ARDR Rural and Resources

Linking Australian Science, Technology and Business
A publication by ELWINMEDIA providing independent information on current developments in the Australian Innovation System

Stored sunshine

December 2016 - A disused gold mine
in North Queensland is set to become the site of Austalia's first large-scale solar power plant delivering power on-demand around the clock.

Genex Power has started constructing a large-scale solar power plant at the disused Kidston Gold Mine in North Queensland. The location was chosen because of its high solar radiation and its proximity to the National Electricity Market (NEM). ...read full story

could provide an alternative to batteries in delivering on-demand energy generated from renewable sources such as wind and solar.

At present, the vast majority of existing large-scale energy storage comes from on-river hydroelectric dams, such as those in Tasmania and the Snowy Mountains. But there is limited potential for further large-scale hydroelectric systems in Australia...read full story

Back to a wooden future

November 2016 - Australia's forestry sector
is on fire again, while a new National Centre for Timber Durability and Design Life, launched at the University of the Sunshine Coast, will support the sustainable use of timber in buildings.

Australia's forestry industry had three consecutive years of growth on the back of a booming domestic construction industry, according to a new report from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)...read full story

Renewable money splash

April 2016 - The Australian Renewable
Energy Agency (ARENA) has awarded industry-researcher collaboration funding totalling $17 million to nine renewable energy projects.

According to ARENA's chief executive officer Ivor Frischknecht , the successful project are expected to deliver commercially viable solutions that will solve current industry challenges.read full story

Energetic news

March 2016 - For more than a decade,
Australia's energy intensity - that is the ammount of energy consumed to produce one unit of economic output - has been declining, as shown in the Energy Account, Australia, 2013-14 report released by the Australian Bureau of Statistics in March.

Over the period 2002-03 to 2013-14, energy intensity fell across our major industries by 9%, although the decrease levelled somewhat off in 2013-14...read full story

Volatile future

March 2016 - The 2015 Gas Market Report
released by the chief economist of the Department of Industry, Innovation and Science, canvasses a mixed outlook for future growth of Australian gas exports in uncertain times.

Prospects are good over the next five years. From then on, though, global demand for LNG is projected to slow, while there will still be an overhang of excess supply capacity.

Australia could benefit from growing demand of emerging economies in the Asian region: According to the International Energy Agency (IEA), global gas demand is set to increase by around 50% to 2040, with China doubling its total gas consumption by 2030, while India's demand for liquefied natural gas (LNG) will nearly double by 2019-20...read full story

Solar watershed?

January/February 2015 - Large-scale solar
projects are
still scarce in Australia, even as AGL Energy Limited and First Solar have completed Australia's two largest solar photovoltaic (PV) plants, the 102 megawatt (MW) Nyngan and 53 MW Broken Hill solar power plants in NSW.

Over the next 30 years, they will together produce approximately 360,000 megawatt hours (MWh) of renewable energy per year...read full story

Secure consultations

December 2015 - The Australian Government
has released draft regulations under the newly legislated Biosecurity Act 2015 for public comment (see also our story Secured security).

The Act received royal assent on 16 June 2015 but will commence with a 12 months delay on 16 June 2016, when it will replace the previous Quarantine Act from 1908.

In the lead up, the Australian Government is drafting subordinate legislation to the Act in a number of areas...read full story

Renewable joy

November/December 2015 - While still heavily
dominated by coal, Australia's power generation mix is rapidly changing, as shown by two recent reviews: the 2015 Electricity Generation Major Projects report released by the Australian chief economist, and the Australian Power Generation and Technology report released by the CO2CRC.

According to the chief economist's report, the share of coal in the fuel mix dropped to 61% in 2013-14, down from 79% a decade ago, with gas and renewables increasing their share to 22% and 15%, respectively.

Australia's demand for electricity has declined since 2010-11, but the chief scientist's report notes that this trend is unlikely to continue as Queensland's power hungry LNG plants will drive up maximum demand at least in the short term...read full story

Carbon blues

December 2015 - Australia is endowed
with possibly the largest resource of 'blue carbon' in the world - its coastal wetlands alone were estimated to contain in the order of 2.5 billion tonnes of carbon - and this presents opportunities for reducing CO2 in the atmosphere (reviewed in our previous story 'Sinking feelings'.

However, it is still uncertain how blue carbon could be included in national green house gas inventories.

To change this, the National Environmental Science Programme (NESP) is funding a project that aims to determine how much carbon could be stored in coastal ecosystems such as mangroves, seagrass beds and salt marshes...read full story

Club Medfly

24 November - Western Australia is trialling
a genetically modified Mediterranean fruit fly (Medfly) strain produced by UK based company Oxitec.

The males from this strain harbour a self-limiting gene which if passed on to female offspring will cause these to die before they can reproduce...read full story

Grainy days

November 2015 - The strength
of Australian agricultural research was at display in the recent announcement of projects selected under the International Wheat Yield Partnership (IWYP).
image

Australian institutions will participate in five of the successful projects, while three projects will be led by Australians, including Professor Barry Pogson from the Australian National University, Professor Richard Trethowan from the University of Sydney, and Professor Stuart Roy from the University of Adelaide...read full story

Cheap drill

October 2015 - The Deep Exploration
Technologies Cooperative Research Centre
(DET CRC) and the Australian mining technology provider Reflex have announced they will commercialise a new technology that automatically analyses rock materials at the drill site and within minutes of the drilling process.

Lab-at-Rig® was developed by the CRC partners CSIRO, Imdex, the owner of Reflex, and Olympus Scientific Solutions Americas...read full story

Resourceful nursery

28 October 2015 - The $20 million
Mining Equipment, Technology and Services (METS) Growth Centre, also called METS Ignite, has been launched at the Queensland University of Technology.

The centre is one of five centres to be established under the Australian Government's $225 million Industry Growth Centres initiative, of which each will target identified priority areas of strength in the Australian economy...read full story

Wet curiosity

28 October - In September last year
the Australian Government announced it would establish a new National Environmental Science Program (NESP) by amalgamating two previous programs - the National Environmental Research Program (NERP) and the Australian Climate Change Science Program (ACCSP).
image

The new program commenced in July 2015 and is currently funded with $142 million over six years.

Its primary objective is to support decision-makers through research delivered by six new research hubs, of which the NESP Marine Biodiversity Hub was officially launched in Hobart in October...read full story

Slippery cruise

September/October - The CSIRO
has
image
entered a partnership with Chevron to investigate the deepwater regions in the Great Australian Bight (GAB).

It is a multimillion dollar endeavour financed by Chevron with the aim to establish the Basin's geology and petroleum prospectivity, and to provide baseline data for future environmental assessments...read full story

Turning back the pests

26 October - The new Post Entry
Quarantine
(PEQ) facility, which officially opened in Mickleham, Victoria, will be a major element of Australia's biosecurity capacity.

According to Agriculture Minister Barnaby Joyce, the $379 million investment covering 144 hectares is "light years ahead of existing ageing facilities - it's more than five times the size of the largest facility in Australia"...read full story

Oily endeavours

6 October - The second round of the
2014 Offshore Petroleum Exploration Acreage Release provided four permits representing $297 million in new investment.

Three of the permits are located in the northwest shelf of Australia, a primary target of Australian petroleum exploration.

However, a fourth permit, awarded to Santos and partners, builds on previous related permits that aim to uncover a new petroleum province - the Great Australian Bight...read full story

Captivating investments

31 August 2015 - Australia's fossil
fuels sector struggles with changing market conditions amid globally growing environmental concerns.

But there is still hope that carbon capture and storage may come to rescue and hence the government is investing $25 million in a fund that will focus on projects advancing this option... read full story

Black launch

2 September - The launch of
Australia's largest coal mine,
Whitehaven's $767 million Maules Creek Coal Mine in NSW's north-west, signals that Australia's love affair with coal is not yet over, despite depressed coal prices on world markets...read full story

Food on the white board

4 July 2015 - A number of factors can be
attributed to Australia's ongoing success in agriculture, including past policy reforms that made decision-making in the sector more responsive to market forces.

But, as pointed out in a 2014 ABARES research paper, these have largely run their course.

