The comprehensive review recognises a wide range of technologies and approaches are necessary to reduce emissions and galvanise efforts to remove barriers to investment.

It confirms that the transition requires ‘significant effort’ across all sectors and will involve trade-offs to ensure “the burdens and benefits are fairly shared between governments, sectors, businesses, regions and communities”.  

Chamber of Minerals and Energy of WA (CME) Chief Executive Officer Rebecca Tomkinson said improving availability of low emission electricity was a vital first step and key enabler for decarbonisation of the WA resources sector.

“Whether grid-connected or remote, decarbonisation of resources operations from mine sites to downstream processing facilities depend on access to electricity that is low emission, reliable and affordable,” Ms Tomkinson said.

“It was pleasing to note that the Review identifies the significant role the Federal Government has in coordinating delivery of Australia’s net zero ambitions with state and territory governments.

“Given the pace and scale of the task, our sector has been consistently calling for stronger coordination within and across governments to maximise efficient delivery of projects essential to the global transition”

The CME acknowledges the recent work of the WA Government to speed up environmental approvals. However, our members continue to advise that extended assessment timeframes at both state and federal levels are delaying decarbonisation and renewable energy projects and proving a barrier to securing international investment.

“We urge the state and federal governments to continue reforming the planning and approvals processes, to speed up the deployment of renewable generation and ensure a clear plan for building out transmission.

“Put simply, industry cannot implement new processes or equipment that use electricity instead of fossil fuels without confidence the electricity will be available, reliable and cost competitive.”

Ms Tomkinson welcomed the review’s support for carbon capture, usage and storage (CCUS), a key technology to address hard to abate emissions.

“While renewable energy has a major role to play, some industrial emissions cannot be abated by electrification,” Ms Tomkinson said.

“In those cases, CCUS may be needed to remove emissions until alternative low emission fuel sources or direct abatement technology becomes commercially available.”

CME notes the review recommends expanding the scope of the Safeguard Mechanism.

“Any changes must include robust consultation with industry to ensure Australia remains a competitive investment destination.

“The Climate Change Authority has provided a wide-ranging blueprint for Australia’s energy transition, and I look forward to engaging with government throughout the development of the net zero plan” Ms Tomkinson said.

“That includes speeding up planning and approvals to attract investment, standing up strategic industrial areas, drastically accelerating the rollout of renewable energy generation and improving the consistency of carbon pricing.”

<ENDS>

Media contact: Josh Zimmerman j.zimmerman@cmewa.com

0404 947 719

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The report contains 77 findings and 30 recommendations to the State Government, including that the WA Domestic Gas Policy as a whole is reviewed and updated, and that a new domestic gas security policy objective is developed.

CME Chief Executive Officer, Rebecca Tomkinson, said the report’s recommendations needed careful consideration by the State Government to ensure WA had the right balance of policy and regulatory settings to support decarbonisation efforts locally and globally.

“It’s clear from the report that WA faces a major challenge: increasing demand for gas but declining supply over the next decade,” Ms Tomkinson said.

“Based on current LNG producer commitments and delivery timeframes, the risk of domestic gas under-supply will be more of an energy security and availability issue than a compliance one.

“The challenge for the WA resources sector is in supporting the decarbonisation of our domestic energy-intensive industries, while also providing secure and affordable sources of energy to our trading partners.

Ms Tomkinson added that, throughout the Inquiry, CME had advocated for investment certainty on the 15 per cent reservation policy, as well as greater clarity and transparency around the application of the policy’s requirements on projects, including associated compliance measures.

“With gas demand expected to grow in the WA domestic market over the next decade it’s good to see the report advocate for maintaining the existing 15 per cent reservation amount for existing agreements for offshore projects,” she said.

“But the recommendation to set an ‘as necessary’ reservation amount for new projects is as concerning as it is ambiguous, and likely to introduce investment uncertainty.

“Any changes to policy settings must balance the needs of both gas consumers and producers for investment certainty and market efficiency.”

