Gippsland's transition to a new energy future

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What lies ahead for Gippsland’s place in the energy future?

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NEW ENERGY
Times GIPPSLAND &MAFFRASPECTATOR

allthe resources

CLEAN energypresentsanenormous andgrowing investmentopportunity, which Gippslandisideally positioned to capture, accordingtothe Committee forGippsland (C4G)

“The region hasthe naturalresources, infrastructure, workforceand educational capability to support cleanenergy developmentatevery scale,” saysC4G in aposition paper prepared with Regional Development Australia Gippsland

C4G chair,Rochelle Wrigglesworth, said Gippslandhad aproud historyas Victoria’sforemost energy producer,but decarbonisation meant that theregion’s traditional industries had a finite life as the energy systemwas transformed to meet the challenge of net zero emissionsby 2050.

“The cleanenergy transitionis aoncein-a-generationinvestmentopportunity.

Transitioning to acleanenergy economy is forecast to resultinthe phasingout of highemission uses of fossil fuels and renewablesgrowing to adominantrole,” shesaid.

“In Gippsland, the Hazelwoodpower stationclosedin2017and Yallourn’s closureis planned for2028. Bass Strait oil production began to fall some time ago, andgas productionisnow doing the same, due to reducedreserves

Thewaning of these key industriesisan economic lossfor Gippsland’seconomy andcommunities. Decarbonisationleaves Gippsland vulnerablebut it is also amajor opportunity.”

Ms Wrigglesworth saidGippslandwas endowed withnaturalresourcestosupport arange of cleanenergy developments

“The highand steady winds offthe Gippsland coast have attracted Australia’s firstproposal foranoffshorewind farm Grid-scaleonshore windand solar projects arealsoproposed forthe region, andbioenergyhas potential,” shesaid. Ms Wrigglesworth saidGippsland’sfossil fuel reserves mayhaveanimportant role in transitioningtonet zero.

“Gas-fired power thatuses offsets in the near-term, andtransitionstoburning hydrogeninthe longerrun,will help acceleratedecarbonisation by producing essential, flexibleback-up energy as wind andsolarpowergrows,electricity storages increase, and coal-fired powerstations close,” shesaid.

“GeologicalstructuresunderBass Strait could permanently sore carbon emissions from newusesofcoal and gas (forexample, to producehydrogenor derivatives)and non-energyapplications suchascement-making

“Finally, Gippslandhas particularly high rainfall in thesouth-western andeastern zones -animportant input to many industries and cleanenergysources.”

Infrastructure

MS Wrigglesworth said Gippslandwas home to one of thebestpower grid connectionsinAustraliadue to the Latrobe Valley’spowerindustry. Atotalof2000MW of space capacitywas now available as a low marginalcostfactor,which would grow as as remainingcoal-firedpower stations closed.

Transmission infrastructure could be further built upon to connect renewables andoffshoreenergy, whichcould be serviced by postsatBarryBeach andPort Welshpool.

“Gippsland provides by far the largestand strongest grid connection of anyVictorian Renewable Energy Zone, making it cleanenergyinvestment-ready,” shesaid.

“Renewable energyproduction in Gippsland can be supportedbygrid-scale

batteries, and net zerogas-fired power stations which arecapable of providing 24-hour power to homesand businesses

“Gippsland also hasa network of gas andliquid fuel easements andpipelines that could form partofa cleanfuel gridcarrying hydrogen and other zeroemission fuels.”

Workforce

MS Wrigglesworth saidGippslandhas an increasingly available skilled workforcewith potential to grow

“Earlyestimates indicated that Gippsland willneed 320 renewable energy workers by 2025,” shesaid

“Thesejobswill requireskillsin construction,planning, electricaland mechanicaltrades, andcommunity engagement.”

Gippsland could provide some of these skills from its traditionalenergyindustries, as 1200peopleweredirectly employedin theminingsector,and more had related energy and resources jobs.

“This workforcehas transferable technical and operationalskills andwillbecome increasingly availableas coal-firedstations close,” Ms Wrigglesworthsaid

“Gippsland canprovide additional skilled workers from our current population and canattractworkersand theirfamilies from outside the region to ourtowns, whichprovide goodhealth and education servicesand an attractivelifestyle.

“Much of Gippsland is closetothe rapidly growingsouth-eastcorridor of Melbourne, which adds to theattraction of livingand working in theregion.

Education

MS Wrigglesworth said Gippsland has theright institutions to supporta workforce transition and technology commercialisation

“Strong educational institutionsare key to creating newopportunitiesfor people currently employed intraditional fossil fuelindustries anddeveloping career

pathways for thenextgeneration of Gippslanders,” shesaid.

“The regionhas aproud historyin providinghigh-quality,high-skilltechnical training back, which hascarried forwardfromthe former State Electricity CommissionofVictoria to thepresent day “TAFEGippsland operates atertiary training facility in everymajor town and works closelywithFederationUniversity to deliverindustry-ledtraining partnerships

“The Hi-Tech Precinct Gippslandand proposed Regional CarbonInnovation Centre will strengthen Gippsland’s educational and commercialisation capability.These institutions will be aconduit betweenacademia and industrytosupportthe development andcommercialisation of cleanenergy research.”

Carbon captureand storage

MS Wrigglesworth saidGippsland was concentrating on low-emission technologies such as carbon captureand storage

“Gippsland was focussed on these through itsgrowthasaRenewableEnergy Zone andhydrogenhub, the Hydrogen Energy Supply Chain (HESC)project, and CarbonNet,” she said.

“Permanent storageinsuitable geological formations is amajorfocus of research.”

The reportsaid initial assessments had given theGippsland Basin thehighest technicalranking of 25 major basins across Australia.

The CarbonNet project, ledby the state andfederal governments, is alargescale,multi-userCCS hubinGippsland.

Engineering andgeological investigations have identified ‘Pelican’ as the most promisingsite

Pelican is aporoussandstone formation capped by layers of shale andcoal,eight kilometres offthe Gippsland coastand 1.5km below the seabed.

“It has beenassessed as capableof

safely and permanently storing aboutfive million tonnesofcarbondioxide peryear, thereportsaid.

HESCisaworld-first liquidhydrogen project that gassifies theLatrobe Valley’s browncoal, siphoningoff thecarbon dioxidethatwill be stored in offshore reservoirs, while hydrogen will beliquefied at Hastingsand sentvia specialised ships to Kobe in Japan,where the gas willbe distributed to users.

TheJapanese consortium behind the project hassuccessfullycompleted its tests at itspilot plant andhas takenthe decision to proceed to the commercial stage, which they hope will be completed by thelate2020s

Alliedtothisisthe Gippsland Hydrogen Cluster.National Energy Resources

Australia haschosen Gippslandasone of ahandful of clusters across Australia that will play apivotal role in thedevelopment of theAustralian hydrogenindustry.The project aimstotobuildVictoria’s and Australia’s hydrogensupply, develop training programstobuildaskilled workforce and be an early adopter of hydrogen

Ms Wrigglesworth said commercial-scale hydrogen could providecleanfuelfor manypotential uses:industrial heat, long-distance heavytransport, exportand in power stations thatprovidefirming.

“Blue hydrogen can be produced in Gippsland by gassifying the coalor reforming natural gasand permanently store the resultantcarbondioxideusing CCS. Green hydrogencan be made through the electrolysis of waterusing renewable power,” shesaid.

In the near term, emissions from gas turbines couldbereducedbyblending hydrogen with natural gasfuel.

“In the longer-term, powerplants fuelled by pure hydrogen arebeing developed,” shesaid.

Ms Wrigglesworthsaid Gippsland couldbecomeAustralia’s leader in the development of hydrogen-based industries.

“Existingpipeline easements in Gippsland for naturalgas and liquid fuels cold provide astarting point for ahydrogen pipeline network which couldcarry clean fuel to theMelbourne marketand to an exportport, forexampleatHastings,” she said.

“New coal-firedpower stations integrated with CCS arealso prospective investments in Gippsland, subject to thedevelopmentofcommercially viable coal-CCS technology andthe discovery and commercialisation of enough carbon storage capacity under Bass Strait.”

Bioenergy

MS WrigglesworthsaidGippsland’s established agricultural, forestryand industrial sectorsprovidedopportunities for bioenergy and energy-from-waste.

Initial studies estimated that by 2030, Gippsland couldhave785,000 tonnes per year of plantation forestbiomassfor bioenergy; similarly,close to 800,000 tonnesoffood andfibrewaste could be used forenergy production.

“The opportunity remains open,”she said. In the Latrobe Valley,the Maryvaleenergyto-wastefacility at Opal AustralianPaper will divert325,000tonnesofresidual waste from landfill and useittogenerateenergy forthe Maryvalemill.

With an investmentofmorethan $500m, thefacility will create morethan220 jobs duringconstruction and morethan130 ongoing jobsinGippsland

Construction of Phase 1isplannedfor completionby 2025.

