News

Leading global energy producer EDL will build, own and operate the Jabiru Hybrid Renewable Project to supply power to the remote, off-grid Northern Territory town of Jabiru.

EDL Chief Executive Officer James Harman said that the company welcomed the opportunity to work in partnership with the Northern Territory Government to deliver sustainable energy for Jabiru, as the community transitions from its mining legacy to its future as a tourism and services hub.

“EDL began more than 30 years ago with the development of the Pine Creek Power Station in the Northern Territory, and we’re very proud to continue our commitment to the Territory with Jabiru being our 100th site world-wide.

“Once completed, our hybrid renewable power station will provide Jabiru with at least 50% renewable energy over the long term, without compromising power quality or reliability,” said Mr Harman.

“We are proud to contribute to the Territory’s 50% renewable energy target by 2030 through this sustainable energy solution.”

The project will integrate 3.9MW solar generation and a 3MW/5MWh battery, with 4.5MW diesel generation to balance sustainability with reliability. Construction will begin shortly.

The diesel power station will be completed by the end of 2021, and the solar farm and battery will come online in early 2022.

Artist impression of EDL’s Jabiru Hybrid Renewable Project

Download EDL's full media release here

For more information, please contact

Vivian Lim, Head of Communications

0434306131 or vivian.lim@edlenergy.com

GLOBAL energy producer EDL has announced plans to build, own and operate a hybrid power plant for the off-grid Northern Territory town of Jabiru.

The company has won a contract to build the new power station, as the nearby Ranger Uranium Mine operated by Energy Resources Australia, which up until now powered the town, winds down. 

The Territory government held a tender for energy providers to power the town with at least 50% renewables. 

The project will consist of 3.9MW of solar combined with a 3MW/5MWh battery and a 4.5MW diesel generation to balance it out.

"EDL began more than 30 years ago with the development of the Pine Creek Power Station in the Northern Territory, and we're very proud to continue our commitment to the Territory with Jabiru being our 100th site world-wide," EDL CEO James Harman said. 

"Once completed, our hybrid renewable power station will provide Jabiru with at least 50% renewable energy over the longer term, without compromising power quality or reliability." 

Construction is expected to being shortly, with the diesel power station to be complete by the end of the year, and the solar and battery farm to be online by early 2022. 

EDL has been making a name for itself in off-grid hybrid energy hubs - in December the company's Agnew Hybrid Renewable Project in Western Australia won the Engineering Solution of the Year prize at the 2020 Global Energy Awards. 

The 56MW microgrid at GoldFields Agnew Gold Mine incorporates wind, solar and gas and battery storage. 

Source: Energy News Bulletin

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SANTOS has defended the scope of its decarbonisation plans as activist shareholders lodge a resolution to compel to disclose how it will align itself with the goals of the Paris Agreement.

The resolutions, put to Santos by Market Forces,  will be put to a vote when shareholders meet on April 15. 

Market Forces is a group that purchases shares in major coal, oil and gas companies in order to sway shareholders to vote on climate and decarbonisation-related resolutions. 

The resolution first urges for an amendment to the company's constitution to provide that members can pass advisory resolutions in relation to the exercise of powers vested in the board.

It is the third year in a row the activist group has brought a resolution of this nature before the AGM. 

Previous moves were also made against Woodside and Origin Energy. While their motions have failed thus far, the vote of support has been growing each year. 

This would allow shareholders to pass the second resolution which would force Santos to disclose information that demonstrates how the company's capital expenditure and operations will be managed in a manner consistent with the climate goals of the Paris Agreement. 

This would include production guidance plans for the lifetime of oil and gas assets, capital expenditure plans for decommissioning and rehabilitating asset sites and how employees of the company will be informed of asset closures and employee transition plans. 

"The constitution of Santos is not conducive to the right of shareholders to place advisory resolutions on the agenda of a shareholder meeting," The resolution's supporting statement reads, citing examples in the UK, where shareholders can consider resolutions seeking to explicitly direct the conduct of the board. 

It also noted that at last year's AGM, 43% of shareholders voted in favour of a proposal that Santos disclose scope 1, 2 and 3 emissions targets, and exploration and capex plans aligned with Paris.  BROUGHT BY ACCR?

In a statement, Santos noted it has already declared it intends to reach net-zero emissions across Scope 1 and 2 emissions by 2040, highlighting the resolutions have been requisitioned by a group representing less than 0.01% of Santos' shareholders. 

"Santos does not intend to close down its oil and gas operations, as doing so would be against the interests of shareholders and would not be consistent with global climate and human development goals, particularly reducing air pollution and poverty," the company said. 

