Minister for Energy and Emissions Reduction Angus Taylor’s contentious revisions to expand ARENA’s scope have survived Senate after his first attempt was quashed by the ALP and Greens.
The regulations allow ARENA to invest in low-emissions technologies including carbon capture and storage and hydrogen made with the use of fossil-fuel generated energy. ARENA can still make its own investment decisions based on merit.
Opposition energy spokesman Chris Bowen told caucus Labor should oppose ARENA being used for anything other than renewables. His position was backed by most Labor MPs but faced opposition from Hunter MP Joel Fitzgibbon, who declared it “poor policy and poor politics”.
Taylor said the reforms were about reducing emissions across every sector of the economy and boosting jobs.
“To achieve this goal, the government will invest $20 billion in new energy technologies by 2030, to drive at least $80 billion of total public and private investment over the decade,” he said.
Related article: Waste biochar could help mitigate climate change
The news received support from peak oil and gas body APPEA as well as CO2CRC.
“Australia is a world leading innovator in low emission technologies. The expansion of ARENA’s remit will accelerate the application and scaling up of technologies that strengthens Australian industry while reducing CO2 emissions at significant scale,” CO2CRC chief executive Dr Matthias Raab said.
“The value of Carbon Capture Utilisation and Storage (CCUS) is its versatility. Its application extends across heavy industry, decarbonising natural gas processing, power generation, steel and cement production. Carbon dioxide can also be removed from the air via direct air capture and either permanently stored underground or converted to useful products.”
“Furthermore, CCUS allows clean hydrogen production from fossil fuels, paired with deep underground storage of carbon dioxide, to be the most cost-effective, reliable and flexible pathway to large-scale hydrogen production.”
“Geological storage of carbon dioxide allows emission abatement at scale. It is immediate and permanent.”
But not everyone agrees.
“The Federal Government’s latest move has sullied ARENA by allowing it to invest in Carbon Capture and Storage (CCS) as well as hydrogen made with gas. This retrograde step will prop up fossil fuels using taxpayer money,” said Greg Bourne, Climate Councillor, former ARENA chair and former president of BP Australasia.
“The nation’s renewable energy agency should not be spending money earmarked for renewables on CCS technology. If any investment is made, it should be paid for by the fossil fuel industry. CCS is expensive, unlikely to be effective, and the industry has always over-promised and under-delivered.
“Gas is also a fossil fuel that powerfully drives climate change, and hydrogen from gas has no place in Australia’s zero emissions energy future. Only hydrogen made with renewable energy is worth investing in, as customers demand ‘green hydrogen’ in a decarbonising global economy.
“From renewables to battery storage to energy efficiency, we already have the technological solutions to reduce emissions. The government should be accelerating efforts to scale up and improve these climate solutions, creating jobs and economic opportunities in the process,” he added.
“This is not the Federal Government’s first attempt to undermine ARENA. In 2014, it almost scrapped the agency. In 2016, it cut half a billion dollars from ARENA’s budget.
“Credible action on climate change means no new fossil fuel projects, a rapid push towards 100% renewable energy, and achieving net zero emissions by 2035.”
