Australia confirmed as global energy supply powerhouse
New analysis from Geoscience Australia confirms the nation’s role as a major player in the current and future global energy supply chain.
Federal Minister for Resources and Minister for Northern Australia, Madeleine King, said the study found that Australia is a leader in the global supply of non-renewable energy products and is positioning itself as a key player in the new energy market.
“In 2021, Australia maintained its position as one of the world’s largest exporters of liquified natural gas, as well as the world’s largest exporter of metallurgical coal and second largest exporter of thermal coal,” the Minister said.
“Australia is a reliable trade and investment partner with a diverse mix of energy resources, strong exports and the potential for significant renewable energy production,” she added.
Australia’s non-renewable energy resources
A snapshot of Australia’s non-renewable energy resources, including gas, oil, uranium and coal, as at the end of 2021, presented in the Australia’s Energy Commodity Resources assessment 2023 (AECR 2023), also covers clean technologies such as hydrogen production and carbon capture use and storage (CCUS).
“While our traditional energy resources have an essential role in supporting the transition to net zero emissions, they also contribute to our future energy security,” the Minister said.
“Perhaps most excitingly is the expansion of clean energy projects here in Australia.”
The new study highlighted the downward effect of the Covid-19 pandemic on Australia’s production and export of energy commodities in 2021.
However, that trend was not reflected in the nation’s renewable energy production, which increased by 10.4%.
“The Australian Government remains committed to achieving net zero emissions by 2050, and investment in new clean energy projects, including carbon capture and storage (CCS) and zero and low emissions hydrogen projects, continues to grow.”
Investments in hydrogen development
Geoscience Australia has identified that between $230 and $300 billion is currently being poured into the pipeline for the development of hydrogen and its derivatives.
A further $1.9 billion is being invested through the Powering the Regions Fund to help industry reduce their carbon emissions through projects like CCS or hydrogen, and the new $2 billion Hydrogen Headstart program to scale up development of Australia’s renewable hydrogen industry.
According to AECR 2023, the number of hydrogen projects that are operational or in development in Australia increased by 34% in 2021, including a world-first project, the Hydrogen Energy Supply Chain (HESC) project in the Gippsland Basin.
That project has already successfully demonstrated the feasibility of producing clean liquid hydrogen from brown coal resources.
Critical mineral plans win support
Minister King also welcomed news that federal, state and territory ministers for resources and mining have backed the newly released Australian critical minerals development plan.
A critical minerals roundtable was held on the sidelines of the World Mining Congress currently being staged in Brisbane.
Minister King highlighted the new Australian Critical Minerals Strategy during the roundtable.
“The Australian Government is committed to working with the states and territories to boost the development of our critical minerals sector and create new jobs in processing those minerals into materials that are crucial for the clean energy future,” Minister King said.
“The Strategy sets out a plan for how Australia can become a globally significant producer of raw and processed critical minerals and boost economic opportunities for First Nations people and across regional communities.”
“Through the Resources Ministers’ roundtable, we are working to build a common understanding of how governments can maximise these opportunities for the benefit of all Australians.”
IEA estimates
Minister King was also a keynote speaker at the international congress, noting that the International Energy Agency (IEA) has estimated that by 2030, the world will need around 50 new lithium mines, 60 new nickel mines and 17 new cobalt mines in order to meet 2030 emissions goals.
“With the world on the cusp of an energy transformation, these are exciting times for the global mining sector. There are vast opportunities ahead for Australia in this transformation,” Minister King said.
“Fully realising them, however, will involve mining companies embracing new responsibilities and obligations.”
“These include a commitment to enhancing our environmental and social governance credentials and serious pledges to reduce carbon emissions at source and downstream.”