, told the Committee that while green metals were ‘… not a near-term proposition…’ for Australia at the moment, Austrade was working ‘… to attract the right interest from… steel mill producers… who are seriously contemplating whether it makes more economic sense to be in Australia.’[156] DCCEEW also noted that an Australian green metals export industry requires continued research and innovation into new methods of production and transportation, including the utilisation of green hydrogen.[157]

4.96With further research and investment in production processes, metals and materials such as aluminium, lime, cement and steel have the potential to be produced with low carbon emissions.[158] Other items include door and window frames, bricks, glass bottles, fertilisers, copper and plastics.[159]

4.97The Climate Council advised that due to the high level of emissions associated with steel production, the production and export of Australian green steel could have a significant impact on the decarbonisation of Australia’s major trading partners and make a substantial contribution to global emissions reductions.[160]

4.98However, some submitters noted that countries such as Japan, South Korea and China place strategic value on their steel industries and may be hesitant to replace their domestic production for imported green steel.[161] Given this, it was suggested that the export of intermediate products such as hot briquetted iron, a form of direct reduced iron and an input into steel, may be a more likely prospect than finished steel.[162]

4.99Professor Ken Baldwin, Fellow at the Australian Academy of Technological Science and Engineering, outlined the opportunity for hot briquetted iron:

It’s the early stage of the iron and steel manufacturing process where you generate what’s called hot briquetted iron, which is the most energy intensive. It makes enormous sense for mining–which, in Australia, is co-located with the best solar and wind resources–to then process iron ore into hot briquetted iron on site, using our vast resources in renewable energy. We could then export the hot briquetted iron to these countries that have the rest of the value-add and steel production process, the transportation is cheaper that way, as well. It’s an advantage for them, because they get a cheaper product in their production line at the special entry point, but they then keep the higher-end, value-add part of the production chain for their own purposes. It’s an advantage for Australia, because we can do the conversion from iron ore to hot briquetted iron and sell that as a value-added product.[163]

4.100Some submitters suggested exporting both renewable energy and metal ores from Australia to other countries, for them to manufacture decarbonised metals, is not likely to be economically viable and that producing value-added products is much more prospective. For example, the Grattan Institute noted:

With globally cost-competitive hydrogen, it will be cheaper to produce green steel here than to ship hydrogen and iron ore to countries such as Japan or Indonesia that have inferior renewable resources.[164]

4.101Similarly, the Heavy Industry Low-carbon Transition Cooperative Research Centre (HILT CRC) suggested that the export opportunity for green metals may be more prospective for Australia than direct energy exports:

Value-added, low-carbon commodities are expected to become a major, and potentially even the major, carrier of green energy exports for Australia. This is primarily because, unlike coal, both the transport and storage of green energy carriers (i.e. both renewable electricity and hydrogen) is not only expensive, it is also not yet proven at scale and will require substantial investment in new infrastructure. This means that it is likely to be lower in cost and risk for many of Australia’s trading partners (e.g. in Japan, Korea, Germany and, potentially, China) to decarbonise a significant fraction of their steel production by embedding the renewable energy directly into the traded materials, such as by importing DRI [direct reduced iron], or other types of green ferrous feed, rather than to simply replace their coal imports with hydrogen. Such a scenario would generate significant new opportunities for countries, like Australia with coincident resources of minerals and green energy.

4.102Dr Saul Griffith, Co-founder and Chief Scientist at Rewiring Australia, agreed while emphasising that the green metals opportunity should be underpinned by electrification:

If the idea is that we're going to use hydrogen as the heating component to make steel or aluminium, it will double the price of aluminium and steel…The cheapest way to do everything is going to be through electrification. There are all-electric pathways to steel. Aluminium is already an all-electric process, so it can easily be made 100 per cent renewable. The cheapest way to do it is without putting hydrogen in the middle of that process.

… The idea is that we would ship this expensive hydrogen, plus our red dirt, to Japan or China or Germany to make steel. It would make the steel even more expensive. So the structural advantage that Australia has is in domestically producing metals with renewable electricity. This should temper some of our enthusiasm for hydrogen, because there's every reason to believe that it will never be cost-effective compared to existing processes, whereas electrification of those processes can work.[165]

Carbon capture and negative emissions technologies

4.103Submitters identified carbon capture and negative emissions technologies[166] as having a role in the global net-zero transition and in contributing to Australia’s green energy transition, particularly in hard to abate sectors.[167] Australia has extensive potential for geological storage of carbon dioxide (CO2) to support emissions reduction from stationary sources and removal from the atmosphere.[168] Geoscience Australia stated that: ‘Improved understanding of Australia’s geological storage potential underpins our low emission energy production and export industry.’[169]