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Committee for Gippsland Chair,Rochelle Wrigglesworth.
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Carbon capture holdskey

THE Latrobe Valley andthe broader Latrobe regioncan play aleading role in Australia’senergy transition, according to the chiefexecutiveofthe CO2CRC, Dr MatthiasRaab

Theenergytransitionincludes renewables -wind,big offshorewind, solar in the various projects in theplanning- andthe opportunity,globally recognised,inthe production of hydrogen from Victorian browncoalwith carbon captureand storage (CCS), he says

“This project (HESC -Hydrogen Energy Supply Chain) is in consideration by the Japanese at least since 2010 and it was CO2CRC whobroughtaninitial concept study to KawasakiHeavy Industries in 2010,”says Dr Raab,who will chair theCCS sessionatthe NewEnergy Conference.

TheCO2CRC (Co-operative Research Centre), operating since2003 and based in EastMelbourne, is aworld leader in carbon capture utilisation andstorage research.DrRaab, born in Germany,has an international career spanning morethan 25 years in academia,governmentand industryand thenot-for-profit sectors

“One key consideration …istohave low-cost hydrogen production because we still havea very nascent industry.The volumes of hydrogenthatneedtobe produced havetoincrease many times overthe next decades in ordertohave the appropriate estimated substitutionfor naturalgas, or the complementation of energy requirements to naturalgas.”

Dr Raabsaysnatural gasisunlikely to disappear,but hydrogen willplay abig

role in replacing natural gasovertime provided “wecan get to theappropriate levelofrenewable electricitygeneration, andthe appropriate transmission that is required”.

“That is very significant,” he says. Further, other factors arethe appropriate infrastructuretodistribute hydrogen,the

Exxonintensifies storage research

EXXON MOBIL is continuingits

studytodetermine thepotential forcarbon captureand storage (CCS) in the Gippsland Basin.

Theaim is to reducegreenhouse gasemissionsfrommultiplelocal industries.

Theearly front-end engineering designwork waslaunched lastyear as part of Exxon’s global LowCarbon Solutions business to commercialise thecompany’sextensive lower emissionsportfolio.

Theaim was to create long-term shareholder values andsupport emissions-reduction efforts.

TheSouth East Australiacarbon capture(SEACCS) hubwould initially useexistinginfrastructuretostore CO2 in the depleted Breamfieldoff thecoast of Gippsland.

Theinitial phase of the SEACCS willtakeCO2 from theLongford gas plants to theBream Aplatform, where it will be permanently injected into the Breamreservoir.Ithas the potential to captureuptotwo million tonnesof CO2 -equivalenttotaking almost half amillion carsoff theroadfor every yearofoperation, according to the company “Our previousexperiencere-injecting intothe Bream fieldand detailed knowledgeofthe reservoir makes it

the ideallocation for Gippsland’sfirst CCS opportunity,” thecompany said.

When theBream Aand Bplatforms wereinitially developed in the 1980s andthe 1990s, natural gas was considered aby-product of oil production,and wasreinjected back into theBream reservoir.

In response to thegrowingdemand fornatural gas, Esso Australialater installed agas pipeline, which took gas from Bream to Australia’seast coast from 2002 to 2020

“During the last 10 years of production,Esso Australiasafely re-injectednaturalgas produced at theLongford gasplants during summer into theBream reservoir, drawing on thegas duringwinter when the needfor gas on Australia’s eastcoast is greatest,” the company said.

“This demonstrates the suitability of Bream forpermanent injection and storageofCO2.”

Exxonsaiditwas in active discussions with local industries “whichmay beinterested in accessing theSEA CCS hub to reduce emissions from their operations”, the companysaid.

In 2009, afederal government taskforce identified Gippsland as themostattractiveregion for CCSin Australia

appropriate hydrogencarrier -ammonia or anyother productsindevelopment -or whether it’sliquefiedhydrogen.

“Ultimately there will be reasonsfor allof the above, butthathas to be determined on aproject-by-project basis,” he says DrRaabsaysthe big opportunityfor the Latrobe Valley isthe massive amounts of feed stock- lignite/brown coal -to run afully commercial-scalehydrogen productionfacilityatverylow costand very lowemissions per kilogram of hydrogen

“That hasbeencalculatedbythe project proponent andhas been selected by the Japanese Green Innovation Fund as clean, greenhydrogen because itmeets themaximumallowed emission per kg/ hydrogen on international standards,” he says.

“This isthe conceptual projectplan andnow the projectisundergoing due diligence on theVictorian andJapanese side to proveall aspects that arerequired for afull-scalehydrogen facility.”

Dr Raab says theuse anddistribution of hydrogen willbedeterminedbywho the enduser is, andthe distancetothe distribution or refuellingnetwork.

“Hydrogenhas averylow energy density, thereforecompression,transportation, flow rates andapplication -all have to be appropriatelyimplemented so that we understandthe efficiencies of under whichcircumstances wewant to produce hydrogenoranotherapplication,or even replacingnaturalgas for domestic applications,” he says.

DrRaabsayshavinga large-scale hydrogen production facilitywhere the CO2 canbestored safely in the Gippsland Basin- in theformer oiland gas reservoirs, with pore spaceavailabledeeply under theseabed -opens manyopportunities for otheremittersinthe region andpotentially internationally, to usethe pore space and infrastructuretoreduce carbon dioxide emissions.

“A strategic partnership with, forexample Japanand Korea, couldbecome abig secondarybenefit of having aCCS project in Victoria. Emissions areaglobal problem, so as global citizens we need to decarbonise/reduce emissionswhere we can andwhereverthereare low-hanging fruitsgeographically,” he says.

“Australia is blessed by many things, includinghaving theenergy resource, having themineralresources and also the pore spaceinthe Basins,and we have this in abundance,far moreabundant than other countries. This is theway the Australian continent and its Basins evolved over geologicaltimes.”

Dr Raab says the keycustomersinour region- Japan,Korea andothers for mineral resources -are netimporters of energy

“They have geologically notthe same opportunitiestostorethe emissions anywhereontheirlandoroffshore. For Japanand Koreatoachieve their own legislated emissiontargets,theyare relying on other nationstostoretheir legislated carbon dioxide,” he says.

“While Australia canstore its own CO2 -it must do so to achieve the Net Zero 20250 target -Japan and Korea do not have this option; theydorelyonAustralia.Byhaving ageologicalcarbon storage project in Victoria, we canfirstlystore ourown emissionsfromthe HESC project, from other emittingsources, andalsooffer this opportunitytoour neighbours in theregion whilecreating an income/royalty stream for Australia andorVictoria.”

Dr Raab rejects the argumentthatVictoria, unlike Western Australia, Queensland and NSW,has fewresources

“The GippslandBasinwas Australia’smost prolific oiland gas Basinand wehave an absolute abundance of provenstorage inthe Basin. The CarbonNetproject and ExxonMobiles CCSproject arejustthe beginningifwecan see the‘BigPicture’ opportunityfor Victoria,” he says.

Dr RaabsaysCCS is proven

“It has been done fordecadesand decades. Thechallenge sitsinthe policy space. Theseare large projectsrequiring large investmentand long-term policy and financialcertainty.Theyalsoprovidevery large emission reductionorabatement opportunities, theywork betteratscalethe largerthe better- the larger,the more the costsare coming down,” he says. Dr Raab saysthese projects, like the geological carbon storage project,willalso set Victoria up for other carbon removal technologies like direct aircapturecapturing the CO2fromthe airatsucha lowerconcentration.

“Westill have to storeit, so withthe help of the HESC, CarbonNet andExxon CCSprojects, we can get the necessary infrastructureinplacethat will also allow in thefutureGippsland/Latrobe Valley to becomeacentrefor direct aircapture, where we canover decades/centuriescleanupthe airand use the infrastructure in theGippsland Basin,”hesays.

“Wewillalso be using thecompetency of theoil andgas industrytoprove up the storageresources. This is asignificant point to make -the industryhas the competency, theexperienceand the financing to dothis,” he says.

Dr Raab says acrucial issue is thetime required to getaproject offthe ground The CO2CRC is assessing theproject approval process.

“Wehave found that the regulatory approval processes for theseprojects is lengthyand complicated, has duplicationand can takeeightto10 years at aminimum. It’sa very significant undertaking forany company wantingto go throughthe process,” he says “The timeline is already at odds for the timelines required underthe federal government’ssafeguardmechanism. (The safeguardmechanism requires Australia’s highest greenhouse gasemitterstokeep their emissionsbelow abassline).

“Wehaveformed aregulatoryaffairs task force where we areworking withstate and federal government departments and ministries toshorten thetimelinefor project approvals.”

Dr Raabacknowledges thateveryindustry has opposition or has people who do not believe in them.

