Industry News

RENEWABLES will account for 40% of global energy mix, more than individual fossil fuel energy sources, and Australia is in a prime position to leap ahead of the rest of the world and claim the crown of world’s largest hydrogen producer exporter according to the latest World Energy Outlook released from by the International Energy Agency.

The 2018 annual forecast revealed that renewables, including hydrogen produced from solar, will overtake coal and other fossil fuels by 2040 to account for more than 40% of the global energy mix under the IEA Sustainable Development Scenario.  

In power markets, renewables have become the technology of choice, making up almost two-thirds of global capacity additions to 2040, thanks to falling costs and supportive government policies. 

This is transforming the global power mix, with the share of renewables in generation rising to over 40% by 2040, from 25% today, even though coal remains the largest source and gas remains the second-largest. 

Over the last 12 months wind and solar alone accounted for nearly half of all new capacity.  

However it is hydrogen that the authority identified could potentially be one of Australia's biggest opportunities for expansion, if hydrogen infrastructure was developed in conjunction with solar and wind plants.  

According to the report, developed counties with a high level of resources could provide nearly 100 million tonnes of oil equivalent of hydrogen - which would be the same output as 3% of global gas consumption today.  

The authority's attention to hydrogen mirrors sentiments from Australia's chief scientist, Dr Alan Finkel, who says hydrogen exports could be a multi-billion dollar opportunity for Australia.  

The IEA used a Sustainable Development Scenario, which took into consideration changing government policies in response to the Paris Agreement and climate change reduction measures undertaken by world leaders in the development of the outlook.  

"Our analysis shows that over 70% of global energy investments will be government-driven and as such the message is clear; the world's energy destiny lies with government decisions," IEA executive director Dr Fatih Birol said.  

"Stable support policy frameworks help drive down costs, in turn providing for increasing policy support while maintaining energy affordability."

Read more here.

Source: Energy News Bulletin

Minister for Renewables and Essential Services Dale Wakefield today launched the new $8.3 million 5MW Alice Springs Battery Energy Storage System (BESS). 

The BESS will help to support cheaper and cleaner power for Territorians and is an important step forward in achieving the Territory Labor Government’s target of 50% renewable energy by 2030. 

The Government-owned Territory Generation’s new battery will provide reliable, secure, and cost-effective electricity supply for Territorians and for business. It is also one of the largest grid-connected storage solutions in Australia. 

During high solar penetration periods such as in the middle of the day, solar can currently supply up to 40% of the Alice Springs power needs. It is projected that BESS will support an increase of this supply up to 50%. 

Other features of the new 5MW battery include: 

•        Provide a near-instant response to variations in solar load, particularly during cloud cover, and it will improve power generation reliability for the region 

•        The system has a 5MW capacity, combined with 40 minutes of storage capability, and it is capable of flexing to 8MW for six seconds and 7.5MW for 60 seconds 

It is projected that the $8.3 million investment for the battery system will be recouped in four to five years due to efficiency improvements.

The battery system has already provided power into the grid through its rigorous testing and by the end of November it will be fully integrated into the Alice Springs power system.

Since the release of the Roadmap to Renewables Report some of the Territory Labor Government’s other key investments include:

• $40 million private sector investment in the Katherine Solar Farm project that will be the largest renewable energy generator in the Northern Territory. This solar project will increase renewable energy use in the Territory and provide enough power for 8,000 homes 

• $59 million joint investment with ARENA for the Solar SETuP program providing 10MW of solar across 25 remote communities. This program is nearing completion. It will also reduce diesel use and take trucks off the roads

• $4.5 million for co-contribution grants of up to $1000 for households to undertake energy efficiency measures such as installation of solar-photovoltaic (PV) systems, batteries, solar pool pumps, smart meters, efficient lighting, solar hot water, energy efficient appliances, and efficiency audits 

• $750,000 to Power and Water to develop and validate a dynamic system model which will ensure that increasing levels of renewable energy can be integrated into the grid in a stable and predictable way

Quotes from Minister for Renewables & Essential Services, Dale Wakefield 

“The Territory Labor Government’s number one priority is creating local jobs. Delivering 50% renewables by 2030 will deliver local jobs, and cheaper, cleaner power.

