Industry News

On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) has today opened the Regional Microgrids Program, with $125 million in funding allocated to develop and deploy microgrid technologies across regional and remote communities.

The new Program will allocate $75 million for microgrid projects in First Nations communities.

Electricity provision in remote First Nations communities is often heavily reliant on diesel which is unreliable, expensive and emissions intensive.
The First Nations Community Microgrids Stream aims to deliver cleaner, cheaper and more reliable energy and empower First Nations communities to participate in their electricity supply arrangements and the development of energy infrastructure.

The funding follows amendments to the National Agreement for Closing the Gap to include new standards for the provision of essential services.

Applications will be assessed in two stages, with initial Expressions of Interest followed by Full Applications. The Program will be delivered on an ongoing basis and ARENA will be able to collaborate with applicants and provide feedback on applications.

Microgrid projects under the First Nations Community Microgrids Stream will be developed in consultation with Aboriginal and Torres Strait Islander groups, First Nations renewable energy experts and state and territory governments across Australia.

Program guidelines have been developed in consultation with a broad range of stakeholders, including the National Indigenous Australians Agency (NIAA) and other First Nations group representatives.

Both Streams of the program will aim to resolve remaining barriers to final investment and full deployment of microgrid solutions.

ARENA CEO Darren Miller said the funding will help First Nations communities access renewable energy and build on ARENA’s existing and ongoing work in renewable energy microgrids.

“It’s vital we make sure Aboriginal and Torres Strait Islander people living in remote communities are able to participate in the electricity transition and share in the benefits of Australia’s renewable future,” Mr Miller said.

Remote communities relying on fossil fuels like diesel have unique challenges in transitioning to renewables and this new funding will help overcome barriers to broader deployment of microgrid solutions.

ARENA’s strong track record in supporting the deployment of complex and emerging renewable energy projects means we are well placed to work with developers and First Nations communities to bring the energy transition to remote Australia.”

The Program also incorporates ARENA’s former $50 million Regional Australia Microgrid Pilots Program (RAMPP), bringing the total of the Regional Microgrids Program funding pool to $125 million across both streams.

Applications are open now, with the program to run until December 2025 or until funds are exhausted.

For more information about the Regional Microgrids Program, including eligibility and how to apply, please visit the ARENA funding page.

ARENA media contact:

media@arena.gov.au

Download this media release (PDF 122KB)

1H 2023 Highlights

• Production of 45 million barrels of oil equivalent down 13%
• EBITDAX[1] $2,112 million down 23%
• Free cash flow from operations[1] US$1,129 million down 34%
• Underlying profit[1] US$801 million down 37%
• Statutory net profit after tax US$790 million down 32%
• Interim dividend of US$283 million, a 14 per cent increase to US8.7 cents per share unfranked
• 2023 guidance remains unchanged

Santos today announced its half-year results for 2023, reporting strong free cash flow of US$1.1 billion and underlying profit of US$801 million. The results reflect the strength of the disciplined operating model which is designed to ensure the business remains resilient through the oil price cycle.

The Board has resolved to pay an interim dividend of US 8.7 cents per share unfranked (US$283 million), 14 per cent higher than the corresponding prior period interim cash dividend.

Managing Director and Chief Executive Officer Kevin Gallagher said Santos has delivered strong free cash flow and underlying earnings in the 2023 first half, despite an ever-changing macro environment.

“We remain focused on executing our strategy to backfill and sustain our existing infrastructure, decarbonise and develop our Santos Energy Solutions division. Our goal is to strike the right balance between disciplined and phased major project spend, returns to shareholders, and investment in new energy solutions to meet customer demand,” Mr Gallagher said.

“Our Santos Energy Solutions division is expanding and continues to work on building new revenue sources through decarbonisation projects. The Moomba carbon capture and storage project will be one of the biggest and lowest cost in the world and is on track for first injection of CO2 next year.

“Our critical fuels play a key role in the energy security of Australia and Asia. Gas enables a cleaner energy future, offering firming for renewable electricity and an affordable, reliable alternative to higher-emitting fuels.”