“What we know is,weneed all‘hands on deck’; we need to have everysingle technologythatweknow of and what we have notinvented yet, to achieve ambitious emissionreduction targets. The more political disputeswehave,the more we continuewithstatusquo and slow downemissions reductionatthe scale required.

“Without CCS, we will not achieveour net zerotargets-full stop.”

TheCO2CRC workswith research organisations in Australiaand internationally: GeoScience Australia; CSIRO, the universities- Curtin,Monash Melbourne,Queensland, Deakin;the Department of Energylaboratoriesinthe US;the German geo-research centre;and national research bodies in Japan and Korea.

The CO2CRC haspublished more than 400journalreview papers, educatedmore than 60PhDs,and has at anyone time 60-100researcher on its booksdoing researchonsomeaspectofthe CCSvalue chain.

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CO2CRC chief executive, Dr Matthias Raab will chair the carbon capture and storage session at the New Energy Conference. Photo: Supplied
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Plan in place at LoyYangA

AGL hasunveiled its long-termaim to turnthe Loy Yang Apower station site intoa low-carbon Energy Hub featuring solar materials andbattery recycling,grid-scalebatteries, potential hydrogenproduction and advanced manufacturing

The company’s plansfor the LatrobeValley EnergyHub were outlined at an event at LoyYangrecently, attended by more than 100 people, including theMinister forEnergy, Lily D‘Ambrosio, members of Latrobe CityCouncil,and localcommunity andbusinessgroups.

AGL’s chiefoperating officer,Markus Brokhof, said given the early closure of Loy Yang Ain2035, the companyhad begun to planwhat thefuture of the Latrobe ValleyEnergy Hubwouldlooklike

VicGridpreparing for newenery zone

VICGRID is tasked with thejob to co-ordinatethe overarching planningand developmentof Victorian Renewable Energy Zones that formthe infrastructurefor the state’sgrowing renewable energy industry.

VicGrid, which is adivision of the Department of Energy, Environment andClimateAction,isdeveloping changes to theway the energy transmission infrastructureisplanned anddeveloped through the Victorian Transmission InvestmentFramework (VTIF).

It will operate to realise the state government’srenewableenergy policy.The government’stargets arefor at least 2000megawatts (2gigawatts)ofoffshorewind capacity by 2031, 4000MW by 2035 and 9000MWby2040toreplaceenergy from coal-fired power stations in the Latrobe Valley as they close.

VicGrid says this new source of renewableenergy will requirenew transmission lines to deliver power to homes and businessesacross

Victoria

To meet these targets, VicGrid is developing coordinatedtransmission for offshorewindprojects in Gippslandand at Portland. The aim is to reduce theimpactonthe landscapes and communities and reduce unnecessarycosts.

VicGrid’sconcept of ‘coordination’ means that offshorewind farmsand privatetransmissioncompanies will not needtobuild their own transmission linestoconnect to the electricity grid

The aimistominimise theamount of transmission lines cross-crossing the locallandscape,avoiding the potentialspaghettieffect that could occur andkeeppricesdownfor energyconsumers.

LastDecember,the federal governmentdeclaredanareaoff Gippsland’scoast as Australia’s first

offshore wind zone.

VicGrid has outlined four main phases of engagement with communities, landholders and stakeholders that should be completed by early next year. It alsosays it is working with TraditionalOwners as partners,asthe process of planning and developing the transmission projects in Gippsland overthe courseofthisyearand beyond.

Phase 1, whichstarted earlythisyear andisexpected to be completed by mid-year,isaboutestablishing local conversationsand information sharing, such as whyoffshore wind transmissionisneeded.

Subsequent phasesaim to develop anumber of transmissionoptions, includingidentifyingany critical issues missed,culminatinginPhase 3, where preferred transmission solutionsare developed for connecting Gippsland’s offshore wind projects Phase 4, whichis scheduled for completion by early nextyear, aims to confirmthe preferredoptionsand outline thenext steps

“Engagement will continueacross all four phases of theprocess,”VicGrid says.

Thefeedback from Phase1covered a numberofissues. Theseincluded:

▶ Minimiseimpacts on the environment,biodiversity and visual amenity;

▶ Mitigateand avoidriskoffireand natural disasters;

▶ Consideroverhead and underground solutions, existing easements andinfrastructure, and proximity to towns and residents, and;

▶ Future-proofing to preparefor future energy targets.

“Wealso receivedfeedbackon broaderissues. This feedback willbe considered as partofour planning forthe transmission solution,” says VicGrid.

“This involves dialogue with relevant stakeholders andindustrial partners,” he said.

“Loy Yang isa fantastic site with a skilled local workforce andestablished infrastructure.Over thecoming decade, wewill worktogether with partners to explorearange of options includingwind andsolar power, grid-scalebatteries, hydrogen productionand co-location with advancedmanufacturingindustries.”

Mr Brokhof saidAGL hadrecently signed amemorandumofunderstanding (MOA) with Solar Recovery Corporation to explore establishing asolarpanel materials recovery plant at thesite

“Thiswouldenable remanufacture of solar panel materialsatthe end of their life,” he said.

“Thisistypical of industrial partnerswe have invited here andother peoplefrom the renewables industry.”

Around thesite, Mr Brokhof said AGLwas looking to establish asolarand thermal storage projectterminaland storage plant AGLalreadyhad ashareholdingina pilot projectnear Mildurathat it wouldliketo commercialise at theLoy Yang site.

AGL andAustralianenergy technology group RayGen havebuilt a$27 million pilot solar andthermalstorage project at Carwarp,about 20 minutes south of Mildura.

Theplant uses acombination of RayGen’s solar andhydro technology to produce 24-hour renewableelectricitythat AGL says is low-cost. The system is powered by afield of smart, rotational mirrors whose concentrated solar energy is combined withthe energy stored across two water reservoirstocreate a‘hotand cold’ solar hydrosolution.

The Carwarp plant delivers four megawatts (MW)ofsolar generationand 50 megawatt hours (MWh) of storage to produce electricityondemand.

AGLsays this improves gridstability,as well as supplying reliable, synchronous power

AGL committed $5 million to help fund the construction at Carwarp as well as agreeing to offtake theentirety of the plant’s production

Mr Brokhof said theofficial inauguration of the projectwould take place at the end of this month in Mildura. He said advanced manufacturing projects werealso planned for theLoy Yang site.

“Thereare alot of things in the pipeline that Ican’t disclosenow.Weare lookingat allthe technologies -atbatteryrecycling,

waste-to-energy -all these effortsand partnershipswould addvalue to oursite, he said.

Mr Brokhof said AGL didnot plantojust build solarorwindplants.

“Weare taking a different approach - we look at ourcustomers andthe customer needsand build an ecosystemoflow carbon energyproductionaround them. We arenot just building on site;weask the customer,” he said.

“That is thereasonwhy we areplanning early with engagement 12 years ahead of theclosure of LoyYang. We need a planninghorizontobuildinfrastructure aroundthis.”

MrBrokhof said AGLhad already signalled thatitwould build an initial 200MWbatteryatLoy Yang

The company would decide next year, whena financialinvestment decision would be made, about further generation capacity in thecontext of theentireenergy infrastructure, he said

Mr Brokhof said theJapanese HESCcoalto-hydrogen project- the plantislocated next to theLoy Yang powerstation -was goingthrough thefeasibility stage for a commercial plant.

“Thereisa great opportunity.The JapaneseGovernment supports theHESC project, withmorethan$2billion funding

The Japanese parentislookingat the theoretical funding requirements from the federal and stategovernments,”hesaid.

The HESCproject would require continual miningof the Loy Yang site.

“Thisrequiresseparate approval; it is not coveredbythe currentmining licence. Once we startthe evaluation phase and engineering design, we need to apply for different licences,” he said.

Mr Brokhof emphasised that AGL would continuetoredevelop thesiteoverthe next few years.

“Wedon’t wanttodisappearfromthe site, demolishthe plant and leave. We wantto build an energy structure on the site and transitionour people. We aretransparent with our workers. The aim is to create employment for thenextgeneration on the site,” he said.

“Weare also looking at Indigenous projects, recognise the need to give back to the Gunaikurnai people, the traditional owners of theland.”

Mr Brokhof said the Loy Yang plans formed apartofAGL’s broader transition strategy to transform the Liddell and Bayswater sites in NSW into theHunter Energy Huband the TorrenssiteinSouth Australiaintothe TorrensEnergy Hub. “Atthe Torrens hub, a250MW batterywill soon be operational and at theHunterhub, planning permission hasbeen granted for the500MW Liddell battery,”hesaid.

RayGenhas received supportfromthe Australian Renewable Energy Agency (ARENA)for the Carwarp site RayGen’schief executive, RichardPayne, said AGLhad agreed threeyearsago to providea‘voice of customer’ into the designprocess forRayGen’s storage product.