“We are investing in Alice Springs to achieve our renewable energy target and become the Solar Capital of Australia. The new Alice Springs Battery Energy Storage System is an important piece of infrastructure that will enable us to integrate more renewables, and provide increased reliability of supply to homes and businesses in Alice Springs.”

Quotes from Territory Generation CEO, Tim Duignan  

“Territory Generation’s Battery Energy Storage System will provide near-instantaneous response to changes in solar load, such as cloud cover.

“Reliability and stability of base load power is a critical barrier in the uptake of renewable energy across Australia, and I am pleased that we are at the forefront of tackling this issue right here in Alice Springs.  

“The cutting-edge technology in our Battery Energy Storage System will reinforce Alice Springs as the solar capital of Australia by enabling greater solar penetration and grid stability.”

Media Contact: Paige Nguyen 0428 727 244

Release of the first Hydraulic Fracturing Implementation Progress Report and Onshore Shale Gas Community and Business Reference Group update

The Community and Business Reference Group (Reference Group) held its second meeting in Darwin on 23 October 2018 to discuss the progress of implementing the recommendations from the the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, and to provide input into the approach for delivering the framework for the Strategic Regional Environmental Baseline Assessments (SREBAs).

Representatives from CSIRO and the Northern Territory Government gave a presentation relating to the approach to define framework for the SREBAs and the Reference Group participated in these discussions and provided feedback, noting that Reference Group member Tom Stockwell is the Reference Group representative on the SREBA Project Advisory Committee.

The Reference Group also considered the quarterly progress report outlining the status of implementing the recommendations as set out in the Implementation Plan. In developing the Implementation Plan each recommendation was grouped into one of six reform areas and grouped into three delivery timeframes:

 Stage One – Planning, completed at the end of July 2018;

 Stage Two – Preparing for exploration, with a target completion date of December 2018; and

 Stage Three – Exploration and Preparing for Production, with a target completion of December 2021

Read full bulletin here

THERE is a multibillion dollar potential in hydrogen exports to North Asia and Australia is well placed to take advantage of the demand, according to Australia’s chief scientist, Dr Alan Finkel, who spoke to Energy News on the sidelines of the Gas Technology Conference-14.

Gas know how will come in especially handy for future hydrogen exports, though LNG trains cannot be reconfigured to process the far colder hydrogen and shouldn't need to be given rising global LNG demand, he said.  

"The Japanese as part of their national strategy are looking at 10MMtpa per year 2020-2040 (at) US$2/kg," he said.  

"That's $20 billion per annum.  

"There is potential for South Korea to be an importer, we're talking a substantial industry here. We could be the major supplier to Japan. It's a non-trivial market." 

There is also domestic potential via pipe gas, and industrial uses, though hydrogen as an energy source in and of itself is unlikely.  

Australia isn't the only nation Japan is looking to; it is trialling varied technologies in Qatar, Norway, Saudi Arabia, Brunei and Chile but Australia's proximity and export history help. 

The LNG boom that began in 1979 with the first contract signed and in 1989 with the first shipment from the North West Shelf consortium could be replicated for hydrogen with more haste, he said.  

Eventually there will be the same sorts of contracts, company to company, supported by bilateral agreements, spot markets and a trading hub, Finkel said all similar to the rapidly evolving LNG market.  

There are multiple technical challenges with hydrogen compared with gas, and though the decades of Australian know how helps there are large differences in that the liquefaction temperature is far lower, over -250C compared with -160C, it cannot be compressed in the same way as gas at scale, and it is not a recoverable resource, but must be created, however "the logic is the same", Finkel said.

Source: Energy News Bulletin

Read more here.

Perth, Australia – INPEX CORPORATION (INPEX) today confirmed the first shipment of liquefied natural gas (LNG) has departed from the INPEX-operated Ichthys LNG Project at its onshore gas liquefaction plant in Darwin, Northern Territory.

