ENERGY TRANSITION

WA attempts to lure green investors with ESG pack

Reiterates net-zero target

Reiterates net-zero target

Reiterates net-zero target

The energy transition was front and centre of the McGowan government's messaging, emphasising that the state was committed to reaching net-zero emissions by 2050. 

"My Labor government is not just addressing the issues that the state faces today, but investing in WA's future," premier Mark McGowan said. 

"Whether it be hospitals, water, social housing, port and trade infrastructure, climate change and renewable energy, or digital capability - we have used our strong budget management to ensure our state's long-term future is funded and secured."

The booklet notes WA has among the best combined wind and solar resources, with average wind speeds of 7.5-8.5 metres per second and annual Global Horizontal Irradiation of 2100 kilowatt hours per square metre at Oakajee in the Mid West region. 

The Oakajee industrial area's development has long been a pet project for the government, which is currently courting large scale energy players to develop an export-scale renewable hydrogen project at the site. 

The government has received 65 expressions of interest from companies looking to develop the area, with the ESG pack noting the site could provide up to 270MW of wind generation and 1.2GW of solar energy, with consistently high renewable contributions to the daily load. 

The booklet refers to Oakajee, as well as the proposed Asian Renewable Energy Hub in the state's north and the Western Green Energy Hub in the far south as Renewable Energy Precincts. All three proposed projects would see gigawatts of wind and solar powering hydrogen and ammonia export facilities.  

The international consortium developing the AREH - InterContinental Energy, CWP Energy, and Macquarie - had their proposal knocked back by the federal government in June, after environment minister Sussan Ley found it would have "unacceptable impacts on matters of national environmental significance".

The developers are in the process of re-submitting their proposal for assessment, with a final investment decision expected in 2025. In July, they announced the Western Green Energy Hub, a similarly massive proposal in the state's Goldfields region, near the South Australian border. 

"The combined renewable energy generated by these projects is potentially more than five times the current electricity generated in Australia," the ESG pack states. 

The government projects that its main grid, the South West Interconnected System, will be made up of around 70% renewables by 2040 compared to 37% today, while coal will wind down to make up around 5% of the energy mix by the same date. Two units at the state's Collie coal-fired power station are expected to shut next year. 

They are the same figures the government cited in its Energy Transformation Strategy it released in July this year. 

The ESG package said the next Whole of System Plan will consider renewable generation and storage investments in line with the government's goal of net-zero emissions by 2050. 

Climate and environmental groups, including the Conservation Council of Western Australia and 350 Boorloo have claimed that the oil and gas industry's influence over the government has hamstrung its ambition to develop strong renewable energy and emissions reduction targets in the state.

Western Australia is the only state that has seen its emissions rise since 2005, up by 21%, driven primarily by the LNG industry. 

Last month Fortescue Future Industries chairman and WA local Andrew Forrest suggested WA's lack of strong climate commitments was part of the reason why it chose Gladstone, Queensland for its Green Energy Manufacturing Centre over his home state.  

The full ESG package can be viewed here.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

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