The view the half year results video presentation, click here. 

Source: Santos.com

https://www.santos.com/news/2023-half-year-results/

PERTH, AUSTRALIA - INPEX Browse E&P Pty Ltd (“INPEX”) today announced it has been jointly awarded a greenhouse gas storage assessment permit (title G-7-AP) with TotalEnergies CCS Australia Pty Ltd and Woodside Energy Ltd, in a joint venture known as Bonaparte CCS Assessment.

The permit was awarded following Australia’s 2021 Offshore Greenhouse Gas Storage Acreage Release and is in the Bonaparte Basin off the northwestern coast of the Northern Territory of Australia – an area considered to be promising for geological storage of carbon dioxide in service of carbon capture and storage (CCS) activities. 

INPEX is pleased to pursue evaluation and appraisal work in cooperation with the Bonaparte CCS Assessment Joint Venture participants, holding a 53 per cent participating interest as Operator.

Supporting quotes

Minister for Resources and Minister for Northern Australia the Hon Madeleine King MP

• Since becoming Minister I have emphasised the role the resources sector will play in Australia’s transition to net zero. 

• The International Energy Agency has made it clear that the world won’t get to net zero by 2050 without CCUS. This offshore acreage has the potential to contribute to that important goal.

INPEX President Director Australia Hitoshi Okawa

• Acquiring this permit provides an exciting opportunity to prove up a large-scale carbon storage site in northern Australia, with the potential to become one of the largest CCS projects in the world.

• INPEX believes industry and government working together is a powerful enabler for responsible energy development. We are extremely appreciative of the Australian and Japanese governments’ support, as we work towards a cleaner energy future.

• We are proudly contributing to Australia’s lower carbon future, as mapped out in our INPEX Vision@2022 – and as Operator of both Bonaparte CCS Assessment and Ichthys joint ventures, INPEX is ideally placed to champion CCS activities in northern Australia.

TotalEnergies Senior Vice President Asia Pacific for Exploration & Production and Renewables Julien Pouget

• The award of this promising greenhouse gas storage assessment permit is fully in line with our strategy to provide more energy with lower emissions and our ambition to achieve net zero by 2050 together with society.

• As partner in both Ichthys LNG and Bonaparte CCS Assessment joint ventures, TotalEnergies is well positioned to contribute to a low carbon LNG production in Australia.

Woodside Energy CEO Meg O’Neill

• Woodside welcomes the award of the permit as an important milestone for the Joint Venture, as it assesses the CCS potential of the permit area.

• For Woodside, CCS will be an important addition to our portfolio of carbon management options, as we work towards our own aspiration of net zero by 2050.

To view the full media release, click here.

Source: INPEX

The Middle Arm Sustainable Development Precinct has achieved a further significant milestone.

Infrastructure Australia has assessed and approved the Stage Two business case for the Middle Arm Precinct, stating the project “will support the opportunity to transition Australia’s exports to high-tech, low-cost, low-emission energy sources.”

This assessment marks a pivotal moment in the journey towards transforming Middle Arm into a modern, low-emissions development-ready industrial precinct, underpinned by environmental, cultural and social values.

The review also outlined stated the Middle Arm Precinct is likely to increase the value of mining and manufacturing to the Northern Territory and Australia as a whole. 

The Territory Labor Government has and will continue to undertake significant planning and consultation to ensure the precinct’s success.

This includes stringent environmental approvals to ensure the ongoing protection of Darwin Harbour and surrounding areas.

At full capacity, the precinct will create 20,000 jobs, increase renewable energy production, decrease greenhouse gas emissions, uplift the value of exports and unlock development across a range of industries.

A Stage Three business case is currently being developed for the final Infrastructure Australia assessment before being approved as Investment Ready.

The Infrastructure Australia Stage Two business case assessment of Middle Arm can be found here https://www.infrastructureaustralia.gov.au/map/common-user-infrastructure-middle-arm-precinct

The Middle Arm Sustainable Development Business Case will be publically available in the coming weeks.

