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The Energy

AI is the new aluminium

Published about 8 hours ago • 8 min read

Hey Reader, in today's edition:

  • AI’s smelter-sized energy challenge
  • Albo tours China with industry chums
  • Machine learning on the grid edge

‘AI factory’ up for the challenge

While grid planners try to second guess the load from future data centres that will power generative AI, project developers are working on improving efficiency and finding new ways to support the electricity grid.

Homegrown tech infrastructure company Firmus Technologies’ first AI factory is under construction in Tasmania and is expected to deliver 90MW of compute capacity by 2026 and a further 300MW subject to approvals.

The ability of equipment to tolerate grid disturbances, or ride through, remains the elephant in the room for many data centre operators, founder Jonathan Levee told The Energy.

“We’ve got to have ways to hold on to the grid for longer. We’ve got to ride through faults, we’ve got to manage larger voltage deviations, we’ve got to be smarter about the way we do this. When I was younger the largest loads were aluminium smelters and if you’ve ever been into an aluminium smelter you can see why. Now there are data centres being built … multiple gigawatt data centre precincts, and the new aluminium smelters are data centres. It’s actually quite incredible.”
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Jonathan Levee
Firmus Technology founder

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Step forward for greener steel

Australia and China should cooperate more closely on low-carbon steel-making, Prime Minister Anthony Albanese said in Shanghai, as China hosted Albanese and industry representatives at a steel decarbonisation roundtable.

“We want Australian iron to be part of the solution when it comes to lowering emissions, and we understand that China wants that too, and that was reiterated today," Albanese said. “These discussions were an important step forward between our two nations.”

Steel-making is responsible for almost a tenth of global greenhouse gas emissions, and Australia’s iron ore exports are forecast at $105 billion for 2025-26 — even accounting for lower demand from China's steelworks — and metallurgical coal exports $40 billion. (Reuters) (AAP) (The West)

BHP (ASX: BHP) signed MOUs with China’s battery giants CATL and BYD on developing clean mining equipment and locomotives, including rapid-charging infrastructure, as well as energy storage systems and battery recycling for mining operations.

Meanwhile South Australia’s ambition to become a world-leading green iron and steel producer could be jeopardised by shackling itself to “deeply flawed” carbon capture utilisation and storage (CCUS) technology at the behest of the gas industry, according to the Institute for Energy Economics and Financial Analysis (IEEFA). SA's 2025 infrastructure strategy recommended carbon capture for Whyalla as part of a larger network in the state.

“You can’t make green steel with gas. Adding expensive CCUS in a vain attempt to make iron and steel ‘look green’ will only make it less competitive … South Australia would fall behind other countries such as Canada and Brazil, which have truly green iron and steel opportunities based on clean power grids."
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​Simon Nicholas
​IEEFA steel analyst

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Industrial tipping point is here

Many of Australia’s large energy users are prepared to shift to renewables but face delays of years to access clean, reliable electricity. The risk is that Australia loses first-mover advantage, or even fast-follower status, while others with more coordinated national strategies overtake us.

Even our most strategically important industries are under pressure, Schneider Electric sustainability expert Lisa Zembrodt writes. Without a clear, coordinated plan for industrial decarbonisation, Australia risks responding to one crisis at a time instead of building a system that secures long-term competitiveness.

Catch Up

Capital

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Transmission delays and slow planning processes are the biggest issues holding back capital, closely followed by grid connections and lengthy environmental assessments, according to the latest Clean Energy Investment Group (CEIG) survey. Onshore wind remained the top-ranked technology for investment, followed by batteries, while offshore wind moved up from sixth to fifth as government support strengthened.