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Media contact: Natasha Mutch n.mutch@cmewa.com

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“WA’s energy transition needs to be executed in a way that supports a competitive and decarbonised electricity network for the benefit of the community, business and industry”

The Chamber of Minerals and Energy of WA (CME) looks forward to reviewing the Federal Opposition’s energy plan, stressing that all options should be on the table to ensure the transition to net zero is achieved.

CME Chief Executive Officer, Rebecca Tomkinson, said it was important to consider all options in order to supply the volume of low-emissions, cost-effective and reliable energy needed by the industry to sustain the push towards decarbonisation and achieve Australia’s legislated climate targets.

“WA’s energy transition needs to be executed in a way that supports a competitive and decarbonised electricity network for the benefit of the community, business and industry, so CME will consider all proposals that seek to achieve that,” Ms Tomkinson said.

“CME supports the diversification of WA’s resource commodities and energy mix, and our proven standards of ESG responsibility and cutting-edge mining technology open up possibilities for processing a greater range of materials to support the decarbonisation of our trading partners.

“There are short-term and long-term discussions here. In the short-term, we need significant and sustained effort from government to fast-track new energy project approvals and invest in new generation and transmission infrastructure – that’s the activity that needs to happen now or the energy transition opportunities pass us by.

“While it’s critical we have a longer-term strategy and certainty on the broader transition road map, we also need to maintain focus on the shorter-term delivery of low-emissions energy generation and storage, alongside upgrades and expansions to electricity transmission infrastructure.

“In order to achieve this, CME’s message is clear: our industry needs an efficient regulatory regime, turn-key industrial land, incentives to attract investment and stimulate project development, and a reliable, low-cost, clean energy system.”

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Media contact: Natasha Mutch n.mutch@cmewa.com

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“With a 57 per cent increase in annual operational consumption and a 43 per cent increase in peak demand expected 10 years from now, we have to act with urgency”

The Chamber of Minerals and Energy of WA (CME) has said this week’s Australian Energy Market Operator’s (AEMO) report was another indicator of the need for a sustainable, reliable and cost-effective energy system to service community, business and industry.

CME Chief Executive, Rebecca Tomkinson, said the WA Wholesale Electricity Market Electricity Statement of Opportunities (ESOO) highlighted the need for continued capacity investment in the immediate term.

“A key recommendation in CME’s 2024-25 State Government Pre-Budget Submission was for a master transmission plan for the SWIS in consultation with industry, regulators and other key stakeholders,” Ms Tomkinson said.

“We will continue to engage with government on the need for a master plan that takes into account the increasing industry demand for electrification over the coming decade as the push to decarbonisation intensifies.

“With a 57 per cent increase in annual operational consumption and a 43 per cent increase in peak demand expected 10 years from now, we have to act with urgency to build not just the generation and storage required but the transmission infrastructure to connect new supply to customers.”

Ms Tomkinson said the doubling of wholesale electricity prices in WA since 2021 put the competitiveness of businesses and industry at risk.

“Any significant cost increases along the supply chain, including electricity prices, threaten the viability of WA’s resources sector and the enormous contribution it makes to jobs, local businesses, community investment and social infrastructure.”

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Media contact: Natasha Mutch n.mutch@cmewa.com

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As a nation and as a state we can’t afford to approach global energy transition like a snakes and ladders game.

Today’s announcement by the WA Government to adopt the Chamber of Minerals and Energy of WA’s (CME) recommendation for a nickel royalty relief package has been recognised as a promising measure for the sustainability of the state’s nickel industry.

CME Chief Executive Officer, Rebecca Tomkinson, said the Nickel Financial Assistance Program was a positive sign that the weeks of urgent discussions with state and federal ministers and parliamentarians on behalf of industry were productive.

“This shows the state’s understanding of the importance of nickel to the critical minerals aspirations of downstream processing,” said Ms Tomkinson.

