AGL’s decision to accelerate its exit from coal-fired power generation has been hailed by green groups. Pic: Getty Images
Emission Control: Times are a-changin’ as AGL accelerates coal exit
Energy
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- AGL plans to supply customers with up to 12 gigawatts of new renewable generation before 2036
- An ambitious $62 billion energy plan has been carved out for the state of Queensland
- Tritium will provide fast chargers for a new EV highway in the state of Western Australia
Emission Control is Stockhead’s fortnightly take on all the big news surrounding developments in renewable energy.
AGL’s (ASX:AGL) decision to accelerate its exit from coal-fired power generation – including closing the giant Loy Yang A power station up to 10 years earlier than previously announced – has been hailed by green groups as an acknowledgement of the shift away from fossil fuels.
In an announcement released on Thursday, the power giant outlined an ambitious plan to supply customers with up 12 gigawatts of new renewable generation and firming capacity before 2036.
This progressive shift away from fossil fuels won’t come cheap with the company estimating that it will cost some $20 billion, which will be funded by a combination of assets on its balance sheet, off-takes and partnerships.
This is a big deal! Very proud of so many colleagues & friends & groups who worked on this for years, including @justdanfornow @Glenn_Walker_ @radreece @GreenpeaceAP @AustCCR – & so grateful for @mcannonbrookes’ bold work 👏🙏☀️ https://t.co/Q7jAfsrrbu
— Jess Panegyres (@Jess_Panegyres) September 29, 2022
Chair Patricia McKenzie said the new decarbonisation and energy investment strategy was the result of listening to stakeholders – particularly shareholders.
These are of course the same shareholders – egged on by tech billionaire and major shareholder Mike Cannon-Brookes – who scuttled the company’s demerger plan back in May this year.
It is not certain if the company’s moves to speed its transition away from fossil fuels will lead Cannon-Brookes to drop his declaration earlier this week that he would back the appointment of four new independent non-executives directors to AGL’s board in a bid to steer it towards lower emissions energy.
Incidentally, AGL’s new plans for its Loy Yang A exit meshes nearly perfectly with the billionaire’s preference for the company to abandon coal by the mid-2030s.
Move welcomed
Reactions to the company’s plans were largely positive with the Australasian Centre for Corporate Responsibility saying it was finally listening to its shareholders and that while it was still not aligned with limiting warming to 1.5 degrees C, it was still a positive development.
ACCR added that AGL’s interim target to have 5GW of renewables and firming in place by 2030 surpassed Origin Energy’s recent 2030 commitment of 4GW.
This difference is even starker when one considers that AGL’s market cap is about half of Origin’s.
This announcement now means up to 200 Mt CO2-e will not be released into the atmosphere, and is evidence that active engagement strategies, pursued by major shareholders, can have material emissions outcomes in the real world. $AGL #ASX https://t.co/js7q3FXSnK
— Australasian Centre for Corporate Responsibility (@AustCCR) September 29, 2022
“This builds on what has already been a big year of major climate announcements for ASX-listed companies, with BHP and South32 abandoning the Mt Arthur and Dendrobium mine extensions and Origin bringing forward the closure of Eraring and exiting the Beetaloo Basin,” ACCR climate lead (Australia) Harriet Kater said.
Climate Council councillor Greg Bourne added the announcement was further proof that coal power station closures would happen sooner and more frequently than companies are currently formally committed to.
“Clean industries are already charging ahead in Gippsland, like Star of the South, which is set to become Australia’s first offshore wind farm. The project has the potential to supply 20 per cent of the state’s energy needs and could create around 2,000 direct Victorian jobs,” he noted.
“In fact, if all of Australia’s proposed offshore wind farms were built, their combined energy capacity would be greater than all of Australia’s coal-fired power stations.”
This rather neatly segues into the Queensland’s move to be a leader in Australia’s net zero transition.
Lighting the way to net zero
An ambitious $62 billion energy plan has been carved out for the state of Queensland, filled with the world’s “largest” pumped hydro scheme and a goal to convert publicly owned coal-fired power stations into clean energy hubs from 2027.
Speaking at the annual State of the State event in Brisbane on Wednesday, Premier Anastacia Palaszczuk revealed Queensland, home to two of the country’s largest coal mines, will end its reliance on coal by 2035.