“AGL provided valuable insights that enhanced our technology offering, and AGLisnow supporting deployment with an offtake and investment,”MrPaynesaid. Bothcompanies have workedonthe design ofthe $27millionconcentrated solarand thermal storage sitesince 2019

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Latrobe Valley's coal gasification and refining plant at Loy Yang A.
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EnergyAus investment works

ENERGY AUSTRALIA has committed to a$400millioninvestmentatthe Yallournpowerstationtounderpin improved asset reliability,safety,and performance ahead of thestation’s planned closureinmid-2028.

The accelerated programofinvestment willcover scheduledmajoroutagesfor eachofYallourn’sfour generation units over 2023 and 2024, and includes works to support theplant’sintegrity, reliability andperformance of thestationupuntil closure.

EnergyAustraliaManaging Director Mark Collette has beenwith EnergyAustralia since 2003, comingonboard as managing directorinearly 2021. Mr Collette is also chair and directorofthe Australian Energy Council (AEC), which represents20major electricityand downstreamnaturalgas businesses operating in the wholesaleand retailenergymarkets

“We’rea purpose lead company,soour purpose is to lead andaccelerate clean energytransformation forall,” he said “For allitisimportant to u. means employees,itmeans customers, andit meanscommunities, and it meansdoing things in away that bringspeople along “(The year) 2028 is not faraway, so we’ve already started conversationswithour team about what comes next.

“We’reinvestinghundredsofmillions of dollars, about400 million dollars and more in thenextcouple of years, to ensurewe’re as reliable andaffordable as we can be for Victoria andAustralia untilclosure.

“It already meansthe investments are increasingly going to things likeour Wooreenbattery- notquite abillion dollars,but it’squite alargeinvestment.”

EnergyAustraliawill construct a350 MW four-hourutility-scale battery,which is expected to be operational by theend of 2026.Based on land availability and goodgridconnectivity,EnergyAustralia’s gas-fired Jeeralangpower facility in Hazelwood North, LatrobeValley, has beenchosenasthe preferred locationfor the Wooreen batteryconstruction.

“It’sall about providing our affirming for thesystem of thefuture,which is going to be dominated by wind andsolar from an energy perspective,”MrCollette said

“It’sanexciting purpose andanexciting futurethat we have, butit’sone that brings lots of change. The challengetoovercome is thespeed at whichthings arebeing built.”

EnergyAustraliahas many projects underway across thenation.These includethe zero-emissions hydrogenand gas-capable TallawaraB project, Lake

Lyell pumpedhydro, WooreenEnergy Storage systemand the gas-firedMarulan Powerstation.

“It’sa big transformation;it’sa big investment horizon that Australiahas got there,” he said “With ourTallawaraPower station …our ambition istocrack thecode on what fuel would be zerocarbon.”

EnergyAustralia willnot look at more efficientways of coal-poweredsystems, optingtoleadthe way incleanand renewable energyasopposed to updating oldtechnology

“We’ve been on the path of reducing emissions since at least 2007-08, so we’ve been on ajourney for 15 years or so. We didgivemuch timeexploring all the different optionsavailabletous, including changes wecould make heretoimprove efficiency, carbon captureand storage, or anyofthose technologies,” Mr Collette said.

“Broadly, wherewelanded,froma technical perspective, they’re(updatesto coal-firedtechnology) just moreexpensive than thealternatives,and wewerebetter offfocusing on wind, solar, batteries,gas turningintohydrogenand pumped hydro because in aggregateand also behind themetre, so solar and batteries in homes leads to acheaper andjust as reliable systemthan the coal-based alternatives.”

EnergyAustralia continues to invest in cleaner technology,and another way they aimtodothisis throughanelectronic vehicle trialnow underwayatYallourn.

“It’sa goodexample that theremight only be five years left of operation at Yallourn; that’s no reason we don’t use cutting-edge technology,” Mr Collettesaid.

“It’s from twoangles, oneisthatthe technology can givea lotofbenefits, either it’scheaper,orlower emission or different applicationsthat we weren’t able to do with previoustechnology.”

“The other thing is that it helpsset out better careers for thefuture forour people, soyou’ll go to the mines and theguysand girls working in themines,they’reworking withcutting-edgetechnology

“The opportunity from thatfor our team is

that thetechnology they’reusing they can use in otherplaces, whichmakesthem moreand more employable.”

EnergyAustralia remains committed to ensuring asmooth transition of energy and employees.

The company has invested in a$10 million programtoprovidetransition supportfor employees and ongoing planning forthe safe rehabilitation and transformationof theYallournmine and power station site to become an asset for thelocal community With regardtothe mine’sremediation,the mine willhavetobestabilised with either dirt or water; withthe sheer size of the mine, EnergyAustralia willopt to fillitwith water to stabilise it.

“Wewillremediatethe site …itmeans deconstructing anddemolishingover timeand returning ittoa flat site,” EnergyAustralia’s GM said.

MrColletteexplained that because Yallournisona floodplain,EnergyAustralia coulduse the mine to preventfloods and continually benefit the community

Speaking in regard to EnergyAustralia’s investments in wind and solar,MrCollette said: “Weown 50 percent of awind project in SouthAustralia; that’s the only one thatweown at themoment. We tend tobuy the offtake,sowe’ll buyintoother people’sprojects.”

Oneofthe reasons EnergyAustralia opts to operate like thisisbecause they area retailer, andpartofthe jobfor retailersisto get the cheapest energy forcustomers, Mr Colletteexplained.

“Things change overtime, and particularly we like to make sure we have enough storageand generational capacity to meet theneeds of our customers,”headded.

“Asbatteriesand the othersortofstorage technologies starttoget more locatedon thesamesite as thewindand solar.That might meanwemight investmoredirectly intosomeofthose projects.

“It’snot we’rein, or we’reout;it’swhat’sthe best for ourcustomers that drives what we do.”

Batteriestoprovide vitalback-up role

LARGE-SCALE batterieslocated in the Latrobe Valley that storeenergy for usewhen requiredwill play an important role in Central Gippsland’s contribution to thefutureenergy system.

A150-megawatt capacity batterywas opened at thesite of theold Hazelwood power station in June, while Energy Australia will build an $800 million,350 megawatt-capacity batterynexttoits gas-firedJeeralangpower station at Hazelwood North, justsouth of Morwell This battery is expected to be in operation before theend of 2026.

AGLisalso planninga 200MWbattery based at the LoyYang power station. Thecompany has lodgeda planning applicationtothe state government. Thefour-hour duration batteryispart of AGL’s broader plans to develop 850MW of grid-scalebatteriesby2024.

TheHazelwoodBatteryEnergy Storage System was built by ENGIE, Eku Energy andFluence. Thecompanies say thebatteryhas the capacity to power about 75,000 homesfor one

hour during the eveningpeak.

Hazelwood is thefirstretired coal-fired power stationtohosta batterystorage system in Australia.

The EnergyAustralia battery,which will provide350MW for four hours,is based on a1400MWhbatterycapacity. Construction is expected to take12-18 months and will create more than 80 jobs.

The battery will be known as the WooreenEnergy Storage System (WESS). ‘Wooreen’ is aGunaikurnai language name meaning‘light’.Energy Australia was gifted the name by Aunty DorisPaton and theGunaikurnaiLand and WatersAboriginalCorporation.

TheJeeralangsitewas chosen as the preferred location forthe battery based on landavailability andoptimal connection to thegrid.The Hazelwood power terminal, whichwill ultimately connect to the proposedoffshorewind farms and proposed Marinus Link to Tasmania, is nearby.The batterywillnot bepartofJeeralang’soperation.

Utility-scalebatteries store low-cost energy,suchas excess renewable

energy. When demand for power is higher and thereis less renewable energyavailable,suchas at night,the storedenergy isavailable for use. This aims to keep costs downfor customers. Energy Australia, which ownsthe YallournW powerstation, saysthat battery storage canalsohelpreduce thepotential for blackouts and any need for‘load shedding’whenthereis asupply imbalance.

In thisway,theyintegraterenewable energy intothe gridand ensurethat energy remainsreliable Hazelwood’sbatterysite features a field of box-like structures known as ‘cubes’. Eachcubehas acooling system and batteryrack, as well as fire detection technology.The battery next to Jeeralangwillbesimilar butbigger.

Energy Australia maintains thatmodern utility-scalebatteriesuse purpose-built containers that canbe positioned and screened for minimum visual impact. Lithium technologies have no noticeable vibration,greenhouse emissionsand emitminimal sound.

In September 2021, EnergyAustralia

called for expressions of interest for businessesthat can engineer, procure andbuild thenew batterystorage facility.

Preferred criteria were to maximise localparticipation in the Latrobe Valley andbroaderGippslandregion. The selected contractor is expected to be announced in the firstquarter of next year

According to Energy Australia,the batteryhas several advantages:

▶ Storedenergy can step in on cloudy or windless dayswhenrenewables arenot available. Whendemand for power rises, utility-scale batteries candischarge their stored power, helping to keepthe lights on;

▶ It storeselectricity at times when lots of renewableenergy is being produced, thussupplying dispatchable power to theenergy system, and;

▶ The quickrelease of stored energy during periods of highdemand helps maintain theenergysupply andkeeps costs down.

