The big flaw in Queensland's community bill


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In today's edition:

  • Queensland bill makes little operational sense
  • US investment capital has to go somewhere: Bowen
  • Green hydrogen dream alive in Tasmania

Clean energy at risk of unequal footing

Clean energy developers, councils and a mining association refuted the Queensland government’s claims on ensuring clean energy projects are treated the same way as coal, gas and mining projects.

All have flagged issues with Queensland Deputy Premier Jarrod Bleijie’s Social Impact and Community Benefit Bill, introduced to Parliament on May 1. The bill is with the State Development, Infrastructure and Works Committee, with public hearings on this week.

The airing of concerns coincides with the axing of a $1 billion wind farm and the release of nine new areas for gas exploration, most of which won’t need to worry about reserves for domestic use. (The Australian)

2035 oxymoron still up in the air

An “ambitious and achievable” 2035 emission reduction target is still pending ahead of the UNFCCC September deadline.

The Climate Change Authority signalled 65% to 75% below 2005 levels would be doable, with a bit more effort by government and industry, in an issues paper released in 2024.

The advice was not yet ready for Cabinet, Climate Change and Energy Minister Chris Bowen told ABC’s Insiders, with the agency massaging the numbers after asking for more time to consider the impact of the US withdrawing from the Paris Agreement and dumping low-carbon energy enticements.

But his glass is half-full.

“That capital has got to go somewhere and Australia will be a welcoming and inviting home for that renewable energy investment,” Bowen pointed out.

Net zero has been endorsed by the vast majority of the world's emitters, Australia included, and it remains in our economic best interest, he said, and insisted Australia would hit 2030 targets despite bottlenecks.

“We put more money into the environment side of my portfolio to get faster approvals or rejections, faster yes or no as is appropriate. We're also working with the states, only about 20% of renewable applications come to the federal minister for approval. We're working with the states and have renewable energy transformation agreements with every state except for Queensland. And part of that is ensuring that the planning system is fit for purpose at the state level. — Energy Minister Chris Bowen

A carbon border adjustment mechanism for Australia was relegated to the “medium- to long-term”. The rationale? To ensure industry can compete as it decarbonises.

Bowen also defended last week’s approval of the North West Shelf facility’s extension to 2070, citing “strict environmental conditions”. The gas processing plant on the culturally significant Burrup Peninsula is Australia’s 13th biggest emitting facility, which Woodside Energy (ASX: WDS) must offset or abate locally.

“This will be legally obliged and required under our Safeguard Mechanism to meet net zero by 2050. It already is. It's already obliged to be reducing its emissions today and it is,” Bowen said.

“The government and the gas industry say we need more supply. That’s nonsense. What we need is a government willing to prioritise domestic use and put a fair price on exports. That means fixing the Petroleum Resource Rent Tax, strengthening export controls, and legislating a duty of care to protect young Australians from climate harm.” — Independent Senator David Pocock

Green hydrogen dream alive in Tasmania

Minister for Energy and Renewables Nick Duigan announced Bell Bay Power Fuels as the provisional proponent for the Green Hydrogen Hub in the Bell Bay region of northern Tasmania.

“Tasmania, as Australia’s leading renewable energy state, has significant competitive advantages to offer industry and the world,” he said. “The recent EOI process seeking project partners received five high-quality submissions, signalling a strong level of industry interest and confidence in establishing a hydrogen industry in Tasmania.”

Bell Bay is Tasmania’s largest industrial zone with access to a deep-water port and renewables-based power supplies from wind and hydroelectric sources. Hub construction should be complete in 2028, according to CSIRO, for a facility that has the potential to produce 45,000 tonnes per annum of renewables-based hydrogen.

Last week’s 2025-26 state budget allocated $64.8 million over the next four years for strategic renewable energy projects.

There was also provision for $300 million in equity that will be required should Marinus Project achieve Final Investment Decision by August 2025.

But research out of Monash revealed potential gaps in Australia’s hydrogen certification framework that may affect its alignment with emerging international standards.

“Governments are facing a real challenge in balancing environmental stringency with the need to support a nascent industry …The findings underscore the importance of evidence-based policy design, especially as Australia and its trading partners move toward a more formalised hydrogen certification landscape.” — Lead author Dr Graham Palmer, Department of Civil and Environmental Engineering

In a positive finding, the study supported the exclusion of geographic correlation in the Guarantee of Origin Scheme. The analysis showed that such restrictions could undermine the broader benefits of shared, inter-regional electricity flows in the NEM.

Catch up

Capital

Korean steel giant Posco opened a critical minerals R&D lab in Perth with the aim of advancing low-carbon processing technologies. It will also pursue rare earths supply chain development. (Korea Herald)


Projects

The Victorian government cleared the construction of Viva Energy’s LNG import terminal in Geelong, saying it would free up gas supply for industries that can’t make the switch to renewables. It will receive up to 160 petajoules per annum - approximately 88% of Victoria’s 2024 gas consumption in a state where 2.2 million households and 65,000 businesses still rely heavily on gas. Subject to a Final Investment Decision, construction could begin in 2026, with terminal operations to commence in 2028 when the market is expected to be short of gas, according to Viva.