“CME has made it very clear that targeted and evidence-based government support such as temporary royalty relief makes sense for the nickel sector in the near-term, given the significance of the industry to local employment, the economy and our national strategic interests.

“Battery minerals represent a strategically important sector for the state and we need to ensure we have a solution for the short- and mid-term, as well as settings that ensure viability and sustainability in the longer term.

“The State Government’s Nickel Financial Assistance Program is one of many measures needed on the path to net zero so I look forward to seeing further strategies and actions that secure longevity in the sector.”

Ms Tomkinson said removing inefficient government processes and delivering competitive fiscal settings would be needed to attract investment in Australia’s battery and critical minerals industry and achieve 2030 and 2050 decarbonisation targets.

“As a nation and as a state we can’t afford to approach global energy transition like a snakes and ladders game,” she said.

“We have all the key people at the table so now it’s about coordinating our efforts, and we appreciate the State Government acting on this.

“Collectively, the State and Federal Governments need to ladder up and act before prospects to advance the global energy transition slip away and WA loses opportunities that other countries will willingly seize.”

<ENDS> 

Media contact: Natasha Mutch n.mutch@cmewa.com

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CME Chief Executive Rebecca Tomkinson said governments needed to deliver on promises to streamline regulatory approvals and provide the policy and fiscal certainty that would improve Australia’s competitive position. 

“Targeted and evidence-based government support for the nickel and lithium sectors in the near-term makes sense given the significance of these industries to local employment, the economy and our national strategic interests,” Ms Tomkinson said. 

“We have said before that deferred royalty payments would likely be the most commercially impactful and administratively simple support measure the WA Government could enact. This should be considered in the immediate term alongside possible measures at a federal level such as a production tax credit. 

“At today’s roundtables, we’ll be articulating a range of initiatives that the State and Federal Governments can implement to keep the WA resources sector consistently competitive across all the commodities we produce. 

“We’re seeking actions and results from today, so all options should be considered.” 

Ms Tomkinson said a lack of efficiency, timeliness and certainty in approvals remained a key barrier that the State and Federal Governments could remove. She added that competitive fiscal settings and industrial relations reforms that delivered higher productivity were within the Federal Government’s control. 

“The Government can use today’s collective discussions as a catalyst to move forward on initiatives that reduce financing, capital or operating costs such as low-cost funding, capital grants or production tax credits,” she said. 

“The Australian Government also has an opportunity to work with our trading partners to support the development of price and ESG transparency in critical and battery minerals markets. 

“At the state level, the provision of turnkey strategic industrial areas and other common user infrastructure, including low emissions, reliable and cost-competitive energy, can drive economies of scale and reduce operating costs. 

“WA has the resources, operational stability and ESG credentials to deliver what the world needs for its energy future but, like any business, we need to be agile and competitive.” 

Ms Tomkinson added that the Australian Critical Minerals Strategy 2023-2030 remained unclear as to its practical support for the immediate and longer-term sustainability and growth of the critical minerals sector. 

“We’re still waiting on the detail behind the critical minerals list and the strategic materials list to determine the benefits in the near, mid or longer-term,” she said. 

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Member organisation, BP, was congratulated on its H2Kwinana energy hub project being shortlisted to apply for the funding program.

CME Chief Executive Officer, Rebecca Tomkinson, said BP’s invitation to participate in the next stage of the $2 billion hydrogen program reflected the strategic importance that initiatives like the H2Kwinana hub would play in the energy transition.

“Programs like Hydrogen Headstart offer an opportunity for WA to secure investment in the renewable hydrogen sector,” Ms Tomkinson said. 

“In addition to potential export opportunities, the production of hydrogen in WA stands to play an important role in decarbonisation objectives for industry sectors. 

“We know a range of proven technologies are going to be required to meet these objectives and we encourage initiatives which facilitate their adoption across the sector.

