This week started with a landmark critical minerals deal with the US and ended with warnings the deal would fail to pay off if long-awaited environmental planning reforms fail to pass Parliament.

Capital

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In a much foreshadowed trip to Washington PM Anthony Albanese inked a US$8.5 billion dollar deal with the US to invest in Australian critical minerals supply. Under the deal, the Australian Government will kick in US$1 billion. US$2 billion will come from the US government; US$2.2 billion from the Export Import Bank of the US; and the remainder from private investment.

Early winners will be the Gina Rinehart-backed Arafura Rare Earths (ASX: ARU), and a gallium refinery in Western Australia under development by American heavyweight Alcoa (ASX: AAI) and Japan’s Sojitz.

A US-Australia Critical Minerals Supply Security Response Group will be established, led by the US Secretary of Energy Chris Wright and the Australian Minister for Resources Madeleine King, to identify priority minerals and supply vulnerabilities and to develop a coordinated plan to accelerate delivery of processed minerals under this framework.

The missing piece is a pledge for processing and refining to be powered by Australia’s abundant renewable energy.

Meanwhile, a research bulletin from the Reserve Bank said critical minerals used in clean energy technology had the greatest potential to become important for the Australian economy but the outlook was uncertain. Based on projects currently underway and announced, it said growth in production was likely to remain subdued in the near-term.

Woodside (ASX: WDS) announced a US$1.9 billion deal with US-based gas infrastructure giant Williams (NYSE: WMB) for a landmark US project.

Senex (ASX: SXY) signed a 10-year agreement to supply up to 58.4 petajoules of gas from its Atlas development in the Surat Basin to CS Energy’s proposed 400MW Brigalow Peaking Power Plant.

Homegrown battery technology that could redefine energy storage was given a $25 million boost by the Australian Renewable Energy Agency (ARENA). Melbourne-based energy tech company Relectrify says its AC1 Battery Energy Storage System (BESS) can deliver 20% more lifetime energy than conventional battery systems.

And in more homegrown-tech news, RedEarth Energy launched the first Australian-made vehicle-to-grid bi-directional charger.

Policy

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Environment Minister Murray Watt kicked off discussions with the Coalition and the Greens as he prepares to introduce the revised Environment Protection and Biodiversity Conservation Act to parliament. Both groups flagged concerns over the draft bill. It would reportedly see developers required to report the carbon footprint of a potential project and outline a plan to ­reduce its emissions.

The Queensland government released a Social Licence in Renewable Energy Toolkit, claiming Labor’s “reckless rush to renewables” meant communities, councils and stakeholders were shut out of approval processes.

WA energy Minister Amber-Jade Sanderson told the AFR energy summit the state government would legislate a climate target next year. She did not commit to a number.

Projects

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Construction started on the 105 megawatt King Rocks Wind Farm, a Synergy-led project that is part of WA’s energy transition plan, after the Cook government allocated $513 million towards the project.

In New South Wales, the State Government gave APA Group the green light to re-deploy its existing Moomba to Sydney Ethane Pipeline, allowing delivery of an extra 20-25 terajoules of gas per day. The 1,200km high-pressure pipeline has sat idle since 2023 when a previous single customer of the pipeline ceased operations.

Pilot Energy (ASX: PGY) inked a deal with UAE-based Kala Data to launch modular data centres at its Arrowsmith facility in Western Australia’s Perth Basin. It’s targeting a 1MW unit by early next year and scaling to 4MW by mid-2026, if the financials hold up.

Regulation

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The Australian Energy Market Commission (AEMC) recommended the wholesale demand response mechanism (WDRM), which pays consumers to switch off during periods of peak demand, continue operating in the National Electricity Market, with a tweak to allow sites with multiple connection points to participate.

The Australian Energy Regulator (AER) granted a ring-fencing waiver to CitiPower, Powercor and United Energy for a kerbside electric vehicle (EV) charging trial until mid-2031.

EnergyAustralia will spend more than $1.2 million in bill relief after breaching consumer protections by failing to inform customers of their right to payment assistance.

Climate

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An international vote on a plan to tackle greenhouse gas emissions from shipping was postponed for a year after the US threatened tariffs, penalties and visa revocations on those supporting the pricing mechanism.

People

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The UK government published its first national plan to recruit workers needed for the clean energy mission, forecasting more than 400,000 extra jobs by 2030.

Looking ahead to next week, Parliament returns, and The Energy's costs of the transition webinar will feature outgoing Powerlink CEO Paul Simshauser and Star of the South chief development officer Erin Coldham. Plus, the Australian Energy Market Operator will release its latest dynamics report for the September quarter.