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Emission Control: Victoria wants to give coal the boot by 2035
Energy
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- Woodside awards Norway’s Nel Hydrogen Electrolyser a contract supporting first phase of its H2OK Hydrogen Project
- Frontier Energy completes $10m placement accelerating the development of the Bristol Springs Green Hydrogen Project
- ClearVue receives first order for the installation of patented solar energy skylight windows into a luxury residence
Emission Control is Stockhead’s fortnightly take on all the big news surrounding developments in renewable energy.
If re-elected, Victoria’s Labor government aims to deliver “the most ambitious” renewable energy targets from any mainland state in Australia, just several weeks after Queensland released a new 80pc renewables target by 2035.
On Thursday, Premier Daniel Andrews said the state plans to invest an initial $1.5bn into renewable energy projects to reach 65pc renewables by 2030 and 95pc by 2035.
This will translate into the generation of 4.5 gigawatts of power – the equivalent replacement capacity of AGL Energy’s (ASX:AGL) Loy Yang A coal mine, which is set to come offline in 2035.
Under the new plan, an emissions reduction target of 75-80 per cent by 2035 will be set, the state’s net zero emissions target will be brought forward by five years to 2045, and the government will hold a controlling interest in each renewable energy project.
This is massive. This is leadership.
Victoria sets renewable energy target of 95% by 2035, 65% by 2030. https://t.co/6CDFkv2ynb
— SmartEnergyCouncil (@SmartEnergyCncl) October 19, 2022
“Renewables will replace coal and these new ‘power stations’ will be owned by every Victorian to benefit every Victorian,” Andrews explained.
The plan, he said, is to bring back public ownership of renewable energy sources by reviving the State Electricity Commission (SEC) as an active energy market participant to replace privatised coal through the build of solar, wind, and emerging energy projects.
An initial $20 million injection will be provided to the SEC for its new role in Morwell, Latrobe Valley which Andrews said has always been the centre of Victoria’s energy generation.
In a 10-year timeframe set out by the government, Andrews said the new SEC will deliver cheaper energy with all profits invested back into the network – making sure it’s the Victorian public, not offshore coal companies, who enjoy the returns.
“The State will have a controlling interest, with the balance of funding invested from like-minded entities – such as industry super funds – who are focused on a fair deal for Victorians, not just profits,” he explained.
“This won’t just deliver more renewable energy, lower power bills and reduced carbon emissions, it’ll also create jobs,” he explained.
“Together, these initiatives will increase Gross State Product by about $9.5 billion and support 59,000 jobs through to 2035.”
Australia’s clean future finally gathers momentum
The move has been applauded by industry groups such as the Climate Council, who welcomed by the plan saying Australians will win from a race to the top by strong climate action.
“There is a real sense of momentum now towards a clean future in Australia,” Climate Council head of advocacy Dr Jennifer Rayner said.
“The further and faster states go on reducing emissions, investing in clean energy technologies like renewables, storage and energy efficiency and phasing out fossil fuels, the more benefits they’ll unlock.
“It is absolutely critical to take decisive action to reduce emissions as soon as possible to put the brakes on warming, and we welcome this new race to the top from Australian states and territories to do it.”
Victoria’s announcement on Thursday comes hot on the heels of the Federal Government’s Rewiring the Nation Plan, which you can learn more about here.