The first LNG shipment is destined for the INPEX-operated Naoetsu LNG terminal in Niigata Prefecture in Japan.

“First cargo from Ichthys LNG is a historic moment for INPEX, Japan and Australia. It demonstrates our commitment to being a safe, reliable long-term energy supplier,” said INPEX President Director Australia, Seiya Ito.

“Ichthys is an iconic project for Australia. With an operating life of around 40 years, Ichthys LNG will be delivering benefits to the Australian economy and community for decades to come.”

Ichthys is scheduled to gradually increase its production volume of LNG to approximately 8.9 million tonnes of LNG per year when it reaches its production plateau – this is equivalent to more than 10 per cent of Japan’s annual LNG import volume.

Approximately 70 per cent of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers, further contributing to the stable supply of energy to Japan and helping to meet energy demand in Asia and the rest of the world.

The departure of the LNG cargo follows the Project’s shipment of field condensate (ultra-light crude oil), which commenced on 1 October 2018, as announced on the same day.

The Project is also scheduled to commence the shipment of liquefied petroleum gas (LPG) later this year.

INPEX will continue to work toward achieving stable production and an early ramp-up at the Ichthys LNG Project with the understanding and cooperation of all its stakeholders, including Ichthys Joint Venture participants, the local communities, the Australian federal government and the governments of Western Australia and the Northern Territory.

Read more here

Onshore Shale Gas Community and Business Reference Group update

The Onshore Shale Gas Community and Business Reference Group provides direct feedback and advice to the Hydraulic Fracturing Inquiry Implementation Taskforce in the Department of The Chief Minister. The Reference Group is essential to ensure stakeholders have oversight and input into the development of the implementation framework and its subsequent execution.

The Community and Business Reference Group will meet on Tuesday 23 October. The Agenda can be viewed here

The second meeting of the Reference Group will focus on the design of the Strategic Regional and Environmental Baseline Assessments and the planned changes to the Regulatory Model to make the Minster for the Environment and Natural Resources the responsible Minister for decisions relating to the Petroleum (Environment) Regulations under the Petroleum Act.

Community and Business Reference Group members bring a diversity of skills from the community, environmental groups, local business, the gas industry and local Government. The Members are:

• Mr Denys Stedman (Chair) – Buy Local Advocate

• Mr Tom Stockwell – former President, Northern Territory Cattlemen's Association

• Mr Bobby Nunggumajbarr – Chairman, Yugul Mangi Development Aboriginal Corporation

• Mrs Katherine Warby – Barkly Pastoralist and Business Owner

• Mr Jimmy Cocking – Director, Arid Lands Environment Centre

• Mr Matt Doman – Director, SA and NT, Australian Petroleum Production and Exploration Association

• Ms Julie-Ann Stoll – Manager, Mining Central Land Council

• Mr Greg Bicknell – Chief Executive Officer, Chamber of Commerce

• Ms Gillian Duggin – Principal Lawyer and Executive Officer, Environmental Defenders Office

• Mr Geoff Crowhurst – Chair, Katherine Mining Services Association

• Mayor Fay Miller – Mayor, Katherine Town Council

• Prof Alan Cass – Director, Menzies School of Health Research

• Mr Michael Bridge – Chairman, Tourism NT

• Mr Joe Morrison – Chief Executive Officer, Northern Land Council

• Mr Greg Owens – Chief Executive Officer, NT Farmers

• Mr David Ciaravolo – Executive Officer, Amateur Fisherman’s Association of the NT

• Mr Damian Hale – Organiser, Australian Workers Union

Read full bulletin here

The government has announced electricity market reforms to deliver lower cost and reliable power, and meet the government’s target of its 50 percent renewables by 2030.

These reforms include a competitive wholesale electricity market consistent with recommendations made by the independent panel in the Roadmap to Renewables report.

Over the next 12 months, a Northern Territory Electricity Market (NTEM), tailored to the Territory’s circumstances, will be developed. 

