New South Wales and the $25bn renewable energy opportunity
The territory of New South Wales (NSW) is enormously reliant on coal. Most of its electricity is supplied by five coal-fired power stations located inside a 170km radius of Sydney, chief consumer of this energy.
Just 6% of NSW’s power needs are generated by renewables, lagging far behind the likes of Tasmania (90%) and Australia Capital Territory (100% by 2020).
However, the opportunity for renewable energy development in the province is massive. According to a report by the Nature Conservation Council, titled Repowering our Regions, NSW is sitting on $14bn in potential wind and solar projects, adding to the $11bn of developments (from 52 projects) already in the pipeline.
In terms of raw resource, the report makes clear the size of the region’s potential: “NSW has the makings of a clean-energy superpower. The state has world-class solar and wind resources in abundance. In just two days, NSW receives enough wind and sunshine to power all our homes, businesses and industry for a year.”
Indeed, such resources could generate 267 times more energy than the state needs, the study claims. It also says that moving towards a 100% renewable future will create 22,000 full-time jobs, 14,000 of which in the rooftop solar market.
The Nature Conservation Council details each region in NSW and the scope for wind and solar project adoption, before calling on the regional government to implement policies conducive to making this happen.
Such policies include commitments to clean energy targets, running auctions to ensure competition and price drops for consumers, and supporting coal communities in the transition to renewable energy provision.
For more information download to the full Repowering our Regions report.
Trafigura and Yara International explore clean ammonia usage
Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050.
How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.
Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:
- The supply of clean ammonia by Yara to Trafigura Group companies
- Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
- Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.
There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.
Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.
Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.
Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.
It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.