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to a NEWENERGYFUTURE Page 10 GIPPSLAND'S TRANSITION TO ANEW ENERGY FUTURE 22 /23August, 2023
Gippsland’s Transition
EnergyAustralia Managing Director Mark Collette. Photo: Zaida Glibanovic

Newlife forJeeralangplant

THE Jeeralang gas-fired power station, owned by Energy Australia, is undergoing amajor upgrade to prepare thestationfor aprime role in the energy transformation of the LatrobeValley andCentral Gippsland

Jeeralang, which opened in 1979 as aniche peaking station to supportthe Valley’s brown coal powerstations, will take on an additional firming role as renewablesenergy kicksintothe power grid.

Wind andsolar areintermittent when the wind drops offand thesun isn’tshining, so gas-fired power from therefurbished Jeeralang will take up the slackinthe grid’s electricity supply

It is locatednext to theHazelwoodterminal station, so hasdirect access to the power grid, and will also connect to output from theproposed Star of the Southwindfarm in Bass Straitand theMarinusLink to Tasmania.

Witha nominal output of 449megawatts, Jeeralangoperates in tandem withits sister station, the 500MW, gas-fired Newport power station in Melbourne.

Dale Hogarth, theheadofgas assets at Energy Australia, said Jeeralang was designed as aniche playerwhen the former SEC built the coal-fired power stations.

“It has stood thetestoftime. It was built for peaking demandsand systemrestart, but now will be firming for renewables and system restart, andhas moved through that evolutionsince 1979,”hetoldthe authorduringa tour of Jeeralang.

“Basically,Jeeralanghas performedthat samerole, randepending on whathas beengoingoninthe marketplace.”

Whenthe SEC outsourced its activities in thelate 1980s, Jeeralang went through different ownerships, but when thethen ownerEcoGenput it up for sale in 2018, EA boughtthe asset andtookitover,along withNewport.

However,Jeeralang had becomea tired ‘old warhorse’

“A lot of expenditurewas needed as it largelyhad an expiredlife. Not a lot of outages (formaintenance and refurbishment) had been done,”Mr Hogarthsaid. He and Julia Heslop, Jeeralang’s assetleader,weregiventhe tasktospendmoney andput life back into thepeak gasstation

Ms Heslop said that between2020 and 2023, major worksonthe sevenunits totalled towards$60 million.

“It’s significant forasite thissize,”she said.

Butmorewas needed.MsHeslop said it wasestimated onenew Bunitfor Jeeralang would cost $75 million.

“Welooked at that as option; theidea did notmakecommercialsense, we would have walkedaway from Bstation and shut them down.”

Mr Hogarthsaidreplacingthree units, plus thedemolition costsand new parts, would push thetotalcost towards $300 million.

Then luck and persistence took ahand.

EA wasable to buy some old unitsfor $15million from aclosed peakingpower station at WilmersdorfinBerlin.

“Itwas critical for us to get these componentsthat still had lifeinthem,” Mr Hogarthsaid.

These unitsare nowbeingrefurbished in Italyand Thailandand should be on site within18months.Theywillnot be notquite new, butveryuseable andhave plenty of life.

“We’ve done that effectively for$15m,” he said,includingthe refurbishment work, which would takeJeeralang through to 2039.

“It’sa really goodstory forrepurposing

asite. In current environment, notsure anyonewould spend$300m to build a 200MW gasturbinestation.”

Ms Heslop said therefurbishment work could be done whilethree unitswerestill available EvenifEAsaid, ‘build another unit’that could notbedone as generation wasnot available.

“Whereas with this,wecan getthese rotorsand when ready, we plan asmall outageand we change them out,that becomesa spare.Ifwedid need that later, we canrefurbish that and put it back in -it gives us alot of flexibility,” shesaid EA’s plannedbattery -the Wooreen Energy Storage System- will be built on empty paddocks next door to Jeeralang. The

batteryisnot connected to Jeeralang operationally, but is deliberately located near theHazelwoodterminal station.

“Weown the land it’s on,soit’seasierto get relevant permissionsand thereare synergies. The technical people areon hand if needed,” Mr Hogarthsaid. Jeeralang’snew firmingrolewillnot change how it runs,but will change depending on thetime of the year.Ms Heslop said thepeaking station would typically run morningsand evenings, especially in hottimes of year when air-conditioningwas operating. “Nowit’s moreautumnand spring, depending on when renewablesdropoff,” she said Mr Hogarth said inwinter,inthe middle of day, solar was pumping as well as it

can,and windwas typically “not great,but okay”

“The marketislongwithsupplyinthe middle of the day, so the big stations Yallourn andLoy Yang trytoget outofthe way; the sungoesdownbeforeafternoon peak- you have effectively lostall your solargeneration by 4.30-5pm, “hesaid. At the afternoon peak,when people turn on their heater andtelevision, energy supplywas short

“JeeralangorNewport become important; they canstart quickly,coverthe afternoon peakand then shut down again. They may run for two hours, they arepurpose-built for that. Yallourn andLoy Yang can’t respond that quickly.”

Jeeralang is remotelyoperated from Newport; it has 10 day workers and no nightshift. Thereisa direct communications link to Newport and its operations in the control room.

“They have acontrol system screen;they start the Jeeralang plant from there. If there is an alarm, they cancallthe call officerhere, andthey willlook at what is goingon,” Ms Heslopsaid

Mr Hogarth said Jeeralang wasnot 24/7in terms of staffing butwas 24/7 in terms of operation.

“The gas turbinescan remotely start-just pressa button. This sitecan be available without manning around theclock comparedwitha bigger sitethatruns around theclockwithstaff.This plantwill run fine unattended,”hesaid.

Time for Gippsland to re-energise

sectors -aCO2 reduction winfor Victoria.

has generated affordable power that hashelpedgrowand support Victorians’way

of life

As we transitiontonet zero emissions by 2050,the Gippsland regionisina unique positiontobecome an even greater contributor-a hubfor the production of arange of cleanand affordable energy, well intothe next century.

Gippsland’s existing grid connections, infrastructure,natural resources and skilled workforceare advantages that must not be squandered, northe communityleft behind, as we move to our netzerotargets.

The regionhas cleanenergy opportunities throughwind,solar, biomassand batteryprojects.

Gippsland also has aplentiful supply of Latrobe Valley coal thathas astable price and is asecuresourcefrom whichtoextract hydrogenthrough gasification.

Combined with carbon capture utilisation andstorage (CCUS)this approach also providesopportunities to create aclean energy hub,byalso producing ammonia, fertiliser/urea, methanoland aviationfuel- reducing global CO2emissions, providing even morelocal jobsand securing our sovereign clean energy supply chains.

Gippsland isalso home to someofthe best carbon storage sites inthe world.

For example,utilising depleted oiland gas reservoirs in Bass Strait,wecan usethe natural rock formations that have been securely storing gasfor millions of yearstostore theexcess CO2 from hydrogenproduction,and also from the hardtoabate industrial

It’s worth noting that Victoria isalready hometoa successful carbon capture storage(CCS) project.Overthe past 15 years, theCO2CRC hassuccessfully stored nearly 100,000 tonnesofcarbon dioxide offthe Otway coast. Andwe arenot alone. Today thereare more than 200 CCS projects in various stages of development aroundthe world-with morethan30projects already built, safely storing some 40 million tonnes of CO2 per annum. The Intergovernmental Panel on ClimateChange (IPCC)and InternationalEnergy Agency (IEA) regardCCS as acriticalpartto achieving our global netzerotargets. Nowtobring this opportunitytoreality, theHydrogen EnergySupplyChain (HESC)project hasbeenunder developmentinGippsland for10years

With the supportofthe Victorian, Australianand Japanese governments and several Japanese organisations, the world’sfirst liquid hydrogen pilot projectwas successfully completed in early 2022.

In March of this year,the Japanese government,after more than 12 months of assessing potentialAustralian and international projects,showed its commitmentwith a$2.35billionGreen Innovation Fund (GIF) grant, awarded to the HESCProject.

Japan Suiso Energy (JSE)will co-invest withthe GIF funds,tobuild ahydrogen liquefactionand loading terminalatthe industrial PortofHastings.

