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Hey Reader, in today's edition:
- Efficiency can help get us to 75%: EEC
- $1.1bn down payment on green fuels
- Offshore wind auction stalls
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Heavy lifting with efficiency and electrification
Having set the scene with Monday's climate change adaptation plan, the federal government’s next move is mitigation via detailed sectoral emissions reduction plans to underpin a 2035 target that Climate Change and Energy Minister Chris Bowen has said will please no-one.
Energy efficiency and electrification could contribute one-fifth of the emissions cuts needed for Australia to reduce emissions by 75% by 2035, according to a policy brief released by Energy Efficiency Council (EEC) and scenario modelling by Climateworks.
Electricity is projected to make up almost two-thirds of the total energy fuel mix, increasing from 24% in 2025 as electrification sweeps across the economy.
Efficiency and electrification in the resources sector alone presents the largest abatement opportunity across the economy, with average yearly savings of 19.7MtCO2-e between 2025 and 2035 — exceeding the impact of shutting down Loy Yang A power station, the largest point source of emissions in the electricity sector, the analysis found.
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Expert view
"Australia has signed up to the global target of doubling the global rate of energy efficiency improvement. There is no way of hitting net zero without efficiency, and Australia needs to play its part. This analysis shows we could double Australia's average annual energy intensity improvement rate to 6% between 2025 and 2030, making sure we hold up our end of the bargain.
We found electrification could cut emissions by an average of 44 MtCO₂-e per year between 2026 and 2035. That is way ahead of other demand side options we modelled, such as switching to low carbon liquid fuels like biofuels and hydrogen. The time for those solutions will come, but we need electrification and efficiency to do the heavy lifting in the next decade.
If the Government is serious about getting the whole economy ready for net zero, efficiency and electrification will be central to the sectoral decarbonisation plans we're expecting this week. If they do that, hitting an emissions reduction target for 2035 of at least 75% becomes eminently achievable, and it will unlock a cavalcade of other benefits in terms of energy affordability, productivity and making our homes and businesses more resilient."
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Luke Menzel
CEO, Energy Efficiency Council
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$1.1b down payment on green fuels
Meaningful emissions reduction the notoriously hard-to-abate liquid fuel sector is needed for an achievable 2035 target, prompting a $1.1 billion stimulus for alternative fuels. Energy Minister Chris Bowen announced production-linked incentives for low-carbon liquid fuel (LCLF) production, including renewable diesel, sustainable aviation fuel (SAF) and e-fuels.
“For industry, this is more than a funding announcement — it is a turning point. It gives companies the confidence to invest, innovate and build here in Australia, using our enormous feedstock potential to build a clean energy future. With demand for low-carbon liquid fuels rising both at home and abroad, this investment positions Australia to play a leading role in meeting that need.”
Shahana McKenzie
CEO, Bioenergy Australia
The funding will support a new partnership between IFM Investors, Ampol and Graincorp to establish large-scale domestic green fuel production.
David Stribley, co-founder of Australian LCLF company HAMR Energy, welcomed incentives for proponents to rapidly scale up, but said the missing piece of the puzzle was on the demand-side. “Globally this is already underway, with the International Maritime Organisation set to introduce a carbon price and international markets adopting SAF mandates,” he said.
Airbus’ Australasian and Pacific boss Stephen Forshaw said SAF before 2029 was “achievable” and at a blend of up to 50% with aviation kerosene was approved for use in all Airbus aircraft that operate today, with expectations of regulatory approval for a full 100% replacement by 2030.
“The industry has been waiting for the right policy signals from the Government, and this very significant supply-side support package amounts to take-off clearance for producers and those who are weighing the opportunity to produce here,” he said, but called for a usage mandate for Australian-produced SAF to guarantee demand.
The Australian Workers’ Union Acting National Secretary Chris Donovan said it was a bold move that would secure fuel sovereignty, create thousands of long-term jobs, and future-proof key industrial sites like Ampol’s Lytton refinery. He urged the federal government to commit to purchasing green fuel for its own fleets and legislate a minimum local supply mandate.
Australia has enough feedstock to replace 90% of local jet fuel with SAF by 2050, according to CSIRO, but only if plant-based sources continue to grow and green hydrogen also gets off the runway.
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Offshore wind auction stalls
Star of the South wind farm developer Southerly Ten said the Victorian Government’s deferral of an auction expected this month doesn’t change the fact that offshore wind is essential to Australia’s energy future.
Victoria, which this week announced a 500MW Battery Energy Storage System in the Kiewa Valley, is home to the nation’s best offshore wind resource and the most advanced projects, potentially replacing retiring coal plants. The delay means coal might not retire in 2032 as planned, which has thrown the wind sector’s proponents.