Here’s how ASX renewable energy companies are tracking:
| CODE | COMPANY | PRICE | % TODAY | % WEEK | % MONTH | % YEAR | MARKET CAP |
|---|---|---|---|---|---|---|---|
| DEL | Delorean Corporation | 0.11 | 26% | 59% | 33% | -44% | $18,767,720 |
| M8S | M8 Sustainable | 0.008 | 14% | 0% | 14% | -70% | $3,436,359 |
| MEZ | Meridian Energy | 4.21 | 5% | -1% | -8% | -10% | $5,080,376,380 |
| CXL | Calix Limited | 5.28 | 3% | 2% | -28% | 0% | $827,447,296 |
| GNX | Genex Power Ltd | 0.205 | 3% | -2% | 0% | -11% | $277,035,428 |
| CPV | Clearvue Technologie | 0.205 | 3% | -2% | -5% | -29% | $42,612,270 |
| FHE | Frontier Energy Ltd | 0.46 | 2% | 0% | 35% | 254% | $103,222,195 |
| CNQ | Clean Teq Water | 0.48 | 2% | 1% | -9% | -27% | $20,993,102 |
| AST | AusNet Services Ltd | 0 | 0% | -100% | -100% | -100% | $9,919,608,019 |
| BSX | Blackstone Ltd | 0.18 | 0% | 0% | -8% | -69% | $85,180,541 |
| IRD | Iron Road Ltd | 0.13 | 0% | 0% | -7% | -33% | $103,981,970 |
| LIO | Lion Energy Limited | 0.033 | 0% | -8% | 6% | -45% | $14,061,637 |
| MPR | Mpower Group Limited | 0.02 | 0% | -5% | -5% | -69% | $5,874,066 |
| NEW | NEW Energy Solar | 0.985 | 0% | 0% | 6% | 22% | $315,779,166 |
| PRM | Prominence Energy | 0.002 | 0% | 33% | 0% | -89% | $4,849,218 |
| SKI | Spark Infrastructure | 0 | 0% | -100% | -100% | -100% | $5,036,718,784 |
| RNE | Renu Energy Ltd | 0.044 | 0% | 16% | 10% | -20% | $16,040,905 |
| NRZ | Neurizer Ltd | 0.12 | 0% | 0% | -20% | 9% | $126,235,941 |
| SRJ | SRJ Technologies | 0.43 | 0% | 0% | 0% | 2% | $34,125,795 |
| MR1 | Montem Resources | 0.04 | 0% | 0% | 0% | -47% | $12,620,500 |
| FGR | First Graphene Ltd | 0.11 | 0% | 5% | -8% | -53% | $63,369,365 |
| EGR | Ecograf Limited | 0.345 | 0% | 8% | -4% | -50% | $155,365,043 |
| EOL | Energy One Limited | 4.7 | 0% | -3% | -2% | -22% | $138,021,305 |
| LPE | Locality Planning | 0.06 | 0% | -2% | 3% | -67% | $10,540,124 |
| IFT | Infratil Limited | 7.26 | -1% | -6% | -10% | -7% | $5,315,528,169 |
| PRL | Province Resources | 0.087 | -1% | 13% | -4% | -46% | $103,971,397 |
| PV1 | Provaris Energy Ltd | 0.056 | -2% | -3% | -11% | -49% | $31,251,987 |
| AVL | Aust Vanadium Ltd | 0.036 | -3% | 3% | -16% | 57% | $147,583,185 |
| HZR | Hazer Group Limited | 0.54 | -3% | 3% | -16% | -62% | $94,596,277 |
| VUL | Vulcan Energy | 6.18 | -4% | -9% | -21% | -52% | $918,779,279 |
| LIT | Lithium Australia | 0.051 | -4% | -2% | -14% | -59% | $64,641,090 |
| PH2 | Pure Hydrogen Corp | 0.24 | -4% | -2% | -11% | -26% | $86,628,241 |
| FMG | Fortescue Metals Grp | 16.52 | -4% | -1% | -5% | 13% | $52,988,986,239 |
| NMT | Neometals Ltd | 1.065 | -4% | 0% | -16% | 13% | $613,104,624 |
| QEM | QEM Limited | 0.205 | -5% | -7% | -9% | 17% | $28,469,504 |
| CWY | Cleanaway Waste Ltd | 2.63 | -5% | -3% | -4% | -3% | $6,143,760,331 |
| PGY | Pilot Energy Ltd | 0.017 | -6% | 0% | 0% | -72% | $11,005,881 |
| RFX | Redflow Limited | 0.034 | -6% | -6% | -19% | -44% | $64,181,638 |
| ECT | Env Clean Tech Ltd. | 0.016 | -6% | -6% | -11% | 7% | $29,176,279 |
| KPO | Kalina Power Limited | 0.016 | -6% | -6% | -20% | -45% | $25,758,328 |
| HXG | Hexagon Energy | 0.015 | -6% | 0% | -12% | -83% | $8,206,654 |
| EDE | Eden Inv Ltd | 0.0065 | -7% | 8% | -35% | -66% | $18,978,603 |
| TNG | TNG Limited | 0.074 | -17% | -20% | -36% | -13% | $123,569,222 |
Who’s got news out?
