Australia committed to being world leader in clean energy

WITH the arrival of spring in Australia, great golden bushes of wattle flowers - the country's national emblem - have burst into bloom, decorating the landscape and bringing the promise of some much-needed renewal.

After a bushfire, the golden wattle is often the first to recover and revegetate an area. Wherever it blooms, its message is clear: with patience and resolve, it is possible to turn adversity into opportunity.

Like the wattle, the seeds of Australia's current approach to deployment of zero emissions electricity were planted in the wake of a destructive storm.

In October 2016, a major blackout in the state of South Australia affected 1.7 million citizens. The then-federal energy minister asked if I would chair a review of Australia's National Electricity Market.

The review identified the need to ensure the electricity system would retain its operating strength as world-leading rates of solar and wind generation are added, and introduced better planning processes for long-distance interconnectors and renewable energy zones.

Building on the review, Australian Energy Market Operator CEO Daniel Westerman has set the goal for the national electricity grid to be ready for periods of 100 per cent instantaneous solar and wind electricity by 2025.

With this target in place, the blooming of a new golden opportunity emerged. Enter the hero: hydrogen.

National hydrogen strategy

Australia's energy ministers had seen the huge opportunity that this low-emissions fuel presented for Australia, and I was tasked to develop a national hydrogen strategy.

Released in 2019, it provides a framework for Australia to become a world leader in clean hydrogen.

In 2021, the seeds of this new industry have started to grow, with green hydrogen now being blended with natural gas and supplied to more than 700 homes in South Australia.

Having sown the seeds of a new industry, the search for further opportunities continued with an expert panel that was established to advise on the development of Australia's Technology Investment Roadmap.

This roadmap is an enduring strategy to make low-emissions and zero-emissions technologies the economically rational choice. It is arguably one of the most strategic national decarbonisation plans in the world.

It signals to the world Australia's intention to identify and invest in the highest-priority low emissions technologies, drive down their cost, and render high-emissions incumbents obsolete while creating new economic opportunities.

This approach is at the heart of Australia's plan to deliver net-zero emissions, with recent modelling showing the roadmap could deliver almost half of the emissions reductions required for Australia to meet this target by 2050.

The roadmap provides policy clarity for investors at a higher level than ever before and includes a rigorous impact evaluation framework that will measure success against results and inform the government in the evolution of its investment portfolio.

The government has committed to providing annual updates for this roadmap - the first of which came in September 2020, and the second in November 2021.

The first update identified 5 priority technologies: clean hydrogen, electrical energy storage, green steel and aluminium, geosequestration, and soil organic carbon sequestration.

Each has a target price that when achieved will make it competitive with the existing high-emissions incumbents. For example, clean hydrogen production at under A$2 (S$1.95) per kg.

The second update added another priority - low-cost solar electricity - which, at the target price of A$15 per megawatt-hour by 2030, will not only help support the production of renewable hydrogen and low emissions aluminium, but will drive down the electricy costs for all Australian companies, commercial outlets and households.

It also introduces support for charging and refuelling stations for battery and hydrogen electric cars and support to better utilise the existing investment in electricity poles and wires; leading to lower costs for all electricity consumers, not just drivers of electric cars.

All in, government-led initiatives that build on earlier initiatives such as the Renewable Energy Target launched in 2001 and the Emissions Reduction Fund launched in 2015, have seen Australia emerge as the global leader for solar electricity generation per person, and helped to drive emissions down 20 per cent on from the 2005 baseline.

While this progress will only continue, we recognise that partnering globally can accelerate our efforts.

Partnership with Singapore

In this effort, Australia and Singapore have signed an agreement to advance hydrogen technology in the maritime sector, enhancing Singapore's position as a major shipping hub, while developing Australia's clean energy export capabilities.

This partnership will grow through the Singapore-Australia Green Economy Agreement which will facilitate trade and investment, including hydrogen.

Partnerships like this one with Singapore strengthen Australia's ability to meet our emissions reduction targets and pave the way for Australia to remain a supplier of low emissions energy. This is crucial for the region's long-term prosperity.

Australia and its partners can simultaneously confront the environmental challenges threatening the world, while laying the groundwork for our long-term economic security and prosperity.

While doing so, it is timely to remember the wisdom of the wattle: be patient and resolute, and brighter days ahead will bloom from the seeds of hope all around.

• The writer is Special Adviser to the Australian government on Low Emissions Technology. Before this role, he was Australia's Chief Scientist.