By 2032, 70% of the state’s electricity would come from renewables, rising to 80% by 2035.
BREAKING: Queensland will have 70% renewable energy by 2032.
The future is bright! ☀️ ♻️ ⚡️
— Grace Grace MP (@gracextwo) September 27, 2022
“We all know that we are in an unprecedented time – I understand, and you understand, that we are facing a climate emergency,” Palaszczuk said.
“We are facing a period that’s extraordinary in all of our lifetimes.
“Our action needs to be unprecedented, it needs to be sweeping. And we need to be more than innovative – we need to be world-leading.”
Palaszczuk flagged a ‘super grid’ that will act as the “artery of the clean energy industrial revolution” and open up new renewable energy zones, supporting the decarbonisation of metals processing in Central Queensland complete with $11 billion of investment to 2035.
These investments in the ‘super grid’ will support 22 gigawatts of new wind and solar power, which would deliver more than 1,000 jobs starting within the next two years and demand 3 gigawatts of firming from gas or renewable hydrogen over the period to 2035.
World’s biggest pumped hydro for Queensland
As well as topping up the Queensland Renewable Energy and Hydrogen Jobs Fund with another $2 billion, Palaszczuk said new investments from the fund include the Tarong West wind farm announced on Monday, a new battery at Swanbank power station and a new hydrogen-ready gas peaking power station at Kogan Creek.
However, she revealed the state wouldn’t be able to reach net zero without storing renewable energy to make it reliable.
Our new Queensland SuperGrid ♻️ will connect solar, wind, pumped hydro, battery and renewable hydrogen across our great state to deliver more jobs through clean, cheap power. pic.twitter.com/pR409uWQld
— Lance McCallum MP (@LanceMcCallumMP) September 28, 2022
“Put simply, the sun sets and the wind dies down – that’s why pumped hydro energy storage is needed.
“It is a technology confirmed by the CSIRO’s analysis as a lower cost than gas and nuclear – the concept dates back to Rome to capture the energy from water flowing downwards.”
The first project will be the Borumba Pumped Hydro, west of Gympie with a target to complete the project by 2030.
It will deliver 2 gigawatts of 24-hour storage and the second pumped hydro site, 70km west of Mackay, will be known as Pioneer-Burdekin Pumped Hydro Project.
“I prefer to call it the battery of the north,” Palaszczuk said.
“It will be the largest pumped hydro energy storage in the world, with 5 gigawatts of 24-hour storage and the potential for stage 1 to be completed by 2032.”
Fast chargers for Australia’s longest EV highway
Tritium, a global developer and manufacturer of direct current (DC) fast charging tech for EVs, has said it will provide fast chargers for a new EV highway, spanning 7,000km across the state of Western Australia.
The project is part of a $43.5 million investment by the Western Australian government, focused on expanding access to EV infrastructure across the state.
To launch the investment, the Western Australian government, through its energy utilities Synergy and Horizon Power, awarded a contract to JET Charge, which will supply hardware for 98 fast chargers across 49 locations.
Tritium will supply its award-winning 75kW modular fast charger for this unprecedented charging infrastructure for some of Horizon Power’s regional sites and will manufacture all chargers for the project in its Brisbane factory.
The first charging stations supplied by Tritium are expected to be installed early next year, and the full network of 98 chargers is anticipated to be fully operational by early 2024.
