GIP PSLAND’ ST RANSIT ION TO A
What lies ahead for Gippsland’s place in the energy future?
Gippsland’s Transition to a NEWENERGYFUTURE
Latrobe Valley leadingthe way y
GIPPSLAND and the Latrobe Valley areatthe forefront of Australia’senergy transformation, with new transmission now being coordinated by VicGrid to connect offshorewind and other clean energy generation to the grid.
As our ageing coal-fired power stations retireand arereplaced by renewables, our energy grid needs to change to carry power from new renewableenergy sources across the state to Victorian homes and businesses.
VicGrid is working to make surethis change delivers the safe, reliable and affordable power that Victoria needs for the future and that host communities have asay in and can shareinthe benefits of the energy transition.
Critical newtransmission
NEW transmission infrastructureiscritical to get energy from new areas whereitis generated to homes and businesses where it is used.
Victoria’sgrid was designed to transport power from the Latrobe Valley,where our coal-fired power plants arebased.
However,our renewableresources are dispersed across Victoria -fromour windy coastlines to our sunny plains. In Gippsland, VicGrid is leading acoordinated approach to transmission infrastructuredevelopment for offshorewind generation in line with the state government’soffshorewind generation targets.
Without this coordination, offshorewind energy developers would develop multiple, private transmission lines. We want to avoidthe spaghetti effect of powerlines criss-crossing the landscape, while we minimise impacts on people’shomes, livelihoods, power bills and the environment. New transmission infrastructurewill play a crucial role in meeting the first offshorewind capacity target of at least 2gigawatts (GW) by 2032 -enough at full capacity to power 1.5 million homes.
Next steps to refine the area
EARLIER this year,VicGrid confirmed the study area for the new transmission, which was developed through community consultation during 2023.
Assessment of environmental, visual, land use, heritage, cost and technical factors found that new overhead transmission lines along an area away from major towns provided the best way of balancing the need to keep household energy bills down while minimising impacts for Gippsland communities.
The study area begins about six kilometres from the coast near Giffardand travels north-west past Stradbroke West to Willung, across to Flynns Creek and then to the Loy Yang Power Station.
In the next couple of months, VicGrid will open the next phase of consultation to help us further understand sensitive areas and refine thestudy area for the new transmission. We will continue to shareour method for refinement and consult openly, using careful assessment of land in the study area against clear criteria to help us balance competing priorities such as land use, biodiversity,cultural values and impacts on land holders.
VicGrid will refine thestudy area to a
transmission easement in several phases, ensuring opportunities for consultation and providing updates on our decision making.
Working with landholders
VICGRID has established adedicated landholder engagement team to work with landholders in the study area for the new offshorewind transmission line.
Over the coming months, we’ll contact landholders in the study area to discuss land access for ecology field studies. We need to understand areas of ecological significance that may exist on private land that we can only study at certain times of the year,suchasinspring and summer.
If you arealandholder in the study area and would like moreinformation about our spring and summer studies, please contact our landholder engagement team on 1800 959 431 or at landholders@deeca.vic.gov au.
Providing access to land for these studies is voluntaryand thereisnoobligation to participate.
Transmission forfuture offshorewind targets
VICGRID’S current focus is on connecting the first 2GWofoffshorewind energy tothe grid by 2032
We also need to think longer termsothat what we build now supports futuretargetsof at least 4GWby2035 and 9GWby2040. While no decisions have been made on transmission for the futuretargets, ourearly technical work indicates that in Gippsland, asecond transmission corridor and loop tie would be needed to accommodate these targets. The work toplan these next stages is being undertaken as partof the first Victorian Transmission Plan NewTransmission Plan
VICGRID is putting in place anew
approach toplanning renewable energy and transmission as we transition away from coal-fired power
This new approach givescommunities areal say from the verybeginning of the process and includes along-termstrategic plan we call the Victorian Transmission Plan. The plan will ensurewebuild the right amount of energy infrastructureinthe right places at the right time to deliver power to Victorian homes and businesses and that we don’tbuild morethanweneed so we can minimise impacts and keep costs down for consumers.
We have recently released draft Victorian Transmission Plan Guidelines that explain how we will deliver the plan and what areas we areinvestigating.
The guidelines include amap of an initial study area for further investigation for potential futurerenewable energy zones. This mapisthe first step in aprocess that will occur over the next 12 months.
The initial study area will be narrowed down to much smaller areas as we work to define futurerenewable energy zones. We need the input of regional communities, farmers, landholders and First Peoples to help us get this right. Consultation on the study area in the guidelines is open until Monday, September 30 2024. Youcan read the plan and find out how to have your say at engage.vic.gov.au/victransmissionplan
Benefits forhost communities
ONE of the key things we’ve heardfrom regional communities is that many people don’tfeelthe benefits of transition arebeing shared fairly
The state government has listened to this and has come up with anew approach to delivering real benefits forregional
communities. This approach includes new Renewable Energy Zone (REZ) Community Energy Funds for communities, payments for host landholders, payments for significantly impacted neighbours and acommitment to co-design benefits for Traditional Owners.
Through our consultation with Gippsland communities, we have already heardabout potential priorities for local investment through the REZ Community Energy Funds, including promoting local energy reliability
The final Community Benefits Plan, expected to be released in late 2024, will provide further detail about thetypes ofprojects that can be funded and how decisions about funding will be made.
Youcan read more aboutthe Renewable Energy Zone Community Benefit Plan at engage.vic.gov.au/ vtif-rez-community-benefits
Gippsland NewEnergy Conference
VICGRID is proud to be asponsor of the Gippsland New Energy Conference, the premier gathering for Australia’sregional leaders in the transition to renewable energy
This year’sprogram brings together industry, community, Traditional Owners and government entities to have genuine conversations about Gippsland’skey role in the energy transition.
We congratulate the Gippsland Climate Change Network for their work organising arich program in2024that will featureimportant discussions about the opportunities and challenges of the transition.
Amap showing the new transmission being coordinated by VicGrid.
Gippsland’s Transition to a NEWENERGYFUTURE
GlaWac settoplaybig role c
By PHILIP HOPKINS
THE Gunaikurnai Land and Waters
Aboriginal Corporation, which represents about 3000 Indigenous people in Gippsland, is gearing up to be an integral partofthe renewableenergytransition in Gippsland.
GlaWac Chief Executive, Daniel Miller,will be akeynote speaker on the first day of the Gippsland New Energy Conference.
“GlaWac is excited about the opportunities and possibilities that come with renewable energy and the transition get away from coal and fossil fuel energy sources. They have left their mark on Gunaikurnai Country over the past 100 years. So, we areexcited about being apositive contributor to the new opportunities,” he said in the lead-up to the conference.
“Our focus is on protecting Countryand cultureaswesee it and looking at the best way for the Gunaikurnai people and other Aboriginal people to be apartofthese new industries.”
Mr Miller said offshorewind farms were definitely of interest to the Gunaikurnai.
“Native title interest does not extend that far,that is in many ways irrelevant, but through changing sea levels over thousands of years, the area wherethey arelikely to be situated (the seabed) was partof Gunaikurnai Country, so thereisdefinitelyan interest. The infrastructureneeds to come ashore, so thereare multiple touch points that arerelevant to today.”
Mr Miller said it was important that the Gunaikurnai people be recognised as rights holders.
“They arerecognised by all levels of government as being the First Nations people for here, that deserves some recognition as well,” he said.
Solar and wind farms on land arealso important issues.
“Concernisnot the right word, but they have to meet planning and cultural heritage requirements. We arearegistered Aboriginal party and that means we are partofthatassessment of the impact on Country,”hesaid.
“That is alegislative responsibility; we don’t have the power to stop them per se, but we have some influence over the impact on Country. We arebeing an active contributor in that regardaswelland we will always advocate for the best use of Country. If the
alternative is another big hole in the ground, or continue to have big holes in the ground, which Ithink is far moreofanimpact.”
Native title rights extend over large parts of Gippsland. Mr Miller explained that the footprint goes from the Snowy River -Marlo and Orbost -‘zig-zags’ up to Mt Hotham, towards Warragul and Drouin, and goes down to Foster
“The current native title boundaryalso extends 200 metres offshore. It’sall about 1.33 million hectares.”
Native title extends mainly to Crown land, but not all Crown land.
“If someone owns ahouse or farmas freehold, thereisnoimpact. Native title is relevant to the whole footprint, but only impacts specifically to areas with native title to Crown land,” he said.
GlaWac is aregistered Aboriginal party
“If you aregoing to be adeveloper and build units, or caravan park, you have to go through some planning steps. One is to address the requirements of the Aboriginal CultureHeritageAct, which means we work with you to minimise the impact, for example, on test digs, or removing artefacts safely.Itdoesn’thold up development but protects cultureheritage as best we can.”
Mr Miller said GlaWac was actively doing some policy work on renewableenergy GlaWac says that historically,the energy sector in Gippsland has taken away irreplaceable cultural heritage and had an impact on the connection to Country
-mainly through the gas pipeline project and the coal-fired power stations -but renewable energy also has issues.
Some of the keyfacets of the GlaWac renewableenergy strategy include:
The impact of offshorewind on whales, seabirds, migrating birds and culturally significant species;
The need for landscape restoration after damage to coastal environments and cultural sites;
The Gunaikurnai’sroletocollaborate in the monitoring and protecting biodiversity affected by development and have access to all data;
Countryshould be returned toits previous natural state atthe endofaproject.
Decommission planning and adequate rehabilitation bonds arerequired up front;
Cultural heritage protection such as Ancestors’ resting places;
The Gunaikurnai tobeembedded in the management of Country, including in Environmental Effects Statements, technical reference groups and other relevant processes;
Economic independence -ongoing revenue to be held in trust for the Gunaikurnai community;
Aboriginal businesses be empowered to respond to the opportunities presented by the renewable energy transition, and; The transition should create jobs for the Gunaikurnai.
Magnesium recycling project
By PHILIP HOPKINS
LATROBE Magnesium has established amajor new plant in the Latrobe Valley that cleans up waste from the brown coal power stations, effectively establishing an important recycling project as partofthe circular economy
The company,which is usingits own patented technology to eventually produce magnesium for the international market from the Valley’sbrown coal fly ash, is amajor boost to Valley industry and jobs.
Latrobe Magnesium in May announced the completion of commissioning for the first phase of its 1000 tonnes per annum, Stage 1demonstration plant. The plant, which was built over the past year,produces what Latrobe Magnesium (LMG) says is the world’sfirst environmentally sustainable Magnesium Oxide from fly ash -awaste product from the Yallournpower station.
Production of MgO is the prerequisite for proceeding to the next stage of the operation, acommercial plant with a capacity of morethan 10,000 tonnes per annum of magnesium metal. This output is 100 per cent contracted.