4.104Geoscience Australia described carbon capture and negative emissions technologies as ‘… the process of capturing carbon dioxide (CO2) from stationary emission sources and injecting it deep underground into porous and permeable sedimentary rocks.’[170] It went on to add that CCS can be used to:

… mitigate emissions from stationary sources such as power stations, natural gas production, hard to abate sectors in manufacturing such as steel and cement plants, and for negative emissions, that is, to remove CO2 directly from the atmosphere and store it permanently underground.[171]

4.105Noting this, Dr Andrew Feitz, Director, Low Carbon Geoscience and Advice at Geoscience Australia, told the Committee it sees CCS as part of the energy mix - a solution to Australia transitioning to a green-energy superpower; he went further and stated ‘all the modelling around the world has said that fossil fuels are going to be part of the energy mix into the future, and so we've got to really focus on the emissions.’[172]

4.106Similarly, Mr Mark McCallum, Chief Executive Officer at LETA, stated its support for CCS being the ‘most practical and technical viable solution for reducing emissions in many essential sector’ including:

… our vital steel, chemical and cement industries as well as aviation, trucking and shipping.

… While endowed with a wealth of renewable energy resources, Australia also has a competitive advantage to implement CCS with our known high-quality, stable geological storage basins, existing infrastructure, world-class technical expertise and regulatory regimes. [173]

4.107The HILT CRC noted that, in combination with renewable electricity and green hydrogen, CCUS will be necessary in heavy industries producing energy-intensive materials by high temperature processing, particularly where CO2 is derived directly from the materials being processed, such as in the production of cement and lime.[174]

4.108DCCEEW observed the potential for carbon storage and noted the scope for Australia to play a role in deployment of the technology across the region:’[175]

Australia is well-suited to large-scale deployment of CCUS to facilitate domestic CO2 abatement and to support emissions reduction in our region…

Australia can play a role in developing a regionally cooperative approach toward CCUS commercialisation and deployment in the Asia-Pacific region. Australia is working with like-minded nations to help accelerate deployment of CCUS, including supporting knowledge exchange; research and development to support technical advances and reduce costs; and driving regional CCUS policy and regulatory framework development.[176]

4.109LETA suggested Australia’s role in the region could extend to storing CO2 produced in other countries that have limited storage capability such as Japan, South Korea and Singapore.[177]

4.110Submitters outlined the potential for CCUS to reduce emissions from the extraction and consumption of natural gas[178] as well as in facilitating the production of blue hydrogen.[179]

4.111Geoscience Australia advised that captured CO2 has the potential to be utilised to replace the use of natural sources of CO2 in the production of some products, for example in fertiliser, fuel or food production.[180] Similarly, LETA noted the potential to repurpose captured CO2 for use in manufacturing processes such as for cement and construction materials.[181]

4.112Geoscience Australia described global research in the development of negative emissions technologies, directly extracting CO2 from the air to generate new products or for permanent geological storage (known as direct air capture and storage or DACS).[182]

Committee comment

4.113The Committee notes that some of the emerging opportunities discussed in this chapter are the subject of recently announced or updated Australian Government strategies and policies.[183]

4.114Australia is a world-leader in the deployment of renewable energy and is a globally renowned supplier of raw materials and critical minerals that are vital for the green energy transition. The Committee believes that this provides an exceptionally strong basis on which to build future high-value export-oriented green energy industries.

4.115The Committee acknowledges the potential of the vast range of opportunities that were put forward throughout the inquiry. Whether each of these opportunities prevail for Australia will ultimately depend on a complex range of factors, including economics (infrastructure, production, and transport costs), technological development, the strength of trade relationships, and the chosen decarbonisation pathways of trading partners.

4.116The Committee believes that Australia must pursue additional value-added opportunities if it is to maximise the benefits of its natural strengths and make the transition to green energy superpower.

4.117The Committee recognises the importance of value-adding to Australia’s critical minerals to capture a greater share of the value chain. The Committee welcomes the recently released Critical Minerals Strategy 2023–2030, which includes an objective to build domestic capabilities in critical minerals processing.

4.118The Committee believes there are strong prospects for Australia to build value-added manufacturing capabilities in the battery value-chain. The National Battery Strategy currently in development must build on the Critical Minerals Strategy 2023–2030 to provide a clear pathway for Australia to move to the next stage in the battery value-chain.