Here’s how ASX renewable energy stocks are tracking:
| CODE | COMPANY | PRICE | % TODAY | % WEEK | % MONTH | % YEAR | MARKET CAP |
|---|---|---|---|---|---|---|---|
| DEL | Delorean Corporation | 0.07 | 21% | -13% | -39% | -65% | $9,919,608,019 |
| RNE | Renu Energy Ltd | 0.042 | 14% | 8% | -21% | -13% | $135,262,871 |
| LNR | Lanthanein Resources | 0.039 | 11% | -20% | -19% | 105% | $80,448,288 |
| IRD | Iron Road Ltd | 0.155 | 11% | 11% | 11% | -14% | $12,511,813 |
| EGR | Ecograf Limited | 0.33 | 8% | -8% | -14% | -54% | $27,460,027 |
| TNG | TNG Limited | 0.082 | 8% | -9% | -25% | -1% | $50,679,762,550 |
| ECT | Env Clean Tech Ltd. | 0.017 | 6% | -11% | -19% | 89% | $31,800,267 |
| NMT | Neometals Ltd | 1.15 | 6% | -4% | -21% | 35% | $304,738,971 |
| AVL | Aust Vanadium Ltd | 0.036 | 6% | -8% | -22% | 57% | $8,206,654 |
| BSX | Blackstone Ltd | 0.175 | 3% | -13% | -17% | -62% | $103,118,465 |
| PGY | Pilot Energy Ltd | 0.0175 | 3% | 3% | -8% | -69% | $5,605,597,919 |
| FHE | Frontier Energy Ltd | 0.36 | 3% | 3% | -9% | 177% | $111,980,583 |
| RFX | Redflow Limited | 0.04 | 3% | -2% | -7% | -32% | $12,783,307 |
| GNX | Genex Power Ltd | 0.225 | 2% | 7% | -6% | -4% | $5,636,437,477 |
| PH2 | Pure Hydrogen Corp | 0.25 | 2% | -2% | -25% | -4% | $6,113,139 |
| FMG | Fortescue Metals Grp | 16.78 | 2% | 1% | -16% | 13% | $304,558,587 |
| CWY | Cleanaway Waste Ltd | 2.69 | 2% | -2% | -4% | -1% | $10,394,443 |
| IFT | Infratil Limited | 7.81 | 1% | -5% | -4% | -1% | $84,895,676 |
| NEW | NEW Energy Solar | 0.955 | 1% | 4% | 4% | 22% | $95,700,945 |
| AST | AusNet Services Ltd | 0 | 0% | -100% | -100% | -100% | $4,849,218 |
| PV1 | Provaris Energy Ltd | 0.058 | 0% | -5% | -21% | -29% | $28,146,055 |
| HXG | Hexagon Energy | 0.016 | 0% | -6% | 0% | -80% | $69,530,108 |
| LIO | Lion Energy Limited | 0.03 | 0% | -6% | -21% | -27% | $5,036,718,784 |
| MPR | Mpower Group Limited | 0.022 | 0% | 0% | -4% | -62% | $1,077,881,464 |
| PRL | Province Resources | 0.081 | 0% | -5% | -33% | -48% | $958,352,044 |
| PRM | Prominence Energy | 0.002 | 0% | 0% | -20% | -85% | $30,303,916 |
| QEM | QEM Limited | 0.225 | 0% | 7% | -4% | 50% | $13,488,942 |
| SKI | Spark Infrastructure | 0 | 0% | -100% | -100% | -100% | $136,755,603 |
| KPO | Kalina Power Limited | 0.02 | 0% | 0% | 0% | -31% | $67,080,377 |
| NRZ | Neurizer Ltd | 0.13 | 0% | -7% | -4% | 18% | $105,519,785 |
| LIT | Lithium Australia | 0.055 | 0% | -6% | -34% | -54% | $34,125,795 |
| SRJ | SRJ Technologies | 0.43 | 0% | 0% | 0% | 46% | $599,295,961 |
| MR1 | Montem Resources | 0.04 | 0% | 0% | 0% | -5% | $12,620,500 |
| FGR | First Graphene Ltd | 0.11 | 0% | -4% | -15% | -37% | $63,361,476 |
| CPV | Clearvue Technologie | 0.225 | 0% | 5% | -4% | -26% | $137,351,705 |
| CNQ | Clean Teq Water | 0.49 | 0% | -8% | -9% | -24% | $24,569,166 |
| M8S | M8 Sustainable | 0.006 | 0% | -14% | -14% | -80% | $5,871,280,386 |
| CXL | Calix Limited | 5.85 | -1% | -17% | -15% | 11% | $47,709,077 |
| VUL | Vulcan Energy | 7.35 | -2% | -6% | -8% | -43% | $21,886,425 |
| HZR | Hazer Group Limited | 0.59 | -2% | -6% | -17% | -38% | $2,516,880 |
| EOL | Energy One Limited | 4.87 | -4% | -4% | -5% | -9% | $148,116,801 |
| MEZ | Meridian Energy | 4.24 | -5% | -7% | -6% | -15% | $33,698,895 |
| LPE | Locality Planning | 0.056 | -5% | 2% | -22% | -70% | $80,283,929 |
| EDE | Eden Inv Ltd | 0.009 | -5% | -18% | 13% | -59% | $10,098,955 |
Who’s got news out this week?