Magnesium is classified as acritical mineral in multiple countries, with no current producers across Japan, North America, Europe and the Middle East. LMG said completing the commissioning phase marked abig milestone in pioneering asustainable magnesium extraction method at an industrial scale. Using the company’sworld-first hydromet
process showed the value of LMG’s intellectual property
LMG will now startabankable feasibility study and financial discussions for the commercial plant. The chief operating officer at LMG, Ronan Gillen, said an investment decision on the commercial plant was expected by the end of the year.“We hope to have the commercial plant operating in 2026,” he said, during atour of the plant.
Mr Gillen believes that construction of the commercial plant would create more than 300 jobs, while the fully operating plant would have 50-60 permanent jobs. The aim was to employ locals, such as former workers from Australian Paper,hesaid.
LMG will extract the magnesium metal and other saleable materials from the industrial fly ash, awaste resource from the Yallournbrown coal power station. Therewas enough ash from the Yallourn power station for 50 years’ operation, Mr Gillen said.
LMG has been doing research and development on its pioneering technology for 20 years, with various forms of technology tried. The proprietary hydromet process has been extensively tested at laboratories and the CSIRO. Long-term20-year supply agreements of fly ash and ferro-nickel slag waste feedstocks for the plant’sproduction have been secured.
LMG’schief executive, David Paterson, said as the only Westernproducer of MgO, the importance of LMG’s
production was “globally significant”. Currently Australia imports 100per centof the 8000 tonnes annually consumed. According to LMG, global magnesium demand is forecast to double to two million tonnes by 2027. Magnesium is increasingly used in the manufactureof itemssuch as car parts, electric vehicles, laptop computers, mobile phones and power tools.
Mr Gillen said high quality magnesium would be produced from the Yallournfly ash, with the whole operation cleaning up some of the environmental legacy of the Valley
“Thereare no downstream tailings or waste,” he said. The project employs the principles of the circular economy; it turns 100 per cent of potentially hazardous industrial wastes into magnesium metal and valuable by-products.
These saleable by-products including iron oxide, silica, char,agricultural lime and supplementarycementitious material for premium, low CO2 cement production.
LMG said it was the only new magnesium producer in the Westernworld since 2015 with sustainable production emitting 60 per cent less carbon dioxide than the industryaverage.
Mr Gillen said five-to-six years ago, LMG had been in talks with the Hazelwood power station to take its ash. “Wewere close to adealwhen Engie closed the power station. We regrouped and started talks with Yallourn. Energy Australia is
totally on board,” he said.
Mr Gillen, aprocess engineer who has worked in mining for morethan 25 years, including many stints in Western Australia, has been with LMG for threeand-a-half years.
For half that time, he worked in production management beforehe became sick of the remote mining life and transferred to the engineering and construction industry, working on many big projects. He came to LMG with great operation and project delivery experience.
The LMG plant is located on the site of Don di Fabrizio’sformer steel construction business, whose steel fabrication was used in building the Loy Yang power station. Other companies leased the land beforeLatrobe Magnesium took over
“LMG bought the land offDon,who was excited to see his legacy being put into good use. It’sa shame he is not here to see it (Mr di Fabrizio died in January2022). The sons visit- they’re thrilled the firm’slegacy is being remembered,” Mr Gillen said.
The ash is transported by truck for the demonstration plant stage. During the EPAapplication,MrGillen said there werenoobjections, but other arrangements would be put in place for long term.
Mr Gillen said the commercial plant would make the company less reliant on debt.
GlaWac Chief Executive, Daniel Miller
Here for generations to come s
FOR Lisa Gooding, working on the closure of Yallournpower station is personal.
”My parents met in the YallournPower Station drafting office in the early 70s, got married and raised afamily in the Valley,” she explains.
“My dad worked in the power industry, as did my uncle. My brother and Ihave followed in their footsteps. It’safamiliar storythroughout the Valley.Generations of families have worked at Yallourn. “It’smuch morethan aplace of employment. It’satthe heartofthe community.”
Understanding Yallourn’ssignificance to the community has been at the coreof EnergyAustralia’sapproachtoits closurein 2028.
“It was important to us to give workers and the community seven years’ notice and to then create asupport program so that people can continue to work and live in the Valley beyond closure,” Ms Gooding said.
In November 2022, EnergyAustralia established its pioneering $10 million YallournTransition Program, offering employees the chance to retrainand preparefor new opportunities.
Available to Yallournworkers,the program provides services to help plan, prepare, and upskill for the future, whether they are seeking new employment, considering retirement, or exploring self-employment.
Tash Agafonoff, aunitcontroller at Yallourn, said she started her career as apower station chemist, and is now
studying aMaster of Arts in Writingand Literature, looking to pursue acareer in communications.
“A career pivot isn’tanew thing for me. I started as apower station chemist, then moved into operations. My studies in writing and literaturewill hopefully take me into an exciting career path in public relations, marketing or social media,” she said.
James Kelly,arigger in the Maintenance Response Team,iscurrently studying a Masters in Environmental Science, an area he has long had an interest in.
“I’m particularly interested in catchment management, ecology and biodiversity
The field of environmental science is broad and of increasing importance, so Iknow thereare plenty of exciting opportunities in a world beyond 2028,” he said.
ACareers Fair held at Yallournin mid-August attracted morethan 20 suppliers from across Gippsland; all were interested in speaking to the workforce about potential training and career opportunities after closure.
“Weknowour team at Yallournis enormously talented and have skills that arevaluabletoothers in the growing clean energy sector.It wasgreat to see this confirmed through the goodwill of local organisations at the Careers Fair wanting to help Yallournworkforce identify new opportunities,” Ms Gooding said.
Opportunities for workers could include transitioning into renewables, with arecent reportshowing how transferable coal
workers’ skills aretothe offshorewind sector
The reportmaps offshorewind jobs and training opportunities to jobs currently being performed at the Yallourncoal-fired power station and mine –capturing morethan half the workforce. It outlines the skills and qualifications that arethe same across coal and wind jobs, identifies additional training requirements and highlights wherethe courses areoffered locally in Gippsland.
EnergyAustralia, Southerly Ten, Federation University and TAFE Gippsland collaborated on the reportwith funding from the state government’sClean Economy Workforce Capacity Building Fund.
It is expected theremay also be critical roles within EnergyAustralia’sexisting gas-fired power stations, with Jeeralang only 20 minutes away from Yallourn.
Australia’srenewables-based energy system needs lots of solar,wind, and storage capacity,and importantly it will also need gas-fired generation in reserve as we transition to aclean energy future.
Upgrades have been made to the Jeeralang Power Station near Morwell to help ensure it can provide quick-fireenergy capacity when thereisn’tenoughwind and solar in the system to meet demand.
EnergyAustralia is committed to aclean energy futureand has invested toensure that the Gippsland region plays its role.
It is building the 350MW Wooreen Energy Storage System next tothe Jeeralang Power Station to help storesurplus energy for when
customers need it. The project expects to requireupto80jobsduring construction.
Supporting workers to preparefor the closureofYallournisone partof EnergyAustralia’sapproach to helping ensureGippsland is partofthe clean energy transition.
“The Latrobe Valley has helped power Australian homes and businesses for over 100 years. We don’twantthis legacy to end with the closureofcoal generated power,” head of Yallourn, Greg McIntyresaid.
“Our first focus is on making sureYallourn continues to beareliablesource of energy in the lead-up to closureand we are partway through a$400M investment into the operations of the Yallourn power station and mine.”
“Wefeel astrongsense of community within the Valley.Wehavebeenherefor decades andalthough Yallournis closing in 2028, we still have work to do. Anew CommunityHub has opened in Morwell in August to share EnergyAustralia’svisionfor aclean energy futurefor Gippsland with the community,” Ms Gooding added.
“It’satimeofgreat change in the Valley.The Hubisone part of how we will work with the community to identify and reimagine what the futureofenergy generation will be in the region.”
EnergyAustralia’sCommunity Hub is located at 28 Commercial Road Morwell and is open Tuesdayand Wednesdays from 10am to 3pm.
Gippsland’s Transition to a NEWENERGYFUTURE
Committee announces alliance
By TONY CANTWELL
INVESTING in our clean energy futurehas never been so important.
As our region undergoes monumental change through an energy transition to net zero, Gippsland has an enormous energy futureasAustralia’sleading offshorewind zone.
But there’swork to do, and our community and industryneed to be partofthe process. Governments at all levels need to demonstrate acommitment to regional Australia that secures investment in our infrastructure, our industries and our people. Australia’spathway to net zerowill require investment in our region that drives industry, supports employment and creates opportunities for our communities across Gippsland.
Gippsland is positioned to take aleading role in the clean energy transition for Victoria and, indeed, the whole country. We have aproud historyofenergygeneration, unparalleled natural resources, asolid base of infrastructureand network connections, askilled workforce, and astrong tradition as the backbone of Victoria’selectricity grid. Gippsland can take aleading role in Australia’sclean energy future, and offshore wind will be central to delivering this.
In December 2022, the federal government declared an area of the Bass Strait offthe Gippsland coast as Australia’sfirst offshore wind zone.
Offshorewind will play akey role in Australia’stransition to net zero. But there’swork to be done. Getting anew
industry developed and offthe ground in Australia requires all levels of government, community and industryworking together
That is why as partofthe Gippsland New Energy Conference, we areproud to be launching the Gippsland OffshoreWind Alliance to be delivered by the Committee for Gippsland and the Gippsland Climate Change Network.
The Alliance will create alocal platform that operates through acooperative and collaborative approach to engagement and advocacy to supportthe region’sambition to successfully deliver our energy transition through offshorewind.
While the energy source may change, our region’svision to continue being Victoria’s powerhouse remains the same.
By embracing innovation through technology,increasingemployment participation, ensuring reliable and affordable energy continues to be our strength for our industry, Gippsland can be the exemplar to other regions undergoing transition across Australia.
We allhave arole to play in Gippsland’s energy future. Some of the steps that government can undertake to ensurenot only ajusttransition, but one that value adds to our region include:
Supportclean energy flagship projects that arebacked by the community Whether it is hydrogen, solar,CCUS (carbon captureutilisation and storage), onshoreand offshorewind, clean energy
projects need government supportto secureGippsland’senergy transition. Bolster Gippsland’senabling infrastructure by investing in transmission and port infrastructure.
Identify,train and upskill the next generation of clean energy employees. Gippsland is fortunate to have regional education providers committed to developing theworkforceneeded to supportGippsland’sfuture
Invest in economic opportunities to supportthe communitytransition. The community needs to be supported through the transition with social infrastructuresuchashealth and education services that add to our livability and enhances our reputation as aplace to live, work and invest.
