Day 247: 'Do-or-die state'
An introductory weekday newsletter from Schwartz Media. Counting the days since Australia had an energy policy.
Good morning and welcome to day 247.
Today in summary: Labor would scrap the NAIF if elected, and earmark A$1.5 billion for gas pipelines; pressure over Labor’s stance on Adani continues; and mining companies are increasingly looking at renewable power sources.
— Sophie
Today’s policy spin level: 💨💨💨💨
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Bill Shorten will today announce that, if elected, Labor will scrap the A$5 billion Northern Australian Infrastructure Facility (NAIF) and replace it with a development fund to work on projects such as gas pipelines instead. The SMH and the AFR report Labor will earmark A$1.5 billion in funding for gas pipeline projects in Queensland’s Galilee and Bowen basins.
Separately, the SMH reports that the gas industry is watching Beetaloo, in the Northern Territory, and the Great Australian Bight as potential new sources of gas since supplies from the east coast have been drying up.
Adani’s proposed coal mine continues to dominate the discussion, with Bill Shorten yesterday refusing to rule out a review of the federal environmental approval granted earlier this month, the Australian reports. Labor MPs from Queensland have signed pledges of support for the project, the Australian reports, while the Guardian reports Labor:
“has been mobilising significantly in Queensland, which is a do-or-die state for the Coalition in this election contest”.
Meanwhile, the AFR reports an anti-Adani protest march in Brisbane yesterday was “effectively a Greens rally to target Mr Shorten over Labor's position on the mine” and the proposed mine:
“is proving more of a headache for Labor as it attempts to win over regional voters who want the jobs as well as listen to inner-city voters who want more done on climate change.”
The Australian reports that the mining industry is “turning green” with diesel generators being replaced by renewable energy sources. It looks at West Australian copper miner Sandfire Resources, which gets about 20% of the power for its DeGrussa mine from solar panels, along with Rio Tinto - which already operates solar - and Fortescue Metals, which is conducting feasibility studies on doing so at its Iron Bridge magnetite project. It quotes Fortescue chief executive Elizabeth Gaines:
“Late last year we entered into a partnership with the CSIRO for hydrogen technology, technology the CSIRO has developed (and) we’re going to help fund some additional research to understand whether it can be developed on a commercial scale. That certainly has potential for us both as a commercial opportunity, but also as a contributor to lowering our energy costs.”
The Commentariat
At the AFR, Matthew Stevens writes that there is no silver bullet for the gas shortage. He quotes Tor McCaul, managing director of ASX-listed coal seam explorer Comet Ridge, as saying:
“What frustrates me a bit is that Origin has been able to develop all this hubbub about the Beetaloo. You know, the NT is a massive resource but it is $3 or $4 to get it [gas] down to the market here and it maybe a billion dollars appraisal capex and then development capex.
“The Galilee, for the size of the resource and its proximity, it doesn’t get the attention I think it deserves. And even in the [federal] budget, there is $8 million for studies of the Beetaloo. So the taxpayer is going to help get the Beetaloo away but we have got this basin that is just west of Moranbah that is being ignored.”
Three more things
Solar thermal still has a big future despite the collapse of a A$650 million project in South Australia, according to energy adviser Simon Currie, reports the AFR. Currie said Australia has ideal hot, dry conditions for the technology, it says.
Malcolm Turnbull “took to social media” over the defunct National Energy Guarantee on Friday night, the Guardian reports. In a string of tweets, Turnbull disagreed with a Herald Sun column where the policy was characterised as “Malcolm Turnbull’s NEG”, arguing that the policy had strong Cabinet support and its dumping has pushed power prices and emissions up.
The AFR’s Street Talk reports that AMP Capital has lifted its stake in home energy systems company Evergen. AMP “eventually opted to tip in its own fresh funds, rather than pursue any of the other options thrown up” from a search by PwC for a new equity investor for Evergen, the AFR reports.