Called “Superpowering-Up,” the report was written by Matt Pollard, net-zero transformation analyst at CEF, and Tim Buckley, a director at the organisation. It was made available to the public on August 13.
One of the report’s main findings is that single common-user grid infrastructure in the Pilbara area would be a key catalyst in speeding up decarbonisation in the region, which is the “engine room” of Australia’s resource sector.
CEF believes that although China currently dominates cleantech leadership, Australia has the ability to take the lead in green iron production, which it says is the country’s top emerging export opportunity.
The organisation also sees strong potential for Australia in areas like green hydrogen and green ammonia. However, the country won’t be able to unlock these possibilities without electrifying and decarbonising the Pilbara area.
First, there is a need for companies to “(b)ring together their globally leading financial and technological corporate power into a robust and sustained Pilbara-wide industry collaboration on common-user energy infrastructure in the region.”
The second recommendation focuses on investing in accelerated decarbonisation plans at each of the companies’ Pilbara operations. The report says that there is a need for firms to “rapidly deploy their balance sheets’ firepower.”
Lastly, CEF asks major resource companies to use their economic influence — namely job creation, royalties and corporate taxes — to push the Western Australian government to adopt more ambitious climate and energy policies. The think tank said that the government is falling behind in these endeavours compared to nearby states.
“This boost in ambition needs to be on a scale commensurate with both the climate challenge and the immense economic opportunities of an accelerated transition in the Pilbara region,” CEF notes.
Recommendations for other involved parties, such as energy stakeholders, the federal government and the Western Australian government, are also discussed in the report. CEF’s suggestions include, but are not limited to, equity participation, financing and tax incentives, in-depth discussions and legislative efforts.
In the organisation’s view, there will be strong consequences for not taking action.
“Failure to act now to decarbonise and electrify the Pilbara puts at risk Australia’s biggest single export opportunity — to potentially double our iron ore exports to $250bn pa by producing green iron,” according to CEF.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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