Create the right regulatorysettings. Governments at all levels must ensure that legislation and policy settings enable regional investment and send aclear message that Gippsland is open for business.
By engaging with business and industry, regional leaders and the community, Gippsland’sstrengths can be brought to the foreand help Australia realise its net zero future.
Investing in Gippsland nowisdelivering Australia’sclean energy future.
Tony Cantwell is the chief executive of the Committeefor Gippsland
The Gippsland Offshore Wind Alliance will be launched at the Gippsland New Energy Conference.
Gippsland’s Transition to a NEWENERGYFUTURE
Gasthe vitallink in transition
AT Esso Australia, we areproud to have a long historyofreliably supplying essential gas to Australians, with everymolecule of our Gippsland gas going exclusively to the domestic market.
Since Esso and BHP drilled Australia’sfirst offshorewellin1965, Esso’s engineers and geoscientists have built the legacy that is the Gippsland Basin based on the best people and the best technology to produce morethan five billion barrels of liquids and 11 trillion cubic feet of natural gas.
To this day,wecontinue to use our talented team members and advanced technology to ensurewerealise the full potential of our fields. We have invested hundreds of millions of dollars, including in projects such as the Kipper Compression Project, which will help supply as much gas alone as is consumed in all of Victoria in a year.This, and other projects currently in consideration, will ensureour Gippsland operations continue well into the next decade.
Gippsland’snatural gas is critical not just for heating homes, but also for the energy transition.
Natural gas is areliable source for required back-up power generation, with the Australian Energy Market Operator recently reporting that 16 per cent gas power generation was required last quarter due to low wind and hydrogeneration. When the wind isn’tblowing enough to turnwind turbines or the sun isn’tshining to fuel solar panels, gas ensures resilience and stability of the grid.
In addition to maintaining afirming role in the electricity market, natural gas is one of the cleanest sources of electricity generation and is key for industries such as glass, bricks, steel, fertiliser,recycling and critical minerals, that don’thave alternative energy or feedstock sources.
While renewableenergy is essential to help us achieve net zero, it is not sufficient alone and cannot reduce emissions in these
metric tons. This accounts for about 40 per cent of all the anthropogenic CO2 that has ever been captured and is equivalent to taking over 25 million cars offthe road
Our recent acquisition of Denburyreflects our determination to profitably grow our Low Carbon Solutions business and we’re harnessing our global knowledge and capability to assess carbon captureand storage inthe Gippsland Basin, which the CSIRO has said has world class geology for CO2 storage.
In 2021, Esso Australia signed two longtermcarbon dioxide supply agreements with Air Liquide and BOC to captureand reuse carbon dioxide. The captured CO2 will be processed in Longfordand used in food and beverage products, in addition to water treatment, desalination, manufacturing and medical industries.
industrial sectorsthat areatthe heartofour modern society
Collaboration through atechnology-neutral approach is key to supporting the transition to alower carbon future, and we’relooking at an array of solutions whilst continuing to produce affordable energy
Globally,weare aleader in carbon capture and storage, cumulatively capturing more CO2 than any other company -120 million
We arealso working with the federal government as they develop policies to encourage the supply of lower emission fuels in the country. Loweremission fuels could make asignificant contribution to decarbonising Australian transport, especially in the harder-to-abate sectors such as heavy transportand aviation, while preserving consumer choice
These projects areall partofour ongoing investment in the Australian economy; we’re supporting the energy transition whilst supplying the energy we arereliedupon for Because, as the countryand ourcompany progress low carbon solutions, gas will continue to play asignificant role in power generation to supportthe energy transition.
Join over 90,000 businesses across Australia and New Zealand on ICN’sGateway platform, connecting large, medium and small enterprises to industryopportunities.
In Victoria, our Gateway database features an impressive number of businesses already linked to Offshore Wind Projects, with a significant presence in Gippsland.
Over the past four years, ICN has gathered thousands of Expressions of Interest (EOIs) for proposed Offshore Wind Projects in Gippsland, opening doors for businesses to be partofthis growing industry.
To connect with us and unlock your potential in the renewables sector,scan the QR code to go to our dedicated Gippsland Project Opportunities page
Come visit us on stand 12 at Gipppsland New Energy Conference
Longford’sEsso plant in Gippsland will play akey role in carbon capture.
Gippsland’s Transition to a NEWENERGYFUTURE
Pioneering aSustainableFuturewith RenewableEnergyTransition
LATROBE City stands at the forefront of atransformative journey that seeks to leverage its rich industrial heritage and natural resources, leading into the renewable energy sector
Long recognised as apowerhouse of energy generation, contributing significantly to Victoria’senergy needs for morethan acentury, Latrobe City is embracing the opportunity to redefine its future. This includes attracting investment in renewable energy,which will not only provide sustainable and reliable alternative energy sources, but also create new job opportunities in emerging sectors.
Equitable transition is not just about adapting to change; it’salsoabout positioning Latrobe City as ahub for renewable energy innovation and development.
Leading the charge in renewableenergy
LATROBE City Council continues to lead the development of hydrogen technology in the municipality,engaging in arange of activities to supportthe transition to renewable energy
The region’sabundantnatural resources, including vast reserves of brown coal, geothermal potential, and significant opportunities for wind and solar energy offer distinct advantages that can be harnessed to supportthe decarbonisation of Australia’s economy.Latrobe City Council recognises the critical role harnessing natural resources can play in achieving anet-zeroeconomy, not just for Victoria but for the nation, and supports government targets.
One of the council’skey focus areas is the development of hydrogen technology Hydrogen, often referred to as the fuel of the future, has the potential to revolutionise the energy landscape. Latrobe City is well positioned to lead in this space.
The Japanese government’sannouncement of a$2.35 billion AUD investment to establish an international large-scale
liquefied hydrogen supply chain to Japan is atestament to the region’spotential.
This investment builds on the success of the world-first Hydrogen Energy Supply Chain (HESC) pilot project, which demonstrated that brown coal from Latrobe’sreserves could be used to produce clean liquid hydrogen. The project is built on the foundation of carbon captureand storage (CCS), which is essential to its viability and success. Without CCS, the HESC project would not proceed. This commitment to CCS not only supports the production of clean liquid hydrogen, but also enhances the project’senvironmental credentials by significantly reducing emissions.
“Council is dedicated to advancing renewable energy projects that harness the power of sustainable technologies. Our city is well positioned for hydrogen production, given our historyof energy generation, industrial capacity,and existing infrastructure,” Latrobe City Council Mayor, Darren Howe said.
“Council continues to advocate at state and federal levels for alternative uses of Latrobe Valley brown coal to coal-fired electricity generation, and this includes hydrogen.
“Large-scale investments like the HESC project not only supportour region’sfuture economic growth, but also create new industries and high-value skilled jobs, positioning Latrobe City as aleader in the emerging hydrogen economy.This is an unprecedented opportunity to deliver new jobs and career pathways for our community.”
The HESC project is only one example of how Latrobe City is working to diversify its economy,ensuring the community benefits from the renewable energy transition.
“Wehave abundant natural resources, a skilled and capable workforce, excellent transportation infrastructure, and astrategic geographical location. Bycapitalising on these strengths, we can create an environment that fosters entrepreneurship, innovation, and sustainable economic growth,” the Mayor said.
“Latrobe City has long been known for its rich natural resources and strong industrial heritage. While we take pride in these foundations, we also recognise the need to adapt and embrace new opportunities to supportretaining and attracting skilled workers and industryto the region.
“As the globaleconomic landscape evolves, it is crucial that we proactively position ourselves to thrive in an increasingly diverse and competitive market
“By embracing renewable energy projects, we can contribute toreducing greenhouse gas emissions, through creating amore sustainableenergy mix that supports the transformation of our economy.”
Acollaborativeapproach to transition
THE transition toarenewable energy future requires acoordinated and collaborative approach, and Latrobe City Council is committed to working closely with stakeholders at all levels. This includes ongoing advocacy at both the state and federal levels for government supportto pursue opportunities in geothermal and hydrogen technologies.
Council’sefforts arefurther bolstered by its strong relationships with industrypartners.
One such partnership is the recent establishment ofthe Dovetail Electric Aviation Development Centre, in collaboration with Dovetail and Invest Victoria. The centreaimsto develop hydrogen technology for regional aircraft, fitting them with batteries and hydrogen propulsion systems toachieve zeroemission flights. This initiative addresses
the environmental impact ofair travel while boosting the clean energy sector
“Weare excited to continue exploring new industries and innovations through clean energy,” Mayor Howe said.
“Council is committed to securing amore sustainable and diverse economy that ensures abetter way of life for the next generation.”
As Latrobe City continues to transition towardafuturepowered by renewable energy,the leadership and vision demonstrated by Latrobe City Council will be crucial in shaping the region’s trajectory. With astrongfocus on sustainable development, job creation, and economic diversification, Latrobe City is well positioned to become ahub for innovation in the renewableenergysector
The investments and initiatives currently underway aremorethanjusteconomic strategies; they area commitment to the long-termprosperity and wellbeing of the community.Byembracing new technologies, fostering collaboration, and maintaining aforward-thinking approach, Latrobe City is set tolead the way in Australia’sclean energy transition.
Council remains dedicated to working closely with government, industry, and the community to ensureLatrobe City not only adapts to change but thrives in the face of it.
The futureisbright for Latrobe City
Through continued efforts, the region will secureits place as aleader in the renewable energy landscape, driving progress for generations to come.
Latrobe City Councillor Kellie O’Callaghan travelled to Japan last October as part of delegations regarding the HESC Project. Cr O’Callaghan is pictured with Japanese MinistryofEconomy,Trade and Industry, Nishimura Yasutoshi.
Latrobe Valley coal gasification and refining facility
Coldesthourjustbefore the Dawn
GIPPSLAND Dawn Offshore Wind Project has been offered afeasibility licence by thefederalgovernment to furtherits developmentplans
BlueFloatEnergy, the proponent of Gippsland Dawn,has been activein Gippsland since2021and believes the project could be operationalby2031.
Gippsland Dawn is proposed to be located between Paradise Beach andOcean Grangeand hascapacitytogenerate up to 2.1 GW of electricity. Theproject will create 2000 jobs during constructionand 200–300ongoing jobsduringoperations and maintenancestages,creatingnew andenduringsupplychains.
It has an operational lifespanofupto30 years. Capitalinvestment of about $10 billionisproposed, and constructioncould beginin2029.