"Instead, future opportunities for government to promote agricultural productivity growth may come from reducing regulatory burdens, improving the efficiency of the rural research, development and extension system, and building human capital through improving labour availability and skills."

Many of these issues find attention in the now released Agricultural Competitiveness White Paper...read the full story

Secured security

May 2015 - The Biosecurity Bill 2014 along
with supporting legislation was passed by the Parliament on 14 May 2015, but will come only into effect 12 months after receiving royal assent.

The new legislation replaces the Quarantine Act 1908 and its numerous amendments.

One of the more contentious issues surrounding the changes related to the position of the Inspector-General of Biosecurity, which is now enshrined in statute. The opposition had previously accused the Government of wanting to abolish the position.

But beyond this issue, the new legislation, first proposed in 2012, presents a substantial overhaul of previous arrangements. According to Agriculture Minister Barnaby Joyce, it will reduce compliance costs relating to supply chain and logistics, cargo, ports, customs brokers, importers, peak industry bodies, petroleum/exploration stakeholders and primary producers by around $6.9 million.

More information: www.agriculture.gov.au

Unwanted boat migrants

April 2015 - The Australian Government has
released a discussion paper on a review of invasive marine species, which follows on from an issues paper released in October last year.
image

The review, to which the government has allocated $5 million over four years, was an election commitment to improve national marine pest biosecurity arrangements.

The issues detailed in the discussion paper include:

Closing date for submissions is 5 May 2015.

More information: www.agriculture.gov.au
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Resourceful nursery

28 October 2015 - The $20 million Mining Equipment, Technology and Services (METS) Growth Centre, also called METS Ignite, has been launched at the Queensland University of Technology.

The centre is one of five centres to be established under the Australian Government's $225 million Industry Growth Centres initiative, of which each will target identified priority areas of strength in the Australian economy.

It is set up as a not-for-profit company (METS Growth Centre Lt), and will be led by Elizabeth Lewis-Gray (chair) and Daniel Sullivan (CEO).

Among the centre's main activities will be the development of a 10 year strategic plan for the METS sector focussing on the following four key objectives:

  • reducing regulatory burden;
  • increasing collaboration and commercialisation;
  • improving international engagement capabilities, and
  • enhancing management and workforce skills.
More information: www.business.gov.au
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According to the Rural Industries Research and Development Corporation (RIRDC) and the CSIRO, the future of agriculture will be determined by five megatrends:
    (1) population growth driven demand for food;
    (2) the emergence of a new middle class increasing food consumption;
    (3) more informed customers demanding that food production adheres to certain standards;
    (4) technological advances in production and transport; and
    (5) globalisation and climate change.

Food on the white board

4 July 2015 - A number of factors can be attributed to Australia's ongoing success in agriculture, including past policy reforms that made decision-making in the sector more responsive to market forces.

But, as pointed out in a 2014 ABARES research paper, these have largely run their course.

"Instead, future opportunities for government to promote agricultural productivity growth may come from reducing regulatory burdens, improving the efficiency of the rural research, development and extension system, and building human capital through improving labour availability and skills."

Many of these issues find attention in the now released Agricultural Competitiveness White Paper.

To reduce red tape the government intends to establish Productivity Commission inquiries into the regulatory cost burdens placed on agricultural businesses. It also will undertake changes to the regulation of pesticides and veterinary products, and points out that a process for reducing red tape is already underway: the current One-Stop Shop regulatory reform of environmental approvals, which seeks to streamline assessments across jurisdications.

For greater efficiency of rural research the government will develop clearer and farmer-oriented priorities for its rural RD & E funding. And it will invest another $100 million into the Rural R&D for Profit Programme. Established with $100 million in 2014, the new funding will extend the program by another three years to 2021-22 [it may be noted though, that there were also significant cuts to regional Cooperate Research Centres (CRCs), and while a $75 million Developing Northern Australia CRC was promised, the funding is yet to eventuate and its focus would only partially target primary industries].

Labour availability and skills find also some attention, in more general terms through the $664.1 million Industry Skills Fund, and more targeted through changes to visa programs, such as the Seasonal Worker Programme and the 457 Working Holiday visas, providing easier access to foreign skills.

Foremost, though, the White Paper sends a message to Australia's regional communities, in which most of the 115,000 Australian farming businesses are run: not only are you not forgotten but we expect you to pick up part of the tab that is left as Australia's mining fortunes wane.

Pillar with heritage value?

Food production is traditionally an area of strength for Australia. We have a stable economic and political system, open and competitive markets, good connections into global markets, world-class environmental practices, strong food safety systems and an abundance of land spanning tropical, subtropical and temperate farming zones.

However, the sector's relative importance for the economy has declined over the past few decades. We are now predominately a services economy. Agriculture, while producing goods worth $51 billion in 2013-14, contributes only around 2% to gross domestic product (GDP) and employs only around 2% of the workforce.

Nothwithstanding its relative decline, the Australian Government has marked the sector out as one of the five pillars of our economy.

Agriculture still underpins a significant part of the nation's manufacturing industry, and it continues to be a major export industry, accounting for more than 10% of the worth of Australia's exported goods.

Around 65% of farm production is exported, with China ($9 billion), Japan (($3.5 billion) and the US ($3 billion) being the top destinations. And export of Australian farm produce is likely to increase.

It is estimated that as global population could exceed nine billion by 2050, food consumption will increase by around 77%. In addition, especially in Asia the increasingly wealthy middle class are likely to opt for premium agricultural products. These developments will present opportunities for food producers, also in light of recent free trade agreements with China, Japan and the Republic of Korea (and one with India in the making).

In the White Paper, the government also commits $30.8 million over four years to the removal of technical trade barriers in key agricultural markets.

Agricultural businesses will generally benefit from the $42 billion Infrastructure Investment Program directed towards roads and rail. In addition, the White Paper details other major infrastructure investments that will directly or indirectly support the sector. Thus, the government commits $500 million to the establishment of a National Water Infrastructure Development Fund, which is to provide the planning and construction of new and improved water infrastructure (it includes a previously announced $200 million component targeting the development of Northern Australia).

Dammed to dam

The White Paper emphasises the need to increase Australia's water storage capacity, mainly through more dams and groundwater storage.

High potential projects include the Ord Stage 3 irrigation scheme in Western Australia and the Northern Territory, Pilbara groundwater development options in Western Australia, Rookwood and Eden Bann weir projects in Queensland, Nathan Dam in Queensland, modification to the Wellington Dam in Western Australia, and development of the Emu Swamp Dam in Queensland.

The controversial Queensland Nathan Dam and Pipelines project on the Dawson River (shown in image) is an example for one of the dams considered by the government. Proposed by SunWater Ltd it is yet to receive environmental approval. The dam would have a capacity of up to 888,000 megalitres and supply mining, power and agricultural businesses in the Surat Coal Basin and the Dawson-Callide sub-region of Queensland. It was first suggested over 90 years ago, but held up by various environmental concerns, including the critically endangered boggomoss snail. But the project received renewed interest because of the water needs of new mines created in Central Queensland.

According to ABS data, agriculture, mainly through irrigated agriculture, accounted for 65% of all water consumed in Australia in 2012-13. The amount of water needed for agriculture is likely to increase, also with the planned expansion of Australia's agriculture into Northern Australia. At the same time, the government's own estimates project that due to an increase in Australia's population, water storage capacity per person will fall from currently 4 megalitre to 3.3 megalitre by 2030, and even further in the years after. This is assuming no new storage, such as through dams, is created.

The critical importance of water availability for Australia was highlighted by the $10 billion National Plan for Water Security in 2007, and the 2012 Murray-Darling Basin Plan (MDB Plan), the latter also reflecting the difficult task of supporting farming communities while ensuring sustainable environmental outcomes.

The government has committed almost $13 billion to projects supporting the MDB Plan, including with investments in better infrastructure, irrigation efficiency an improved irrigation water delivery systems. But it also wants to reduce the regulatory burden placed on irrigators, including by extending the period for the MDB Plan and the Water Act reviews to 2026 and 2024, respectively. In this it follows recommendation made by an independent review of the Water Act 2007, which presented its report at the end of last year. The review also recommended to provide the Commonwealth Environmental Water Holder with greater flexibility in using the revenue from water trades for purposes other than water buy backs.