4.119The Committee notes that the recently established National Reconstruction Fund will allocate $1 billion for value-adding in resources and up to $3 billion to support the production of technologies such as batteries, solar panels, electrolysers, and wind turbine components, as well as to modernise the production of steel and aluminium.

4.120The Committee acknowledges the tension between meeting export demand for raw materials and utilising those products onshore to develop value-added industries. If new production is locked into long-term supply contracts to meet growing demand in export markets, there is risk that this comes at the expense of higher value economic opportunities. For this reason, it may be prudent to consider how a greater portion of some raw materials, such as lithium, and in the future green hydrogen, could be retained onshore. However, the Committee notes that there are potential downsides to approaches such as reservation policies.

4.121The Committee recognises the immense opportunity for an Australian green hydrogen export industry as well as the range of applications to support domestic decarbonisation and value-added exports. While blue hydrogen may have an export market and may play a role in establishing global supply chains, Australia’s long-term focus must be on green hydrogen.

4.122The Committee appreciates the concerns expressed by some stakeholders about the focus on green hydrogen production for export, potentially reducing options for domestic decarbonisation and opportunities for value-added manufacturing. It is encouraging that a stated aim of the Review of the National Hydrogen Strategy is to ensure that Australia is a global hydrogen leader on both an export basis and in the decarbonisation of domestic industries.

4.123The Committee recognises Australia’s opportunity to produce green metals, building on abundant metal ore deposits, renewable energy and well-established industries in the steel and aluminium value-chains. These are potentially Australia’s highest value-added manufacturing export opportunities.

4.124The Committee acknowledges evidence to the inquiry highlighting the considerable work being undertaken across nascent and emerging industries through activities such research and development, pilot and demonstration projects, precursor production facilities, and agreements and partnerships.

Recommendations

4.125The Committee recommends that the National Hydrogen Strategy Review consider measures to ensure there is sufficient hydrogen supply to support domestic decarbonisation and build emerging value-added export opportunities.

4.126The Committee recommends that the Australian Government consider whether measures are required to retain a greater portion of domestically mined critical minerals and rare earths onshore to encourage the development of downstream industries, such as in the battery supply chain.

Footnotes

[1]Australian Renewable Energy Agency, Solar energy, https://arena.gov.au/renewable-energy/solar/, viewed 21 June 2023.

[2]Australian Renewable Energy Agency, Solar energy, https://arena.gov.au/renewable-energy/solar/, viewed 21 June 2023.

[3]Department of Climate Change, Energy, the Environment and Water, Australian Energy Update 2022, September 2022, p. 3.

[4]Mr William Tan, Acting General Manager, National Reconstruction Fund Priorities Branch, Manufacturing and National Reconstruction Fund Division, Department of Industry, Science and Resources, Committee Hansard, Canberra, 10 February 2023, p. 11. See also: Westpac, Submission 57, p. 5.

[5]Australian Renewable Energy Agency, Solar energy, https://arena.gov.au/renewable-energy/solar/, viewed 21 June 2023.

[6]Department of Foreign Affairs and Trade (DFAT), Australian Trade and Investment Commission (Austrade) and Export Finance Australia (EFA), Submission 31, p. 9.

[7]DFAT, Austrade and EFA, Submission 31, p. 10.

[8]Australian Renewable Energy Agency, Wind energy, https://arena.gov.au/renewable-energy/wind/, viewed 22 June 2023.

[9]Geoscience Australia, Submission 64, p. 7.

[10]Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 12; Geoscience Australia, Submission 64, p. 9. See also: Western Australian Department of Jobs, Tourism, Science and Innovation, Submission 65, p. 6; Ms Erin Coldham, Chief Development Officer, Star of the South Wind Farm Pty Ltd, Committee Hansard, Brisbane, 16 May 2023, p. 8.

[11]Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 12.

[12]Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 12. See also: Western Australian Department of Jobs, Tourism, Science and Innovation, Submission 65, p. 6.

[13]Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 12.

[14]Star of the South Wind Farm Pty Ltd, Submission 54, p. 2.

[15]Star of the South Wind Farm Pty Ltd, Submission 54, p. 2.

[16]Star of the South Wind Farm Pty Ltd, Submission 54, p. 2.

[17]Star of the South Wind Farm Pty Ltd, Submission 54, p. 2.

[18]Star of the South Wind Farm Pty Ltd, Submission 54, p. 2.

[19]Western Australian Department of Jobs, Tourism, Science and Innovation, Submission 65, p. 6.

[20]Western Australian Department of Jobs, Tourism, Science and Innovation, Submission 65, p. 6.