Gippsland Dawn’s ProjectDirector, DarraghWhite, has welcomed the announcement by thefederal Minister for ClimateChangeand Energy,Chris Bowen “Gippsland Dawnwill bring strong andlasting benefits to Gippsland and Australia.Welook forwardtocontinuing our
engagement withMinisterChrisBowen, VictorianEnergyMinisterLilyD’Ambrosio, GLaWAC, localcommunities, unions and the energy industryinVictoria.Wewill work closely with commercialand recreational fishers and boaterstounderstand howwe can sharethe ocean,”MrWhite said.
“The feasibility licencewould enable investigationwork, including offshore metocean,geophysicaland geotechnical investigations. Detailed technicalstudies and surveyswillbecompleted. Gippsland Dawn will continue to seek feedback and engage closely with stakeholders and thecommunity during everystep of the project’sdevelopment.”
Acommerciallicence is required for the project to move into the construction phase. This will be subject to arangeof environmental and planning approvalsand obtaining gridconnection
BlueFloat Energy Australia Country Manager,Nick Sankey,said offshore wind waspoised to become acriticalpartofthe renewable energy system in Australia.
“Offshorewind will help ensurereliability and security of electricity supply,
particularly as we transition away from fossil fuels. Theoffshorewind industry will contribute toward the Australian Government’semissions reduction plan of net zeroemissionsby 2050. It will also significantly help meet the Victorian government’semissionsreductiontarget of netzeroby2045,” he said.
BlueFloat Energy Chief Executive, Carlos Martin, said this licence offerwas a testamenttothe company’scommitment to pioneering renewableenergyprojects in Australia, and affirmedthe company’s leadership in theoffshore wind sector
“BlueFloat Energy is one of the most successful offshore winddevelopers: founded in 2020and having built aglobal pipeline of over 34 GW since then, we are thrilled to be offered afeasibility licence for Gippsland Dawn,”MrMartin said.
“This milestonewillpave the wayfor significant advancements in new energy, supporting the transition away from traditional coal-fired generation to new offshorewind,which willbenefitboth the environmentand thecommunities we serveinVictoria andwider Australia.”
Astarisrisingwaydownsouth
STAR of the South, Australia’smost advanced offshorewind project, is confident it is on track to deliver energy jobs and opportunities in Gippsland for decades to come.
Built to its full potential of 2.2 gigawatts (GW), Star of the South at full capacity could generate enough electricity to power 1.2 million homes, invest $3.8 billion directly into the Gippsland economy,and create local jobs.
Star of the South is being developed by Southerly Ten, aVictorian-based company that is asubsidiaryof Copenhagen InfrastructurePartners.
Project investigations began in 2019 with the deployment of afloating wind monitor in Bass Strait. The chief development officer for Southerly Ten, Erin Coldham, said the project investigations werethe veryfirst step.
“It’sfairtosay we were ‘blown away’ by the results,” she said.
“A few months after putting the wind monitors out, Victoria experienced a major heatwave and electricity blackouts. At the same time, we recorded very strong and consistent winds in Bass Strait.
“That’swhen we knew for surethat Gippsland has averyspecial resource and an ability to continue supplying the reliable energy Victoria needs as Latrobe Valley power plants retire.”
Since then, Star of the South’sfeasibility has been thoroughly studied with investigations into the energy market, workforce, supply chain, seabed and environmental studies, and community consultation.
The chief technical development officer, Myles Daniel, said the project had taken acomprehensive approach to build a clear pictureofthe local environment and conditions.
“We’ve collected data on the marine
Star of the South Chief Executive, Charles Rattray and Minister for Energy and Resources, Lily D’Ambrosio pictured in Gippsland last year at the announcement of geotechnical works to help design Star of the South.
environment over three years and completed Australia’sfirst seabed studies for offshorewind. Now we’reusing this data to plan asafe, responsible and efficient project that is right for this local area,” he said.
With Star of the South’ssite investigations complete, the next step is to seek government approvals to proceed to construction.
“There’sahuge amount of work happening behind the scenes to interpret all the data we’ve collected, model
different scenarios, refine the project and finalise environmental assessments,” Mr Daniel said.
Star of the South’sassessments will be published once complete. If approved, the project is targeting construction later this decade to deliver first power around 2030.
As alocal, the senior manager regional assessment, Paul Johnson, said he was excited about Gippsland’sfutureand the opportunities offshorewind would bring.
“Star of the South alone could create up to 800 Gippsland jobs. Our current coal and gas workforces already have many of the skills needed to make amove to offshorewind, with trade-based roles, engineers, planners and schedulers all highly transferable,” he said.
“I believe that offshorewindisgoing to benefit Gippsland -having this industry on our doorstep will create opportunities for young people to find good quality long-termwork close to home.”
Mr Johnson said local businesses were also well placed to supply offshorewind projects, with years of experience and the skills and capability to support the growing industry.
“We’vealready uncovered tens of millions’ ofdollars worth offuture supply opportunities for Star of the South. Offshorewind willdomorethan justsupply electricity -it’salso about investing in regional communities for the future,” he said.
Southerly Tenisalso investigating the Kut-Wut Brataualung project -a 2.2 GW offshorewind farmproposed for the Gippsland OffshoreWindZone offthe Gippsland coast.
The feasibility licence was granted for a689 kilometresquarearealocated 45 kilometres from the southern-most tip of Wilsons Promontory. In May,the project was awarded an offshorefeasibility licence by the federal government for Part3 of the Gippsland OffshoreWind Zone.
The project is at an earlystage, with feasibility studies expected to take place over the coming years.
To find out moreabout the Star of the South and Kut-Wut Brataualung, visit southerlyten.com.au or phone 1800 340 340.
Gippsland Dawn Project Director, Darragh White.
By PHILIP HOPKINS
GIPPSLAND Skies OffshoreWind, which has the Latrobe Valley energy powerhouse
AGL as ashareholder,isconfident that its project will bring power,jobsand prosperity to Gippsland, Victoria and Australia.
Gippsland Skies has recently received afeasibility licence from the federal government to startinvestigative studies to build awind farminthe South Gippsland declared area offthe coast of Waratah Bay
The feasibility licence area is about 53 kilometres from Cape Liptrap and 30km from Wilsons Promontory.
The full potential of the project could deliver 2.5 gigawatts (GW) to Victoria’selectricity network, says the company –atfull capacity,enough to power up to 1.4 million Victorian homes and contribute about 17 per cent of the state’scurrent electricity needs.
The company says its investment has the potential to create morethan 4700 jobs in Australia over the 40-plus year life of the project, with almost 2000 of those in Gippsland.
Gippsland Skies’ shareholders, Mainstream Renewable Power,Reventus Power,AGL and DIRECT Infrastructure, has extensive experience developing renewableenergy projects and aproven track record in offshorewind. They maintain they have the technical resources and financial backing to deliver their proposal and become a long-termpartner for Australia and Victoria.
The proposed project aims to be developed in aphased approach. The feasibility licence is the starting point for amulti-year detailed marine studies, including studies for cable routes to shore. Offshorewind projects can take aconsiderable length of time to develop due to their scale and complexity
Based on experience in developing offshore wind around the world, Gippsland Skies has mapped out an indicative project timeline.
The offshoresurvey program is expected to begin late in 2024, after the startofoffshore survey consultation and the state/federal planning approvals process.
This process should continue through 2026-27, with adecision on project approval and pre-construction activities in the late 2020s. The first phase is expected to be operational in 2032.
Gippsland Skies says it will work closely with stakeholders to establish development solutions that seek to respond to their needs and concerns. The company is clear about its aim: to craft aproject proposal in partnership with the region’s Traditional Owners, local communities and stakeholders that addresses local needs and supports regional development whilst
leveraging the benefits of the company shareholders’ global footprint.
All engagement conducted by Gippsland Skies will be underpinned by its corevalues of safety,respect, integrity,innovation and sustainability,the company says.
Offshorewinddevelopment has the potential to provide opportunities for existing workers to transition to clean energy jobs.
Gippsland Skies and the other offshorewind developers maintain their projects will help advance state and federal decarbonisation objectives. The Gippsland Skies project on its own has potential to offset around 9.4 million tonnes ofcarbon dioxide emissions per year
Offshorewind energy promise to play akey role in Australia’stransition torenewables and goal to achieve net zeroemissions.
Germanefficiencytomakeasplashy
THE German energy giant RWE has been granted afeasibility licence from the Australian government to develop an offshorewind farmclose to the Kent Group islands in the Bass Strait, offthe Gippsland coast.
This area is Australia’sfirst designated offshorewind zone. This licence approval grants RWE, akey global player in renewableenergy,anexclusive seven-year seabed right to develop the Kent OffshoreWindFarmproject. The approval also allows RWEtoapply for a commercial licence to build and operate the wind farmfor up to 40 years.
The lease area awarded to RWEhas the potential to host awind farmwithupto 2gigawatts (GW) of capacity.The site is about 67 kilometres offthe coast and has average water depths of 59 metres.
The wind farmisexpected to become operational in the first half of the 2030s, subject to the timing of the planning and
approvals process, secured offtake as well as grid connection.
The chief executive of RWEOffshore Wind, Sven Utermöhlen, said Australia was averyattractive growth market for renewable energy.RWE has been active in the countryfor 10 years and operates one of Australia’slargest solar farms.
“By securingexclusive seabed rights in the Bass Strait offGippsland,weare now entering the Australian offshore wind market and will bring our more than 20 years of experience in this field,” Mr Utermöhlen said.
“With the Kent project, we will work on developing one of the first offshore wind farms offthe Australian coast. This is in line with our strategy to grow our renewables portfolio in Australia and the wider APAC region.”
The next step for RWEinthe further development of this early-stage project is to carryout studiestohelpdetermine the
project design and to submit applications for planning permission. RWEwill also engage with key stakeholders, First Nations groups and other communities.
Another key milestone in the project’s development at alater stage is to secure an offtake agreement.
RWEisone of the world’slargest offshore wind companies, with amorethan 20-year track record of developing, building, and operating offshorewind projects efficiently.The company currently operates 19 offshorewind farms.
New offshorewind farms with atotal capacity of morethan 4GWare currently under construction in Europe and further offshoreprojects areunder development worldwide. RWEwants to grow its global offshorewind capacity from 3.3 GW today to 10 GW in 2030.
The RWEGroup has been in Australia since 2013. In 2018 it began construction
of one of the country’slargest solar farms –the 249megawatt (MW) Limondale Solar FarminNew South Wales (NSW) and has been operating it ever since.
In 2023, RWE’seight-hour lithium-ion BatteryEnergy Storage System (BESS) was the only successful project in New South Wales’ first long duration storage long-termenergyservice agreements tender process to deliver andoperate Australia’sfirst eight-hour battery.
Construction on the batteryproject, which will be located adjacent to the existing Limondale Solar Farm, will begin later this year.