Then there are $60 million in additional funding for the Mobile Black Spot Program, which previously was funded with $100 million to improve mobile coverage across regional and remote communities.

Additional infrastructure projects were recently announced as part of the White Paper on Developing Northern Australia: the $5 billion Northern Australia Infrastructure Facility, the $100 million Northern Australia Beef Roads Fund, and a $600 million initiative targeting key roads in northern Australia.

The vast majority of Australian farm businesses are smaller enterprises, with 97% having a turnover of less than 2 million. Often family run, these businesses will be heartened by the support they receive in the White Paper, which lists improving the business environment for family farm businesses as one of the government's five key priorities.

Of the $4 billion committed to initiatives, $3 billion are tied to a drought relief package providing farmers with $250 million a year in drought concessional loans for 11 years. Other drought related initiatives include $86 million for a scheme that allows businesses an immediate tax deduction of new water facilities and depreciation of capital expenditure. A further $29.9 million over four years will be provided for farm insurance advice and risk management.

There is also financial help directed at supporting the operations of farms, including $56 million for a more simplified accelerated depreciation regime for fencing.

And specifically targeting smaller enterprises, a two-year pilot program will facilitate modern business skills, including how to engage through the supply chain and attract investment.

Changes to the operating environment are to ease the strain posed by the volatile conditions in which food is produced in Australia. Especially smaller enterprises will benefit from the doubling of the Farm Management Deposits (FMDs) from $400,000 to $800,000, and that these can now be used as a loan offset.

The government is yet to respond to the Competition Policy Review report, and is expected to then also deal with issues such as the misuse of market powers by larger players in the food supply chain. Meanwhile, some help will come from a new commissioner for the ACCC who will be appointed to deal with arising diputes.

But while numerous initiatives target the main stated objective of the White Paper, that is to strengthen the overall competitiveness and resilience of our agricultural businesses, there is barely a mention of climate change, widely seen as a main threat to farming viability. [In fact, it is first mentioned on page 78 as an afterthought to the challenges associated with climate variability, and then receives attention on page 109 under 'Adaptation to climate change'. By contrast, the removal of the 'carbon tax' made it onto page 1].

Foreign investment has also remained a controversial issue, despite the Australian Bureau of Statistics showing that 99% of agricultural businesses in Australia are fully Australian owned. The government says it has a generally positive attitude towards foreign investment but is committed to greater transparency, such as through the announced new register for foreign ownership of agricultural land and by reducing the screeing threshold from $252 million to $15 million.

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Black launch


2 September - The launch of Australia's largest coal mine, Whitehaven's $767 million Maules Creek Coal Mine in NSW's north-west, signals that Australia's love affair with coal is not yet over, despite depressed coal prices on world markets.
Screenshots taken from the 'Black Hole' feature film

At the launch, Industry Minister Ian Macfarlane was keen to refer to forecasts by the International Energy Agency (IEA) that in the coming decades a decline in demand in OECD countries will be more than offset by increasing demands in the developing world, notably India.

Whitehaven believes that its project will deliver one of the lowest cost open cut mines in Australia, producing high quality thermal coal suitable for electricity production and metallurgical coals for steel production.

There are obvious benefits for the state, such as royalty income and employment opportunities

But the project's likely impact on the Leard State Forest has galvanised community resistance, which is set to continue and has been documented in the feature film 'Black Hole'.

The film is currently shown in Australia in selected locations.

More information: www.whitehavencoal.com
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Captivating investments


31 August 2015 - Australia's fossil fuels sector struggles with changing market conditions amid globally growing environmental concerns.

But there is still hope that carbon capture and storage may come to rescue and hence the government is investing $25 million in a fund that will focus on projects advancing this option.

Industry and Science Minister Ian Macfarlane said in a government statement that "...investment in research for carbon capture and storage technologies will be important as the coal and gas industries continue to develop both for our domestic use and for export."

Research targeted by the Carbon Capture and Storage Research Development and Demonstration Fund, which is now open for applications, will include subsurface knowledge and mapping, transport infrastructure, whole of chain integration and development of international collaboration and partnerships.

More information: www/business.gov.au
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Oily endeavours


6 October - The second round of the 2014 Offshore Petroleum Exploration Acreage Release provided four permits representing $297 million in new investment.

Three of the permits are located in the northwest shelf of Australia, a primary target of Australian petroleum exploration. However, a fourth permit, awarded to Santos and partners, builds on previous related permits that aim to uncover a new petroleum province - the Great Australian Bight.

This acreage is located on the Western Australian side of the Bight (see image), through which Santos now joins efforts on the South Australian side of the Bight, where Murphy Australia, BP Developments Australia and Chevron Australia are in the race of exploring a potentially new petroleum province.

With the WA-517-P permit, Santos joins the GAB exploration race.

In total, the 2014 Acreage Release has resulted in 10 new exploration permits, with possible investment of $473.6 million over the six-year life of the permits.

The ten exploration permits awarded in the 2014 Acreage Release include:
    Round One
  • AC/P59 (released as AC14-2), located about 750 kilometre (km) west of Darwin was awarded to Murphy Australia Oil Pty Ltd. and Mitsui E&P Australia Pty Ltd.
  • WA-510-P (released as W14-15), located approximately 7 km northwest of Barrow Island and 100 km (62 mi) north of Onslow, was awarded to Apache Northwest Pty Ltd.
  • WA-513-P (released as W14-4) located in the Caswell sub-basin 200-270 km from the northwest coast of Western Australia, was awarded to Santos Offshore Pty Ltd. and Inpex Browse E&P Pty Ltd.
  • WA-514-P (released as W14-5), located in the Caswell sub-basin, 200-270 km from the northwest coast of Western Australia was awarded to Santos Offshore Pty Ltd and Inpex Browse E&P Pty Ltd.
  • WA-515-P (released as W14-7), located on the Rankin Trend within the Dampier sub-basin around 140 km northwest of Dampier, was awarded to Tap Oil Ltd.
  • WA-516-P (released as W14-16), located close to the western edge of the Barrow sub-basin approximately 100 km north-northeast of Onslow, was awarded to Tap Oil Ltd.
    Round Two
  • WA-517-P (released as W14-19), located about 400 km east of Esperance, was awarded to Santos Offshore Pty Ltd. and JX Nippon Oil and Gas Exploration (Australia) Pty Ltd.
  • WA-518-P (released as W14-10), located around 250 km offshore of Onslow, Western Australia has been awarded to Hess Australia (Karratha) Pty Ltd.
  • WA-519-P (released as W14-12), located approximately 200 km offshore of Onslow, Western Australia has been awarded to Hess Australia (Pilbara) Pty Ltd.
  • WA-520-P (released as W14-17), located about 100 km north of Exmouth, Western Australia has been awarded to Finder No 10 Pty Ltd.

...as investments decline

The permits were awarded against a backdrop of declining petroleum exploration, both onshore and offshore: According to the latest Resources and Energy Quarterly Report by the Office of the Chief Economist, expenditure in petroleum exploration decreased by 21% to $3.8 billion in 2014-2015.

Expenditure in petroleum exploration over the past decade. Click to explore interactive infographic

The latest published ABS statistics for the June 2015 quarter show the extend of the downturn. The agency's trend estimate a 9.0% drop for onshore petroleum exploration expenditure was, down to $288 million (seasonally adjusted down 17.% to $261 million), while for offshore exploration there was an estimated drop of 13.7% to $538.1 million (seasonally adjusted investments fell 37.3% to $441.1 million).

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Wet curiosity

28 October - In September last year the Australian Government announced it would establish a new National Environmental Science Program (NESP) by amalgamating two previous programs - the National Environmental Research Program (NERP) and the Australian Climate Change Science Program (ACCSP).

The new program commenced in July 2015 and is currently funded with $142 million over six years.

Its primary objective is to support decision-makers through research delivered by six new competitively selected research hubs (see insert).

One of these, the NESP Marine Biodiversity Hub, was officially launched in Hobart in October.

image

The new $23.88 million initiative follows on from two previous Marine Research hubs, and will support more than 100 scientists from 10 partner organisations*. And as its predecessors it will be led by Professor Nic Bax and hosted by the University of Tasmania.