Santos announced late last year that rather than pivot to electricity as other majors have, it would focus its attention to emissions-offset LNG, hydrogen and carbon capture and storage technology to reach its net-zero emissions target. 

Santos CEO Kevin Gallgher told shareholders he was confident the company would soon hit the federal government's "H2 under $2" stretch goal laid out in its Technology Investment Roadmap. 

It is developing its proposed Moomba CCS Project in the Cooper Basin aiming to store 1.7 million tonnes of CO2 per annum. 

"Santos is already working to align our business with the Paris Agreement's central goal to limit global temperature rise this century to well below 2 degrees Celsius above pre-industrial levels," it said. 

The Market Forces resolution, citing Carbon Tracker analysis, points to the company's Narrabri CSG Phase 1, Barossa LNG and Dorado Phase 1 projects, as being inconsistent with a 2C scenario, saying around US$12 billion of Santos' potential capex on upstream projects to 2030 would be stranded.

Source: Energy News Bulletin

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BEETALOO Basin trailblazer Empire Energy has received the core results from its Carpentaria-1 well, confirming Middle Velkerri Shale targets in its EP187 have world-class rock characteristics, possibly even better than some US shale basins.

The frontier Northern Territory shale play has attracted international attention, which the Territory government hopes will turn into investment in the vast gas and liquids-rich Beetaloo and McArthur basins. 

ASX listed Empire drilled its first well, Carpentaria-1, within its Beetaloo acreage last year. The relatively low-cost well yielded exciting results, hitting liquid-rich gas.

Empire sent core samples to WD Von Gonten & Co for lab analysis. This has confirmed that hydrocarbon saturation, non-clay component and total organic carbon all compare favourably to US shale basins. 

It also said the estimated thermal maturity levels suggest a strong chance for liquids-rich gas production, particularly in the shallower zones. 

Empire said the target formation thicknesses measured in Carpentaria-1 were large compared to the major US shale plays and comparable to the Velkerri target shale thickness in the Tanumbirini-1 well drilled by Santos next door. 

Managing director Alex Underwood said the results reinforce the company's view that the Velkerri Shale has world-class potential and "could replicate the transformative positive impact the shale gas industry has had on the US economy and its energy position." 

The analysis focussed on the Middle Velkerri A, Intra A/B, B and C shales, the zones Empire pegs as having the best potential for commercial gas and liquids flows. 

Empire said a wider array of tests were done to allow its technical team to better understand the gas and liquid hydrocarbon content of the core samples and the corresponding rock properties. Its team is continuing to analyse the results and build them into a geotechnical model of the Middle Velkerri Shale within EP187. 

Meanwhile, the company said it had engaged Netherland, Sewell & Associates to generate an updated independent prospective resource estimate for EP187 including all of the results. 

The company plans to frac the discovery well in the coming weeks with flow testing to be conducted in the second quarter. 

"The principal goal of our upcoming fracture stimulation and flow testing program will be to flow hydrocarbons to surface, to measure which of the four target zones is likely to be the best producer and the individual gas versus liquid hydrocarbon composition," Underwood said. 

He noted the US shale experience shows every basin is unique, requiring developed approaches to drilling and completion and design, and expected this to be the case for the Beetaloo, given its geological age.

"To assist we are calling in the expertise of world-leading technical and operational experts to help us build our understanding of the resource in-house," he said. 

Interest in Empire's discovery has rocketed since it published its results to date. The company has fielded calls from global petrochemical companies looking to sign offtake agreements for liquids including ethane and propane as feedstock for new plants in Darwin. 

Empire said if it went down that route, it would look to sell heavier end hydrocarbons into the Asian spot market through Darwin. 

The company noted it planned to reach production in a matter of years. It could reach first sales gas before 2025.

Source: Energy News Bulletin

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AUSTRALIAN prime minister Scott Morrison gave a special mention of the Beetaloo Sub-basin in his speech to the National Press Club yesterday.

The Morrison government released its strategic plan for development of the Beetaloo Sub-basin just last month, outlining federal commitments to bolster investment in the Northern Territory's newest gas and liquids play. 

On Monday Morrison reiterated the government's commitment to the Beetaloo, saying it was part of a multi-billion-dollar package aimed at securing Australia's economy and energy security going forward. 

"The Beetaloo strategic basin plan has been released, with four more coming. The pipeline market will be further improved as will liquidity of the Walumbilla gas hub. All important changes," he told the National Press Club. 

"Our priorities are clear. We're investing, we're encouraging others to do the same." 