In addition, theJ-Powerand Sumitomo CorporationJoint Venturewill invest in a gasification and carbon capture facility in the Latrobe Valley thatwillsupply clean hydrogengas to theliquefaction facility

Together,these facilities will employ up to 1000 peoplewhen operating at full capacity

In thefirst phase, the project will produce 40,000tonnesper year of clean gaseous hydrogen, of which 30,000 tonnesper year will be liquefied andexportedbyship to Japan. The remaining 10,000 tonnes peryear will be for the Australiandomestic market, reducinglocal carbon emissions. Importantly, this project givesVictoria first mover advantage in theglobal and domestichydrogen market, critical to securing long termcontracts with key trading partners like Japanand Korea. This is aglobal race and Victoria has a $2.35 billion head start

In this energytransitionperiod, timing iseverything

Subjecttoplanningand environmental approvals, the project is expected to beinconstructionaroundthe time of the plannedshutdown of theYallourn power station, providing career options forthe existingworkforce. It will also deliver significantforeigninvestment andexport revenue forVictoriaata time when the State budget needsit most

To ensure carbon reduction targets aremet, theprojectwilluse thefederal government’s hydrogen Guarantee of Origin scheme to providetransparency to customers on carbonintensity By harnessing theregion’s advantages Ibelievethis is theright project,inthe rightplace, at theright time and I’d encourage theGippsland community to seize theopportunityitpresents.

JeremyStone is aNon-Executive Director &Adviser of the Australian subsidiary of J-Power, oneofJapan’s largest utility companies

Gippsland’s Transitiontoa NEWENERGYFUTURE 22 /23August, 2023 GIPPSLAND'S TRANSITION TO ANEW ENERGYFUTURE Page 11
EnergyAustralia head of gas assets Dale Hogarth and Jeeralang asset leader Julia Heslop.

Newera forold coal-fired station

THERE will hopefully be no doubting thisHazelwood’sabilitytorun over consecutive days

TheHazelwood BatteryEnergyStorage System(HBESS)was officially launched recently, heralding anew eraand anew life forthe former coal-fired powerstation. Ministerfor Energy andResources Lily D’Ambrosio was on hand to unveil the plaqueatthe battery site,standing alongsideindustrypartners from ENGIE, Eku Energy andFluence.

The collaborationbetween ENGIE, Eku and Fluence will see the Hazelwood batteryhave thecapacity to power around 75,000Victorian homesfor onehour during the evening peak.

Apacked mediaattended thelaunch, as MinisterD’Ambrosio reiterated the state government’s commitmenttoachieving 95 per cent renewable energyby2035.

“The Latrobe Valley hasbeen thehomeof Victoria’s energygeneration for decades, andnew investment in technologies like energy storage willhelp solidify itsrolein ourrenewable energy future,” she said.

“We’releadingthe nationinour investment in batteryand energy storage projects, from the biggestofbig batteries to the smallest household units, which will all help us deliver moresecure, affordable andrenewable energy.

“Ournation-leading energy storage targets areensuringthatVictoria continues to attract industryinvestmentand collaborationopportunities likethis.”

The150-megawattcapacity at Hazelwood will be addedtothe state’s grid- oneof sixbig batteries as part of the Victorian Renewable Energy Target auction

Along with95per cent renewables by 2035, thestate government is also aiming foratleast 2.6gigawatts of energy storagecapacity by 2030, andatleast6.3 gigawatts by 2035.Hazelwoodisthe first retired coal-fired power station to host a batterystorage system in Australia Eku Energy chief investment officer Daniel Burrowssaid the systemworkedto ensureenergy would always be available, regardless of weather conditions

“In this particular case, whatthe battery will do is chargeand storeenergy when energy’sabundant,”heexplained.

“Whenyou comehomefromworksay, you’llhaveenergy available, so when the sun isn’tshiningorthe wind isn’tblowing,it makes that energy availablefor you.

“In additiontothat, what this energy systemwilldoisalsoprovide servicesto thegrid to makesureitwilloperate safely and reliably.”

Eku has workedonsimilar projects to the HazelwoodbatteryinCranbourne andon the CanberraBig Batteryinpartnership withthe ACTgovernment Physically,the batterysitefeaturesafield of box-like structures knownas‘cubes’. Each cube has acooling systemand batteryrack, as wellas fire detection technology

As key stakeholders of the Hazelwood Power Station, ENGIEchief executive Rik DeBuyserie said it was an excitingfuture for the site.

“ENGIE’s deliveryofthe Hazelwood battery is partofour commitmentto building long-term,reliableassetsthat play akey role in the future of Australia’s energytransition,”hesaid

“With its accesstotransmissionand availablespaceatsite, Hazelwoodis theperfect locationfor an assetthat can grow in depth and duration,increasing the hostingcapacity forrenewables ”

While there is anew battery at the power station,there is stillabig holeinthe ground where the formerminesite was located.

Addressing the elephant in the room, Mr De Buyserie said therewas still anumber of boxestotick dealing with themine void.

“The rehabilitation processisongoing, we arecurrently in the EES(environmental effects statement)process with environmental authoritiestosee what willbethe finallayoutand design of the rehabilitation, which will take acoupleof years,”hesaid.

“Weare convincedthatthe best wayto stabilise the mineistofill it withwater,the morewater thereisthere,the better it is for stability,that’srainwater or the river diversion.”

Those drivingalongthe Princes Highway might have noticed sprinklersrunningin the mine

Mr De Buyserie moved to reassurethis was simply forfireprevention.

Star of theSouth edgescloser

A50-strong crew spent fiveweeks at sea recently,collectingsoiland rock samples from beneath the seafloor offthe Wellington coast to help design the proposed Star of theSouth offshorewindenergy project.

Samples were taken from up to 70 metres beneath theseabed,ina project led by international geo-data specialists Fugro

Dignitaries gathered at QUBE’sBarry Beach Terminal (nearWelshpool) in Maytoformally announce theworks, andtourthe Fugro vessel

Amongthem wasMinister for Energy andResources, LilyD’Ambrosio, along with Star of theSouth chief executive CharlesRattray andFugro regional directorShalu Shajahan.

TheBarryBeachTerminal is themain supplydepot for Esso Australia’s Bass Strait oiland gas operations, andfacilitates the transportation of equipment andsupplies to more than 20 offshoreplatforms.

Ms D’Ambrosiowelcomedthe works, saying theywouldcontinue astrong legacy of energyinGippsland.

“This will be thefirst marine geotechnical campaign in Australiafor offshorewind energy -whichisahuge achievement for Victoriaasitmakes thetransition from coal to renewables,” she said

“Thiseventissuch an important next stepinthe creationofAustralia’s first offshorewind energy industry,and Victoria will deliverthat.

“This geotechnical surveythatwe

aremarking is the first of itskind in Australia forthe offshore wind energy industry. It is amajor milestonefor the development of thecountry’s first offshore windenergy industry,here, hosted by the Gippsland region.

“That is really such afundamentally and significant focus forus, whenwe understandand acknowledge therole that the Gippsland region hasplayed for many decades in delivering energy.”

Investigations arebeing fundedin part by the stategovernment’s Energy InnovationFund

“From our$108million Energy InnovationFund,we’ve carved offabout $19.5 millionfor the Star of theSouth to do workssuchas pre-construction surveys,” Ms D’Ambrosio said.

“These things donot happenby accident, they happen with having clear,ambitious targets.”

Thoseambitious targetsinclude having 95 percentofthe state’selectricity comingfromrenewable sourcesby 2035

However,with the imminent closureof coal-fire powered stations at Yallourn in 2028 and LoyYang Ain2035, questionssurrounding thelikelyvoid between 2028 and2035continued to linger.

With thestate government announcing the returnofthe SECatlast year’s election,Ms D’Ambrosio said the returningworkforcewas settoplaya keyrole.

“Certainlythe SEC is an agency that will help to accelerateour drivetoward creating 95 per centrenewable energy

by 2035.I wasverypleased to launch thePioneer InvestmentMandatefor the SEC, and we’rewantingtoget offand running as quickly as we cantoget the first project, or projects backed by the SEC, built by theSEC,and we’renot wastinga day,” she said.

“Rightnow,weare wanting to find projects that areready to be built, we’relooking to havethe firstprojects selected by theend of this year.”

Following formalities, attendees took theopportunitytotour theFugrovessel Interestingly,patrons were requiredto wearmasks on board,and were shown aroundthe control room, getting afeel for lifeatsea

Spotting atable tennistablefolded up, acrewmemberquippedhow itcan be quite challenging playing ping pong on boardaboattackling rough seas.

As MrShajahanexplained, the Fugro vessel’s capabilities wereextensive. “Wehave acombination of CPT(cone penetration test)equipmentaswell as drilling equipment,” he said.

“As we go outwecollect actual quantitativedatainterms of CPT’s and samples, which we bring back and do the analysis, becauseweneed to characterise thekindofgeology.”

The vessel can cater forupto500 metres of drilling simultaneously Seabed studies follow fouryears of engineering and environmental investigationsonthe project.

Addressing media assembled at theQUBE dock in frontofthe Fugro vessel,MrRattraydescribeditas a“momentousday for Victoria, Gippslandand Star of the South”.

“Theseinvestigationswillcollect critical datatodriveprogress on the project, andbringusanother stepcloser to bringingoffshorewind energy into the gridthisdecade,”hesaid.