But while the previous hubs focussed on Australia's Commonwealth Marine Reserve network, and supported bioregional planning and management with new survey and monitoring methods, the new hub will concentrate its resources primarily on projects targeting coastal issues and listed species.

This will include research of how the ocean is responding to pressures such as climate change and the use of marine resources from offshore shipping to coastal pollution.

The six NESP research hubs are:
  • The Clean Air and Urban Landscapes Hub supports environmental quality in urban areas with funding of $8.88 million through the University of Melbourne. It is led by Professor Peter Rayner.
  • The Earth Systems and Climate Change Hub addresses the drivers of Australia s climate with funding of $23.9 million through the CSIRO. It is led by Dr Helen Cleugh.
  • The Marine Biodiversity Hub is researching Australian oceans and marine environments, including temperate coastal water quality and marine species, with funding of $23.88 million through the University of Tasmania. It is led by Professor Nic Bax.
  • The Northern Australia Environmental Resources Hub supports the sustainable development of our northern landscapes with funding of $23.88 million through Charles Darwin University. It is led by Professor Michael Douglas.
More information: ; *the ten partner organisations are: Australian Institute of Marine Science, Charles Darwin University, CSIRO, Geoscience Australia, Integrated Marine Observing System, Museum Victoria, New South Wales Department of Primary Industries, New South Wales Office of Environment and Heritage, University of Tasmania, University of Western Australia
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Turning back the pests

26 October - The new Post Entry Quarantine (PEQ) facility, which officially opened in Mickleham, Victoria, will be a major element of Australia's biosecurity capacity.

According to Agriculture Minister Barnaby Joyce, the $379 million investment covering 144 hectares is "light years ahead of existing ageing facilities - it's more than five times the size of the largest facility in Australia".

PEQ plant compound
image:PEQ

Australia's $52 billion agricultural industry contributes exports forecast to be worth $43.4 billion in 2015-16, but this relies on an effective biosecurity system.

Analysis by ABARES found that a single outbreak of foot and mouth disease could cost us collectively around $50 billion over ten years, including through spill-over effects on local communities and associated industries, such as abbattoirs and transport industries.

With the completion of the two stage construction of the PEQ in 2018 Australia's entire existing government-operated animal and plant services will consolidate into a single site.

This includes the catering for imported birds (pigeons), fertile hatching eggs of poultry, bees, cats, dogs, horses, ruminants (mainly alpacas) and plants.

At present, the PEQ is ready for bees, while capacity for the quarantine of some animals and plants will be ready later this year.

More information: www.postentryquarantine.govspace.gov.au/
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Slippery cruise

September/October - The CSIRO has entered a partnership with Chevron to investigate the deepwater regions in the Great Australian Bight (GAB).

It is a multimillion dollar endeavour financed by Chevron with the aim to establish the Basin's geology and petroleum prospectivity, and to provide baseline data for future environmental assessments.

The Great Australian Bight Deepwater Marine Program will be led by CSIRO, but will also involve a number of other academic and Government research agencies, such as Geoscience Australia and the University of Adelaide.

It is not the first time that CSIRO partners with an exploration company to research the GAB. Thus in 2013, the agency commenced a $20 million four-year project with BP to investigate the unique marine environment and potential marine resources.

However, the project with Chevron will be the first commercial partnership making use of the unique capabilities of the marine research vessel RV Investigator.

The GAB is one of Australia's still relatively unspoiled treasures. Its line of up to 60 metres high sea cliffs is the longest in the world and they face an open bay that is home to an extremely diverse array of marine species. Many of these are endangered or face extinction.

But recent interest in the region is based on its potential to become a new hydrocarbon province in Australia. Chevron is just one of several exploration companies - including BP, Murphy Australia and Santos - that have a stake in the GAB's assumed riches of oil and gas.

Exploration costs and risk are high in the region, and while limited studies have indicated the presence of hydrocarbons, there are still large gaps in the knowledge about the bay's ecology and geology.

In late October, the GAB Deepwater Program commenced one of the longest and deepest science surveys in Australian waters utilising equipment such as autonomous underwater vehicles to map the GAB up to 4500 m below the sea surface.

Focussing on the Ceduna Basin, an area covering around 126,000 square kilometres, CSIRO scientists are collecting samples from volcanic seamounts, sedimentary rock outcrops and hydrocarbon seeps. These will then be used to determine the timing, chemistry and mechanisms that led to the formation of the bay's seafloor.

The project will also investigate biological samples to study the region's ecology, with the potential for the discovery of new marine species.

Sea water tests will be undertaken to analyse nutrient levels and ocean temperatures at different depths, and high resolution images captured to describe the fish species, habitats and biodiversity within the region.

CSIRO has a long history of working together with industry partners. But its leadership still saw it necessary to further explain its collaboration in projects that primarily aim to reduce the costs and risks for companies exploring the GAB's resource potential.

"It is working with industry partners  as we have done since 1926  that really ensures these advances are implemented to the benefit of all Australians," it says in a statement.

"As is the case with science voyages on Investigator, all data collected will be made publically available within the year for the benefit of academic institutions, environmental groups and the general community. We will analyse this data and provide trusted advice to industry and government on what we discover and learn. Other institutes will be free to do the same."

More information: www.csiro.au
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Grainy days

November 2015 - The strength of Australian agricultural research was at display in the recent announcement of projects selected under the International Wheat Yield Partnership (IWYP).

Australian institutions will participate in five of the successful projects, while three projects will be led by Australians, including Professor Barry Pogson from the Australian National University, Professor Richard Trethowan from the University of Sydney, and Professor Stuart Roy from the University of Adelaide.

image

The Australian involvement will be funded with $10 million from the Grains Research & Development Corporation.

The IWYP initiative has its roots in a commitment made by agriculture ministers from the G20 nations in 2011. The ministers called for a coordinated international research response to the increasing global demands for wheat.

This led to the Wheat Initiative, which was created to provide a framework supporting coordinated wheat research at the international level.

Under this framework, a group of international partners* initiated the IWYP partnership as an independent research activity that is bringing together research funders, international aid agencies, foundations, companies and major wheat research organisations.

Its overarching aim is to fund coordinated research that will increase wheat yields by 50% by 2034.

Over the next five years, IWYP expects that its investments in wheat research will total US$100 million.

More information: www.grdc.com.au; *IWYP founding partners include UK's Biotechnology and Biological Sciences Research Council (BBSRC), the International Maize and Wheat Improvement Center (CIMMYT), the Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food of Mexico (SAGARPA) and the United States Agency for International Development (USAID)
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Cheap drill

October 2015 - The Deep Exploration Technologies Cooperative Research Centre (DET CRC) and the Australian mining technology provider Reflex have announced they will commercialise a new technology that automatically analyses rock materials at the drill site and within minutes of the drilling process.

Lab-at-Rig® was developed by the CRC partners CSIRO, Imdex, the owner of Reflex, and Olympus Scientific Solutions Americas.

Lab-at-Rig® technology analyses on-site the solid matter in fluids (shown here) that come to the surface during drilling.

It is part of a series of products offered by Reflex that aim to improve the current costly and time-consuming process of drilling and exploring and operating mines.

According to the CSIRO, it can take up to three months and often millions of dollars to set up the drill sites, drill, extract, sample and log the drill cores, send to a lab for analysis, enter data into a database and finally provide information back to the company.

Lab-at-Rig® offers a one-hour cycle for the whole process, which would allow mineral explorers to almost instantly decide whether they should terminate or extend drill holes, try elsewhere or stop a project.

The system includes a sample preparation unit that collects solids which then are scanned using Olympus X-ray fluorescence and X-ray diffraction sensors. The thus obtained data on sample chemistry and mineralogy are then uploaded to REFLEX's cloud-based platform REFLEXHUB IQ, which allows miners to interrogate real-time drillhole assay data from anywhere in the world.

The development of a next generation Lab-at-Rig technology is also on the way, through a $11 million collaboration between the CSIRO, Imdex, Olympus, and Adelaide and Curtin universities. The DET CRC Lab-at-Rig Futures Project will include new sensor technologies, improved data analysis and processing for decision making, and development of the system for new applications and drilling platforms

More information: www.csiro.au
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Club Medfly

24 November - Western Australia is trialling a genetically modified Mediterranean fruit fly (Medfly) strain produced by UK based company Oxitec.