This will ensure the growing interest in renewable energy can be facilitated in the Darwin-Katherine power network in a way which will deliver lower cost generation and reliable power to Territorians.

The NTEM is expected to be up and running within 12 months, and government will work closely with stakeholders on design and implementation.

Government will also begin consultation shortly on a review of supply and feed-in tariffs to encourage behind the meter energy storage for those with rooftop solar photovoltaics (PV) and stimulate greater take-up of energy efficient technologies.

This was also one of the recommendations made by the renewables panel to increase system reliability and enable Territorians to reduce their electricity costs during the most expensive times of the day. 

The reforms aim to encourage cheaper renewables into the system, putting downward pressure on power prices.

In a major step towards reaching the 50 percent renewables target, the government has approved a 25 megawatt (MW) solar photovoltaic electricity plant to be developed near Katherine.

The power purchase agreement (PPA) between Jacana Energy and Katherine Solar Pty Ltd will enable the construction of the $40 million project, create over 100 jobs during construction and be the largest renewable energy generator in the Northern Territory.

This is the first of a number of large-scale solar projects proposed by investors.

More information can be found at: https://roadmaptorenewables.nt.gov.au/

Quotes from the Chief Minister:

“Creating local jobs is my number one priority.”

“Our election commitment of 50% renewables by 2030 is already paying dividends by creating local jobs in the growing renewable energy sector.

“We have kept our promise to stabilise power prices after massive hikes under the CLP.

“The fact we have also kept public assets in public ownership means we are perfectly place to transition to more renewable energy while maintaining system reliability.

Quotes from the Minister for Renewables and Essential Services:

“This agreement between Katherine Solar and Jacana will increase renewable energy use in the Territory by between 3 and 4%.

“It’s a huge step towards our renewable energy target and will put downward pressure on electricity prices.

“There are lessons learned from the National Energy Market which we have incorporated into the design of this policy.

“This is a common-sense and best practice approach tailored for the Territory’s unique circumstances.”

Quotes from Martin Poole, Epuron Executive Director:

“Epuron is pleased to be entering into an agreement to sell solar electricity to Jacana. We look forward to the Katherine solar project moving into construction in the coming months."

“The NT has great potential for solar energy, and it is exciting to see the Territory Government’s initiatives to enable investors to compete to generate the lowest cost solar power for the grid."

“Epuron owns and operates solar power stations in the NT at Alice Springs, Yulara, Kalkarindji, Ti Tree and Lake Nash / Alpurrurulam and we are pleased to be here at the announcement of our first project in the Darwin - Katherine electricity system.”

Media Contact:  Cameron Angus – 0404 021 192

Implementation Plan (pdf 4 mb)

 

Japanese Prime Minister Shinzo Abe will make an historic visit to Darwin in November this year.

The visit, to be hosted by Australian Prime Minister Scott Morrison and Northern Territory Chief Minister Michael Gunner, is ahead of an APEC meeting of regional leaders in Port Moresby.

Mr Abe is expected to visit the Darwin cenotaph to pay official respects to Australian and Japanese soldiers and civilians killed during the bombing, and to inspect the $34 billion INPEX gas pipeline project, ahead of the first shipment of gas.

This is the first visit to Darwin by a Japanese leader since World War Two, when Japanese forces killed more than 250 people.  

Quotes from Chief Minister Michael Gunner

"The NT - Japan relationship is based on more than business, it is based on friendship, respect and a profound shared history. 

"We are great business partners, but first and foremost we are great friends - and I want to Japan to know it has no better friends in Australia than the people of the Northern Territory.

“This is an incredibly important visit from one of our most significant regional neighbours.  It highlights the importance of Australia’s relationship with Japan, and the strategic importance of the Territory. 

“Darwin is home to Japan’s single biggest investment outside of Japan, INPEX, and there are at least 40 years of identified future investment in the Territory through that project. 

“Through our engagement with the Japanese to date, we have also identified job-creating opportunities in agribusiness, telecommunications and data.  My next scheduled visit to Japan is in November, the week prior to Mr Abe’s visit to Darwin.   