With 90% of coal-fired capacity forecast to retire by 2035, offshore wind is needed for energy security, price stability and a pathway to net zero, Southerly Ten said.
The decision to delay the procurement process put the generation targets in jeopardy and also disappointed Victorian Energy Minister Lily D’Ambrosio, who had hoped for a bilateral funding agreement with the federal government to get the nation’s first projects across the line.
“We are very conscious of changes in the international market and supply chains that need to be factored into our planning … We're making sure the auction is competitive and attractive and will release a new timeline for this process later this year.
We lost about 12 months from our original timelines because of delays that are outside our control as a state, including in issuing feasibility licenses and finalising regulations, and as a result of the original rejection of the Port of Hastings EPBC referral.”
Victoria’s Energy Minister Lily D’Ambrosio
“For the 11 feasibility licence holders in the Gippsland area, awarding offtake contracts for the first 2GW is critical to providing revenue certainty,” said Morgan Rossiter, General Manager - Offshore Wind at the Clean Energy Council.
“The Victorian Government's announcement to delay Australia’s first offshore wind auction is deeply frustrating both for our organisation and for our communities. However, we understand that robust planning is necessary to reduce uncertainty and risk, and ultimately, we believe this decision will lead to a stronger, fairer and improved delivery of Gippsland’s new energy future. We remain optimistic about the commitment to offshore wind development, the cornerstone of Victoria’s energy plan.”
Darren McCubbin
CEO of the Gippsland Climate Change Network
Energy Minister Chris Bowen said fees were becoming a barrier to bringing on offshore wind in Australia, announcing plans for temporary financial relief over the next two years available across the federal government’s six declared offshore wind zones:
- Waive annual levies applied to feasibility and research and demonstration licences
- Halve annual levies applied to transmission and infrastructure licences
- Reduce application fees for research and demonstration licences from $300,000 to $20,000
- Reduce application fees for transmission and infrastructure licences from $300,000 to $150,000.
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Catch Up
Capital
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BHP (ASX: BHP) will axe 750 jobs in its Queensland coal division, blaming weak coal prices and high state government royalties. The BHP-Mitsubishi Saraji South metallurgical coal mine, one of the world’s largest coal reserves, will be mothballed in November. “Structural decline in one of Australia's largest fossil fuel export commodities, coupled with rising unit costs are the reasons for investment decisions, not Queensland’s nation-leading royalty scheme,” Climate Energy Finance analyst Matt Pollard said.
The WA government picked Turbine Solutions, Australian Winders and RCR Advanced Technologies as recipients under an $8 million Wind Energy Manufacturing Co-Investment Program that subsidises local manufacturers to join wind energy supply chains.
Abu Dhabi National Oil Co has abandoned plans to take over Santos just 48 hours before the deal was due to be inked. The XRG consortium, comprising the Abu Dhabi state-owned oil and gas operator ADNOC and US private equity partner Carlyle, said it found factors during its months-long due-diligence investigation that made the $34 billion price tag too high.
 Projects
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Campbelltown City Council has gone 100% renewable, achieving its goal in just eight years in partnership with ZEN Energy for supply. It joins 20 other councils — the majority of the Southern Sydney Regional Organisation of Councils (SSROC) — powering their communities with 100% renewable electricity.
Policy
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Australia’s biggest battery tender yet, Capacity Investment Scheme (CIS) Tender 3, targeted 4GW of dispatchable capacity in the National Electricity Market (NEM), but saw 124 proposals worth around 34GW bid in. The 16 successful projects will deliver 4.13GW by the end of 2029.
New Zealand announced legislative changes to provide greater certainty for offshore wind development, confirming amendments to the Offshore Renewable Energy Bill, including provisions to designate marine areas for offshore renewable projects while pausing new seabed mining permits under the Crown Minerals Act. “This is a pragmatic and important step,” NZ Wind Energy Association CEO Kevin Hart said. But no decision has been taken on the first designated area, which Energy Minister Simon Watts said was likely to be somewhere in South Taranaki.
Back in Australia, Liberal frontbencher Andrew Hastie doubled down on his threat to quit the shadow cabinet if the party re-committed to net zero by 2050. “Energy policy is something I care very deeply about. It’s a hypothetical question, but fundamentally, I wouldn’t be much use to the Coalition if I’m out the front trying to sell a policy I don’t believe in,” he told Sky News.