“Knowingwhat’sunder theseabed in thisspecific locationhelps ensure everything we do -fromturbine design andplacement throughtoconstruction methods -istailored especially forthis spot in Bass Strait.”

While notdiscountingthe value of renewables, Member forEastern VictoriaRegion, MelinaBath, said longevity and prosperity of the Gippslandregionalso needed to be carefullyconsidered.

“Investment in new energy jobs presentsanopportunityfor Gippsland, however we must be activeparticipants in such projects,” she said.

“The Nationals willcontinue to advocatefor sustainable long term careersfor locals, includingthe use of local expertise in manufacturing, engineering,constructionand maintenance.

“It’s fair to sayour community expects morethan short term,localised benefits -given thescopeofthe project, establishingstakeholder relationships that benefitlocals inthe long term will be centraltoits acceptance.”

Star of the South isAustralia’smost advanced offshorewindproject, proposed to belocatedoff the Wellington coast.

It is estimated Star of theSouth will power up to 1.2million homes.

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NEWENERGYFUTURE Page 12 GIPPSLAND'S TRANSITION TO ANEW ENERGY FUTURE 22 /23August, 2023
Gippsland’s Transition to a
Minister for Energy and Resources Lily D’Ambrosio tours the Hazelwood Battery Energy Storage System. Photos: Katrina Brandon
22 /23August, 2023 GIPPSLAND'S TRANSITIONTOA NEW ENERGY FUTURE Page 13 GP1659749

Gippy internationalattention

ASPANISH company, BlueFloat Energy,has set itssightsonan offshorewind project in Gippsland offthe coast between Seasprayand WoodsideBeach

BlueFloat Energy hasapplied for afeasibility licencefor theGreater Gippsland OffshoreWind Project, in thefirstdeclared offshore wind zone in Bass Strait. Afeasibility licence will enable marine andenvironmental studies to ensurethe suitability of the site for development.

The project hasabout 140offshore wind turbines, with ageneration capacity of 2.1 gigawatts,which is enough new energy to power amillion homes whenatfull capacity.Itisproposedthe project will use shared transmission infrastructure to connect into the electricity grid in the Latrobe Valley

BlueFloat Energy stakeholder and engagement manager, andproud Gippslandlocal,KateLancaster,said the community was at the heart of the company’s ambitions.

“Ourproject alone will create 2000 jobs duringconstructionand 300 ongoing jobs once operational in 2030. There will be flow on effectsand indirect jobs forlocal businesses and industry,”she said.

“For us,the keyisharnessing theskills we alreadyhaveinthe region and inspiring thenextgenerationtobepartofthe new energy sector in Gippsland

“We’reworking withFederationUniversity andTAFEGippsland to develop education

andtraining pathways foryoung people entering theindustryand supporting existingpower industryworkers wanting to transition.

“We’ve been active at jobs andskills expos sharinginformation with university andschool students aboutthe new industryand thejobs available in offshore wind.”

BlueFloatEnergyconsiders thetraditional owners,the Gunaikurnai people,askey

partnersinany Gippsland development.

“A partnership withGunaikurnai peopleis critical to ensureoffshorewindprojects are developed in the best possible waythat respects the land,air,sea and sky,” Ms Lancaster said.

“Atthe heartofour conversations with GLaWAC (GunaikurnaiLandand Waters AboriginalCorporation) is adeeprespect of their enduringconnection withLandand SeaCountry.”

BlueFloat Energy chief executive, Carlos Martin, told theAustralianFinancial Review earlier this year that thedeveloper had faced intense competitioninother jurisdictions,but wasconfident its Gippslandproposal would winfavourwith Australian authorities.

“Wefacecompetition everywhere. We have ourown wayofworking which ishopefullybetter than others, but it’s definitely ours,”MrMartintoldThe AFR.

“I cantell youScotlandwas definitely more competitive than inAustralia,and we came outofthe bidding quite successfully,”he said.

“Wehaveverystrong capabilities with ateamthat hasexperience in different backgrounds, differentparts of thevalue chain,differenttypes of players, andwe areextremely motivated.”

Mr Martin saidBlueFloat, which has morethan20offshorewind projects in developmentaround theworld, hadstrong financialbacking from its shareholders. BlueFloat Energy’s feasibility licence application waswellsupportedwithletters from keylocal people and organisations.It followed community engagementsessions in Sale, Seaspray andWoodside Beach. Moresessionswillbeheldalongthe coast in the future.

TheBlueFloat energyteamwould loveto meetmoreschool students at the Gippy New Energy Youth SummitatSaleon Wednesday,August30.

Theywillalso be at theNew Energy Community Day at Sale on Saturday, September 2

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The BlueFloat Energy team at arecent community engagement session at Sale. Pictured is BlueFloat Energy CountryManager,Nick Sankey,HeadofEnvironment and Planning Deb Neumann, Stakeholder and Engagement Manager Kate Lancaster and Committee for Gippsland chief executive Tony Cantwell. Photo: Supplied
22 /23August, 2023 GIPPSLAND'S TRANSITIONTOA NEW ENERGY FUTURE Page 15 GP1660581

Gippsland’s Transition to a NEWENERGYFUTURE

Linkingpeople with careers

MARINUS Link is expected to deliver 1400 jobsduringconstruction in Victoria, and around 3000 students gottolearnabout theopportunitiesatlast month’s JobSkills Expo

Marinus Link’sEconomic Development

Manager Christina Young presented twice during the expo within the ‘Jobs of the Future’ stream

“The transition to renewable energywill provide alot of employment forthe next workforce generation,particularly jobs requiring technicalskillsets,” Ms Young said.

The JobSkills Expo was heldatLardner Park, and included Year 11 and12 students, alongside students from Year 9 and10, from 30 localschools.

Participants also included students undertakingthe VictorianCertificate of Applied Learning (VCAL)and young people from trainingand community organisationsinLatrobe City,Baw Baw, South Gippsland and Bass Coast regions Theexpogavethoseattending an opportunity to meet with potential employers and find out moreabout job opportunitiesinGippsland

Theevent engaged young peoplewith

‘hands-on’ activities and informationabout thevariousskills, jobs andindustries that make up our workforce.

Supporting workforcedevelopment and training areamongthe toppriorities forMs Young,asGippsland transitions from coal to renewable energyindustries.

“It’sreally important thatschool students areaware of the jobopportunities coming to theregion so they canplan theirtraining andcareerpathways,” she said

“I grew up in Gippsland,soit’sfantastic to be working forthe developmentof communities Iknowwell,and whereI can make apositive difference to thewellbeing of local people.

“With big projects,there is theopportunity to partner with small businessesand enterprisestotrain people and build capacity so peopleare upskilled.”

Construction of Marinus Link is expected to begin in 2025 andwillspansix to seven years

Thelinkwillinclude 90 kilometres of underground cable from Waratah Bayto Latrobe Valleyand aconverter stationin Hazelwood, linking Marinus Link cables to theexisting transmission network.

Valley's future on conference agenda

THE futureofthe Latrobe Valley browncoalmineswas on the agenda at this month’s Life of Mineconference in Brisbane.

The conferenceincluded Australian and internationalvisitorsand presenters.

MineLandRehabilitationAuthority

chief executive JenBrereton presented to apackedroom on the second dayaboutthe future of the Latrobe Valley brown coal mines

Beginning with an introductiontothe region, Ms Brereton talkedthroughthe differentstages of rehabilitationand closureplanning forthe Hazelwood, Yallournand LoyYang mines, and howthe size and proximity of each minehas createdunique risksfor mine rehabilitation.She alsoexplained the creation, purpose and functions of the Mine Land Rehabilitation Authority

Using Germanyand Canada as examples, Ms Brereton discussed alternative models for managingmine landpostclosure.

“Each modelisbased on specific

regionalconditionsbut recognises the requirementfor long-term ‘inperpetuity’ commitmentto environmental managementand covering costsfor unforeseen events,” she said.

“TheMineLandRehabilitation Authorityprovidesthe platform for ensuring relinquishmentcan occur,that costsare covered, and community has confidence in long-termaccesstoand management of rehabilitated land

“Everyone wants to ensure that transitioning awayfrommining to futurelanduses delivers positive outcomes.”

Other presentation themes around life of mine planning at the conference included developingregional approaches, Indigenous participation andsustainable practices Formoreinformation or to request aspeaker visitfromthe MineLand RehabilitationAuthorityonemail at contactus@mineland.vic.gov.au or phone1800571 966.

Combined effort into offshore study

AGROUP of Australian andglobal companies,comprisingMainstream Renewable Power (‘Mainstream’), Reventus Power,AGL andDIRECT Infrastructure,has submitted afeasibility licence application for a2.5 GW offshore winddevelopment offthe coast of Gippsland

According to thecompanies’ preliminary socioeconomic impact analysis, the proposed2.5 GW project hasthe potentialtocreatemorethan$3.7billion in economic value addedand the creation of nearly 8600 full-time equivalentjobs in Australia. Thedevelopmentphase will alsofeature a$400 million investment package to promoteworkforceand supply chaindevelopment, enabling theshift of Australian industryand producing local benefits.