RWEplans to invest about $6 billion by 2030 to develop up to 3GWofonshore wind, solarand batteryprojects across the country.
RWEisbasedin Melbourne and has ateamof almost 70 employees in the country, supported by the global RWE team.
Vessel booked to laycable
By PHILIP HOPKINS
MARINUS Link, having just completed exhibiting its environmental approvals process, has signed amajor contract with the Italian company Prysmian to supply the project’shigh-voltage direct current (HVDC) cables.
The contract ensures the design, manufacture, supply and installation for Stage 1ofthe Marinus Link interconnector project, a750-megawatt HVDC cable system, scheduled for completion in 2030.
This follows completion of the public exhibition for environmental approvals for the project between May and July.The public exhibition was for Marinus Link’s Commonwealth and Victorian environmental assessment documents.
Marinus Link will traverse South Gippsland farmland to and from the Latrobe Valley to create an energy and telecommunications link between Victoria and Tasmania.
Marinus Link Chief Executive, Caroline Wykamp, said the Italian company is the largest cable manufacturer in the world.
“Prysmian has proven and global expertise in delivering projects like Marinus Link,” Ms Wykamp said.
“Wehave booked their most advanced cabling vessel -the Leonardo Da Vinci. “Marinus Link will enable Tasmania to import excess supply of solar and wind produced interstate, while reserving its hydroand
The proposed route for Marinus Link will run from Heybridge, just east of Burnie in North West Tasmania, to the Hazelwood area of the Latrobe Valley
storing the extra energy.Clean hydropower can then feed the national grid when it is needed most, acting as alarge batteryfor the nation.”
Ms Wycamp said Marinus Link was
essential to Australia’srenewable energy future.
“Weare planning to build and operate it in a way that minimises environmental impact,” she said.
Marinus Link is aproposed 1500 high megawatt, voltage direct current (HVDC) electricity interconnector between Heybridge in north-west Tasmania and Hazelwood in the Latrobe Valley.Marinus Link will improve the connection between Tasmania and the national grid.
The project’scables span 345 kilometres. This includes 255km of undersea cables across Bass Strait and 90km of underground cables running through South Gippsland to Hazelwood. The project will make landfall at Waratah Bay
At both Heybridge and Hazelwood, a converter station will be built to enable Marinus Link to connect into the electricity grids in Victoria and Tasmania.
The project will be implemented as two 750MW stages. Each stage will comprise two power cables and afibre optic communications cable.
Marinus Link is acornerstone project of the federal government’sRewiring the Nation Plan and is classified as urgent in the Australian Energy Market Operator’s national energy plan.
Marinus Link is owned by the Australian, Tasmanian and Victorian governments and is responsible for progressing the Marinus Link interconnector project.
Marinus Link’s1500MW capacity is about three times the capacity of the existing Tasmania to Victoria interconnector, Basslink.
Gippsland’s Transition to a NEWENERGYFUTURE
'Urgent'needforcarboncapture
By PHILIP HOPKINS
THE world is moving veryfastoncarbon captureand storage (CCS); the number of projects being built, commissioned, rolled out or in the planning phase is now growing exponentially in abid to meet zero greenhouse emission targets, according to aleading Australian scientist.
The chief executive of the CO2CRC, Dr Matthias Raab, said under every single scenario by the most eminent energy authorities –the International Energy Agency,orthe United Nations Intergovernmental Panel on Climate Change -not asingle short, medium, or long-term scenario to reachemissions reduction targets was possible “without asignificant contribution from CCS”.
The CO2CRC (Co-operative Research Centre), operating since 2003 and based in East Melbourne, is aleader in carbon captureutilisation and storage research.
Dr Raab said worldwide, the CCS contribution was being positioned at 10 per cent across industries.
“Ten per cent equates to about 4billion tonnes of CO2 per year needs to be sequestered -astaggeringly large number,” he said.
Historically,CCS was associated with the fossil fuel industry, “but it is far beyond fossil fuel”.
“The important material pillars of our society aresteel, cement, fertiliser and plastics –hardtoabate sectors that areverydifficult to decarbonise,” he said.
For example, the embedded emissions of plastics werethe product of fossil fuels.
“Thereare no alternative products to steel, cement, plastics and the production of world’sfertiliser.Morethan 95 per cent of fertiliser is made from gas; we arelooking at food security,” he said.
Dr Raab said CCS would play an everincreasing decarbonising role.
“The population is growing, thus demand for energy is growing, the standardofliving is growing and thus energy demand is growing,” he said.
“When we look at the roll-out of renewable or alternative energies globally,weare currently at best offsetting the demand of new energy,not reducing the total emissions profile in the world. We need to recognise energy demand when talking of emissions reduction.”
Dr Raab said CCS in Australia would play alargerthan 10 per cent component in emissions reduction.
“These will be the foundation projects that enable other industrysectors to reduce their emissions through geological carbon storage. CarbonNet is one of these projects that will act as ahub to take emissions from different industries,” he said.
CarbonNet aims to get CO2 emissions from the Latrobe Valley via apipeline to empty oil and gas reservoirs in Bass Strait.
Dr Raab said under the federal Safeguard Mechanism, morethan 220 facilities that emit morethan 100,000 tonnes of CO2 per year would have to reduce baseline emissions by five per cent per year
“This is abig challenge once some initial efficiencies have been achieved. For most facilities, capturing and storing the CO2 may be one of the few options that they have to reachtheir true deep reduction targets,” he said.
Emitters needed to have the right policy mechanism and right strategic partnerships to storetheir CO2 elsewhere.
“That is wherethe oil and gas industry offshoreand some projects onshore, will play asignificant role for the safeguard
facilities to provide apathway to wherethey can storetheir CO2,” Dr Rabb said
Dr Raab said the practicalities were challenged by the legal, policy and permit environment in state and federal legislation.
“Wehave worked with industryand government. To mapout the permit process for large-scale offshorefacilities and the process will take six to 10 years if everything goes verysmoothly.Oncethe permitting process is completed, major final investment decisionscan be made,” he said.
“However,ifyou putthe two timelines together,theyare notstacking up. The emitters areforced to reduce their emissions faster than optionsare available for them.
This is not just CCS. We arealso talking about initial high expectations to hydrogen ideally leapfrogging blue and grey going straight to green, but this rollout is significantly slower and moreexpensive.”
Abig investor like ‘Twiggy’ Forrest had essentially reversed his green pledges.
“Not having produced akilogram of green hydrogen so far is amajorsetback to the pace of rollout but does not mean it’s not coming. We do need amarketthat is prepared to pay ahigh price for green hydrogen or green products,” he said.
Dr Raab said the government decision to not allow Glencoretogoahead with CCS in the Artesian Basin was amajor setback.
“The decision waspurely political,” he said. Scientifically,inassessing suitable geological storage, many opportunities existed tostorethe quantity of CO2 that the project was proposing in the GAB without any environmental impacts, locked away deep underground from the water
“Weneed clarity to find appropriate storage reservoirs, basins. We also need to have the courage tomanage all stakeholders in the area with facts. The moment it is politicised, we arestifling progress in reducing our emissions significantly,” he said.
“The decision by the Queensland government is amajor setback for onshore
CCS in Queensland, but also stifles investor confidence in other projects.”
However,Dr Raab said Gippsland had the advantage of going offshoreintodepleted reservoirs, “a much morefavourable proposition”.
The federal Resources Minister, Madeleine King, had just released another 10 greenhouse gas assessment projects around the countryincluding the Gippsland Basin.
“The announcements simply says, ‘Companies, the acreage is available, you progress and build your projects’. That’sa bigtick, abig wayforward,” he said.
Dr Raab emphasised that it had been known for the past 20years about Gippsland Bass Strait’sworld class storage resources. Victoria was well placed because of the close proximity between the emitters and the Basins (Gippsland and Otway) for large scale CCS projects.
“Now with HESC (Hydrogen Energy Supply Chain), we have significant interest from Japan to invest in Victoria, to produce clean hydrogen that meets the green hydrogen target of emission threshold in Japan, and which willbethe perfect combination between hydrogen production and low cost, low emissions with CCS, and which will kick-startthe hydrogen economy in Victoria,” he said.
“Continuing tohave investment from Japan and providing energy security essentially to our domestic supply and overseas customers -that is the long-termkey strategy for companies like CO2CRC. We have been demonstrating (in the Otway Basin) the safe storage of CO2 that we can monitor the movement ofCO2 in the subsurface for the last 20years in Victoria.”
Dr Raab said the CO2CRC had worked closely with the CarbonNet project as the lead research association.
“Any of the technologies we have developed areessentially 10 years ahead of wherethe industry currently stands.
These are huge opportunities for Australian innovation to be deployed in the next generation projects like CarbonNet, to really drive down costs and give confidence to regulators and the general public in how efficiently and safely we can storeCO2 irrespective ofwherethe CO2comesfrom,” he said.
Dr Raab is confident that the Victorian government has the expertise to assess the CCS research.
“Wework effectively with the EPA, with the petroleum and water regulators. For every new technology we were testing, we were working closely with them, briefingthem about our stringent internationally peerreviewed process,” he said.
“Wetookthe regulators for everyactivity alongthe journey,thereforewehave built confidence over the last two decades and have data sets over the last two decades that prove what we have done. We have set new benchmarks.”
Given the precision of what the CO2CRC
had done, “we can safeguardany impacts on the environment and human health”.
Dr Raabsaid these technologies were available for the CarbonNet project and any project in Australia.
“Esso Australia is investing in technology development and advancement in CO2CRC, together with pretty much all the other players in Australia,” he said.
“All the investment, all the outcomes, are made publicly available on our website and they can read our publications. We do publish in international peer-reviewed journals. That underpins the scientific rigour and veracity of our work.
“Wehavestrongin-house capability,but we work with Geoscience Australia, the CSIRO, the major universities -Melbourne, Monash, Curtin, Federation University -pretty much all theG8researchpartners.
“Internationally,weworkwith leading scientific institutions, so we have the leaders in their field leading the research internationally with the CO2CRC. We have the majority of our funding from industry, a smaller percentage from the Department of Climate Change, for international research and collaboration, also with Japan and South Korea. All our partners consider CCS as an investment advancing our society and ability to reduce emissions, so all our research is made publicly available.”
Dr Raab said CarbonNet, like other projects in Australia, would bethe incubators for morecarbon dioxide from other facilities being supplied to another reliable storage.
“It’scritical infrastructuretohavefuture technologies like direct air capturebeing connected to ageological carbon storage provider and to apipeline network,” he said.