“Australia remains highly reliant on foreign investment for renewables, with over 70% coming from overseas. If the nation continues to be just ‘somewhat attractive’ for investors we can expect that global capital to flow elsewhere, to other jurisdictions that are rolling out renewables and transmission with speed and scale.”
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​Richie Merzian
​CEIG Chief Executive

Projects

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A “critical” national battery hub is in doubt after the Queensland government cut $100 million in funding for the proposed Australian Battery Industrialisation Centre, which was intended to scale up sovereign battery manufacturing. (Renew Economy)

“Our abundance of critical minerals, world class material scientists and the electrification of everything means Australia has the potential to be a major global player in battery technology, but we need this technology infrastructure to grow the industry at this critical time.”
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Quentin Hill
Advanced Material and Battery Council CEO

A total of 5,200MWh of battery energy storage systems (BESS) has been submitted under the Environment Protection and Biodiversity Conservation (EPBC) Act. This includes two proposals from X-Elio Australia and BID Energy Partners, featuring a 300MW/1,200MWh BESS and a 1,000MW/4,000MWh BESS, both located in NSW. (Energy Storage)

The first consignment of Tesla Megapack 2XL units arrived at the Stanwell Battery project site near Rockhampton.

Regulation

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WA’s state-owned utility Synergy will repay $2.29 million after copping a compliance enforcement notice issued for overcharging almost 2,850 Centrelink customers. (ABC)

“This is a particularly concerning breach, given Synergy’s position as the largest retailer in the state and the vulnerability of this cohort of customers that are receiving Centrelink support. We would expect Synergy to have systems in place that would have identified these payments accruing in closed accounts, with around 1,000 customers owed more than $500.”
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​Steve Edwell
​Economic Regulation Authority Chair

Technology

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US President Donald Trump is expected to unveil a US$70 billion boost to AI and energy infrastructure on Wednesday (local time). The funding will support new data centres, power generation expansion and grid infrastructure upgrades, along with AI training programs and apprenticeships, according to an anonymous administration official. (Bloomberg)

US-headquartered Sense and its machine-learning software joined EnergyLab’s 2025 Energy Scaleup Program. The software detects patterns and anomalies in the raw energy stream that identify energy activity — and faults — on the grid and behind the meter. When high resolution data is in place, the energy footprint of various consumer energy resources can be measured in real time. Now in its sixth year, the program connects late-stage climate-tech startups with network operators, with a current focus on decarbonisation and bushfire risk. The 2025 cohort includes ten companies from five countries to work with Endeavour Energy, Powerlink, and TEPCO PG.

“The participation of innovative, thought-leading energy utilities makes this program ‘pilot-ready’ rather than just theoretical.”
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​Dave Johnson
​Sense Head of Australia

Climate

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Extreme weather is the new normal for the UK, according to an assessment published in the International Journal of Climatology. The indices for energy demand show heating degree days have steadily reduced from the 1980s onwards, and growing degree days have steadily increased. Cooling degree days are more variable, but these too have increased from a low in the 1960s. (BBC) (Sky) (Guardian)

“Every year that goes by is another upward step on the warming trajectory our climate is on.”
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Mike Kendon
​Met Office climate scientist and lead author

Expressions of interest are open for event proposals for the Australian Pavilion at COP30, which will be held in Belém, Brazil, November 10-21.

People

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Former CEO of the Workplace Gender Equality Agency Helen Conway was appointed President of Chief Executive Women (CEW).

“Her leadership comes at a pivotal moment as Australia builds on recent progress and the government focuses on productivity. Helen and CEW are perfectly positioned to help shape this agenda with a bold, inclusive approach that leaves no woman behind.”
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​Lisa Annese
​CEW Chief Executive

Research

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Researchers at the University of New South Wales Sydney have developed a better way to make ammonia through electrolysis. The researchers used AI to find a new catalyst that speeds up the chemical reaction to achieve “a sevenfold improvement in the ammonia production rate,” says Ali Jalili, head of the research team. “And at the same time, it is close to 100 percent efficient.” (IEEE Spectrum)

Random

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Treasurer Jim Chalmers says he is "pretty relaxed" after his department accidentally released details of advice to pursue tax reform and a warning on the housing target. (ABC)

What's On

July 16
​National Press Club

Chair of the Australian Climate and Biodiversity Foundation and former Treasury Secretary Ken Henry will speak on “Our last, best chance – national environment laws to restore nature and power the net zero economy” at this event in Canberra.