[21]See, for example: Electric Vehicle Council, Submission 14, p. 3; Department of Industry, Science and Resources, Submission63, p. 3; Geoscience Australia, Submission 64, p. 15.

[22]Tesla, Submission 24, p. 9; RE Alliance, Submission 43, p. 3; Department of Industry, Science and Resources, Submission 63, p. 3.

[23]Department of Industry, Science and Resources, Submission 63, p. 3.

[24]As outlined in Chapter 2, critical minerals are those that are both essential for modern technologies, economies or national security and that there is a risk of supply chain disruption or limited availability.

[25]See, for example: Climate Council, Submission 36, pp. 7–8; Australian Conservation Foundation, Submission 50, p. 4; Geoscience Australia, Submission 64, p. 15; Department of Industry, Science and Resources, Submission63, p. 5; Geoscience Australia, Submission 64, p. 15.

[26]Department of Industry, Science and Resources, Submission 63, pp. 3–5. See also: Grattan Institute, Submission 37, p. 8; Australian Conservation Foundation, Submission 50, p. 4.

[27]Grattan Institute, Submission 37, p. 8.

[28]Tesla, Submission 24, p. 9.

[29]Electric Vehicle Council, Submission 14, p.4; Geoscience Australia, Submission 63, p. 15; Mr Andrew Hutchinson, General Manager, Critical Minerals Office, Minerals and Resources Division, Department of Industry, Science and Resources, Committee Hansard, Canberra, 10 February 2023, p. 14.

[30]Electric Vehicle Council, Submission 14, p. 4.

[31]Geoscience Australia, Submission 64, p. 15.

[32]Geoscience Australia, Submission 63, p. 15.

[33]Smart Energy Council, Submission 23, p. 7; Australia Conservation Council, Submission 50, p. 5; Rewiring Australia, Submission 118, p. 2.

[34]Tesla, Submission 24, p. 9; Ms Natalie Thompson, Policy Officer, Electric Vehicle Council, Committee Hansard, Macquarie Park, 6 April 2023, p. 22.

[35]Electric Vehicle Council, Submission 14, p. 7; Tesla, Submission 24, p. 9; Australian Conservation Foundation, Submission 50, p. 5.

[36]See, for example: Electric Vehicle Council, Submission 14, pp. 4–5; Australian Conservation Foundation, Submission 50, p. 5; Tesla, Submission 24, p. 9, The Next Economy, Submission 51, p. 2.

[37]Electric Vehicle Council, Submission 14, p. 7; Grattan Institute, Submission 37, p. 6; Tesla, Submission 24, p. 9; Australian Conservation Foundation, Submission 50, pp. 2, 5.

[38]See, for example: Electric Vehicle Council, Submission 14, p. 7; Climate Council, Submission 36.1, p. 49; Grattan Institute, Submission 37, pp. 2 and 6.

[39]Australian Conservation Foundation, Submission 50, p. 5.

[40]See, for example: Australian Aluminium Council, Submission 17, p. 5; Beyond Zero Emissions, Submission32.2, pp. 3, 7, 16; Advanced Materials and Battery Council, Submission 15, p. 4;

[41]Australian Aluminium Council, Submission 17, p. 5.

[42]Alpha HPA, Submission 27, p. 2.

[43]Alpha HPA, Submission 27, p. 2

[44]Alpha HPA, Submission 27, p. 2.

[45]Alpha HPA, Submission 27, p. 3.

[46]Alpha HPA, Submission 27, p. 3.

[47]Alpha HPA, Submission 27, p. 4.

[48]Alpha HPA, Submission 27, p. 4.

[49]Professor Llewelyn Hughes and Dr Thomas Longden, Submission 70, pp. 3–5; Dr Saul Griffith, Co-founder and Chief Scientist, Rewiring Australia, Committee Hansard, Macquarie Park, 6 April 2023, p. 19

[50]The University of Queensland, Submission 26, p. 2; Submission 28, p. 5.

[51]The University of Queensland, Submission 26, p. 2; Save Our Surroundings, Submission 28, p. 5.

[52]Save Our Surroundings, Submission 28, p. 5.

[53]See, for example:Electric Vehicle Council, Submission 14, p. 4; Smart Energy Council, Submission 23, p. 7, Grattan Institute, Submission 37, pp. 2, 6; Department of Industry, Science and Resources, Submission 63, pp. 6–7.

[54]Smart Energy Council, Submission 23, p. 7.

