WA commits $3b for cleaner energy as mining giant welcomes Hydrogen Headstart
Australia is making progress towards decarbonising its industries and achieving net-zero emissions by 2050, with two recent developments highlighting the country’s efforts to transition towards a cleaner energy future.
WA has announced a $3b investment to combat climate change and transition towards a low-carbon future.
The investment focuses on energy storage, wind power generation, and transmission network upgrades, with a goal of ensuring a stable and secure energy supply for its residents.
In addition, Fortescue (ASX: FMG), one of the world’s most successful iron ore companies, has welcomed the Australian government’s Hydrogen Headstart announcement in the Federal Budget, which aims to support the green hydrogen industry and reduce emissions while creating new jobs and promoting economic growth.
Both initiatives represent significant steps towards a more sustainable future for Australia.
$3b to combat climate change
Western Australia has recently announced a $3b investment to combat climate change and achieve net-zero emissions by 2050.
The investment is part of the 2023-24 WA State Budget and aims to transition the State’s energy system towards a low-carbon future.
The majority of the funding, $2.8b, will be allocated towards energy storage, wind power generation, and transmission network upgrades on the state’s main electricity grid.
This will help deliver cleaner, reliable, and affordable energy to Western Australians into the future.
Additionally, the state will invest in large-scale renewable energy generation projects, including a new wind farm at King Rocks and a potential expansion of Bright Energy Investments’ existing Warradarge Wind Farm near Eneabba.
One of the key projects in the funding package is the construction of one of the world’s largest battery storage systems in Collie, which will provide around 500MW for up to four hours and is expected to be operational before the end of 2025.
The State will also invest in the Kwinana Battery Energy Storage System 2 (KBESS2), which will provide four hours of storage and complement the existing Big Battery at Kwinana.
“This major investment in the 2023-24 State Budget will deliver cleaner energy that’s reliable and affordable, building a stronger future for Western Australia,” stated WA Premier Mark McGowan.
“My government is taking action to tackle climate change and investing to meet our commitment to reach net-zero emissions by 2050.”
“The McGowan Government’s significant investments in wind generation, storage, and transmission infrastructure in this State Budget are a critical step forward in that transition,” added WA Mines and Petroleum Minister Bill Johnston.
“Keeping the electricity grid reliable and secure remains the State Government’s priority for energy.”
These initiatives are part of WA’s commitment to decarbonising the main electricity grid and ensuring a stable and secure energy supply for its residents.
Fortescue welcomes Hydrogen Headstart
In another development, Fortescue, one of the world’s most successful iron ore companies, has welcomed Australia’s Hydrogen Headstart announcement.
The company believes that the government is taking the green hydrogen industry seriously and recognises its critical role in Australia’s future.
Fortescue aims to work with the government on a broader response to catalyse the entire industry in Australia.
According to Fortescue, green hydrogen will create significant economic growth and prosperity for Australia in the years ahead.
It will also lower emissions, create greater energy security for the country, and create new jobs.
Independent modelling from Deloitte indicates that the hydrogen industry in Australia will create tens of thousands of jobs over the coming years.
Fortescue paid $4.2b in corporate tax and $1.6b in State Government royalties in FY22.
The company supports the government’s proposed reforms for the Skilled Migration Act as it increasingly requires a wider range of skills across the Fortescue Group.
It also welcomes the additional critical minerals commitment of $57.1m announced in the Federal Budget Statement and the greater definition around the reforms of the EPBC Act, including the timeframe and role of the new Environmental Protection Australia.
