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Feds ‘must fund’ renewables infrastructure in Hunter

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International investors will go to rival economies unless the Australian government plans and builds the infrastructure needed by future industries, a think tank warns.

Renewable energy industrial precincts in the Hunter and Gladstone regions could attract $36 billion in investment, support 45,000 new jobs and earn $13 billion in annual revenue by 2032, according to research by Beyond Zero Emissions.

“There are trillions of investment dollars leaving the fossil fuel industry and looking for a new home in renewables and they want the highest return on investment,” Beyond Zero CEO Heidi Lee said on Friday.

Significant benefits could also flow beyond industry, with cheap energy for households and the electrification of transport.

The federal government says companies are already leading the way under its “technology not taxes” approach, and its plans for modern manufacturing and critical minerals.

But, Ms Lee said businesses cannot be expected to plan, fund and build the infrastructure – rail, road, telecommunications and energy – required by the new economy.

Beyond Zero’s new reports call for the federal government to lift its current “modest” level of spending on decarbonisation.

They warn Australia could lose one-third of fossil fuel export revenue over the next two decades unless governments shift gear, especially in regions that have been powerhouses of the economy for centuries.

Gladstone in Queensland was found to be behind NSW’s Hunter region on proposed clean energy supply.

However, building the Hunter transmission capacity for new industry would require $8.5 billion.

“Australian manufacturing is being revitalised thanks to renewable energy, attracting investment, protecting jobs now, and creating thousands of new jobs for the future,” BZE’s Hunter Project manager Sam Mella said.

“Renewable Energy Industrial Precincts (REIP) are the smart way to take advantage of this boom, revitalising our industrial heartlands with low-cost renewable energy to make the goods the new economy demands.

“The Hunter has long been an energy and export powerhouse, and a REIP will continue that proud tradition long into the future, producing green steel and aluminium, green hydrogen, ammonia and chemicals, and batteries.

“Business alone cannot be expected to build and coordinate the infrastructure needed for a REIP, especially with so many businesses entering the green export industry.

“Governments helped build our rail, road, energy and telecommunications infrastructure and now we need to ramp up our renewable energy capacity and develop REIPs.”

The region is already host to Allegro Energy’s redox flow batteries and supercapacitors, Diffuse Energy’s high-powered wind turbines, MGA Thermal bricks and SwitchDin software.

Energy Renaissance is building a battery factory in Tomago.

Tomago Aluminium plans to run on 100% renewables by 2029 while chemical giant Orica, which operates from Kooragang Island, aims to cut emissions by 40% by 2030.

Others are creating and building the next generation of mining and defence electric vehicles.

AGL plans to repurpose its Liddell power station site to become the Hunter Energy Hub with Fortescue Future Industries and renewable companies RayGen and Epuron.

In Gladstone, Fortescue Future Industries intends to manufacture electrolysers, used to make green hydrogen, and then expand into wind turbines, cabling and solar cells.

Rio Tinto plans to decarbonise the Boyne aluminium smelter, supported by the federal Australian Renewable Energy Agency, and is working with Japan’s Sumitomo on a hydrogen pilot.

The NSW government is already developing five Renewable Energy Zones in the regions – Central-West Orana, New England, South-West, Hunter-Central Coast and Illawarra. 

Queensland is setting up three similar zones so the state reaches 50% renewables by 2030.

The energy zones combine wind, solar, battery storage and poles and wires to deliver energy to nearby homes, businesses and industries.

The zones are in line with the Australian Energy Market Operator’s planning for a grid no longer reliant on coal to generate electricity.

Hunter green industry developments

The Hunter has more than enough new renewable energy sources to power a Renewable Energy Industrial Precinct, enough for existing industry giants to realise their decarbonisation commitments and enough to develop emerging green industries. Hunter businesses are already pursuing green steel and aluminium, green hydrogen and batteries, cleantech manufacturing and software.

  • Anchor industry Tomago Aluminium plans to run on 100% renewables by 2029, and chemical manufacturer Orica, which operates from Kooragang Island, has announced a 40% cut to emissions by 2030 and net zero by 2050. Molycop has one of Australia’s biggest renewable energy power purchase agreements to significantly reduce the emissions from its steel products.
  • Macquarie Bank is partnering with the Port of Newcastle and Japanese energy company Idemitsu to develop a green hydrogen hub at the port. Idemitsu is partnering with renewables adviser Energy Estate to develop green hydrogen assets in its old Muswellbrook Coal mine. AGL plans to repurpose its Liddell power station site to become the Hunter Energy Hub with Fortescue Future Industries and renewable companies RayGen and Epuron.
  • Lithium-ion battery maker Energy Renaissance is building a factory in Tomago. Ampcontrol, BME and 3ME Technology are creating and building the next generation of mining and defence electric vehicles (EVs).
  • The Hunter is fast becoming a centre of groundbreaking cleantech manufacturing and innovation, including Allegro Energy’s redox flow batteries and supercapacitors, Diffuse Energy’s high-powered wind turbines, Kardinia Energy’s printed solar film, MGA Thermal bricks, Saphi Engineering and SwitchDin software.
  • with AAP

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