July 17​
Battery Recycling and Manufacturing Summit

NSW Energy Minister Penny Sharpe, Battery Stewardship Council CEO Libby Chaplin, CSIRO Senior Principal Research Scientist Manufacturing Dr Adam Best, and Ecocycle CEO Doug Rowe are among the speakers at this Sydney event.

July 17-18​
Carbon Capture APAC Summit

Chevron General Manager of Energy Transition David Fallon, Beach Energy CEO Brett Woods, CarbonNet Project Director Jane Burton, Geoscience Director of Offshore Energy Systems Merrie-Ellen Gunning are among speakers at this event in Melbourne.

July 17-18​
Australia Wind Energy 2025

VicGrid CEO Alistair Parker, Siemens Gamesa Global CEO Vinod Philip, New.E co-lead Clare Larkin-Sykes, RWE Renewables CEO Australia Daniel Belton, Engie AU Chief Renewables Officer Laura Caspari, ACCIONA Energía Australia MD Brett Wickham and CEFC Director, Investments, Nick Hawke are among the line-up at this Melbourne event.​

July 17-18​
Connecting Hydrogen

Federal Assistant Minister for Energy Josh Wilson, WA Energy Minister Amber-Jade Sanderson, Chevron Australia GM Energy Transition David Fallon, ARENA Investment Director Alexandra McIntosh, Ampol CFO Greg Barnes, and Woodside Energy GM Carbon Capture and Storage Andrew Nicholls will speak at this event in Melbourne.

July 21​
Safeguard Symposium

The Carbon Market Institute will host a discussion of market dynamics under the Safeguard Mechanism, finance and investment in ACCU supply, carbon price reform, and climate policy at this event in Sydney, which was rescheduled due to severe weather.

July 22​
Smart Energy South Australia

Federal Energy Minister Chris Bowen will headline at the Smart Energy Council conference and expo in Adelaide.

July 29-30​
Australian Clean Energy Summit (ACES) 2025

AEMO CEO Daniel Westerman, AEMC Chair Anna Collyer, Climate Change Authority Chair Matt Kean, AGL CEO Damien Nicks, Iberdrola Australia CEO Ross Rolfe and Squadron Energy CEO Rob Wheals are among the lineup at the Clean Energy Council’s flagship event in Sydney.

July 30​
Australian Sustainable Finance Summit

Treasury Deputy Secretary Angelia Grant, Original Power Executive Director Karrina Nolan, and Australian Office of Financial Management CEO Anna Hughes are among the line-up at this Sydney event.

August 7-8
​2025 ACCC/AER Regulatory Conference

Former chair of UK energy regulator Ofgem Professor Martin Cave, AEMC Commissioner Sally McMahon, Treasury Assistant Secretary - Competition Taskforce Anna Barker, Essential Services Commission Chair Gerard Brody, and Marinus Link Chair Sandra Gamble are among the speakers at this event in Brisbane.

August 14-15​
First Nations Clean Energy Symposium
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Government, industry, academics and regulators will join over 200 First Nations leaders from around Australia at this event on Kabi Kabi country (Sunshine Coast).

August 18
​National Press Club

Productivity Commission Chair Danielle Wood will speak on the “Growth imperative: How to fix our productivity problem” at this event in Canberra.

August 26-27​
Australian Renewable Heat Conference

Climate Change Authority Chair Matt Kean, ARENA investment manager Peter Haenke, and AGL sustainability expert Brendan Weinert will speak at this event in Sydney.

Level 1, 60 Martin Place, Sydney, NSW 2000
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