Quote attributable to the Chief Minister, Natasha Fyles:

“Our future will be built on cleaner energy that puts Territorians first.

“Middle Arm is crucial in the growth of our low-emissions and renewable energy sector as we power towards a net-zero future.

“It is not a secret that sustainability is at the core of Middle Arm, with sustainable energy, sustainable jobs, and a sustainable environmental strategy all part of the plan to build a strong future for the Territory.

Quote Attributable to Minister for Territory Development, Eva Lawler:

“This is great news for the Territory and Australia as a whole.

“The Middle Arm Precinct will greatly benefit Territorians long into the future, we are creating new sources of renewable and low-emission energy, unlocking new opportunities and focusing on a cleaner, greener future.

“Due to its strategic position and extensive planning, the Middle Arm Precinct will enable several industries, land and marine, which will add great value to our goal of reaching a $40 billion economy.”

Source: NT Government Newsroom

Jacana Energy is seeking non-binding expressions of interest from interested parties for up to 100 megawatts (MW) of additional renewable energy for the Darwin-Katherine region.

Read the press release from Tuesday 8, August 2023 here.

Source: Jacana Energy

Empire Energy advances gas transportation services with APA 

Highlights

• Empire and APA Group (ASX: APA) have executed an initial agreement for the establishment of exclusive midstream gas infrastructure early works and proposed long-form agreements, furthering the memorandum of understanding as announced by Empire on 27 October 2021

• Subject to entering long-form agreements and approvals by each party, APA will spend up to $5 million under a proposed early works agreement on Engineering and Design Concepts for midstream gas infrastructure facilities associated with Empire’s Carpentaria Pilot Project for the potential construction of midstream infrastructure to transport up to 25 terajoules (TJ) per day to market (“Early Works Agreement”)

• Subject to entering long-form agreements and approvals by each party, APA would fund the Carpentaria Pilot Project midstream gas infrastructure facilities under a proposed partnering agreement (“Partnering Agreement”), which would materially reduce the capital requirements for Empire to commence commercial production.

• The Partnering Agreement would also comprise the transportation of large volumes of gas from the Beetaloo to Australian east coast markets subject to entering long-form agreements and approvals by each party. The leading concept considers the potential construction of a new pipeline connecting the Beetaloo to APA’s existing Carpentaria Gas Pipeline (“CGP”) between Mount Isa and Ballera (Queensland)

• The concept pipeline connecting the East Coast via the CGP has the capability of being expanded to meet growing market demand on the East Coast (in excess of 500 TJ/d), and will be the subject of further evaluation between Empire and APA in the medium term 

To view full ASX announcement, click here.

The Territory Labor Government is powering towards our goal of a cleaner, greener, net-zero future.

Jacana Energy is seeking Expressions of Interest (EOI) for the supply of up to 100 megawatts (MW) of renewable energy for the Darwin-Katherine region.

The proposed investment will contribute as much as 15 percent towards the Territory Labor Government’s renewable energy target of 50 percent by 2030, enough renewable energy to power 21,000 Territory homes in one year.

A key point of difference with this EOI is that proponents are being asked to consider connecting at specific locations within the greater Darwin area that are consistent with the location of the NT Government’s Renewable Energy Hub.

The EOI is the first step in a comprehensive process to procure and safely connect and commission more large-scale renewable energy closer to Darwin.

Ongoing investment in renewable energy infrastructure is vital and projects like this EOI and the Renewable Energy Hub aim to increase the amount of renewable energy supplied to Territorians.

A project of this scale is likely to attract more than $200 million in additional investment to the Territory, whilst creating a further 150 jobs during the height of construction.

Once the procurement process is complete, Territorians could expect renewable energy from these solar farms to be generated from around 2027.

The EOI will open on Tuesday 22 August 2023 with submissions required by 26 September 2023.

For more information interested proponents can visit www.jacanaenergy.com.au

Quote attributable to Acting Minister for Renewables, Eva Lawler:

“Our Territory Labor Government is dedicated to creating and sourcing new, permanent, and long term renewable energy.

