Capital
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Shares in AGL Energy tumbled after underlying net profit for FY25 fell 21% to $640 million, missing market expectations for $670 million, as profits from batteries were offset by higher prices for coal and gas burned by its generators. Revenue rose 6% to $14.4 billion. Australia’s largest greenhouse gas emitter pledged to have 6GW of renewable and storage assets in place by 2030, compared with its previous goal of 5GW, but some investors were disappointed the target wasn’t more ambitious. (AAP) (AFR) (The Australian)
Climate tech investment fund Virescent Ventures became the largest equity investor in a National Renewable Network (NRN) $67.2 million debt and equity raising for developing Virtual Power Plant (VPP) infrastructure. The investment in NRN follows Virescent’s investment in New Zealand-based ultra-fast EV charging infrastructure company Kwetta and is the second investment announced under a pot of money known as Fund II that is backed by cornerstone investors Westpac, the Clean Energy Finance Corporation (CEFC) and Queensland Investment Corporation (QIC).
A growing number of commodity merchants traditionally focused on oil, gas and metals are investing in utility-scale batteries in Europe to take advantage of the duck curve. (Bloomberg)
 Projects
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Tech billionaire Mike Cannon-Brookes is selling up to half of his $40 billion SunCable renewable scheme and potentially scaling back the plan to export solar energy to Singapore via the proposed Australia-Asia Power Link, a 4200km subsea cable, in a bid to keep the project on track. Selling a substantial stake would green light a final investment decision (FID) in 2027. SunCable is also in talks with federal funding bodies including the $15 billion National Reconstruction Fund Corporation. (The Australian)
“The capital raise is going well, and we have had strong interest from multiple investors. We are well progressed with several parties, including investors who will bring capital and the capabilities to accelerate the development of the project. Our market engagement demonstrates confidence in this resource, and its ability to provide large scale, low-cost firmed renewable electricity to energy-intensive industry, such as AI data centres and green fuels and minerals processing, as well as launching a cross-border electricity trade with Southeast Asia.”
Grok spokesperson
India cancelled tenders for 4.5GW of offshore wind projects due to lack of interest from developers. (Energy Monitor)
Silva Capital’s Cooplacurripa Station on Biripi/Birpai Country, west of Taree in NSW, was announced as Australia’s first registered Nature Repair Market (NRM) project. Niche, a specialist biodiversity and heritage consultancy, said the project should send a clear message to policymakers that nature can and should be valued in Australia’s economy - using a consistent methodology nationally. But the reform of Australia’s environmental laws must be resolved urgently, Niche Managing Director Ian Rollins said.
Policy
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Energy ministers will meet tomorrow in their second Ministerial Council for the year. Government and industry sources told the AFR an expected decision on Victoria’s proposal for underwriting gas import terminals had been indefinitely delayed. The meeting comes as the federal government continues to consult as part of a broader gas market review kicked off in June,
Demand signals, policy certainty and project standards are needed to support the carbon market, the Australasian Emissions Reduction summit was told, amid pressure to urgently accelerate Safeguard Mechanism reforms and progress Australian Carbon Credit Unit (ACCU) Scheme methodologies to attract finance for projects with integrity.
Climate Change Authority Chair Matt Kean said in his keynote that Australia could seize a $50 billion carbon market opportunity by sending clear signals and expanding the supply and use of ACCUs. But farmers and First Nations communities should get a fair cut of carbon farming proceeds. To speed up the flagging rollout of renewables, he suggested “a big tax deduction” for farmers hosting transmission lines and solar or wind farms.
“The next phase of the ACCU market will be defined by confidence. Confidence from buyers to commit long term, from investors to fund new projects, and from communities to trust the outcomes. Getting the policy settings and delivery standards right now is critical. It will set the pace for Australia’s net zero journey.”