“Thereisa role ofgovernment, we know from other countries like the UK,who are decarbonising their industrycentres; the government plays asignificant role in providing the right policy environment.” Issues for government included the use of shared infrastructure; the different costs that different industries have to capturetheir CO2; how that can be incentivised and harmonised across an industrycomplex; and the complexity of the custody chain of CO2 from capturetotransportand storage to optimise performance across the value chain.
“These areimportant; CCS works best at scale. We need long-termpolicy support and stability for infrastructureinvestments of that scale to be undertaken, and for CCS to come to its full potential and take large amount of CO2 over long periods of time, and thereforehaveasignificant impact on Victoria’sand Australia’semission profile,” he said.
DrRaabsaidthe CarbonNet project was recognised around theworld.
“Wehave averygood working relationship with the CarbonNet Project and CarbonNet is liaising with Australia’sresearch landscape for CCS,” he said.
“Melbourne is essentially the world’scentre for CCS knowledge. We’ve got the Global CCS Institute headquartered in Melbourne, CarbonNet and CO2CRC based in Melbourne, the Peter Cook Centrefor CCS research at Melbourne University -that makes four major organisations focussing on research, assessment, policy and project development, all in one place.
“CO2CRC is still the only operator of an onshoreCCS research project in Australiathe Otway international test centrebetween PortCampbell andWarrnambool on the Great Ocean Road -and wehavebeenthe practitioner for 20 years.”
CO2CRC Chief Executive, Dr Matthias Raab.
Gippsland’s Transition to a NEWENERGYFUTURE
Projectpartnersin carboncapture
THE Hydrogen Energy Supply Chain (HESC) project welcomes the 2024 Gippsland New Energy Conference, highlighting the importance of the regional transition in developing anew clean energy hub in Gippsland.
Industryleaders J-Power and Sumitomo Corporation Joint Venture(JPSC JV) propose to establish ahydrogen production facility in the Latrobe Valley to produce clean hydrogen, extracted from Latrobe Valley coal combined with carbon captureand storage, for both domestic and international customers.
Japan Suiso Energy (JSE), comprised of Kawasaki Heavy Industries (KHI) and Iwatani Corporation, is responsible for the downstream elements of the supply chain, and aims to liquefy aportion of JPSC JV clean hydrogen in Hastings for transportto Japan.
Yuko Fukuma, acting general manager of HEA (KHI’ssubsidiary), said HESC’s proven technical feasibility makes it a promising solution to energy challenges.
Ms Fukuma said the HESC Pilot Project, successfully completed in 2022 by HESC Project Partners, was aworld-first and
shows that hydrogen can be afuel of the future.
“The Suiso Frontier,the world’sfirst liquefied hydrogen carrier used in the pilot, is proof that this supply chain between Victoria and Japan is technically viable. JSE’scommercial-scale carrier can improve upon these achievements,” she said.
“Aligned with JPSC JV,JSE is deep in economic studies to preparefor the upscale to acommercial phase.”
This project will deliver jobs and upskill existing local workers to supportthe emergence of aclean energy industryin Gippsland, Hastings, and particularly in the Latrobe Valley,ascoal-fired power stations close.
Jeremy Stone, the non-executive director of J-Power Latrobe Valley,saidJPSC JViscurrently in the late stages of its engineering feasibility and economic studies.
“These studies arethe next step towards acommercial phase of the project,” Mr Stone said.
The development of accurate measures
of carbon intensity (kg CO2 per kg of hydrogen) is important for the regulation of clean energy projects, like the proposed JPSC JV hydrogen production project in Latrobe Valley
The Guarantee of Origin (GO) scheme, in development by the federal government, is anational certification scheme measuring the carbon intensity from source to finished product.
“Wewelcome thetransparency and market opportunities that the GO scheme creates. Ithink it will be an overall benefit for the energy industryascustomers need this number to determine their own CO2 reduction -colours arenot enough,” Mr Stone said.
The Albanese government recently announced it would fast-track the GO Scheme, aiming to have it operational by mid-2025. If successful, it will increase transparency amongst energy sources and set astrong foundation for aclean energy market.
Masaki Ozawa, the head of Sumitomo Corporation’sSubsurface Energy Team, says the GO scheme is crucial in establishing aclean energy market and
moving away from the confusing colour categories currently used.
“The notion of using colours to group highly varied forms of energy production is outdated. Applying the GO and looking at the numbers (carbon intensity) instead will allow customers, producers, and regulators to make decisions around facts,” Mr Ozawa said.
“This will beespecially important in establishing markets around clean energy sources, wherethe numbers will serve the basis for price points.”
The JPSC JV will use carbon captureand storage to reduce its project’scarbon intensity to meet global standards forclean hydrogen.InGippsland, thereare two excellent opportunities for carbon storage: CarbonNet’sBassStrait Project and the depleted oil and gas reservoirs of Exxon’s affiliated Gippsland Basin Joint Venture CCS Hub.
Jeremy Stone will represent the HESC Project at the 2024 Gippsland Energy Conference to connect with respected stakeholders and interact closer with Gippsland’senergy transition.
Potential to storeuptosix milliontonnes
By PHILIP HOPKINS
CARBONNET,whose program is regarded as integral to Gippsland’s energy and industrial future, is continuing information drop-in sessions in towns adjacent to the project’sproposed pipeline routebetween the Latrobe Valley and the Gippsland coast. Locations included Golden Beach, Flynn, Sale and Rosedale. An online information session was also held.
At the sessions, project team members wereavailable to speak about the project’sprogress, CarbonNet’s upcoming referralsand answer questions from the community
Key topics of conversation werethe project’sproposed pipeline corridor upcoming environmental surveys and futureapproval milestones.
CarbonNet, funded by the state and federal governments, plans to build a 100-kilometrepipeline from Loy Yang to the Gippsland Basin that will enable multiple CO2 industrial captureprojects to be stored in empty gas and oil reservoirs in Bass Strait.
Abusiness case for the CarbonNet Project is set to be presented to the federal and state governments.
CarbonNet’sdirector,JaneBurton, who grew up in the Latrobe Valley,told a recent energy conference that the project was undertaking market soundings with adiverse range of stakeholders. These included customers, developers, contractors, equity,and debt investors to informthe commercial modelling, strategy and entity type for the project moving forward.
CarbonNet began in 2010, two years after the Kyoto Protocol began when the Paris Agreement on climate change was still six years away The federal government’sCarbon
Captureand Storage (CCS) Flagship program was created to supporta variety of CO2 capture, transportation and storage demonstration projects. The objective of the program was to promote the use of CCS technology,demonstrate Australia’sstorage resources, support trials, build capacity,and create links with existing international projects.
Ms Burton said the value of CarbonNet, partofthe original CCSFlagship program, was the excellent geology in the Gippsland Basin and the close proximity of storage sites to the Latrobe Valley’scoalfired power stations.
“This early thinking has since pivoted towardsupporting new clean industries such as hydrogen, ammonia/fertiliser and biomass, and supporting the transition of abroad rangeofexisting high emitters tolow emissions technology aided by drivers such as the safeguard mechanism,” she said.
The safeguardmechanism regulates the greenhouse emissions of Australia’s biggest 215 companies.
CarbonNet proposes to establish a commercial scale CCS hub that will
enable new and existing decarbonised industries tocontribute to legislated government targets, such as Victoria’s 2035 interim emissions reduction target and anet zeroemissions outcome by 2045.
CarbonNet manages two offshoreGHG permits for sites in the Gippsland BasinPelican and Kookaburra.
“Thereispotential for CarbonNet to transportand storeuptosix million tonnes of CO2 per year at the initial Pelican site once fully operational. It will likely take up tothree years toreach this level onceCarbonNet is commissioned. Additional storage capacity will be available in futurewith expansion of the network to the Kookaburra site,” Ms Burton said.
“Deliveryof CarbonNet is anticipated to create jobs and investment relating both to the project and enabled industries such as hydrogen, ammonia/fertiliser and bioenergy.The project will also focus on futurebenefits for communities and landowners, including Traditional Owners in Gippsland.”
CarbonNet’sproposed pipeline will consist of 80km of buriedonshore pipeline with about afurther 20km offshore, reaching multiple drill centres at the Pelican site.
Ms Burton said regulatoryapprovals paved the way for consultations with potentially affected landowners in September 2023.
“The final proposed pipeline routewill be confirmed through stakeholder engagement, field surveys and Front-End Engineering Design (FEED) outcomes,” she said.
FEED was completed in Februaryof this year
“This significant project milestone has provided data that informs the Pelican development concept, including
preliminarycostestimate, material specifications and the construction timeline, as well as providing input into approvals documentation and procurement of long lead equipment,”
Ms Burton said.
“The project is currently progressing the primaryregulatoryapprovals for the Pelican storage site to achieve the required injection licence. The environmental approvals process is anticipated to take several years. Acomprehensive community and stakeholder engagement process, in line with government guidelines, will accompany the approvals program.”
Ms Burton said CarbonNet, well known across the CCS industryand academia, was well understood in Gippsland and supported across local governments, industrygroups such as Committee for Gippsland and local industry.
“The regional traditional owners (GLaWAC –Gunaikurnai Landand Waters Aboriginal Corporation) areakey stakeholder,thisrelationship will soon expand with the development of the project’scultural heritage management plan,” she said.
The CarbonNet Community Reference Group, established in 2019 and chaired by Victoria’sLead Scientist, Amanda Caples, meets quarterly to receive project updates and discuss emerging issues.
The project also produces educational programs and events for primaryand secondaryschoolstudents, focusing on CCS as adecarbonisation tool, including an annual Science Week event, and sponsorship of the University of Melbourne CCS shortcourse.
Ms Burton said adding to the complexity was Gippsland Basin being made Australia’sfirst declared offshorewind zone in 2022.
CarbonNet Director,Jane Burton.
Gippsland’s Transition to a NEWENERGYFUTURE
By PHILIP HOPKINS
THE potential for nuclear power to provide electricity free of greenhouse gas emissions has emerged as apossible partof Gippsland’snew energy future.
Nuclear possibilityfor Gippsland Laying it all on thetable
The Loy Yang powerstations in the Latrobe Valley have been identified by the federal Opposition as asite for azero-emissions nuclear power station, under apolicy released earlier this year that also aims to generate regional economic development.
“Nuclear energy for Australia is an idea whose time has come,” said the Coalition, which maintains that nuclear energy,proven to lower electricity prices and emissions all over the world, would work in partnership with renewableenergy and gas as partofa balanced energy mix.
Loy Yang is one of seven identified locations, located at apower station that has closed or is scheduled to close, around Australia.
“Each of these locations offer important technical attributes needed for a zero-emissions nuclear plant, including cooling water capacity and transmission infrastructure; that is, we can use the existing poles and wires, along with alocal community which has askilled workforce,” the Coalition said.