The males from this strain harbour a self-limiting gene which if passed on to female offspring will cause these to die before they can reproduce.

The Medfly is a pest of cultivated fruits and fruiting vegetables causing millions of dollars in lost production each year.

image

With the new technology, Western Australia hopes to have a cheaper and more effective pest control at its disposal than the current method, which requires that male flies sterilised through radiation are introduced into wild populations over a series of releases.

The Sterile Insect Technique (SIT) substantially weakens the vitality of male flies, while the purpose-bred male fruit flies are expected to be as vigorous as wild males.

The researchers from the Western Australian Department of Agriculture and Food will test this under glasshouse conditions, and they will also determine whether the 'Oxitec' strain can be reared successfully and cost-effectively in a controlled laboratory environment.

In an expert reaction provided by the Australian Science Media Centre, Professor Tony Clarke, QUT,* pointed out that as the flies are genetically modified it greatly limits their use under current legislation.

"Importantly, the lethal gene must be 'switched off' in the factory, otherwise the flies could not be reared.

"This requires the addition of tetracycline hydrochloride to the fly diet.

"Tetracycline is an antibiotic and how the spent, tetracycline-dosed larval diet from a fruit fly factory (which may run to several tonnes per week) will be properly disposed of will need to be addressed.".

However, according to Oxitec's Dr Neil Morrison, the amount of tetracycline (tet) antidote waste would be insignificant compared to usage for pets, farming and human therapeutic use. And he said that there there were numerous ways medfly feed could be treated to remove tet before disposal as it rapidly degrades in the presence of UV light and heat (click here for full comments).

More information: www.agric.wa.gov.au; *Professor Tony Clarke is professor and chair of Fruit Fly Biology and Management at QUT and the Plant Biosecurity Cooperative Research Centre (PBCRC)
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Carbon blues

December 2015 - Australia is endowed with possibly the largest resource of 'blue carbon' in the world - its coastal wetlands alone were estimated to contain in the order of 2.5 billion tonnes of carbon - and this presents opportunities for reducing CO2 in the atmosphere (reviewed in our previous story 'Sinking feelings'.

However, it is still uncertain how blue carbon could be included in national green house gas inventories.

Kelp forest; image: NOAA

To change this, the National Environmental Science Programme (NESP) is funding a project that aims to determine how much carbon could be stored in coastal ecosystems such as mangroves, seagrass beds and salt marshes.

Sinking feelings

November 2013 - Australian research highlights the ecological importance and potential financial value of coastal carbon sinks.

It is widely appreciated that ecosystems on land, notably forests, are important sinks for atmospheric carbon. According to estimates reported by the IPCC in 2007, deforestation and land-use change accounts for 8-20% of anthropogenic greenhouse-gas emissions.

However, much less recognised is the amount of organic carbon stored in our oceans. So called 'blue carbon' initiatives try to change this. It includes the Blue Carbon research initiative by the GRID-ARENDAL centre, which supports the United Nations Environment Programme (see also our 2011 dossier 'Ocean Views')...read full story

The project will be run by NESP's $23.9 million Earth Systems and Climate Change Hub, with the National Centre for Coasts and Climate at the University of Melbourne leading the research.

Internationally, the Blue Carbon Initiative has been working towards mitigating climate change through the restoration and sustainable use of coastal and marine ecosystems.

Its research has highlighted that despite the enormous benefits and services coastal blue carbon ecosystems provide, including their function in sequestering carbon, they are also among the most threatened ecosystems on Earth.

It is estimated that if current trends continue, 30-40% of tidal marshes and seagrasses, and nearly all unprotected mangroves could be lost over the next 100 years - and then become a significant source of atmospheric CO2.

Grid_Arendal's blue carbon counter shows the amount of carbon sequestered in coastal ecosystems since the start of COP21 (click figure to access the counter).

The importance of these ecosystems was also highlighted at the COP21 climate summit in Paris, including through a Blue Carbon Counter displayed by Grid-Arendal, a centre supporting the United Nations Environment Programme.

The Australian Government has clearly taking note of the blue carbon potential. Thus, at the COP21, it did co-organise a workshop discussing the issue, and Environment Minister Greg Hunt has called for a global blue carbon partnership. According to the minister, this partnership will establish a collaborative network of governments, non-profit organisations, intergovernmental agencies, and scientists.

Its role will be to "increase understanding of, and accelerate action on the important role of coastal blue carbon ecosystems in climate change action".

Specifically, the partnership will target:

  • the measurement of coastal blue carbon ecosystems and their capacity to absorb carbon emissions;
  • the development of innovative approaches to protect and enhance coastal blue carbon ecosystems;
  • science and research to support blue carbon measurement and management;
  • capacity building and knowledge transfer across countries; and
  • the mobilization of funding to support coastal blue carbon ecosystem management from the private sector and mechanisms such as the Green Climate Fund.

Minister Hunt has also announced that the Government's Emissions Reduction Fund will be used to create incentives for blue carbon management.

More information: www.environment.gov.au
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Renewable joy

November/December 2015 - While still heavily dominated by coal, Australia's power generation mix is rapidly changing, as shown by two recent reviews: the 2015 Electricity Generation Major Projects report released by the Australian chief economist, and the Australian Power Generation and Technology report released by the CO2CRC.

According to the chief economist's report, the share of coal in the fuel mix dropped to 61% in 2013-14, down from 79% a decade ago, with gas and renewables increasing their share to 22% and 15%, respectively.

Australia's demand for electricity has declined since 2010-11, but the chief scientist's report notes that this trend is unlikely to continue as Queensland's power hungry LNG plants will drive up maximum demand at least in the short term.

Click image to explore

However, an oversupplied electricity market has made it difficult for industry to make investment decisions on new fossil fuel plants, while renewable energy projects continue to benefit from government incentive schemes.

Consequently, renewables account for all of the estimated $5.5 billion the industry has now committed to invest in new projects. With a planned capacity of 3.7 gigawatts, these 18 projects could add around 6% to the existing installed capacity in Australia.

...renewables account for all of the estimated $5.5 billion the industry has now committed to invest in new projects.

With a further 85 major projects at the feasibility stage, another $30 billion in estimated capital expenditure are in the investment pipeline.

Again, almost 90% ($26 billion) of this potential investment would stem from 74 renewable projects.

Adding to this are three renewable projects that were recently completed (since October 2014).

The stages of investment pipeline; image sourced from report

Taken together, there are 446 projects at feasibility to committed stage of development that could provide 24 gigawatts in additional power generation capacity. Of this, 84% would be from renewable projects.

Renewables vs. fossil fuels - the cost race is on

The CO2CRC's Australian Power Generation and Technology Report forecasts that the effects of this learning-by-doing, which is reflected by developments around the world, will drive down the costs for renewables.

As a result, in Australia wind and solar could become cost competitive with fossil fuels by 2030.

... the effects of this learning-by-doing, which is reflected by developments around the world, will drive down the costs for renewables.

The CO2CRC report, which had input from more than 40 organisations, assessed the cost of a broad range of technologies over their life cycle, including coal, natural gas, solar, wind and nuclear.

It also determined the costs associated with supporting technologies, such as carbon capture and storage options that could either be retrofitted to existing power plants or be used as part of new projects.

Assessed were also emerging options of storing renewable power, including battery based systems, renewable energy converted into pumped hydro energy, and the thermal storage of solar energy.

...wind and solar could become cost competitive with fossil fuels by 2030.

To compare the cost of power generation technologies, the report determined their Levelised Cost of Electricity (LCOE), which takes into account current and projected capital costs, operation and maintenance costs, and detailed performance data.

LCOEs can be used to compare technologies with very different cost profiles, but it is worthwhile noting that the measure has limitations. Thus, it does not capture how these technologies contribute to the system, including their capacity to provide baseload power or their relative flexibility in response to changing power demands. LCOEs also may not adequately account for costs associated with integrating intermittent renewables into the electricty system, a focus of current research by the CSIRO.