SUVO STRATEGIC MINERALS (ASX:SUV)
Suvo has signed a binding term sheet to acquire a 26% interest in Dingo, an Australian proprietary company aiming to produce high purity alumina (HPA) from recycled feedstock, through a private placement.
Dingo’s intellectual property (IP) intends to take advantage of ‘urban mining’, transforming waste aluminium feedstock into HPA, adopting a novel closed loop recycling process.
This recycling process allows for unrecoverable materials to be continually recycled without any waste going to landfill.
The placement will see Suvo acquire 220,000 fully paid ordinary shares in Dingo, at an issue price of $1.00 per share and in addition, Dingo is granting Suvo with a clear pathway to acquire up to 76% of the issued capital of the company.
Dingo’s IP is currently at the concept study level and the company intends to use funds from the placement to support the advancement of a scoping study, as well as for general working capital.
ECOGRAF (ASX:EGR)
Following multiple approaches from EV manufacturers in Europe and North America, EcoGraf says the company intends to scale up plans for its battery anode material (BAM) facility.
Member countries of the Mineral Security Partnership Australia, Canada, Finland, France, Germany, Japan, the Republic of Korea, Sweden, the United Kingdom, the United States and the European Commission are collaborating to mobilise investment from governments and the private sector.
EcoGraf says it is in discussion with Government trade representatives in Australia, North America and Europe to support development of its vertically integrated battery minerals business under this Mineral Security Partnership.
It is developing a new product qualification operation as prospective customers require lower qualification volumes, with more focus on increasing commercial production levels and time to market.
Other activities include developing a faster, more efficient single-phase ~25,000tpa EcoGraf battery anode material facility, matched to recent customer demand requirements.
This will position the business for additional production facilities in key international markets and EGR says it is working with the West Australian Government on this.
RENU ENERGY (ASX:RNE)
ReNu Energy has increased its investment in clean energy tracing company, Enosi, with a further $1 million and following the completion of subscriptions, will hold roughly 14% of Enosi’s capital.
In addition to the investment, Enosi and Google have agreed to pilot Enosi’s Powertracer technology to trace its Sydney campus energy consumption directly to clean energy sources.
Enosi and Google are working together as part of an EnergyTag demonstration with the RACE for 2030 Cooperative Research Centre, led by UNSW.
The initiative aims to assess accounting approaches and other tools for certifying 24/7 carbon-free energy to improve decision-making around clean energy contracting and demand-shifting.
Enosi’s Powertracer technology will be implemented to track clean energy from source to customer and provide real-world case studies to the UNSW Research Centre for analysis.
DELOREAN CORPORATION (ASX:DEL)
Delorean has achieved full commissioning and client handover of the Blue Lake Milling Bioenergy Project in South Australia, a world first bioenergy plant representing a ground-breaking new application for anaerobic digestion technology.
The plant is integrated with BLM’s grain milling operation in Bordertown and is the first of its kind in the world to process milling by-product (ground oat milled fines or ‘GOMF’) for production of renewable electricity, delivered ‘behind the meter’ to power BLM’s milling operation.
Surplus renewable electricity is exported to the grid. Delorean’s Engineering Division was contracted for the design, turnkey EPC, commissioning, and operation of the bioenergy facility.
The bioenergy plant has the capacity to process 12,000t pa of GOMF, delivering a base-load power supply of up to 1.2MW of renewable electricity and thermal energy per hour.
The plant will offset in full BLM’s existing and future energy requirements.
FRONTIER ENERGY (ASX:FHE)
Frontier Energy has shortlisted two highly experienced engineering, procurement, and construction (EPC) contractors for the development of the Stage One 114MW Bristol Springs solar plant construction.
The preferred party will be selected during quarter four but both have significant experience in the development of industrial scale solar farms in Australia and were highly price competitive in comparison to the Green Hydrogen Pre-Feasibility Study.