WOODSIDE (ASX:WDS)
This week Woodside awarded Norway’s Nel Hydrogen Electrolyser a contract for the provision of alkaline electrolyser equipment to support the first phase of its H2OK Hydrogen Project in Ardmore, Oklahoma.
The equipment will be produced in Nel’s factory in Herøya – the world’s only fully automated electrolyser facility – and will be capable of producing 90t of hydrogen per day.
This is more than enough to support the plant’s planned nameplate capacity of 64,000kg of hydrogen per day to power hydrogen fuel cell powered commercial and heavy transport vehicles.
Front-end engineering and design for H2OK is targeted for completion this year with a final investment decision expected in 2023, though the order of the electrolysers and the company’s ambition to build a New Energy business in the US makes this a likely decision.
FRONTIER ENERGY(ASX:FHE)
FHE completed a $10m placement at $0.42 per share to accelerate the development of the Bristol Springs Green Hydrogen Project in WA’s southwest.
Funds will be used for early works at the project site, hydrogen refuelling station development, energy storage and system security (Hydrogen Peaking Plant) studies as well as for general working capital.
Upon completion of the placement, Frontier has cash of ∼$13 million, which means the company should be fully funded until a Final Investment Decision (FID) is made – which is expected during 2H 2023.
CLEARVUE TECHNOLOGIES(ASX:CPV)
ClearVue has received its first order and deposit for the installation of its patented solar energy skylight windows into a luxury residence in the suburb of Griffith in the ACT – the company’s first residential installation of the ClearVue product anywhere in the world.
The purchase order provides for installation of eight fixed ClearVue solar PV powered skylights at a value of $160,000.
This new project will be the CPV’s first foray into the residential housing market, which is expected to grow to around USD$5.5 billion by 2030, with a compound annualised growth rate (CAGR) of 15.3%1 from 2021 to 2030.
Construction has kicked off and is anticipated to be completed by the end of February 2023.
LIVETILES (ASX:LVT)
LiveTiles has entered into a binding agreement to acquire the remaining 80.03% of leading climate change consultancy business, My Net Zero, following its initial 19.97% strategic minority investment in December 2021.
My Net Zero is a climate advisory, tech platform and marketplace enabling employers to involve and activate their people in positive climate action.
LVT co-founder and CEO Karl Redenback says the acquisition allows the company to expand its product offering in line with the demands of customers and accelerate growth as well as attract larger highly profitable new customers.
DELOREAN CORPORATION (ASX:DEL)
Delorean has entered into a binding agreement to form a multi-project development funding partnership with funds managed by Palisade Impact.
Subject to completion of final due diligence required for each project’s Final Investment Decision, Palisade Impact will fund 100% of the project costs to deliver Delorean’s SA1 and VIC1 bioenergy projects, with a right of first offer to fund a further three DEL bioenergy projects.
Palisade Impact will invest $5m in Delorean by way of convertible notes in two tranches of $2.4m (immediate) and $2.6m (on conditions precedent) while Delorean will go about designing, constructing, and commissioning the projects on commercial margins.
CALIX (ASX:CXL)
A global licence agreement has been signed with Germany’s Heidelberg Materials (FWB: HEI) – one of the world’s largest building materials companies, for the use of the Leilac decarbonisation technology.
Leilac, a Calix subsidiary, is a collaborative technology partner enabling sustainable decarbonisation of cement and lime and its patented technology is being developed to deliver a highly efficient, low cost carbon capture solution, equipping producers to take action against climate change.
The licence agreement applies to any Heidelberg Materials facility where the Leilac technology is installed – at this stage, Heidelberg Materials operates 149 cement plants across five continents.
Calix also announced a fully underwritten institutional placement to raise $60 million comprising the issue of 13.2 million shares at an issue price of $4.55 per share as well as a non-underwritten share purchase plan to raise up to an additional $20 million.