According to the report, traditional baseload technologies provide at present the most cost-effective energy options, with new build natural gas combined cycle and supercritical pulverised coal plants producing the cheapest electricity - at a levelised cost of around $80 per megawatt hour.

Electricity technology comparisons; click image to enlarge

Wind power, the lowest cost renewable low-emissions technology, has LCOEs averaging around $100 per megawatt hour (MWh), and the report's analysis shows that for current wind technology to be cost-competitive with black supercritical coal it would require a carbon price environment of at least $30 per tonne of CO2-e.

However, forward looking to 2030, the LCOEs of all investigated power technologies are forecast to fall, but especially those of less mature technologies.

For example, the global wind industry is trending towards larger turbines with taller towers and larger blades, and this is expected to achieve greater economies of scale and better use of available wind resources.

For more mature technologies the scope of such improvements is limited, and the report forecasts that this will lead to a convergance in LCOEs across most technologies over time.

As a result, by 2030 wind and large-scale solar options will become cost-competitive with established fossil fuels based technologies, with LCOEs set to then range between $50 and $100 per MWh.

The report also assessed nuclear energy, the use of which remains a contentious issue in Australia.

While not a renewable energy, nuclear electricty generation is considered to be emissions free, although this ignores that extracting the resource is highly emissions intensive.

Wind turbine growth since the 1980s

However, it provides baseload power, a major advantage over conventional solar and wind options.

The report estimates the levelised cost of nuclear power generation at between $150 and $200 per MWh, which is comparable to the current LCOE of commercial solar technologies.

...by 2030 the LCOEs of all assessed solar and wind technologies ... will be significantly lower than is forecast for nuclear.

But this depends on Australia developing a mature nuclear industry, and even then the report forecasts that by 2030 the LCOEs of all assessed solar and wind technologies, including solar thermal energy combined with energy storage for on-demand electricity supply, will be significantly lower than is forecast for nuclear.

Another option for a low-emissions alternative to coal and gas is the capture and storage of carbon emitted from coal fired power plants.

The technology has been successfully demonstrated with the Callide Oxyfuel Project, to date Australia's largest low-emissions coal plant demonstration.

The project achieved almost complete capture of CO2, as well as sulphur dioxide, nitrogen oxides, trace metals and particulates. However, post-combustion carbon capture technology, which can be either retrofitted or used as part of new plants, will substantially increase the levelised costs of fossil fuels power generation, and by 2030 range between around $100 and $200 per MWh.

It will also require the establishment of transport and storage networks involving pipelines, booster pumps, wells, storage site facilities and storage site monitoring. The costs associated with transport would then vary substantially depending on factors such as the distance of a power plant from the storage site.

Other options may become commercially viable over time - or their potential for Australia has already been mostly realised.

Around 45% of Australia's renewable power is from hydro-energy resources with more than 100 hydroelectric power stations operating in Australia. The nation's economically feasible hydro energy resource has already been harnessed.

Therefore, the CO2CRC report considers it unlikely that new large-scale hydropower projects will be deployed in Australia. Indeed, while the chief economist's major projects report lists four Hydro projects at feasibility or committed stage, these together would have a capacity of only 407 megawatt.

Other energy options include the use of the oceans, with Carnegie's Perth Wave Energy Project the most prominent example in Australia. But for wave energy projects the transition from concept to commercialisation remains slow and expensive. Even less developed are tidal and ocean current technologies.

Australia's geothermal energy resource potential has been frequently pointed out, although it is largely limited to hot sedimentary aquifers and enhanced 'hot rocks' geothermal systems, which are still in the pre-commercial stage of development.

The report notes that assessing technological advances in this area is difficult because of the uniqueness of each geothermal resource's local geology.

To date, the only commercially operating power plant in Australia is at Birdsville in Queensland, which uses hot water from the town bore and has a electricity generation capacity of 80 kilowatt.

Still, what the report demonstrates is that Australia has a plethora of options to produce electricity, and it is likely to need it.

...no single technology will be able to meet the needs of an increasingly complex electricity grid.

As the report also emphasises, no single technology will be able to meet the needs of an increasingly complex electricity grid. Instead in future it will require combinations of technologies that will allow to flexibly match electricity supply with electricity demand, while also meeting tighter sustainability criteria than was necessary in the past.

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Secure consultations

The Australian Government has released draft regulations under the newly legislated Biosecurity Act 2015 for public comment (see also our story Secured security.

The Act received royal assent on 16 June 2015 but will commence with a 12 months delay on 16 June 2016, when it will replace the previous Quarantine Act from 1908.

In the lead up, the Australian Government is drafting subordinate legislation to the Act in a number of areas.

A previous consultation with the public, which is now closed for comment, addressed Biosecurity Import Risk Analyses (BIRA) regulation and guidelines.

The currently open consultations address four additional regulations under the Act:

  • Approved arrangements, which provide an opportunity for businesses to enter into a voluntary arrangement with the Commonwealth to manage the biosecurity risk associated with their activities;
  • The Inspector General of Biosecurity, an important statutory position that provides independent oversight of Australia's biosecurity system;
  • Infringement notices, one of the law enforcement tools available; and
  • First Points of Entry, which details the requirements that must be met for ports and landing places to become a first point of entry.
More information: www.agriculture.gov.au

Secured security


May 2015 - The Biosecurity Bill 2014 along with supporting legislation was passed by the Parliament on 14 May 2015, but will come only into effect 12 months after receiving royal assent.

The new legislation replaces the Quarantine Act 1908 and its numerous amendments.

One of the more contentious issues surrounding the changes related to the position of the Inspector-General of Biosecurity, which is now enshrined in statute. The opposition had previously accused the Government of wanting to abolish the position.

But beyond this issue, the new legislation, first proposed in 2012, presents a substantial overhaul of previous arrangements. According to Agriculture Minister Barnaby Joyce, it will reduce compliance costs relating to supply chain and logistics, cargo, ports, customs brokers, importers, peak industry bodies, petroleum/exploration stakeholders and primary producers by around $6.9 million.

More information: www.agriculture.gov.au
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Solar watershed?

January/February 2015 - Large-scale solar projects are still scarce in Australia, even as AGL Energy Limited and First Solar have completed Australia's two largest solar photovoltaic (PV) plants, the 102 megawatt (MW) Nyngan and 53 MW Broken Hill solar power plants in NSW.
AGL Broken Hill Solar Plant; Image source ARENA

Over the next 30 years, they will together produce approximately 360,000 megawatt hours (MWh) of renewable energy per year.

Getting the projects off the ground still required a substantial public investment, with $166 million contributed by the Australian Government through the Australian Renewable Energy Agency (ARENA) and another $64.9 million coming from the NSW Government.

But it is only the start of large-scale solar in Australia, according to Jack Curtis, First Solar's regional manager for the Asia Pacific. He believes that through the substantial and sustained cost reductions in the solar industry and the lessons learnt at projects like Nyngan and Broken Hill, "it is inevitable that utility-scale solar projects in Australia will compete on an unsubsidised basis, in the near future".

Australian PV solar energy capacity installed since 2001; click image to enlarge

This is a view shared by less conflicted parties, including the CO2CRC, which in a recent report projected that because of the learning-by-doing effect wind and large-scale solar options will become cost-competitive with established fossil fuels based technologies by 2030.

In terms of production capacity, Australia has still a long way to go before any of our projects match the scale of the largest solar plants in the world: Charanka Solar Park in India with 600 MW, and several solar plants in the US are each boasting more than 400 MW in maximum electricity output.

Moree Solar Farm in NSW is now online; Image source: www.moreesolarfarm.com.au

This will also not significantly change with the $100 million ARENA is about to invest in new solar projects. Of the 22 projects selected to the full application stage, only Origin Energy's Darling Downs Solar Farm project would have a maximum output of more than 100 MW.

However, in terms of total capacity installed in Australia, there is rapid progress. According to the Australian PV Institute, the total installed solar PV capacity in Australia reached around 4.8 gigawatt, with almost all of this capacity established since 2010.

Another significant project came online in March.

The Moree Solar Farm, developed by Fotowatio Renewable Ventures (FRV) and supported with $101.7 million from ARENA, has a capacity of 56 MW and is expected to generate 140,000 MWh per year over its operational life of 30 years.