“Gas is part of our energy transition, but supply is dwindling and prices are going up.” — Minister for Energy and Resources Lily D’Ambrosio

The NSW government approved an extension to Glencore's Ulan coal mine near Mudgee, allowing it to operate until 2035 and extract an additional 18.8 million tonnes of coal, after approving extensions to two coal-specific mining exploration licences held by South Korea’s KEPCO in the Bylong Valley. (Mudgee Guardian) (ABC)


Policy

US President Donald Trump blurted out the latest move in tariff policy at a steel mill rally in Pennsylvania, threatening to double the rate on steel to 50%. (BBC) (The Australian) (ABC) (AFR)

“This is the wrong course of action and we’re calling on the Trump administration to reverse the decision and drop all tariffs on Australian steel and aluminium products … We’re going to do exactly what we did with China. We’re going to coolly and calmly argue our case for the removal of these tariffs,” — Trade Minister Don Farrell told reporters

Fun fact: Steel, aluminium and vehicle tariffs were imposed using different laws to those at the heart of a court case on Trump’s sweeping act of economic self harm.

On Friday, the Trump administration announced it would cut US$3.7 billion in funding for industrial decarbonisation and carbon capture. (Canary Media) (New York Times)

Meanwhile, terms of reference for Resources Minister Madeleine King’s review of the east coast gas market are expected to be released by the end of June. AEMO has warned of shortfalls from 2029, prompting speculation about a gas reservation. Industry Minister Tim Ayres didn’t rule it out. "What we're not going to do is do what the Coalition did during the election campaign, which was policy on the run,” he told Sky News.


Technology

Data is going to play a massive role in how the transition unfolds and another big area is what’s happening at the grid edge, Gentrack’s Mark Humphreys said in the lead up to Australian Energy Week.

“Behind-the-meter technology, like smart inverters and home energy management systems, is evolving fast. But what’s really exciting is the potential of large-scale virtual power plants. We’re moving beyond small pilots now and starting to see how thousands of distributed devices can be orchestrated together to support the grid, reduce peak demand, and create new revenue streams for customers. That’s where the future is heading, and it’s happening faster than a lot of people think. — Gentrack General Manager - Australia Mark Humphreys

Climate

Official data showed Australia’s greenhouse gas emissions were up slightly although industrial emissions were tracking below 2021-22 levels, reflecting the reformed Safeguard Mechanism. The trend was encouraging in electricity, Bowen said in a statement, after renewable energy hit a record 46% of the grid in the three months to December. Emissions from electricity generation rose by 2.2%, reversing a 10-year trend, on lower hydro generation and higher demand met by more coal and gas.

Experts said the ongoing drought across parts of Victoria and SA was causing “a seemingly endless 2025 fire season”. (Sydney Morning Herald)


People

A former managing director of Victoria Legal Aid, Bevan Warner, has been appointed Ombudsman Western Australia, effective June 9.


Research

Most Australian organisations would disclose emissions data even if a new government scrapped requirements to do so, according to the local findings of Workiva’s 2025 Executive Benchmark Survey. But one third of Australian executives don’t fully trust their financial data and 94% believe their company’s climate reporting tech is insufficient - well above the global average of 73%.

“This could again come down to the imminent nature of climate disclosure regulations compared to other countries; the closer they get, the more pressure they feel. But it's a prime opportunity for those organisations to take a look at upgrading the technologies and tools they can avail of to alleviate that pressure.” — Mark Mellen, Industry Principal, Sustainability, Workiva

Australian research showed 5 roadblocks standing in the way of energy efficient homes: cost; confusing information about upgrades; the need to hire multiple suppliers; fewer opportunities for straightforward upgrades and lack of knowledge among tradespeople. (The Conversation)

Grasses living in the shade of solar panels grew better in dry years than those in full sun, according to a four-year US study by researchers at the University of Colorado. The study considered cool-season grass, with future work to look at shortgrass in drier locations. (The Conversation)

What's on

June 3
NEM review online forum

The National Electricity Market wholesale market settings review will hold a webinar to consult on reforms with those unable to attend in-person events.


June 3
AEMC Pricing review forum

The Australian Energy Market Commission will host a virtual public forum on its discussion paper looking at the role of electricity pricing in delivering consumer energy resources.


June 3
Australian Offshore Wind Industry Forum

Victorian Energy Minister, Lily D'Ambrosio and CEC Chief Executive Kane Thornton are headlining this Clean Energy Council event in Melbourne.


June 4-5
7th Annual Tasmanian Energy Development Conference

Tasmania’s Minister for Energy and Renewables Nick Duigan, Marinus Link CEO Stephanie McGregor and TasRex CEO Bess Clark feature in Devonport.


June 6
National Competition Policy analysis 2025

The Productivity Commission’s call for submissions has a June 6 deadline for an occupational licensing scheme that provides for labour mobility nationally and other competition reform options identified as a priority during the policy study.


June 6
Energy Horizons 2025

NEM review chair Tim Nelson and ARENA General Counsel Dr Cameron Kelly are among the speakers at Macquarie University’s Energy Horizons 2025: Innovation Across Evolving Energy Markets event in Sydney.


June 11
Australia Energy Regulator stakeholder forum

An online forum will be held with electricity and gas retailers and other stakeholders to discuss the findings of the Review of payment difficulty protections in the National Energy Customer Framework.


June 17-20
Australia Energy Week

Energy Minister Chris Bowen, Ausgrid CEO Marc England, AEMC Chair Anna Collyer, EnergyAustralia Managing Director Mark Collette, Woodside Energy COO Liz Westcott and NEM review Chair Tim Nelson headline this Melbourne event.


June 24-25
Australia Energy Regulator stakeholder forum

Climate Change Authority Chair Matt Kean, Grattan Institute Energy and Climate Change Program Director Tony Wood, Windlab Director of Policy Maggie Shelton and Energy Estate Co-founder Simon Currie are speaking at this new Queensland event.


July 29-30
Australia 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.

The Energy

The Energy is dedicated to covering the business of energy and in particular the people, capital, projects and emerging technology behind the energy transition.

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