[55]See, for example: Advanced Materials and Battery Council, Submission 15, p. 1; Smart Energy Council, Submission 23, p. 7; The University of Queensland, Submission 26, pp. 6 and 10; Department of Industry, Sciences and Resources, Submission 63, pp. 6–7; Export Council of Australia, Submission 72, p. 2.

[56]The University of Queensland, Submission 26, p. 10.

[57]Mr Shannon O’Rourke, Chief Executive Officer, Future Battery Industries CRC, Committee Hansard, Perth, 17March 2023, p. 17.

[58]Dr Lynette Molyneux, Director, Advanced Materials and Battery Council, Committee Hansard, Brisbane, 16May 2023, p. 4.

[59]Western Australian Department of Jobs, Tourism, Science and Innovation, Submission 65, p. 3.

[60]Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 15.

[61]Department of Industry, Science and Resources, Submission 63, p.3

[62]Tesla, Submission 24, p. 9. See: One Step Off the Grid, Tesla reveals huge number of Powerwall home batteries installed in Australia, https://onestepoffthegrid.com.au/tesla-reveals-huge-number-of-powerwall-home-batteries-installed-in-australia/, accessed 14 August 2023.

[63]Tesla, Submission 24, p. 1.

[64]Tesla, Submission 24, pp. 1–2.

[65]Tesla, Submission 24, p. 9.

[66]Electric Vehicle Council, Submission 14, p. 5.

[67]Electric Vehicle Council, Submission 14, p. 6.

[68]Electric Vehicle Council, Submission 14, p. 6.

[69]Mr William Tan, Acting General Manager, National Reconstruction Fund Priorities Branch, Manufacturing and National Reconstruction Fund Division, Department of Industry, Science and Resources, Committee Hansard, Canberra, 10 February 2023, p. 11.

[70]Dr Peter Mayfield, Executive Director, Environment, Energy and Resources, Commonwealth Scientific Industrial Research Centre, Committee Hansard, Canberra, 10 February 2023, p. 21.

[71]Advanced Materials and Battery Council, Submission 15, p. 5.

[72]Tesla, Submission 24, p. 10.

[73]Tesla, Submission 24, p. 10.

[74]Ms Natalie Thompson, Policy Officer, Electric Vehicle Council, Committee Hansard, Macquarie Park, 6 April 2023 p. 23.

[75]Mr Shannon O’Rourke, Chief Executive Officer, Future Battery Industries CRC, Committee Hansard, Perth, 17 March 2023, p. 19.

[76]See, for example: Westpac, Submission 57, p. 5; Sun Cable, Submission 71, p. 8; Ms Nicola Ison, Head of Direct Advocacy, Boundless Earth, Committee Hansard, Melbourne, 5 April 2023, p. 17.

[77]Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 3. See also: Save Our Surroundings, Submission 28, p. 5; Mr Dennis Armstrong, Member, Save Our Surroundings, Committee Hansard, Macquarie Park, 6 April 2023, p.5.

[78]Mr Wayne Smith, External Affairs Manager, Smart Energy Council, Committee Hansard, Canberra, 31 March 2023, p. 24. See also: Ms Nicola Ison, Head of Direct Advocacy, Boundless Earth, Committee Hansard, Melbourne, 5 April 2023, p. 17.

[79]Westpac, Submission 57, p. 7.

[80]Westpac, Submission 57, pp. 7.

[81]Fortescue Future Industries, Submission 93, p. 8.

[82]Transgrid, Submission 52, p. 1.

[83]Mr Craig Stallan, Executive General Manager, Delivery, Transgrid, Committee Hansard, Macquarie Park, 6 April 2023, p. 35.

[84]Ms Marghanita Johnson, Chief Executive, Australian Aluminium Council, Committee Hansard, Canberra, 31 March 2023, p. 1.

[85]See, for example: Australian Electric Vehicle Association, Submission 19, p. 4; Smart Energy Council, Submission 23, p. 2; DFAT, Austrade and EFA, Submission 31, p. 31; Grattan Institute, Submission 37, p. 8; Clean Energy Council, Submission 38, p. 1; RE-Alliance, Submission 43, p. 3; Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 4; Sun Cable, Submission 71, p. 1; Australian Academy of Science and the Australian Academy of Technological Sciences and Engineering, Submission 74, p. 2; Boundless Earth, Submission 76, p. 2.

[86]Sun Cable, Submission 71, p. 7.