“It is vital Australia looks to the North, and develops stronger relationships through trade, defence and investment.   

“The Territory is uniquely positioned to take advantage of growth in the Asian region, and we warmly welcome this historic visit by Mr Abe.”

 Media contact:  Cameron Angus - 0404 021 192

 

Leading energy-infrastructure company, Jemena, has today signed a new gas transportation contract with Santos to ship around 8 terajoules (TJs) of gas per day across the $800 million Northern Gas Pipeline (NGP).

Gas transported as part of the agreement will be used to provide energy for local mining and mineral processing operations in the Mount Isa region.

The new agreement means around 80 per cent of the NGP’s total available capacity in year one of operations has now been contracted.

Jemena’s Executive General Manager of Corporate Development, Antoon Boey, said the new contract reinforces the important role the NGP will play in supporting jobs and communities in regional Australia.

“Today’s announcement proves strategic investment decisions like the Northern Gas Pipeline can help to mitigate forecast gas shortages while bolstering local industry and strengthening the Northern Territory’s growing gas credentials,” said Mr Boey.

The agreement comes after Jemena announced it had signed a contract with Incitec Pivot Limited (IPL) to deliver 32TJs of gas per day to IPL’s Gibson Island facility in Queensland. This facility employs around 400 staff during normal operations and up to 800 staff during peak periods.  

Mr Boey said the new agreement will see Jemena transport gas for three years from the first day of commercial pipeline operations for Santos.

“This agreement provides more much-needed gas to the mining and processing sector in the Mount Isa area, and is a positive for the local community, who will benefit not only from jobs which rely on gas as a direct feedstock, but from the flow-on effects of having a vibrant local economy and industry,” said Mr Boey.

Santos Managing Director and CEO Mr Kevin Gallagher said the NGP transportation agreement reached with Jemena is a great example of how Santos is collaborating across the supply chain to make domestic gas available where and when it is needed, efficiently and at competitive prices.
 
“This is a great commercial outcome for all the parties involved and it is also good for the east coast domestic gas market, connecting the Northern Territory into this supply grid,” Mr Gallagher said.
 
“It’s absolutely critical that we continue to open up new gas supply sources to service the domestic market as existing, mature fields decline.”

Construction of the Northern Gas Pipeline continues to track to schedule with first gas set to flow in late 2018.

Today’s agreement follows Jemena’s announcement that it has signed an agreement with Senex Energy to build, own, and operate the Atlas Gas Processing Plant and Pipeline, connecting Senex’s new ‘Atlas’ gas field in the Surat Basin in south-east Queensland with Jemena’s Darling Downs Pipeline and the Wallumbilla Gas Hub - the largest gas hub in the country.

For more information about the Northern Gas Pipeline visit www.jemena.com.au.

Jemena Media Contact 1300 331 239

Building a productive onshore gas industry that protects our unique environment and delivers local jobs

Government partners with CSIRO, Australia’s national science research agency Government this week signed a grant agreement with CSIRO’s GISERA (Gas Industry Social and Environmental Research Alliance) to engage the significant and trusted research capabilities of CSIRO to deliver independent and transparent advice to government on gas development in the Northern Territory.

The GISERA is an alliance involving Industry, Government and CSIRO contributing funds to undertake independent research projects relevant to the development and sustainability of the gas industry in regions. CSIRO’s GISERA aims are to:

• Carry out research and provide information for the benefit of all Australian communities in onshore gas regions and industry.

• Inform governments and policy-makers of key research outcomes.

Projects undertaken by GISERA are endorsed and effectively commissioned by a GISERA Regional Research Advisory Committee (RRAC). The committee reviews and approves all research projects, in order to ensure CSIRO’s independence.

The GISERA collaboration will progress research into the social, economic and environmental impacts of the onshore gas industry in the Northern Territory. The GISERA model will have a provision to include research partnerships with Northern Territory institutions and research bodies, and local business growth may be considered in project proposal development.

Read full bulletin here