A new report into the industrial heart of Queensland has revealed opportunities to slash emissions by as much as two thirds, while saving the industry millions each day and cutting peak wholesale energy prices by up to 60 per cent.
The report from Monash University’s Climateworks reveals that Gladstone could unlock these opportunities by switching to cleaner heat sources while using flexible energy demand management. Together, these shifts could make industry cleaner, cheaper to run and more reliable, without compromising productivity.
Dr Calvin Lee, report lead author and Climateworks Centre Senior Project Manager said the findings highlight the crucial role Australia’s biggest industrial emitters have to play.
“Managing when we use energy to produce heat in Australia’s high-emitting industrial heartlands is key to cutting emissions, power prices and strengthening the grid,” Dr Lee said.
Key findings in the report include:
- Flexible energy demand management could save Gladstone’s industries $3 million per day in operating costs and slash demand at current peak periods by two gigawatts.
- Gladstone’s industrial emissions could be cut by almost two-thirds, 66 per cent, with a switch to low-emissions heat. More ambitious renewable energy plans could see an even greater reduction of nearly 80 per cent.
- Electrifying Gladstone’s industries flexibly, such as shifting power use to off-peak times or storing industrial heat, could provide 4.4 gigawatts of flexible power by 2040, equivalent to three of Queensland’s largest power stations. This would double Australia’s current ability to stabilise the energy grid.
- Electrifying Gladstone’s industries and adding heat storage could cut wholesale electricity prices by as much as 60 per cent.
“Right now, Australia’s biggest lever in an energy emergency is increasing supply and turning on expensive coal and gas. Demand management – allowing industries to shift power use up and down like a giant battery – would add another much-needed emergency tool to the nation’s toolbelt. It’s the missing flexibility piece that can help secure the wider grid.”
Alex Veale, Systems Lead – Industry at Climateworks Centre said that the solutions are ready and industries want to get moving, but government support is the crucial next step.
“Funding at both state and federal levels can help kickstart the shift by sharing some of the financial risks,” Veale said.
“We’ve seen this before. A decade ago, government support jump-started large-scale solar. Today it attracts around $4 billion in private investment yearly and is one of Australia’s fastest-growing energy sources.
“The benefits and opportunities go well beyond Gladstone.
“Industrial regions across the country can save a tonne of money, future-proof themselves and the communities they support, while also delivering benefits to the broader grid and Australian consumers.
“This is massive when you consider that just five industrial regions – Gladstone, Illawarra, Hunter, Kwinana and the Pilbara – account for one-eighth of Australia’s emissions, support close to half a million jobs and contribute $166 billion to GDP.”