[87]See, for example: Dr Mark Hutchinson, Chief Executive Officer, Fortescue Future Industries, Committee Hansard, 17 March 2023, p. 11; Dr Bin Lu, Senior Research Fellow, Zero-Carbon Energy for the Asia-Pacific Initiative, Committee Hansard, Canberra, 31 March 2023, p. 50; Mr Steven Davies, Chief Executive Officer, Australian Pipeline and Gas Association, Committee Hansard, Canberra, 31 March 2023, p. 58; Dr Peter Mayfield, Commonwealth Scientific and Industrial Research Organisation, Proof Hansard, Canberra, 23 June 2023, p.13.

[88]Climate Council, Submission 36, p. 7.

[89]Climate Council, Submission 36, p. 6; Australian Pipeline and Gas Association, Submission 24, p. 2; Fortescue Future Industries, Submission 93, p. 4.

[90]See, for example: Climate Council, Submission 36, p. 6; Australian Conservation Foundation, Submission50, pp. 5–6; WWF-Australia, the Business Council of Australia, the Australian Council of Trade Unions and the Australian Conservation Foundation, Submission67.1, p. 43; Fortescue Future Industries, Submission 93, pp. 2–3; Australia China Business Council, Submission 102, p. 6.

[91]DFAT, Austrade and EFA, Submission 31, pp. 3–4; Beyond Zero Emissions, Submission 32, p. 8.

[92]Smart Energy Council, Submission 23, p. 9; Climate Council, Submission 36, p. 6; Beyond Zero Emissions, Submission 32, p. 8; Australian Conservation Foundation, Submission 50, p. 5; Geoscience Australia, Submission 64, p. 6; Sun Cable, Submission 71, pp. 5–6; Fortescue Future Industries, Submission 93, p. 4.

[93]Beyond Zero Emissions, Submission 32, p. 7; Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 3; WWF-Australia, the Business Council of Australia, the Australian Council of Trade Unions and the Australian Conservation Foundation, Submission 67.1, p. 44; Fortescue Future Industries, Submission 93, p. 4; Macquarie University Centre for Energy and Natural Resources Innovation and Transformation, Submission 125, p. 4.

[94]See, for example: Smart Energy Council, Submission, 23, p. 2; Beyond Zero Emissions, Submission 32, p. 8; Australian Hydrogen Council, Submission 39, pp. 2–3; Department of Climate Change, Energy, the Environment and Water, Submission 62, pp. 4–5; Fortescue Future Industries Pty Ltd, Submission 93, pp. 2 and 11–12.

[95]DFAT, Austrade and EFA, Submission 31, p. 4; Fortescue Future Industries Pty Ltd, Submission 93, pp. 11–12.

[96]Fortescue Future Industries Pty Ltd, Submission 93, p. 2.

[97]Fortescue Future Industries Pty Ltd, Submission 93, p. 4.

[98]Fortescue Future Industries Pty Ltd, Submission 93, p. 6.

[99]Fortescue Future Industries Pty Ltd, Submission 93, p. 6.

[100]Fortescue Future Industries Pty Ltd, Submission 93, p. 6.

[101]Incitec Pivot Limited is an industrial chemicals manufacturer supplying the agriculture and mining industries.

[102]Windlab is an Australian owned renewable energy company developing renewable generators.

[103]E.On is a multinational electric utility company based in Germany.

[104]Liebherr is a multinational equipment manufacturer based in Switzerland.

[105]Fortescue Future Industries Pty Ltd, Submission 93, pp. 14–15.

[106]DFAT, Austrade and EFA, Submission 31, p. 3; Australian Conservation Foundation, Submission 50, p. 6; Department of Climate Change, Energy, the Environment and Water, Submission 62, pp. 4–5; Geoscience Australia, Submission 64, p. 6; Australian Academy of Science & Australian Academy of Technological Sciences and Engineering, Submission 74, p. 3; Fortescue Future Industries, Submission 93, p. 2; APAGroup, Submission 94, p. 3.

[107]DFAT, Austrade and EFA, Submission 31, p. 3; Australian Conservation Foundation, Submission 50, p. 7.

[108]Australian Electric Vehicle Association, Submission 19, p. 5; Beyond Zero Emissions, Submission 32, p. 8; Ammonia Energy Association, Submission 35, p. 2; Climate Council, Submission 36.1, pp. 41, 43.

[109]Ammonia Energy Association, Submission 35, p. 2.

[110]Australia Electric Vehicle Association, Submission 19, p. 4; Ammonia Energy Association, Submission 35, pp1, 5; Climate Council, Submission 36.1, p. 41; Grattan Institute, Submission 37, p. 6.

[111]Rewiring Australia, Submission 118, p. 3.