Just a fortnight ago, the Morrison government published the strategic plan for the Beetaloo. 

It included more than $200 million in funding, aimed at reducing investment risk and fast-tracking exploration in the region. 

The government outlined four clear actions to boost investment, regulate, maximise infrastructure and open markets while boosting benefits for regional communities. 

Action one focuses on "building a clear picture" of the basin and invests $1.2 million in gas development studies and infrastructure analysis. 

A further $50 million was set aside to help oil and gas companies drill wells. This was announced late last year.  

The second action considers regulatory processes and cuts red tape. The federal government will work with the Northern Territory Labor government to "establish bilateral agreements'' which will include a streamlined approval process. 

It charges the Gas Industry Social and Environmental Research Alliance (GISERA) - a body established under the CSIRO - to provide geoscience and geological reports for industry. 

A third action includes a further $173.6 million of funding for new road corridors, building on the government's previously announced package of $217 million for road development to the Beetaloo. 

Finally, the fourth action allocates $1.9 million to develop a Beetaloo Aboriginal Economic Development Strategy (BAEDS). 

The government has long held the Beetaloo as a basin of strategic importance.  Energy minister Angus Taylor has touted the potential of the Beetaloo as an answer to Australia's domestic fuel reserve - which currently has less than a month's supply. 

Source: Energy News Bulletin

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THE federal government has established 13 regional hydrogen clusters across Australia, investing A$1.85 million in an effort to create a nationwide virtual cluster to foster a globally competitive hydrogen industry.

The clusters will act as a collaborative hub for companies to share expertise and skills in order to ramp up the burgeoning industry which could increase Australia's GDP by up to A$26 billion, according to a 2019 Deloitte report. 

Spearheaded by National Energy Resources Australia, the national, virtual cluster is designed to create a unique brand for Australian hydrogen and expertise and kickstart the development of hydrogen supply chains and identify gaps in development, deployment and commercialisation of new hydrogen technologies. 

The regional hydrogen technology clusters, spanning across all states and territories, have been created following a seed funding selection program NERA started in September last year. NERA has also been able to leverage a range of funding commitments from state and territory governments around the country as well as funding from industry. 

NERA CEO Miranda Taylor said the clusters have been established around key existing hydrogen projects and technology supply chains in strategic locations that have demonstrated the capacity to support them. 

"This will ensure long-term local cohesion and sustainable capability across the emerging hydrogen value chain," she said. 

"Today marks a great step forward in Australia's capability in developing hydrogen technologies."

Three clusters are based in Western Australia, across Perth, Peel and the South-West and Karratha; one is based in Darwin, Northern Territory; another in Adelaide, South Australia; four are based in Victoria; one in Canberra; one is based in the Hunter Valley, New South Wales, and the final one is based in Brisbane. 

Australian Hydrogen Council CEO Dr Fiona Simon welcomed the news, saying the clusters are essential to connect small and medium enterprises across the hydrogen supply chain, and would provide opportunities to leverage hydrogen skills and expertise across the country. 

"The hydrogen technology clusters will stimulate jobs growth and create greater efficiencies by sharing technologies, research and other resources within these virtual networks," she said. 

"Businesses of all sizes will be able to prepare for the increasing demand for products and services necessary across the hydrogen supply chain, from gas fitters to software engineers."

The establishment of hydrogen clusters were identified by the government's National Hydrogen Strategy which was adopted by all states and territories in 2019. 

The news was also welcomed by Hazer group, which is building a hydrogen demonstration project near Perth. Its share price rose 8.3% off the back of the announcement. 

Source: Energy News Bulletin

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Electricity Market Priority Reforms Program Papers Released

In another significant step towards 50 per cent renewables by 2030, the Northern Territory Government has today released policy position and consultation papers on priority electricity market reforms.

Addressing system security, reliability and efficiency; encouraging private investment and maximising the amount of renewable power in our network are the main focus points of the final position paper on dispatch and settlement, and consultation papers on essential system services and reliability reforms.

The Northern Territory Electricity Market Priority Reform Program has been designed to promote competition by facilitating private sector investment in lower cost and cleaner technologies.

Territory households and businesses will benefit from the anticipated downward pressure on electricity costs as a result of a more competitive and lower-cost industry.

The Territory’s power systems are evolving as we transition to solar.