“We have always said sustainability is at the core of what we do, and this EOI for 100MW more of renewable energy will take the Territory to the next level.

“Jumpstarting the procurement process now ensures that we will be able to make an investment that supports the delivery of renewable energy well before 2030”.

Quote attributable to Jacana Energy CEO, Louisa Kinnear:

“Our customers want clean, affordable energy. Kicking off a procurement process now ensures that we will be able to make an investment decision that supports the delivery of renewable energy well before 2030.”

“The addition of more large-scale solar is a major part of the Darwin-Katherine Electricity System Plan and our EOI is designed to procure renewable energy in way that aligns with this Plan.”

Source: NT Government Newsroom

Bayu-Undan joint venture and TIMOR GAP sign MOU to cooperate on Carbon Capture and Storage 

Santos and its Bayu-Undan joint venture partners have signed a Memorandum of Understanding (MOU) with Timor-Leste’s national oil company TIMOR GAP to explore partnership opportunities for the proposed Bayu-Undan carbon capture and storage (CCS) project offshore Timor-Leste.

The MOU follows four non-binding MOUs for CO2 supply to Bayu-Undan CCS that indicate demand for CO2 storage at Bayu-Undan CCS could be more than 10 million tonnes per annum (Mtpa).

The MOU with TIMOR GAP includes sharing information about Bayu-Undan CCS and exploring potential partnership opportunities, including equity participation for TIMOR GAP in the Bayu-Undan CCS project.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Bayu-Undan CCS is well positioned to provide future carbon management services to the Asia Pacific region.

“This could be an exciting new industry for Timor-Leste, putting it at the leading edge of the global energy evolution and generating revenue, local jobs and business opportunities for the nation,” Mr Gallagher said.

“Santos and our joint venture partners are delighted to be working with TIMOR GAP on partnership opportunities to advance Bayu-Undan CCS as a carbon storage hub for customers in Australia, Japan, Korea and across Asia as those countries seek to decarbonise their economies.

“This MOU is yet another agreement highlighting the strong interest in carbon capture and storage, and its broad acceptance as a safe, proven technology that is absolutely critical to achieving the world’s climate goals.

“We look forward to working with TIMOR GAP and the Timor-Leste and Australian governments to progress the necessary commercial, fiscal and legislative arrangements to support the development of the Bayu-Undan CCS project.”

Bayu-Undan CCS ex-Darwin will provide a cost-competitive carbon solution because of its large scale and ability to utilise existing pipelines and other infrastructure.

In addition, the storage reservoirs are well understood, have previously held gas and condensate in place for tens of millions of years, and will provide safe and permanent CO2 storage.

The project has the potential to reduce the absolute emissions and emissions intensity of Australian and Timor-Leste gas and LNG projects, as well as other hard to abate industries in the region.

It also means that Australian and Timor-Leste gas and LNG projects will have a competitive advantage in a low-carbon world, with the potential to offer abated gas as a premium product for customers.

The Bayu-Undan CCS project is part of Santos’ three-hub CCS strategy that includes the Moomba CCS project, now 70 per cent complete and on track to store up to 1.7 million tonnes of CO2 per year commencing in 2024.

Santos has a 43.4% operated interest in Bayu-Undan. The remaining interest is held by SK E&S (25%), INPEX (11.4%), Eni (11%) and Tokyo Timor Sea Resources (9.2%).

To view full release, click here.

Source: Santos

Highlights

• C-3H was re-opened on 3 August 2023 for extended production testing following a five-month shut-in for soaking

• Empire expects testing to continue for up to 90 days

• Empire has recommenced flow testing at C-3H to extend its understanding of the production characteristics of the Velkerri Formation to refine its early production type curve analysis and continue building the knowledge base regarding optimal fracture stimulation design

• Empire continues working towards the Carpentaria Pilot Project final investment decision this year 

To view full operations update, click here.

THE federal government has finally progressed legislation in Parliament to provide a further framework to allow carbon capture and storage offshore in Australian commonwealth waters.

The Environment Protection (Sea Dumping) Amendment (Using New Technologies to Fight Climate Change) bill was read for a second time last night.