Marc Train
Corporate Carbon Group General Manager
BHP Australia President Geraldine Slattery said the mining giant aimed to decarbonise its electricity supply by 2030 and wanted to electrify its vast Pilbara iron ore diesel truck and rail operations. But the requirement for bulk electric haulage was on a scale that’s not available in today's market, she said. Iron ore miners were in talks with mining equipment and battery suppliers XCMG, BYD and CATL “to understand and test particularly what China has to offer” as well as working with Chinese steelmakers on decarbonising their plants.
Energy Minister Chris Bowen will tell the summit on Thursday that there is a lot more to do, including countering those who dispute that a well regulated, rigorously assessed, highly professional carbon trading system should play any role in our drive towards net zero. The development of new methods remains a priority and he will release exposure drafts of the new sequestration and emissions avoidance savanna fire management method. A new method for landfill gas will be made by the end of this year, addressing concerns about baselines that were raised in the Chubb Review, and his department is working closely with stakeholders on the new Integrated Farm and Land Management method.
Why China is still building new coal - and when it might stop. (Carbon Brief)
Regulation
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Rewiring Australia warned against curtailing energy independence with new road user taxes for EVs. The federal government is reportedly fast-tracking plans for a road-user charge and the popular Fringe Benefit Tax (FBT) exemption that allows thousands of Australians to access an EV through their employer is also on the chopping block.
“Talking about road user taxes right now is premature. Now is not the time to pump the brakes on EVs. They’ll slash our national petrol bill and transform our energy system, storing over five times the energy of Snowy Hydro. The faster we add them to our roads, the more energy we can use from cheap, clean renewables, helping us reduce our reliance on oil imports, and retire Australia’s costly, ageing coal fleet sooner.”
Francis Vierboom
Rewiring Australia CEO
Technology
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Californian gas and electricity utility PG&E will have 10 “flex connect” sites online by the end of the year in a pilot program for grid connections that can be flexible during peak periods. Most of the planned projects are EV chargers for public and commercial fleets, as well as on-grid batteries participating in the wholesale market. (Latitude Media)
Expecting oil and gas to play a key role in the world's energy mix for decades to come, consultancy Wood McKenzie released new AI-driven tools for focusing investment on resources with the most robust economics and lowest carbon footprints. This could support a fundamental shift in how upstream companies look at asset portfolios, Senior Vice President and Head of Upstream Research at Wood Mackenzie Craig McMahon said.
Climate
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AGL also released a Climate Transition Action Plan (CTAP), which will be put to a shareholder vote at the company’s AGM on October 3, including:
- A new Scope 3 target for a 60% reduction by the end of FY35 based on the FY19 baseline, and ceasing operation of Loy Yang Mine by the end of FY35
- Coal plant closures: Bayswater by 2033 (during FY34) and Loy Yang A by the end of FY35
- Interim renewables and firming target for FY30 has been increased from 5GW to 6GW (with at least 3GW of grid-scale batteries).
“As Australia’s largest electricity generator, AGL should be driving forwards the buildout of bulk renewable power. We have not seen a real increase in ambition in this climate plan - the 2035 target of a modest 12GW remains unchanged, with just an incremental increase of 1GW in the interim target by 2030, which is really just a commitment to build some of it sooner.”
Brynn O’Brien
ACCR Executive Director
Research
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A report from Energy Networks Australia (ENA) and consultancy Blunomy suggests biomethane could meet up to 96% of current East Coast gas demand by tapping into existing waste. The first 50PJ of biomethane could be delivered at $10–27/GJ, with government support and improved recovery technology needed for costs to fall further. Expanding the Hydrogen Headstart Program and the Hydrogen Tax Credit Incentive Scheme to include biomethane would immediately create a supportive investment environment.
“Biomethane should be included in policies and schemes that support the decarbonisation of Australian Industry. It is already successfully being used in parts of the country including NSW where the Malabar waste facility generates enough renewable gas for more than 6000 homes.”
Dominique van den Berg
ENA Chief Executive
Researchers from Monash University have developed scalable technology that turns fly ash waste from coal-fired power stations into a rich source of all 17 rare earth elements essential for tech like wind turbines and electric vehicles. Their new process enables more than 90% of the critical minerals contained in fly ash waste to be recovered.