[112]See, for example: University of Adelaide’s Institute for Sustainability, Energy and Resources, Submission 18, pp.1–2; Star Scientific Ltd, Submission 25, p. 2; Rewiring Australia, Submission 118, p. 3.

[113]University of Adelaide’s Institute for Sustainability, Energy and Resources, Submission 18, pp. 1–2.

[114]Star Scientific Ltd, Submission 25, p. 2.

[115]Star Scientific Ltd, Submission 25, p. 2.

[116]Rewiring Australia, Submission 118, p. 3.

[117]Rewiring Australia, Submission 118, p. 1.

[118]Rewiring Australia, Submission 118, p. 3.

[119]Australian Aluminium Council, Submission 17, p. 6.

[120]Australian Aluminium Council, Submission 17, p. 6.

[121]The University of Queensland, Submission 26, p. 2.

[122]Department of Industry, Science and Resources, Submission, p.

[123]Western Australian Department of Jobs, Tourism, Science and Innovation, Submission 65, p. 5.

[124]Fortescue Future Industries Pty Ltd, Submission 93, p. 5, citations omitted.

[125]Save Our Surroundings, Submission 28, pp. 4–5; Woodside Energy, Submission 47, p. 4; Geoscience Australia, Submission 64, p. 6.

[126]Low Emission Technology Australia, Submission 21, p. 6; Professor Ken Baldwin, Fellow, Australian Academy of Technical Sciences and Engineering, Committee Hansard, Canberra, 31 March 2023, p. 11.

[127]Woodside Energy, Submission 47, p. 4, citation omitted.

[128]Professor Ken Baldwin, Fellow, Australian Academy of Technical Sciences and Engineering, Committee Hansard, Canberra 31 March 2023, p. 11.

[129]The terms carbon capture and storage (CCS) and carbon capture, utilisation and storage (CCUS) are sometimes used interchangeably. Generally, CCS refers to the process of capturing CO2 from stationary emissions sources and injecting into underground geological formations for long-term storage. CCUS includes utilising captured CO2 for enhanced oil recovery or as an input in the production of fertiliser, fuel or food. Both are considered under negative emissions and capture technologies discussed later in this chapter. See: www.ga.gov.au/scientific-topics/energy/resources/carbon-capture-and-storage-ccs/what-is-ccs.

[130]Low Emission Technology Australia, Submission 21, p. 3.

[131]Low Emission Technology Australia, Submission 21, p. 2.

[132]Woodside Energy, Submission 47, p. 3.

[133]Woodside Energy, Submission 47, pp. 3–4; Geoscience Australia, Submission 64, p. 6: APA Group, Submission 94, p. 4.

[134]Woodside Energy, Submission 47, p. 4.

[135]Geoscience Australia, Submission 64, p. 6, citations omitted.

[136]Woodside Energy, Submission 47, p. 4; Geoscience Australia, Submission 64, p. 6.

[137]Woodside Energy, Submission 47, p. 4.

[138]The University of Queensland, Submission 26, p. 2.

[139]See, for example: Australian Pipelines and Gas Association, Submission 42, pp. 1–2; Mr Steven Davies, Chief Executive Officer, Australian Pipeline and Gas Association, Committee Hansard, Canberra, 10February 2023, p. 59.

[140]See, for example: DFAT, Austrade and EFA, Submission 31, p. 11; Australian Pipeline and Gas Association, Submission 42, p.3; Farmers for Climate Action, Submission 16.1, p. 15.

[141]See, for example: Mr Steven Davies, Chief Executive Officer, Australian Pipeline and Gas Association, Committee Hansard, Canberra, 10 February 2023, pp. 58–59.

[142]Mr Steven Davies, Chief Executive Officer, Australian Pipeline and Gas Association, Committee Hansard, Canberra, 10 February 2023, p. 59.

[143]Australian Pipeline and Gas Association, Submission 42, p. 4; APA Group, Submission 94, pp. 4, 9.

[144]Dr Mark Hutchinson, Fortescue Future Industries, Committee Hansard, Perth, 17 March 2023, p. 14.

[145]See, for example: Beyond Zero Emissions, Submission 32, p. 8; Climate Council, Submission 36, p. 6; Grattan Institute, Submission 37, p. 7; Australian Conservation Foundation, Submission 50, p. 5; The Next Economy, Submission 51, p. 6; Transgrid, Submission 52, p. 4; Department of Climate Change, Energy, the Environment and Water, Submission 62, p.2; Rewiring Australia, Submission 118, p. 2.

[146]Grattan Institute, Submission 37, pp. 5–6; Climate Council of Australia, Submission 36.1, p. 21.