The Priority Reform Program will assist government in delivering cleaner and cheaper power for Territorians by implementing reforms to:

• Dispatch – ensuring that the most cost-effective combination of generation (including thermal and renewable generators) is dispatched in the Darwin-Katherine system. This will be achieved by allocating the System Controller responsibility for scheduling generators based on up-to-date information about generator costs and availability.
• Settlement – facilitating private sector investment by making it easier for retailers and generators, including new renewables generators, to buy and sell electricity in the Darwin-Katherine system. This will be achieved by introducing financial settlement by the Market Operator.
• Essential System Services – ensuring the changing technical requirements for system security are met in the most cost-effective way by enabling their provision by the full range of capable technologies, including batteries and renewables generators.
• Reliability – ensuring system reliability meets customer expectations while also keeping costs are as low as possible.

Electricity industry stakeholders are being fully consulted on the details of the priority reforms.

Stakeholders are invited to participate in further stakeholder working group consultation on the essential system services and reliability consultation papers by making written submissions and attending stakeholder workshops.

Final position papers on the essential system services and reliability reforms are expected to be released by mid-2021.

The announcement of the Government’s priority electricity market reforms follows the Government’s announcement of a large scale battery energy storage system (BESS) for the Darwin-Katherine system at a project cost of $30M.

Procurement of the BESS is progressing on track for delivery in the second half of 2022.

The Northern Territory Electricity Market Priority Reform Program position and consultation papers can be found at https://business.nt.gov.au/electricityreforms 

Quotes from Minister for Renewables and Energy, Eva Lawler:

“Territory Labor is delivering more renewables because we know it means cheaper, cleaner power and more local jobs.

“These market reforms will encourage private investment in the new and innovative technology that will allow more renewables in our electricity system while ensuring reliable and secure power.

“Electricity market reform is complex. Government has been carefully working through stakeholder feedback and design considerations to inform its priority electricity market reforms.”

 

Sun Cable and the Northern Territory Government (NTG) today signed a milestone agreement to facilitate the Australia-ASEAN Power Link (AAPL), that will see the Territory host one of the world’s largest renewable energy systems.

The project includes a solar and storage precinct near Elliott, in the Barkly Region, high voltage direct current (HVDC) transmission connecting the precinct to the Darwin-Katherine Interconnected System (DKIS) and proposed Middle Arm Battery and a HVDC submarine link to Singapore.

The 70-year, $22B project will create about 1500 jobs during construction and 350 jobs during operations, as well as $1B in exports.

Signing on behalf of the Northern Territory Government, Chief Minister Michael Gunner said:

“Today’s announcement is a big step forward for the Territory – for our energy security and our job security.

“This project will put the NT on the international map when it comes to renewables.

“It will also see hundreds of Territorians find work in the Barkly and Darwin regions during the construction and operational phases.

“This project will transform the Territory into a renewable energy powerhouse, and cement our position as Australia’s comeback capital,” the Chief Minister said.

Sun Cable CEO David Griffin said the AAPL project would generate and transmit dispatchable, competitively priced, renewable energy at scale.

“This will provide affordable, reliable energy to support industrial growth in Darwin, as well as supplying up to 20% of Singapore’s electricity needs,” he said.

“The Australia-ASEAN Power Link project will help the Northern Territory make deep cuts to its emissions intensity by decoupling economic growth from carbon pollution,” he said.

Benefits of the project include:

• a world-leading renewable energy transmission system;
• economic diversification for the Northern Territory;
• reliable, affordable dispatchable power;
• providing cost effective electricity supply to facilitate new manufacturing, minerals processing and data centre projects;

• a major boost to the Territory’s construction sector and a range of other services and suppliers;

• a substantial reduction in greenhouse gas emissions in the Northern Territory, Australia and the Indo-Pacific, helping the Territory achieve its goal of net zero carbon emissions by 2050;

• Sun Cable will establish a Renewable Energy Centre of Excellence in the Territory, drawing on existing local solar, electricity and infrastructure expertise to grow research and development of renewables.

Sun Cable today signed a Project Development Agreement with the Northern Territory Government that recognises the AAPL’s Major Project Status.

Sun Cable will prepare a Territory Benefits Plan, including an Aboriginal workforce development plan and local participation strategy to maximise local jobs and procurement.

The company has engaged Darwin company EcOz to prepare its Environmental Impact Statement for the project.

The project has drawn on the services of another dozen Territory companies, covering environmental services, ecological and geotechnical surveys, architecture, legal, strategic communication and maintenance.

The company expects AAPL’s financial close to be in late 2023, with first electricity to Darwin by 2026 and Singapore from 2027.

Media inquiries

Jane Munday, True North Strategic Communication on 08 8981 6445 or 0427 880 083

FORTESCUE Metals chairman Andrew ‘Twiggy’ Forrest has proclaimed the answer to the world’s warming climate and mounting energy needs is renewable hydrogen, which he believes could turn Australia into a green steel industrial power house. 