“A key advantage of modernzero-emissions nuclear plants is they can be plugged into existing grids. This means they can effectively replace retiredorretiring coal plants and avoid much of the new spending needed for Labor’s‘renewables-only’ system, including new transmission poles and wires.”
The Coalition says no countryinthe world relies solely on solar and wind as the Labor Party’spolicy stipulates.
By contrast, thereare 32 countries operating zero-emissions nuclear plants. Another 50 countries arelooking to do so. Of the world’s 20 largest economies, Australia is the only one not using nuclear energy,ormoving towards using it.
The Coalition says its plan would deliver anet-zeroelectricity grid by 2050 and a strong and resilient economy with cheaper, cleaner and consistent electricity
Communities that host zero-emissions nuclear plants would be at the front of this next wave of growth.
“Not only will local communities benefit from high-paying, multi-generational jobs, but communities will be empowered to maximise the benefits from hosting an asset of national importance,” the Coalition says.
This would be through:
Amulti-billion-dollar facility guaranteeing high-paying jobs for generations to come; An integrated economic development zone to attract manufacturing, value-add and high-tech industry, and;
Aregional deal unlocking investment in moderninfrastructure, services and community priorities.
ACommunity Partnership would be formed in each host community,consistingof experienced local representatives, as the focal point for community engagement and to playanimportant role in planning the futureofthe region.
“This community engagement process will
Alittlefrom column A on forwardplanning
AGL is preparing for the closureofLoy Yang Apower station in 2035 and the transition of the site into an integrated energy hub.
The Loy Yang ventureispartofAGL’s Climate Transition Action Plan, under which the company will transition all its coal power station sites -the Hunter,Torrens as well as Loy Yang A-into integrated energy hubs
These hubs will leverage the unique infrastructure, land, transportaccess, and grid connectivity of the company’sLoy Yang, Hunter and Torrens sites to create hubs that integrate things such as renewableenergy industries, grid-scale batteries, and green advanced manufacturing.
The energy hubs arebeing designed with the three principles of the circular economy -eliminate waste and pollution, keep products and materials in use, and regenerate natural systems.
The Loy Yang site has access to land, water, excellent transportlinks, easy access to the grid and askilled local workforce.
Current options being explored at Loy Yang are:
An MOU has been signed with the Solar RecoveryCorporation for atwo-year feasibility study into establishing asolar panel materials recovery facility
The Hydrogen Energy Supply Chain (HESC) project at Loy Yang -a collaborative initiative between leading Australian and Japanese companies, and
occur alongside acomprehensive site study including detailed technical and economic assessments,” the Coalition policy says.
Under the policy,afederal Coalition government will initially develop two establishment projects using either small modular reactors or modernlarger plants.
“They will startproducing electricity by 2035 (with small modular reactors) or 2037(if modernlarger plants arefound to be the best option). The Australian government will own these assets, but formpartnerships with experienced nuclear companies to build and operate them,” the policy says.
The coalition says to meet net zeroby Australia’s2050emissions commitments, zero-emission nuclear has to be partofthe energy mix.
“Zero-emission nuclear power plants produce no airpollutionorcarbon emissions. For example, a1.1 GW AP-1000 reactor cuts approximately seven million metric tonnes of CO2 emissions, equivalent to removing 1.5 million cars fromthe road,” the Coalition says.
“A zero-emissions nuclear power plant will be anational asset delivering cheaper cleaner and consistent energy for 80 years.
“WebelieveAustralians areupfor this discussion and areopen-minded about including zero-emissions nuclear technology as partofabalanced energy mix.”
The Coalition is expected to release more details aboutits policy later this year, including information about its costs and how nuclear would interact with Australia’s renewable energy system.
APUBLIC meeting will be held in Morwell this month to discuss whether the Latrobe Valley could play acentral role in Australia becoming anuclear-powered nation.
The community information evening, on September 18 from 6pm-8pm, will be held at the Morwell RSL.
Akey speaker will be Latrobe City Councillor,GraemeMiddlemiss, who is a former secretaryofthe Gippsland Trades and Labor Council.
The meeting has been organised by Nuclear for Climate Australia, Going Fission and apro-science environment group We Planet Australia.
ApartfromCrMiddlemiss, the speakers area civil engineer,RobertParker,who has aMaster of Nuclear Science and is a former president of the Australian Nuclear Association; an electrical engineer,Dr RobertBarr AM, who is aformer National President of the Electric Energy Society of Australia; and Dr Andrea Leong, president of WePlanet Australia.
The organisers stress that ‘good-faith engagement’ is expected from all attendees.
Enquiries can be made with Logan Smith, MEngSci (Nuclear) on 0448 960 729.
Alittlefrom column B
LOY Yang Bisabrown coal-fired power station based in the Latrobe Valley
the Victorian, Australian and Japanese governments. Feasibility studies are ongoing to assess conversion of lignite to hydrogen with carbon captureand storage technology to produce low-carbon hydrogen for exportopportunities.
Grid-scale battery. AGL is completing early concept work regarding the viability of agrid-scale battery at the site.
AGL is also partofthe Gippsland Skies consortium of companies that have been awarded afeasibility license for afixed bottom 2.5GW offshorewind farmoff the coast of Gippsland.
AGL’s longer termapproach seeks to bring renewable energy industries, grid-scale batteries, and associated industries to be partners to the site.
The Hunter Energy Hub provides an example of the kinds of partnerships the company could bring to the Latrobe Valley energy hub, noting the differences in the two sites.
What AGL is doing at the Hunter Energy Hub will help informhow the company progresses potential partnerships.
AGL is focussed on increasing the availability and flexibility of the Loy Yang power station, and planning to transition the site in the Latrobe Valley Energy Hub, continuing AGL’s contribution to Gippsland for decades to come.
It has two electricity generating units that together provide up to 1200MW of baseload power,about 20 per cent of Victoria’senergy needs.
The power station provides essential system strength services alongside firmenergysupply to supportVictoria’s transition to renewableenergy. This reliable supply will remain critical until the transitioning electricity system becomes matureenough to provide the stability the market needs.
Loy Yang BGeneral Manager,Tony Hicks, said in line with its asset strategy and operating licences, Loy Yang Bwould close in 2047 or earlier, depending on market needs.
“Werecognise our power station’s retirement is unlikely to be aunilateral decision by the owners and will be heavily influenced by key stakeholders and the requirements of the National Electricity Market,” he said.
“Weknow Australians want to transition to renewable energy and we’re investigating how we can support national emissions reduction targets while also generating areliablesupply of electricity.”
During the past few years, Loy Yang Bhas made improvements to the plant to increase operational flexibility for afaster response to market requirements, including operating
at lower loads when wind, solar,and other renewables areavailable, and increasing operations to provide a reliable supply of energy when they aren’t.
“Our proactive maintenance practices underpin oursolidreliability andplant integrity,whichis world-class when benchmarked against Australian and international counterparts,” Mr Hicks said.
“Wehave along remaining technical life -a plantwhich hasbeenwell maintained, asolid historyof high reliability,availability and plant performance, and adedicated and highly skilled operations and maintenance workforce.
“All these factors put us in astrong position to adapt to electricity market requirements, whether that be continuing to operate on coal for as long as we’reneeded or reinventing the power station site to supportthe energy transition.”
Mr Hicks said Loy Yang Bwas looking forinnovative ways to decarbonise the power station, with large-scale batteries, the conversion of the power station to generate essential baseload renewable electricity from sustainably sourced biomass, and theaddition of Bioenergy Carbon Captureand Storage,or BECCS, to asustainable biomass fuelled power station. All options being considered.
Gippsland’s Transition to a NEWENERGYFUTURE
Councils opttoback EfWproject
THE Maryvale Energy from Waste project, which will bring anew energy industryto Gippsland, has won deal-making multicouncil waste tenders.
Morethan adozen Victorian councils have committed their non-recyclable household waste to the Maryvale Energy from Waste (EfW) project, which is the most progressed of its kind in Victoria, to help divertthe waste from landfill.
The project consortium, made up of Veolia ANZ, Masdar TribeAustralia and Opal, secured awaste supply agreement with nine Melbourne councils, made up of the ShireCouncilsofCardinia and Yarra Ranges, and the City Councils of Bayside, Casey,Greater Dandenong, Frankston, Kingston, Knox and Whitehorse.
South East Metropolitan Advanced Waste Processing (SEMAWP) Pty Ltd, is the single entity of the nine councils. SEMAWP’s boardchair and Bayside City Council Chief Executive, Mick Cummins, said it was a great outcome for residents of the nine councils involved in the project, that began in 2020.
“This advanced waste processing solution provides an alternative to landfill that makes better use of household waste than burying it in the ground and will put items that can’t be reused or recycled to better use,” Mr Cummins said.
The nine councils join Maroondah City
Council, which has previously signed an agreement, and Latrobe City Council, which has resolved to supportthe project, while another two councils areinthe process of finalising agreements.
Speaking on behalf of the consortium, the Veolia ANZChief Executive, Richard Kirkman, said securing the councils’ waste was significant.
“The supply agreements with councils mean the project has reached the waste volumes required to finalise the design and construction costs of the EfW facility,before moving to financial close,” Dr Kirkman said.
“Weare excited to have won these
waste tenders. It is atestament to their commitment to their local communities and moving to amoresustainable waste management solution compared to landfill.
“Our facility in Maryvale will help Australia reach net zerofaster by going beyond just landfilling practices, and managing Victoria’swaste immediately instead of leaving it to futuregenerations to manage.”
The Maryvale EfW facility will provide asustainable and innovative waste management solution for the councils by recovering energy from their non-recyclable waste to help power the Maryvale Paper Mill.
Diverting the residual waste from landfill will reduce greenhouse gas emissions by about 270,000 tonnes annually,equivalent to removing 50,000 cars from the road per year
In line with the circular economy,the Maryvale EfW project is focused on maximising recoveryofby-products created during the energy-generating process and identifying value-added ways to recycle and re-use these.
Using world-leading technology, by-products will be converted into aggregates for use in construction. By doing so, the facility will target morethan99per cent diversion of residual waste from landfill.
The EfW facility,whichwill bring anew energy industryto Gippsland, is expected to supportabout 500 jobs during the construction phase and an estimated 450 local jobs once operational, including direct and flow-on.
The state government recently granted the Maryvale project the first Energy from Waste licence under the state’scircular economy laws.
The Maryvale Energy from Waste project will be built at Opal Australian Paper’sMaryvale Mill. Veolia,which already operates 65 EfW facilities around the world and will soon operate the two EfW facilities in Western Australia, will operate and maintain the facility
Bigrole forlocal manufacturers
By PHILIP HOPKINS
THE IndustryCapability Network, which sources local business expertise for economic activity and projects, has thrown its supportbehindthe Gippsland New Energy Conference, according to the chief executive, Nick Foa.