[147]Beyond Zero Emissions, Submission 32, p. 8; Australian Conservation Foundation, Submission 50, p. 5; Rewiring Australia, Submission 118, p. 2.

[148]Grattan Institute, Submission 37, p. 8.

[149]Rewiring Australia, Submission 115, p. 2.

[150]Climate Council, Submission 36, p. 7; Rewiring Australia, Submission 118, p. 2.

[151]See, for example: Dr Simon Bradshaw, Research Director, Projects, Climate Council, Committee Hansard, Macquarie Park, 6 April 2023, p. 12.

[152]Mr Eytan Lenko, Chief Executive Officer, Boundless Earth, Committee Hansard, Melbourne, 5 April 2023, p.18.

[153]Rewiring Australia, Submission 118, p. 2.

[154]Rewiring Australia, Submission 118, p. 2.

[155]Grattan Institute, Submission 37, p. 7.

[156]Mr Andrew Morris, Manager, Trade and Investment, Australian Trade and Investment Commission, Committee Hansard, Canberra, 30 November 2022, pp. 5–6.

[157]Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 3.

[158]Heavy Industry Low-carbon Transition Cooperative Research Centre, Submission 30, pp. 1–2.

[159]Centre for Energy Technology, Submission 33, p. 4.

[160]Climate Council, Submission 36, p. 6.

[161]WWF, ACTU, BCA and ACTU, Submission 67.1, p. 52; Dr Peter Mayfield, Executive Director, Environment, Energy and Resources, Commonwealth Scientific and Industrial Research Organisation, Proof Hansard, Canberra, 23 June 2023, p. 13.

[162]WWF, ACTU, BCA and ACTU, Submission 67.1, p. 52.

[163]Professor Ken Baldwin, Fellow, Australian Academy of Technological Sciences and Engineering, Committee Hansard, Canberra, 31 March 2023, p. 9.

[164]Grattan Institute, Submission 37, pp. 6–7.

[165]Dr Saul Griffith, Co-founder and Chief Scientist, Rewiring Australia, Committee Hansard, Macquarie Park, 6April 2023, p. 15.

[166]The term carbon capture and negative emissions technologies broadly includes those that capture CO2 from industrial process and remove CO2 from the atmosphere. These include technologies such as carbon capture and storage (CCS), carbon capture, utilisation and storage (CCUS) and direct air capture and storage (DACS). See: Geoscience Australia, Submission 64, p. 16.

[167]See, for example: Low Emission Technology Australia, Submission 21, pp. 1-2; Woodside Energy, Submission47, p. 4; Department of Climate Change, Energy, the Environment and Water, Submission 62, pp. 12–13; Geoscience Australia, Submission 64, p. 16; Sun Cable, Submission 71, p. 6; Australian Academy of Science and Australian Academy of Technical Sciences and Engineering, Submission 74, pp.2–3.

[168]Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 13; Geoscience Australia, Submission 64, p. 16.

[169]Geoscience Australia, Submission 62, p. 16.

[170]Geoscience Australia, Submission 64, p. 16.

[171]Geoscience Australia, Submission 64, p. 16.

[172]Dr Andrew Feitz, Director, Low Carbon Geoscience and Advice, Geoscience Australia, Committee Hansard, 10 February 2023, Canberra, p. 37.

[173]Mr Mark McCallum, Chief Executive Officer, Low Emission Technology Australia, Committee Hansard, Brisbane, 16 May 2023, p. 14.

[174]Heavy Industry Low-Carbon Transition CRC, Submission 30, pp. 1–2.

[175]Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 13.

[176]Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 13.

[177]Mr Mark McCallum, Chief Executive Officer, Low Emission Technology Australia, Committee Hansard, Brisbane, 16 May 2023, p. 19.

[178]Geoscience Australia, Submission 62, p. 16; Woodside Energy, Submission 47, p. 4; Department of Climate Change, Energy, the Environment and Water, Submission 62, p. 13; Mr David Lawrence, Head, Oil and Gas Division, Department of Industry, Sciences and Resources, Committee Hansard, Canberra, 10 February 2023, p. 19.

[179]Low Emission Technology Australia, Submission 21, p. 2; Woodside Energy, Submission 47, p. 4.

[180]Geoscience Australia, Submission 62, p. 16.

[181]Low Emission Technology Australia, Submission 21, p. 2.

[182]Geoscience Australia, Submission 62, p. 16.

[183]Recently announced or updated policies include the Critical Minerals Strategy, National Battery Strategy, Review of the National Hydrogen Strategy and the National Reconstruction Fund.