The area in theBassStrait offGippsland, was the first offshorewind zone to be declared bythe federal government. The 15,000squarekilometrezonefrom LakesEntrance to Wilsons Promontory, according to the AustralianDepartment of Climate Change, Energy,Environment, and Water, cansustain more than 10 GW of year-round energy generationand the development of thousands of newjobs Chief FinancialOfficeratAGL Gary Brown saiditwas an importantstep.

“AGL’s strategy to bring forwardour targeted exit from coal to 2035 is coupled with an ambition to supplyour customers

with12GWofadditional renewable and firming capacity,” he said

“Wind energy willbeanimportant part of ourplantoresponsiblytransitionour generationportfoliotomeet ourcustomer demandand keep Australia’selectricity supply secure,reliable, andaffordable.

As amajor employerinthe Gippsland region, we arecommitted to working with our people and thecommunity to ensure the decarbonisation of ourenergy system continues to provideopportunities.

Chair of DIRECT Infrastructure, PeterJ Coleman welcomed thepartnership:

“Weare pleasedtobepartofone of the strongest partnerships in Australia’s emerging offshore windindustry,”hesaid.

“The energy transitioninAustralia is going to requirelarge-scaleoffshore wind generation, andwelookforward to supportingthe Commonwealthand Victorian governments with theiroffshore wind energyambitions.

“I was raised and started my career in the Gippsland area, andIamexcitedby the opportunities ourproposed offshore wind project will create, including the large numberoflocal jobs, opportunitiesfor suppliers andinvestmentinassociated infrastructuresuchasports andenergy storage.”

Australia’s Ministryfor ClimateChange and Energy issued acalltosubmitfeasibility licence applications forthe Gippsland region in Januarythisyear.

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Jennifer Brereton speaking at the Life of Mine conference in Brisbane. Photo: Supplied Uncle Lloyd Hood, Peter Hood, CherryPrior,Christina Youngand Mark Lindsay at the Marinus Link stall. Photo: Supplied
Page 16 GIPPSLAND'S TRANSITION TO ANEW ENERGYFUTURE 22 /23August, 2023
AGLisina consortium to submit afeasibility application for anew offshore wind farm in Gippsland. Photo: File
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ANoffshorewind worker guidehas been released, with the aim of enticingworkers to theindustry. Making themovetooffshorewind -a guide forworkers waslaunchedatthe StateElectricityCommission(SEC) Energy Jobs andSkillsForum in Melbourne on June 29,highlightingthe jobopportunities offshorewind will bring to the region. Theguide -co-funded by Star of the South,and the state government through its Energy InnovationFund-identifies

offshore wind

currentroles across the coal,oil,gas and maritime industries andtheir alignment with typical jobs in offshorewind.

It also includes entry-levelcareer pathways foryoung people,and those with limited experience looking to startacareer in theindustry.

Star of the South Chief Development Officer, Erin Coldhamsaidthereisalready ahighlevel of expertise in the Gippsland region, with asignificant number of existing jobs having a‘high’or‘good’skills alignment.

“With the retirement of coal generators in the LatrobeValleyand oiland gas productiondecreasing in Bass Strait,we know workers, their families and local communitiesare thinking aboutthe future and what comesnext,”Ms Coldhamsaid.

“Asa significantpartofthis newindustry we createdthisguide to help get the workforceskilled up and excitedfor their next career path in energy generation.

“There’s so much knowledgeinthe region- and we’llneedthe experience of long-termworkers to train,skill-upand mentor the next generation.”

Touted as Australia’s “most advanced offshorewind project”, Star of the South wasfirstannouncedin2017, and has received bipartisansupportatboth state andfederal levels of government

Theproject is majorityowned by CopenhagenInfrastructurePartners’ flagshipfund, CI IV,together with Cbus Super and Australianfounders.

It is presently in the feasibility phase,with environmental assessments currently

underwaytoinformproject planningand approvals.

Developers estimate that thewindfarm, once built, will generate up to 2.2GWof electricity,enough to provide20per cent of Victoria’s electricity needsand power 1.2million homes.

Up to 2000 jobs areanticipated to be createdoverthe project’s lifetime, including 760Gippsland jobs during

constructionand 200long-term local jobs during operations.

Theestimatedcostofthe project is up to $10billion

Constructionisexpectedtobegin mid-decade,withananticipated completion date of 2030.

Making the move to offshore wind -a guide forworkers is available via starofthesouth.com.au

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Star of the South chief executive Charles Rattray pictured with Lily D’Ambrosio in May at BarryBeach Terminal (near Welshpool), announcing geotechnical works to help design Star of the South. Photo: Liam Durkin Victorian Minister for Energy and Resources, Climate Action and the State Electricity Commission, Lily D’Ambrosio, with Star of the South Chief Development Officer Erin Coldham in June. Photo: Star of the South
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Golden gas

it back into the field anditsitsontop until thereishigh demandagain

gas willplay abig role in Victoria’stransition to renewable energy -and the head of the Golden Beachgas field, just offthe South Gippsland coast, is confident about his company’srole in theprocess

TimBaldwin, the chief executive of GB Energy,says the Golden Beach gas field, which willbemainly agas storage reservoir,isinastrongposition to supply the marketasgas supply dwindles over the next decade and demandremains strong, “which is pretty exciting”.

“Gas storage is nothing new -there are about 600-650gas storage assetsaround the world,” Mr Baldwin says

“In verysimple terms, you’ve got atank staying under thegroundfor 60-200 million years,full of gas, and once you have produced gas, whatgenerallyhappens is, you abandon the well andmove away.” The reality, however, is that the gasmarket is hugely seasonal.

Mr Baldwin says average daily demandfor gasisdependedonthe season and the weather.

“Inwinter,itgetscold, peopleput on their heaters and it doublesthe demand. What do we do?Verysimple; 627 metresbelow the surface, we put two wells in, extract somegas -itcomes out into theLongford plant, either flows back into Victoria or up to Sydney,” he says “Once we have createdsomespace, in summer,whendemandislow,weget gas from Exxon/Woodside, or interstate, push

“Weneedtoproduce abit of gas in the front endtocreatethe space. Thegas is important to themarketas thereis a bigdecline. The2030forecastisfor very marginalproduction.”

Mr Baldwinestimates that GB Energy will produce gas forabout14months at a constant rate,with gas “movinginand out all thetime”.

“Somedaysthe market is nicelybalanced, on others thereis excess supply,sowe will put it in storage; when thereis excess demand, it will come out of storage. Theoretically couldgoonforever,” he says.

Mr Baldwin saysthe transitionfromcoalto renewablesis“tough” andlong-term.

Creating abig renewables base load with intermittency problems meansthat immediate availabilityofgas is thebest way to guarantee powersecurity

“Thenatureofgas changes;itdoes not just produce on constantrate, but on demand,” he says, but overtime, the consumptionofgas will alsolikely fall

Mr Baldwin saysabout400 wellshave been drilled in Bass Straitsince the 1960s.

“They getdeeper anddeeper further from shore; it’s very sophisticated oiland gas area.The qualityofthe rock iswhatmakes itsuch an interestingarea,”hesays.

“It’s worldclass, probably oneofthe top half-a-dozenreservoirsinthe world, which makesitreallygoodfor gas storage; theability to take gasout andinis really efficient.”

Thisalsocreates huge potential for capture and storage of carbon dioxide as partofthe planned coal-to-hydrogen process

Barracouta was discovered in ‘62,went online in‘65,and for alongtimewas Australia’s biggest gas field, producing for 60 years.

Mr Baldwin saysBream is another gas fieldjust to thesouth; Exxonis investigating injectingCO2 backinto Breamand leaving it for thousands of years.

“CarbonNet,another CO2 area, sits just below us; they’reabout 600metresdeeper intothe seabedorearth bed,” he says. Mr BaldwinsaysGippslanders who have workedinoffshoregas andcoalcould transfer theirskills to wind andsolar development, butacknowledges that most GoldenBeach jobs,likewindfarms, will be in the constructionsector

“Wehave560 jobsin construction, but probablyonly 10 duringoperation Constructionwillpeak each couple of years when significant maintenance is done; basically,the wells run themselves,” he says.

TheGolden Beachenergy project is estimated to cost$500million todevelop The field was originally discovered in 1967 but hassufferedseveraldelays, withthe project soldonseveral times.GBEnergy is the eighth owner GB Energy’senvironment effects statement has been approved both by the Victorian Ministerfor Planning andthe federalgovernment under theEnvironment Protectionand Biodiversity Conservation Act 1999

The project has been classifiedascritical energyinfrastructurebythe federal government.

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Around 400wells have been drilled in Bass Strait since the 1960s. Photo: File
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