Australia is following a global trend, as revealed by data from the International Renewable Energy Agency (IRENA).

Global Cumulative Installed Solar Photovoltaic Capacity, 2000-2013; click image to enlarge

The rapid rise of global installed solar PV capacity is shown in the figure for the years up to 2013; it also reveals that most of the growth is now in Asia, while other markets, notably Europe, appear to stabilise.

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Volatile future

March 2016 - The 2015 Gas Market Report released by the chief economist of the Department of Industry, Innovation and Science, canvasses a mixed outlook for future growth of Australian gas exports in uncertain times. Prospects are good over the next five years. From then on, though, global demand for LNG is projected to slow, while there will still be an overhang of excess supply capacity.

Australia could benefit from growing demand of emerging economies in the Asian region: According to the International Energy Agency (IEA), global gas demand is set to increase by around 50% to 2040, with China doubling its total gas consumption by 2030, while India's demand for liquefied natural gas (LNG) will nearly double by 2019-20.

Global LNG supply by region 2010-2030; graph modified from report; click image to enlarge

Building on its good reputation, Australia is projected to provide around 40% of both Japan and China's LNG and 25% of South Korea's by 2019-2020. And this could set us up to become the world's largest LNG exporter over the next five years: between 2013-14 and 2019-20, export volumes are projected to almost quardruple - from 23.2 million tonnes to 80 million tonnes - while earnings are estimated to more than double - from $18 billion to $45 billion. It will be the main driver of further grwoth in total resources export earnings, which are projected to reach $235 billion (in 2015-16 dollars) by 2019-20.

Queenslands' LNG production at Gladstone is having a major impact. There are currently three LNG export projects operating or under construction:
  • Queensland Curtis LNG (QCLNG) - 8.5 mega tonnes per year (Mtpa) capacity;
  • Gladstone LNG (GLNG) - 7.8 Mtpa capacity; and
  • Asia Pacific LNG (APLNG) - 9 Mtpa capacity.

The basic assumption underlying this positive outlook is straight forward: as non-OECD countries develop, electricity consumption rises and should drive increases in overall demand for gas.

However, in reality the global gas market is becoming increasingly volatile and hence the prospects for Australia's gas producers are marred with many uncertainties.

Take for example India. Despite projected strong increases in demand, its supply of gas is relatively concentrated and demand is very sensitive to higher gas prices. The country could also increase its domestic gas production. Together this makes it difficult to project how Australia could benefit from India's growing electricity demand.

Therefore, India may buy little more LNG from Australia than the already contracted volumes from the Gorgon project. But circumstances may change and if Australian projects can deliver LNG at competitive prices it could very well play a more significant a role in India's expanding gas market.

The Indian example highlights how complex the LNG market has become, also as the main expansion of LNG demand will be in countries that have or are developing alternative sources of gas supply.

At present, there are significant headwinds for the industry, including the downward pressure on commodity prices.

The problem is there is excess capacity in the market, and major export projects currently under construction in Australia and the US are about to come online. "As a result, LNG prices are likely to remain subdued for some time," the report concludes.

The uncertainties around the global energy and economic future has set off a trend away from long term LNG contracts towards more flexible arrangements, with strong increases in shorter term LNG trades.

This is a difficult environment for an industry that has to cope with very high capital costs.

Demand growth over the next five years will still be strong, but from then on the prospects for gas are far less clear.

Notably, alternative energy sources, including renewables, are emerging and there fate is very much dependent on the direction of future global environmental and economic policies, which are difficult to foresee.

Potential impact of GHG mitigation policies on gas demand; click image to enlarge

In the end, for gas suppliers in an increasingly crowded market cost competitiveness will be a major key to realise the 'golden age of gas', as put forward by the IEA in its 2011 World Energy Outlook.

For Australia, though, this scenario is currently looking somewhat shaky.

Australia's gas industry is strongly tied to two major markets, China and India, and their future economic trajectory is anyones guess. How much China's economy already determines global energy markets was at display over the last decade, as the country's expansion drove demand increases for oil. As a result, for five years over the past decade, global expenditure on crude oil exceeded 4% of global GDP, which compares to around 2% before China's boom. China's economy is now slowing and new supplies for oil have entered the market, driving down prices.

China and India have still a lot of room for growth, though - especially in their electricity use.

Electricity use across economies; click image to enlarge

The IEA's World Energy Outlook 2015 projects that world energy consumption out to 2014 will increase by 32%, with one-third of this growth occurring in China, and India the main driving force beyond 2025.

Around 82% of the world's population resides in non-OECD countries. Per person they use roughly 2100 kilowatt hours per person, compared to 8600 kilowatt hourse per person in the OECD.

The question, though, remains: how will this likely growth in electricity consumption be met?

Domestic gas pain?

As Australia LNG finds its way to overseas markets, the domestic markets are in transition: Australian gas markets need more supply as gas production is diverted to produce LNG for export, and conventional gas fields are facing depletion.

Gas accounts for around 18% of total primary energy consumption (2013-14), but this highly variable across states - ranging from 10% in New South Wales and 35% in South Australia.

Most of the domestic use is by industry (44%), followed by electricity production (30%) and the residential & commercial sector. However, demand is projected to decline, by 23% by 2024.

Domestic and the international markets for gas and LNG, mainly produced from Queensland's coal seam gas (CSG) reserves, are now linked - so why are domestic prices for gas not coming down?

According to the report, the main factor behind this is the significant increase in uncertainty as a result of the interconnection to international LNG markets.

The greatest volumes of the eastern Australian gas supply are now coming from Queensland's Surat/Bowen reserves (2014-15), after the market was peviously dominated by supply from Victoria's offshore basins.

By their nature, there is more uncertainty about CSG reserves compared to conventional gas reserves, the report says. Despite the fact that the LNG projects have access to substantial proven and probable reserves, the reality is that the productivity and the cost of production for these reserves will become more uncertain over time. And this does not even account for potential social concerns.

More information: www.industry.gov.au
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Energetic news

March 2016 - For more than a decade, Australia's energy intensity - that is the ammount of energy consumed to produce one unit of economic output - has been decreasing, as shown in the Energy Account, Australia, 2013-14 released by the Australian Bureau of Statistics in March.
The energy intensity of Australia's industry is decreasing; click image to enlarge

Over the period 2002-03 to 2013-14, energy intensity fell across our major industries by 9%, although the decrease levelled somewhat off in 2013-14.

Population growth driving increased energy use

Australians are also using less energy at home: between 2002-03 and 2013-14 the per capita use of energy decreased by 5%, and per household by 7%.

But this has been more than offset by Australia's growth in population and hence during the same period total energy use by households has increased by 13%.

In fact, Australia's Household sector is now consuming more energy than its Manufacturing sector, the largest industrial consumer of domestic energy.

Population growth is also behind the increased use of energy by the Transport industry, the second largest industrial energy consumer. Its consumption rose by 4% from 2012-13.

This means that while energy intensity across industries is falling, total domestic energy consumption is still increasing - by around 1% in 2013-14.

Australia remains a net energy exporter, supplying almost 16,000 petajoules (PJ) to world markets, although we also imported around 2 PJ of energy, mostly to cover our increasing need for petroleum products, such as crude oil and refinery feedstock.

Australia's Energy products; click image to enlarge

In total, our economy produced 19,000 PJ of energy products in 2013-14, which is 4% less than in the previous year. This was mainly due to a 38% fall in the production of uranium. A reason for this are major disruptions in the ore's mining operations that occurred in 2013-14, while there was also a drop in global demand for uranium.

Uranium exports fell by 20%, while less dramatic decreases were also found with natural gas (down 1%) and crude oil and feedstock (down 6%).

Coal is dead? Not yet...

By contrast, black coal production increased by 8% between 2012-13 and 2013-14, as strong international demand pushed up exports by 12%.

As a result, black coal now accounts for more than half (56%) of Australia's energy production, and has increased its share in total energy exports to 67%.

Renewable energy production is also increasing, but their share in the total of produced energy products is still small - around 2%.

More information: www.abs.gov.au
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Renewable money splash

April 2016 - The Australian Renewable Energy Agency (ARENA) has awarded industry-researcher collaboration funding totalling $17 million to nine renewable energy projects.