The bill will allow permits for Woodside Energy and Santos to progress their respective offshore CCS projects in the North of Australia.

Woodside CEO Meg O'Neill has previously stated that a lack of regulatory and policy settings has delayed CCS projects including the potential of the depleted Angel field on the North West Shelf.

In September last year, Woodside announced it was leading a venture consisting of Japan Australia LNG, Mitsubishi Corp, Mitsui, Shell and Chevron in the northern portion of the Carnarvon Basin within exploration permit G-10-AP.

It will look to inject CO2 from its other operations, and potentially third-party emissions, into the now depleted Angel gas field. This would take emissions from the Karratha Gas Plant and Pluto LNG facility.

According to Geoscience Australia the Angel field could store around 5Mtpa of CO2

However, in recent months, Woodside's CEO Meg O'Neill has said a lack of government support or "carrots" and financial incentives has failed to fast track this project.

The bill before Parliament aims to provide further business certainty for project's like the Angel field.

It will amend the existing sea dumping act to implement the 2009 and 2013 amendments to the London protocol.

Last night, during the second reading and debate of the bill, federal resources minister Madeleine King said reaching net-zero would be "virtually impossible without carbon capture and storage".

"Despite what many may think and have said, CCUS is in fact a proven technology," King told parliament.

"To put Australian CCUS projects in a competitive position and to back in our research efforts and unlock more private sector capital, it is imperative that we invest in our regulatory frameworks to ensure that they are fit for purpose."

King said the legislation would ensure a "commercial pathway" for transboundary CCS projects.

She was referring to Santos' Bayu-Undan gas field which is reaching end of life.

In the offshore Bonaparte Basin, Santos is leading the charge for its rapidly depleting Bayu-Undan gas fields in the Timor Sea to store CO2 from its Barossa gas development along with third-party CO2.

The field lies across Australian commonweal waters as well as Timor Leste waters.

Front-end engineering design work to convert it into a carbon sequestration project is almost complete.

The project is considered an "advanced development" by Geoscience Australia and is expected to begin injecting carbon from 2027.

"Revenue from the Bayu-Undan gas field, located in the Timor Sea about 500 kilometres north of Darwin, has been a major contributor to the economy of Timor-Leste over 16 years, but the Bayu-Undan reservoir is now depleted of that resource," minister King said.

"As a reservoir that safely held gas for millennia, it is eminently suitable to return to that role and hold gas, this time CO2, for further millennia.

"This government will always be a strong supporter of Timor-Leste's economic independence and resilience. It is therefore essential that our regulatory settings enable consideration of a commercial pathway for CCUS in the Bayu-Undan field."

Bill facing backlash from cross bench

While the Labor government has support from the opposition for the legislation, its passage will require the support of the Greens in the Senate where the minor party holds 12 seats.

The Greens are often aligned with ‘teal' independents on issues of environmental importance.

In the lower house, where the bill was being debated last night, these ‘teal' MPs provided a glimpse of what could come in the Senate.

Independent MPs Zoe Daniel, Sophie Scamps, Monique Ryan, and Kylea Tink all rose to object to the passage of the bill.

"This bill is a key enabler of the gas industry's plans to significantly expand Australia's engagement with carbon capture and storage in Australia and its import and export of CO2 across international borders," Monique Ryan said.

"CCS and the global trade of CO2 streams are crucial to the gas industry's global strategy to gain social licence by appearing to act on climate whilst simultaneously opening up new fossil fuel projects against the explicit advice of bodies such as the International Energy Agency and the IPCC.

"This bill aims to facilitate the greenwashing of fossil fuel expansion plans in Australia."

Zoe Daniels pointed to Chevron's Gorgon CCS project in WA saying that while it had successfully inject 8 million tonnes of CO2, it came online late and over cost.

"It is universally recognised as a monumental failure," Daniels said.

"By mid-2020, Chevron had spent a staggering $3 billion on that CCS technology, making it one of the costliest CCS facilities in the world, and it didn't even work."

Source: ENB Energy News Bulletin