“Clearly, incentives under the national Hydrogen Strategy, alongside supportive policy settings and regulatory frameworks in WA, will be a key component of application success and I look forward to other WA proponents having this opportunity.

“The WA Government has recently announced a raft of changes to the regulatory approvals process to make it more efficient and remove unnecessary blockages for industry investment and project delivery in WA.

“Nationally, it’s important that regulatory reforms do not risk the development of projects, many of which will be supporting the energy transition at home and globally.

“Access to low-emission, reliable and cost-competitive energy is essential for the decarbonisation of much of our existing industry. The countdown to 2030 is six years so it’s critical governments act quickly to support the growth of new green industries like renewable hydrogen.

“Through collaborative partnerships, investment and regulatory efficiency, Australia’s hydrogen production projects have the potential to be accelerated from infancy to a mature and sustainable industry of global importance,” she said.

CME supports BP’s plans to submit a full application for consideration in 2024 and its goals to decarbonise the Kwinana Industrial Area and the region.

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CME Chief Executive, Rebecca Tomkinson, said updates to the Critical Minerals List – which identifies minerals required for global emissions reduction, advanced manufacturing and defence – were timely but the value proposition of being on the list was still unclear.

“CME has advocated to the Australian Government for the inclusion of key minerals to the list so they are covered under the Australian Critical Minerals Strategy 2023-2030 and recognised for their role in achieving 2030 emissions reduction targets,” said Ms Tomkinson.

“The global scale of the energy transition means demand for WA’s resources is at a record high, but defining the value of being on the critical minerals list has been elusive.

“Over half of Australia’s critical minerals projects are in WA, so we would welcome more detail on how the list will support the Critical Minerals Strategy. Clearer pathways for critical minerals projects to access financial incentives and investment support mechanisms would be a strong message of support from government.”

Ms Tomkinson said while the full range of benefits of being on the list were yet to be detailed by government, the creation of a secondary list for minerals of strategic importance may go some way to recognise the additional minerals required to support the energy transition.

“CME’s submission called for copper, nickel, bauxite-alumina, zinc and molybdenum to be included on the list. Molybdenum was among the five new minerals added to the primary list,” she said.

Ms Tomkinson said she hoped to see more information on how the inclusion of copper, nickel, zinc and aluminium on the strategic minerals list would unlock benefits to industry and the energy transition.

“Whether a mineral is on the primary or secondary list, project proponents need certainty to make investment decisions. What we need now is a commitment to clarity and a material change in how the government looks at its own efficiencies to help the industry achieve energy transition targets,” she said.

<ENDS> Media contact: Natasha Mutch, media@cmewa.com.au

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CME Chief Executive, Rebecca Tomkinson, said the latest report by the Australian Energy Market Operator (AEMO) pointed to an urgent need to balance future gas demand and supply.

“AEMO’s 2023 WA Gas Statement of Opportunities identifies an increasing need for investment in additional gas supply into the state’s domestic market,” said Ms Tomkinson.

“The clock is ticking and immediate progression of gas projects already in the pipeline is imperative because we’re in catch-up mode, according to the data,” said Ms Tomkinson.

“The WA Government has recently introduced a raft of initiatives to step up departmental efficiency and speed up the approvals process but the time for talk is over. It’s now time for action.

“We know that the WA domestic gas market is projected to be in deficit between 2024 and 2029, with potential supply more than 10 per cent below expected demand.”

Ms Tomkinson said the expected supply shortfalls were underpinned by declining production from existing WA gas fields and the increasing use of gas for industrial processing as well as electricity generation in the state’s major power system as the energy transition progresses.

“CME has repeatedly made this point in its advocacy, including its submission to the Inquiry into the WA Domestic Gas Policy and its WA 2024-25 Pre-Budget Submission,” she said.

“The WA Government must encourage adequate supply to the domestic market and facilitate all technologies that enable net reductions in greenhouse gas emissions. This includes increasing the efficiency and effectiveness of federal-state approvals processes.”

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Media contact: Natasha Mutch

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