According to ARENA's chief executive officer Ivor Frischknecht , the successful project are expected to deliver commercially viable solutions that will solve current industry challenges.

ARENA's investment will leverage a total of $54 million in contributions from private and public sectors.

The Australian National University (ANU) attracted the greatest share of the available funding - $4.7 million for three projects. It includes $2.9 million for a study led by Professor Sylvie Thiebaux, who will develop a system to estimate the power that is produced by rooftop solar PV in a given area.

Aerial view of the Alcoa refinery, on the shore at Kwinana. image:ARENA

However, the by far largest single grant, worth $4.5 million, was awarded to a project from the University of Adelaide. Leveraging a total of $15 million in investment, the project will investigate whether concentrating solar thermal technologies can be integrated into the Bayer alumina refining process used at Alcoa's Australian refineries.

Other funded projects include:

  • University of Wollongong ($2.7 million; total project value $10.6 million) - Smart sodium storage system for renewable energy storage;
  • Queensland University of Technology ($2.1 million; total value $5.7 million) - Utilising biogas in sugarcane transport and milling;
  • University of Western Australia ($994,000; total value $3.6 million;
  • Australian National University ($1 million; total value $3.3 million) Real-time operational PV simulations for distribution network service providers;
  • Australian National University ($875,000; total value $3.1 million) A robotic vision system for automatic inspection and evaluation of solar plants;
  • Curtin University of Technology ($900,000; $2.6 million) Increasing the uptake of solar PV in strata residential developments;
  • University of South Australia ($995,000; total value $2.1 million) Maximising solar PV with phase change thermal energy storage
More information: www.arena.gov.au
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Back to a wooden future

November 2016 - Australia's forestry sector is again on fire, while a new National Centre for Timber Durability and Design Life, launched at the University of the Sunshine Coast, will support the sustainable use of timber in buildings.

Australia's forestry industry had three consecutive years of growth on the back of a booming domestic construction industry, according to a new report from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

The volume of logs harvested increased by around 8% in 2015–16, to more than 29 million cubic metres.

In Australia, timber is increasingly recognised as a renewable, carbon-positive and versatile construction material. However, the domestic housing industry is not the only driver of its resurgence.

Exports of wood products were also stronger than ever, helped by lower shipping costs and a weaker Australian dollar. The value of exports exceeded $3 billion for the first time, driven by strong demand from China, which accounted for 43% of Australia's wood product exports.

Forestry exports to China were worth over $1.3 billion in 2015-16.

But the report also shows that the future of the industry heavily depends on these key markets.

Opening of the National Centre for Timber Durability and Design Life
Image: FWPA

Meanwhile the new National Centre for Timber Durability and Design Life will develop an automated evidence-based tool to accurately predict the structural performance and design life of timber depending where and how it is being used in construction projects. The five-year project will be a world first of its kind.

The new centre is a strategic initiative of industry group Forest & Wood Products Australia (FWPA). It will be based at the University of the Sunshine Coast, with the University of Queensland (UQ) and the Queensland Department of Agriculture and Fisheries (DAF) partnering in the project.

The FWPA has received a total $8.4 million from the Australian Government, matched by contributions from the FWPA, the State Government and the universities.

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Pumping up - renewably

November 2016 - Hydro energy storage sites could provide an alternative to batteries in delivering on-demand energy generated from renewable sources such as wind and solar.
Google Earth image showing a steep-sided valley with a river running down the side and through it
Image source: ARENA

At present, the vast majority of existing large-scale energy storage comes from on-river hydroelectric dams, such as those in Tasmania and the Snowy Mountains. But there is limited potential for further large-scale hydroelectric systems in Australia.

However, there are hundreds of smaller locations across Australia that could potentially be used as short-term off-river pumped hydro energy storage (STORES) sites.

These consist of pairs of reservoirs that are separated by an altitude difference of between 300 – 900 metres.

Joined by pipes, water can circulate between the upper and lower reservoirs in a closed loop, which can be used to store surplus energy by pumping water to the uphill storage reservoir. Power is then generated on-demand when the water is flowing downhill into the lower reservoir.

According to Professor Andrew Blakers from the Australian National University, the low cost and technical maturity of STORES could allow solar photovoltaic and wind energy to reliably reach penetration levels above 50% and push towards 100% renewables.

The disused Kidston Gold Mine in North Queensland
Image source: ARENA

Professor Blakers leads the Atlas of Pumped Hydro Energy Storage Studya project, in which the Australian National University partners with ElectraNet and VTara Energy Group. The project, which is funded by the Australian Renewable Energy Agency, will map STORES sites across Australia, and develop a cost model to integrate the technology into Australia's electricity grid.

A current >example for this is the disused Kidstone Gold Mine in North Queensland, where Genex Power Limited has just completed a feasibility study of the Kidston Pumped Storage Hydro Project.

Funded with up to $4 million from ARENA, the company aims to convert the former gold mine into a giant battery that potentially could feed up to 330 megawatt of power into the grid.

Some of the energy could be sourced from a 50 megawatt solar farm that Genex is developing at the Kidston site.

If Genex can reach financial close and construction is going ahead, the project could potentially provide a blueprint for other large pumped hydro storage projects at disused mines.

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Stored sunshine

December 2016 - A disused gold mine in North Queensland is set to become the site of Austalia's first large-scale solar power plant delivering power on-demand around the clock.
The disused Kidston Gold Mine in North Queensland Image: ARENA

Genex Power has started constructing a large-scale solar power plant at the disused Kidston Gold Mine in North Queensland. The location was chosen because of its high solar radiation and its proximity to the National Electricity Market (NEM).

And close to the site of the plant Genex plans to build a large hydro storage facility by converting two old mining pits into water reservoirs that are connected by a tube (see also Pumping up - renewably).

The idea is to pump water into the upper-level reservoir using solar energy generated during the day, at a time of low electricity demand. As the water then flows down into the lower-level reservoir a hydro power generator is delivering electricity into the grid at times of high electricity demand.

It would turn the old gold mine into a giant battery delivering 250 MW for a continuous period of 6 hours - enough to power around 100,000 homes.

In early December Genex was able to demonstrate that its Kidston Pumped Storage Hydro Project is technically feasible, and this also paved the way for its solar plant:

ARENA will fund 12 big solar projects across Australia - six in Queensland, five in New South Wales and one in Western Australia. Image: ARENA

Having already backed the hydro storage facility with $4 million, the Australian Renewable Energy Agency (ARENA) announced it would contribute another $8.9 million contribution towards the 50 MW solar power plant - as one of 12 big solar projects the agency is funding across Australia.

The support helped Genex reach financial close in early December, and after then securing a deal with the Queensland Government, which agreed to a 20-year price guarantee on the power generated at Kidston, the company started construction. Genex expects to complete the plant by late 2017.

However, the 50 MW plant Genex is only the first stage of the project.

While still in the early stages of planning, Genex proposes to build a second solar power plant with a capacity of 270 MW, which would match the 250 MM hydro energy facility. On completion the plant could generate 783 gigawatt hours, enough to power almost 150,000 homes, and connected to the hydro energy facility will be delivering the electricity into the grid around the clock.


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Fraser Institute 2013 Mining company survey: Investment attractiveness
Fraser Institute 2013 Mining company survey: Investment attractiveness
Image: Santos Ltd
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The figure displayed in the Australian Power Generation Technology Report compares the various characteristics of power generation technologies based on 2015 data. For the integration of technologies in future power systems the different attributes of technologies will have to be taken into account.
Image: Australian Power Generation Technology Report; courtesy Dr Geoff Bonges
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Australian PV solar energy capacity installed since 2001. Figure adapted from Australian PV Institute
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Global PV solar energy capacity installed between 2000 and 2014. Figure adapted from International Renewable Energy Agency (IRENA)
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Global LNG supply by region 2010-2030; graph modified from Gas Market Report 2015 published by the chief economist of the Department of Industry, Innovation and Science.
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Graph modified from Gas Market Report 2015 published by the chief economist of the Department of Industry, Innovation and Science.
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Australia's Energy products, including imports, between 2009-10 and 2013-14
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The energy intensity of Australia's industry is declining; graph is based on data provided by the Australian Bureau of Statistics