In a speech set to be delivered on Saturday as part of the Boyer Lecture series on the ABC, Forrest said the green hydrogen market could generate revenues at the very least of US$12 trillion by 2050 - bigger than any industry currently working.  

"And Australia with characteristic luck, is sitting on everything it needs to be the world leader - but only if it acts fast," he said.  

Noting his and other global companies' and governments' commitment to the Paris Agreement, Forrest said green energy would need to be able to compete with fossil fuels and be available at the same scale for the goals to be achievable.  

"When fossil fuel energy becomes more expensive than renewable energy — that's when we'll reach the tipping point," he said.  

"That's when the world will begin the journey in earnest to become zero-carbon. Not only because it's the ‘right' thing to do, but because it makes great sense. And the shift will be lightning fast. Forget 2050 — zero emissions will begin to happen overnight." 

Forrest has been jet setting across the globe, travelling to nearly 50 countries, meeting world leaders and signing agreements for his new venture: Fortescue Future Industries.  

He highlighted the personal risk he took given he caught COVID from a translator and was forced to spend three days in a Swiss hospital.  

"In short, my time on the road made me realise that our ambitions — while risky — were far from radical," he said.  

"The question isn't whether or not green hydrogen will become the next global energy form … it's which company has the resilience to take the risk and truly test green hydrogen at global, industrial scale."  

Forrest said capturing even 10% of the world's steel market could create more than 40,000 jobs in Australia - more than enough to replace those set to be lost in the declining coal industry.  

He noted global business including Thyssenkrupp in Germany, and Nippon Steel, were already trialing using renewable hydrogen to create zero-emissions steel, and his company planned to do the same thing in Western Australia.  

"We aim to start building Australia's first green-steel pilot plant this year, with a commercial plant in the Pilbara, powered entirely by green electricity from wind and solar, in the next few years," he said 

"Australia is in an absolutely unique position to scale green steel. Our neighbours and customers want to phase out carbon pollution by 2050, and coal - the most carbon-intensive of the fossil fuels - will be phased out, too." 

He said they were carrying out feasibility studies that could lead to the company generating some 300GW of power - targeting hydroelectricity and geothermal, with the final aim of generating 1000GW of zero-emissions energy.  

Forrest, never afraid to make grandiose statements, says he aims to take on the likes of Tesla - noting it is yet to make a net profit, despite it having a market value of over US$800 billion.  

In contrast, FMG is scheduled to lodge its half year results on February 18, with Forrest saying the company's net profit after tax for December 2020 came to US$940 million. 

"I choose change. I choose hydrogen. What do you choose?" 

Source: Energy News Bulletin

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Origin has submitted a notification and initial report to the Northern Territory Government confirming the discovery of hydrocarbons at the Kyalla 117 N2-1H ST2 exploration well near Daly Waters, in the Beetaloo Sub-basin.

The notification of discovery is supported by preliminary production test data and petrophysical data. It follows recent work to introduce nitrogen to lift the fluids in the well, allowing it to flow unassisted for a measurable period.

The initial report, based on early well flow data, is positive and shows:

• Unassisted gas flow rates ranging between 0.4 and 0.6 million standard cubic feet per day (MMscf/d) over a seventeen-hour period.
• Flow back of hydraulic fracture stimulation water to surface with an average rate of between 400 – 600 barrels per day (bbl/d) over the same period.
• Initial observations indicate a liquid-rich gas composition with CO2 estimated at less than 1%. Condensate shows were also present.

Origin Executive General Manager Integrated Gas, Mark Schubert said, “We are encouraged by the early results from the well, which has met our primary objective to flow liquids rich gas from the Kyalla formation.

“To support the well to flow continually without assistance we will now put in place longer term measures to flow back sufficient hydraulic fracture stimulation water, enabling production testing to commence in the coming months during the dry season.

“This is the first well to be successfully drilled into the Kyalla formation and we continue to gather important knowledge and data that will inform and refine our ongoing exploration activity in the Beetaloo,” Mr Schubert said.

The notification of discovery and initial report are a requirement under s64(1) of the Petroleum Act 1984 (Northern Territory) and satisfies the requirements of the NT Guidelines for reporting a petroleum discovery.

A further update will be provided when production testing has concluded, and detailed evaluation has been undertaken, expected to be in Q2 2021.

The Beetaloo Exploration Project is a joint venture with Falcon Oil & Gas Limited. For more about the project visit www.originbeetaloo.com.au.