“The ICN has been supporting industry for morethan 40 years -this is our 40th anniversary-and we have worked with thousands of businesses across Victoria to ensurewekeep as much local manufacturing and local content as we can in this state,” Mr Foa said, speaking beforethe Gippsland Energy Conference.
“That’swhat we wereset up by government to do -implement alocal jobs policy.Weare not-for-profit company and independent from government.
“Weworkacross variety of sectors, from transporttomanufacturing, metallurgy, tech and now renewableenergy.One of the key reasons we sponsor GENEC iswe want to work with businesses across Gippsland to ensurethat businesses in Gippsland know how to reap the benefits from all the new investment coming in the renewable space.”
Mr Foa said it was important that even if overseas firms come into Victoria, “they get their supply chain active and be aided by local businesses”.
“It’sour job to help those local businesses to connect with the large international companies that arecoming into invest, and help lift their capability and connect them together,” he said. For example, abusinessmay work on one element of the problem, such as a switchboard; ICN could connect them to acabling company or with asupply chain that was likely to be able to take
partinthe new investments.
Gippsland has dedicated ICN adviser Colin Young.
“Each time thereisa newproject, he puts up on our Gateway site anew Gateway page for that event. Companies can register on Gateway for free and get notification about new projects as they arelisted,” Mr Foa said.
Arecent reportbyEmeritus Professor Roy Green from the University of Technology recommended it should be mandatoryfor project proponents to work with ICN and thus connect businesses to opportunities.
In an interview with the Australian Manufacturing Forum, Professor Green said it was about information asymmetries.
“The market doesn’tdeliver the information that companies need, so we need intermediaries which can maximise opportunities for locals,” he said.
“If we have amodel whereby big projects can just outsource to anyone and do so, what we have seen over the years is that they adopt averynarrowvalue for monthapproach, which has no spin-off effects for the local economy,and which diminishes the opportunity for technology development and the development of our own SMEs that could scale and become moreintegrated with global markets.
“Even worse, large projects have set up systems which discriminate and exclude local firms by imposing their own specification requirements. Large mining and resource projects arethe mainthing wherethis goes on. Then of course you have the public procurement side of things, with its false economy of value for money often leading to the adoption of designs and engineering projects
that don’tdeliver the goods for the local economy.”
Professor Green said ICN had been remarkablysuccessful over 40 years.
“Weestimate it has added over $50 billion in value toSMEs which have taken part in the program and it is on an increasing trajectory. It has been successful in ensuring that alot of projects that would have otherwise gone to companies outside this countryhave gone to local companies, with massive spin-offs to companies and regions,” he said.
“But it could have been moresuccessful if it had the resources and the mandatory regulatorystructuretoensurethatall applicable public and private projects weresubjecttoaprocess of engaging ICN.
“Wehave missed alot of opportunities. It is the longest-lasting industrial policy in the country, but it has operated below the radar,and it hassuffered from inconsistencies in funding –it has never really had significant funding at the national level.
“It has however managed to develop its Gateway softwareprogram, which is adatabase of 100,000 suppliers. It has used this to link up companies with local projects. But it has done this on a shoestring.”
Professor Green said the threshold should be greatly lowered so that smaller projects wereopened to SMEs.
“Public and private projects, all of them should be required to consult with ICN and set out the opportunities for engaging with ICN,” he said.
Professor Green said project proponents should be reporting back moreopenly about the progress they were making,
and at the end ofthe project the progress they had made in fulfilling their obligations.
“That is part of the compliance issue for companies. They can commit to opening up the projects to local suppliers but then they don’tproceed with that. There needs to be afeedback loop so ICN can monitor their progress. That is missing,” he said.
“Also thereisa need for afunding mechanism that would help those large companies to work with ICN and the SMEs to fulfil those obligations. That was provided through an interesting programme that ran previously,the supplier access to major programmes, the SAMP programme. That lasted 17 years and provided national resources to enable the process (of working with SMEs) to work smoothly (and help) large companies open up their supply chains.
“It is quite resource intensive to get all theinformation outthere, and while ICN hasa pretty smartdatabase, some extra resources from government would be of assistance.”
Professor Green said in the context of aFutureMade in Australia strategy, “we should reassess ICN’svalue and integrate it moreclosely with national industrypolicy”.
“In that way,itwould play akey part in providing opportunities for SMEs to participate in large and not so large projects, and also builds the capability to do so.
“A lot of SMEs don’tknowhow to access these projects -sofor ICNand other federal and state programmes to contribute to capability building for SMEs would also be ahighly beneficial as an outcome of this reappraisal.”
The Maryvale Energy from Waste project is on the way
Green light forfeasibility licences t
By STEFAN BRADLEY
ALL 12 Gippsland OffshoreWindZone projects originally announced by the federal government in May have been granted feasibility licences following consultations with First Nations groups and communities.
The licence allows the company to assess the feasibility of the offshoreinfrastructure project that the licence holder proposes to carryout in the licence area under a potential futurecommercial licence. It allows the licence holder to construct, install, commission, operate, maintain and decommission the offshorewind project in the licence area, as long as the legislative requirements aremet
Federal Minister for Climate Change and Energy,Chris BoweninMay had announced 12 projects for Gippsland offshorewind, with six receivingalicence
Thosebehind the other six projects were asked by the government to consult with First Nations communities who may be impacted by the wind farm, with alicence for all expected to be granted later on.
The government has issued licences to Iberdrola Australia OW 2(for its Aurora Green wind farm), Greater Gippsland 2 OWP Project (Gippsland Dawn), Navigator North Project, Ørsted OffshoreAustralia 1
(Gippsland 02), Kent OffshoreWind, and Great EasternOffshoreWindFarmProject Co.
In May,the following six projects weregiven feasibility licences: High Sea Wind Project
North, Gippsland Skies, Blue Mackerel North, Kut-Wut Brataualung Project, Ørsted 1and Star of the South.
The feasibility licences last seven years.
From here, the holders can continue
community consultation and apply for a commercial licence.
The government says these 12 projects werecapable of generating 25 GW,more electricity than the entirestate of Victoria generated last year
These projects arespread across anearly 15,000 squarekilometresite, stretching from Lakes Entrance to Wilsons Promontory.
From January23toApril 27 last year, the federal government accepted feasibility licence applications forproposed projects within the declared area.
Atotal of 37 applications forlicences were considered by the federal government, including Flotation Energy’s, Seadragon project. Flotation Energy is aScottish company owned by Tokyo Electric Power Company offshorewind project, butthe company was not granted afeasibility licence.
This rejection of the licence comes despite the state government granting Seadragon ‘Major Project Status’ last year,predicting it had acapital expenditureof$6.5 billion and would create around 1600 construction jobs and 200 ongoing jobs over 35 years.
Grantbacks women's opportunities
By TOMHAYES
THE state government has given a $100,000 grant to Gippsland Women’s Health (GWH) to supporttheir work helping employers attract and retain womenintraditionally male-dominated workforces, and to advance gender equality
The Minister for Women, as well as Minister for Jobs, Precincts and Regions, Natalie Hutchins, joined GWH’schief executive, Kate Graham, at the local Kilmany business Elecsome’ssolar panel upcycling plant to announce the grant.
Elecsome upcycles glass fines from damaged solar panels into sand, then ‘nano-engineered’ concrete, in a world-first called SolarCrete.
Elecsome saves cement mix manufacturers between 50 and 80 per cent on river sand, which is aprecious material in the manufacturing process.
All of the materials that Elecsome use to upcycle aresourced from Victoria, saving damaged solar panels from polluting landfills in the state.
Minister Hutchins was given atour of Elecsome’sKilmany facility,and appeared to be impressed with the process they developed.
Ms Graham accompanied her,asdid the Regional Development Victoria Regional Director,SaraRhodes-Ward.
Barriers to women’sentryinto and advancement in industries such as energy and manufacturing can include inflexible working arrangements, a lack of paid parental leave, gender discrimination, sexism and sexual harassment. This has led to their underrepresentation in these workforces.
Given Elecsome’ssmall number of
employers on site in Kilmany,when
Minister Hutchins asked its chief executive Neeraj Das if he could see women working in this workforce, he replied: “Why not?”
With only asmall team of seven or eight people on site in Kilmany,Elecsome hopes to increase the number of employers in Kilmany realistically to around 30 or 35, all while training and
upskilling people in the process.
Gippsland Women’sHealth, as partof the venture, will also deliver amentoring program in collaboration with the Gippsland Community Leadership Program, Women in Industryand Women in Renewable Energy networks.
“Supporting morewomen in Gippsland to enter,stay and progress in energy
and manufacturing careers is a win-win situation for local women and employers,” Minister Hutchins said.
“This grant to Gippsland Women’sHealth supports better economic outcomes for women in Gippsland and will help local organisations address skills shortages in some of the Victoria’sstrongest growth sectors, while contributing to driving greater gender equality across the state.”
Minister Hutchins announced that the grant hopes to get morewomen into the clean energy sector and manufacturing.
“Wefind that thereare some pretty low numbers, and we need to lift that up,” she said.
“I hear from alot of businesses like (Elecsome), about the need for more skilled workers, and quite frankly skilling up women to come into these roles is a big partofthe answer.”
In response, Ms Graham appreciated the grant from the state government.
“It’satremendous opportunity for us to continue our work… about how we can bring women into the industryand retain them and advance them in the industry as well,” she said.
The work of GWH is just one of the initiatives to address barriers to women’s participation and advancement in male-dominated industries.
The grant to GWH is partofasecond roundofgrants to develop strategies to boost women’sparticipation and equity in manufacturing and energy,which forms akey partofthe state government’s response to the inquiryintoeconomic equity for VictorianWomen
All 12 Gippsland Offshore Wind Zone projects.
Minister for Women and Minister for Jobs, Natalie Hutchins talking to Regional Development Victoria’sSaraRhodes-Ward and Gippsland Women’sHealth Chief Executive, Kate Graham at the Kilmany solar panel upcycling plant.
• GippslandSkies is aproposed 2.5 GW offshorewind project to be developed approximately 30km off thesouthcoast of Gippsland
• When fully operational, theproject could supply about 17% of Victoria’s current electricitydemand and power upto 1.4 millionhomes.
• Gippsland Skies could valueadd about $AU3.7 billion into the Australian economy and create around 2000 jobs in Gippsland over thelifeofthe project.
Proud sponsorsofthe Gippsland New Energy Conference and Gippsland Women in New Energy Breakfast. The GippslandSkiesteam looksforward to seeing youthere!
Gippsland