Technology
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Australian urban utility services group UCS partnered with Schneider Electric on an intelligent microgrid for generating, managing and consuming energy — including coordinated management of EV charging to support fleet electrification. UCS said it had cut its own electricity costs by more than 60%, has the capability to run on 100% solar, and also improved energy stability while reducing emissions. They plan to roll out multiple projects across Australia.
People
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The Australian Energy Market Operator (AEMO) nominated Sami Aoude from Intelligent Energy Systems as the Independent Expert on directions to generators in South Australia.
Research
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Parts of Queensland and NSW have Australia’s highest attributable mortality rates from heatwaves, which caused more than 1,000 deaths nationwide from 2016 to 2019, according to a Monash University study published in Environment International that mapped mortality across 2288 local communities.
Random
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The UN is trying to limit staff going to COP30 in Brazil’s coastal Amazon city of Belem because of the high price of hotels amid a room shortage. (The Guardian)
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What's On
September 16-18
Industrial Net Zero Conference 2025
Climate Change Authority Chair Matt Kean, Viva Energy Future Fuels Manager Vanessa Lenihan, Jemena General Manager Environment & Sustainability Sonia Fourie, Vulcan Energy Head of Sustainability Samantha Langley and ARENA’s Technical Lead on Decarbonisation Peter Haenke are among the speakers at this event in Sydney.
September 18
Shaping the future of energy in the North, Broome
Horizon Power Future Technology & Innovation Manager David Edwards will speak alongside WA Chamber of Minerals and Energy Manager for Climate and Energy Steven Mills and Renew Map Co-founder Alex Thompson at this Broome Chamber of Commerce & Industry event.
September 21-28
Climate Week NYC
Climate Change and Energy Minister Chris Bowen, Fortescue founder Andrew Forrest, Vanuatu’s Climate Change Minister Ralph Regenvanu, Indonesia’s Special Presidential Envoy for Climate, Energy & Environment Hashim Djojohadikusumo, UN Framework Convention on Climate Change Executive Secretary Simon Stiell, and Institute for Energy Economics and Financial Analysis Lead Analyst on Global Steel Simon Nicholas are among the speakers at this event in New York.
September 23
AEMO's Annual Results
Australian Energy Market Operator CEO Daniel Westerman and Executive General Manager for Finance and Governance Vanessa Hannan will outline progress against strategic priorities and initiatives, financial results for FY25 and priorities for FY26.
September 24
Updated net zero pathways for Australia
The Net Zero Australia Project team from the University of Melbourne, the University of Queensland and Princeton University will present their latest report on the roles of renewables, energy storage and firming including nuclear, carbon capture and storage and other complementary technologies at this hybrid event.
October 1
ANU Energy Update: Getting to net zero
Grattan Institute Energy and Climate Change Program Director Alison Reeve will chair this hybrid event featuring Climate Change Authority Deputy CEO Eliza Murray, ANU Crawford School of Public Policy Associate Professor Rebecca Colvin and ANU Deputy Director, School of Engineering, Associate Professor Marnie Shaw.
October 2
The COP drop: The latest on Australia's role and opportunity
Climate and diplomacy expert Dean Bialek will join Clean Energy Investor Group CEO Richie Merzian, Pacific Community-SPC Director of Climate Change and Sustainability Coral Pasisi and Climateworks Centre System Lead for Sustainable Communities Kylie Turner at this webinar from The Energy, moderated by The Energy Advisory Board Member Dan Cass.
October 7-8
NEM Development Conference 2025
EnergyAustralia Managing Director Mark Collette and Powerlink CEO Paul Simshauser will headline this Brisbane event hosted by Griffith University and UQ, which will also feature Queensland Farmers Federation CEO Jo Sheppard, NEM Review panel Chair Tim Nelson, Victoria Energy Policy Centre Director Bruce Mountain, University of Sydney Professor of Law Penny Crossley, Iberdrola GM Regulation & Energy Policy Joel Gilmore and Global Roam CEO Paul McArdle.
October 15
The Energy Q&A with the NEM Review panel
NEM Review panel Tim Nelson, Paula Conboy, Ava Hancock and Phil Hirschhorn will speak at this webinar moderated by The Energy Advisory Board Member Anna Hancock.
October 16-17
IGCC Summit 2025: Decoding the transition
Generation Investment Management Founding Partner and former US Vice President Al Gore will headline this Sydney event from the Investor Group on Climate Change. Other speakers include NSW Energy Minister Penny Sharpe, Climate Change Authority Chair Matt Kean, Energy Efficiency Council CEO Luke Menzel, ARENA Associate Director Tanya Hodgeson and Net Zero Economy Agency CEO David Shankey.
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