Capital
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Two separate but concurrent Capacity Investment Scheme (CIS) tenders (Tenders 5 and 6) will invite bids from generation and dispatchable projects for the Western Australia Wholesale Electricity Market (WEM), with indicative targets of 1600MW of renewable energy generation and 3,000 MWh of dispatchable capacity, according to a market brief released by the federal Department of Climate Change, Energy, the Environment and Water (DCCEEW). Indicative merit criteria include:
- Financial value, system reliability and system benefits including a reduction in wholesale market costs and greater power system security
- Project deliverability and credibility of forward plans to deliver the project by 2030
- Capacity and capability of the proponent and key subcontractors and a financing strategy
- Track record of First Nations engagement with commitments to share social and economic benefits of the project
- Social outcomes and community involvement in their co-design, including local content, employment, workforce development and shared benefits.
Chinese battery minerals giant Canmax Technologies has almost matched the National Reconstruction Fund’s $50 million contribution to a capital raising to support Liontown Resources flagship lithium project. Resources Minister Madeleine King and Industry Minister Tim Ayres say Liontown is paving the way for local downstream processing in Australia, but Liontown has no plans to build its own lithium hydroxide refinery. (The Australian)
 Projects
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Fortescue Group (ASX: FMG) secured a yuan-denominated loan worth US$1.98 billion to ramp up its decarbonisation plans, weeks after scrapping its US and Australian green hydrogen projects. (Reuters)
“As the United States steps back from investing in what will be the world’s greatest industry, China and Fortescue are advancing the green technology needed to lead the global green industrial revolution. China continues to lead the world in industrial scale and innovation. Fortescue shares that ambition and drive. This landmark RMB financing strengthens our long-standing partnerships with Chinese institutions and opens new frontiers for collaboration.”
Andrew Forrest
Fortescue Executive Chairman
Policy
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The Financial Services Council (FSC), whose members include AMP, BT Group, JP Morgan and ING, said the high cost of the FIRB process was stalling much-needed international capital needed for Australia’s clean energy transition. Meanwhile, Treasury’s plans to expand the application of the foreign resident capital gains tax could discourage investment in solar panels and batteries, they warn in their submission to the upcoming productivity roundtable. FSC also called for a new National Innovation Visa to attract proven innovators and foster investment in venture capital, renewable energy, and other key sectors. (AFR)
Feeding into the federal government’s productivity agenda, Energy Minister Chris Bowen and Special Envoy for Climate Change Kate Thwaites hosted industry, unions, business, market bodies and civil society reps at an Energy and Adaptation Roundtable in Sydney.
Clean Energy Investor Group (CEIG) CEO Richie Merzian said there was a “surprisingly large amount of agreement” about getting the market signals, targets, incentives and processes aligned to hit speed and scale on clean energy. For CEIG this means a strong 2035 emissions reduction target - in the realm of 75% - and long-term investment signals for the National Electricity Market, building on the Tim Nelson-led review which has so far been well-received. Targeted reforms to ensure the Foreign Investment Review Board (FIRB) supports rather than hinders the energy transition are among CEIG’s recommendations to Treasurer Jim Chalmers for economic reform.
“Without meaningful FIRB reform, Australia risks losing ground in the global competition for clean energy capital.”
Marilyne Crestias
Head of Policy and Advocacy at CEIG
More than 2,300 social housing residences will be upgraded to be more energy efficient with $18 million in joint funding from the Australian and NSW governments, as well as Community Housing Providers. The funding is part of a $175 million program to upgrade around 24,000 social housing homes by mid-2027. The upgrades can include rooftop solar panels and shared solar systems.
An alliance of unions and environmental organisations recommended a “decommissioning hub” be built in Western Australia to manage the state's growing number of retired offshore oil and gas infrastructure. They say the hub would deliver thousands of jobs, protect marine ecosystems, and direct scrap steel and other valuable resources into local domestic circular supply chains. The call comes after analysis showed Australian taxpayers are facing a $500 million clean-up bill for Chevron’s aging oil and gas infrastructure in WA.
UK drivers can save £1,500 on some of the country’s most popular car brands as Nissan, Renault and Vauxhall models join Citroën in the flagship £650 million Electric Car Grant scheme. Capped at cars costing up to £37,000 to target support at the most affordable options, more models are expected to be approved in the coming weeks as manufacturers' applications are assessed against the scheme's sustainability standards. There’s a £63 million charging package in place and a Zero Emission Vehicle (ZEV) Mandate, which requires manufacturers to sell increasing percentages of such vehicles each year. (UKGOV)
Regulation
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Prime Minister Anthony Albanese and New Zealand Prime Minister Chris Luxon agreed in a joint statement to coordinate “reform programs” to make it easier for businesses to trade, invest and operate on either side of the Tasman, including better aligning regulations and a new partnership arrangement between the two national standards bodies.
The US Department of the Interior announced a review of offshore wind energy regulations as part of the move to “eliminate favouritism toward unreliable energy sources”, and has scrapped the requirement to publish a five-year schedule of offshore wind energy lease sales and to update the lease sale schedule every two years.
Technology
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Jinjiang Energy announced the successful grid connection of its 100MW/400MWh vanadium flow battery (VFB) long-duration energy storage project in Lufeng City. As Yunnan Province’s first long-duration vanadium flow energy storage facility, the project is designed to play a pivotal role in regional power grid stability and the southwest’s new energy industry chain. While VFBs are valued for their safety and long service life, the design and construction of the booster station and transmission lines were new challenges.
Climate
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Some of Australia’s top company directors say investors are increasingly fragmented on climate ambition and that the crumbling of consensus has been reflected in the energy transition strategies of our biggest emitters. (The Australian)
“If we have the fragmentation and we have almost immune investors continuing to make long term decisions into very heavy emitters, that’s where we get that market drag …“Companies where it’s embedded in their DNA, and they don’t want to pause, are having to navigate what their competitors and what the broader market is doing.”
AGL Energy Director Vanessa Sullivan told an AICD forum
For greater context, a YouGov poll released on Friday revealed almost 8 in 10 Aussies want stronger climate action and a recent interim report by the Productivity Commission found ignoring climate risks would harm the economy.
In response to a US move to “update” climate assessments, respected climate scientist Michael Mann likened the Trump administration to Joseph Stalin. (Guardian)
Research
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With electrolytic hydrogen made using renewable energy, its derivatives, and subsequent synthetic fuels likely to play an important role in future energy systems and economies, researchers from the US National Renewable Energy Laboratory and Germany’s Wuppertal Institute for Climate, Environment and Energy, Institute of Networked Energy Systems, and Institute of Future Fuels examine challenges for international energy trade in a paper published in the journal Frontiers.
