Australia Energy

FGR granted Government Approvals for Commercial Graphene Facility in WA, Australia

2017-07-12T04:58:00.001-07:00

FRG gets receipt of Government Approvals for Commercial Graphene Production Facility

Highlights

• Works Approval has been granted by the Department of Environment Regulation, enabling construction of a graphene production facility at Henderson to commence and be operational in Q4 of 2017.

• FGR will be the first ASX-listed company to attain a commercial graphene production capability.

• The production facility will be funded from existing cash

balances.

• Initial capacity will be in the order of 15 tonnes per annum of saleable graphene, based on a single shift operation, five days per week. Multiple shifts could escalate production rates to globally significant levels in the event suitable sales contracts are negotiated.

Works Approval

First Graphite (ASX: FGR) is pleased to advise it is now moving towards the construction of a commercial graphene production facility, having been granted a Works Approval by

the Department of Environment Regulation (DER) for its facility at Henderson, Western Australia.

The Works Approval results from the submission of an extensive application to the DER. FGR’s independent laboratory testing demonstrated the controls to be used resulted in minimal

emissions with these being significantly below the levels set by the regulations. These approvals also account for the necessary occupational health and safety controls.

Information source

fgr, frg graphene, australia green, first graphite, graphite, graphene companies, asx asx news

Nickel Gains Most in Week on Signs Producers Are Cutting Output

2015-08-04T05:22:00.001-07:00

Nickel climbed, leading increases in industrial metals, amid signs the slump in prices is forcing some producers to curtail production.

Global nickel output is likely to fall as some producers hit a “pain threshold” on lower prices, Dan Lougher, chief executive officer of Western Areas Ltd., said in an interview on Tuesday. Standard Chartered Plc estimates as much as 65 percent of nickel production is unprofitable at current prices. Metals also rallied as China planned a bond program for construction stimulus, which may improve prospects for raw-material demand.

“I still expect a lift in nickel prices from this level going forward,” Casper Burgering, an analyst at ABN Amro Bank NV in Amsterdam, said by phone. “The second half should be better.”

Nickel for delivery in three months advanced 1.3 percent to $10,885 a metric ton by 12:31 p.m. on the London Metal Exchange after rising as much as 1.9 percent, the most since July 28. It’s down 28 percent in 2015 and is this year’s worst performer among the main industrial metals on the LME.

Copper rose for the first day in four after sliding to a six-year low on Monday. The metal is close to a bear market after falling 19 percent from a peak on May 5. Zinc climbed as much as 1.6 percent after orders to remove the metal from warehouses tracked by the LME surged 54 percent.
Bond Stimulus

China is planning at least 1 trillion yuan ($161 billion) in bonds, and potentially a multiple of that, to fund construction projects to address the struggling economy, according to people familiar with the matter. The bond program is taking shape amid fresh signs that growth is running at less than an official target of about 7 percent for this year.

“Prices have lifted for all base metals this morning quite steeply,” Burgering said. “It could be that the market is hoping for some economic stimulus.”

Metals have declined to the lowest since 2009 amid the commodity rout. Oil is in a bear market, while platinum sank 1.7 percent on Tuesday to a six-year low and palladium dropped to an October 2012 low. On the LME, tin and lead increased Tuesday, while aluminum was little changed.

MRL Heads of Agreement to Pursue Graphene Commercialisation Outcomes

2015-08-03T05:53:00.001-07:00

Heads of Agreement (“HoA”) signed with Imagine Intelligent Materials Pty Ltd (“IMAGINE”), an Australian graphene enhanced advanced materials solutions company.

The agreement will identify commercial applications for MRL’s graphite and graphene.

Access to graphene testing and characterisation through IMAGINE’s Certification Program

Collaboration with leading Australian universities with whom IMAGINE has existing relationships, for up-scaling of graphene testing and characterisation of graphene products.

Working with IMAGINE’s certified partners and customers pursuing a strategy to access the full spectrum of the graphene value chain through.

Following on from the ASX release of 13 May 2015, in which the Company disclosed that the University of Adelaide had achieved outstanding results on the recovery of graphene from MRL’s highgrade graphite ore, the directors are pleased to announce a significant step in the process to maximise the return on its Sri Lankan Graphite Projects.

The signing of the HoA between MRL and IMAGINE will give the Company access to a network of advanced manufacturing enterprises and scientific expertise that would not normally be available to a junior mining company. MRL’s graphite projects in Sri Lanka have very high grade vein ore.

The key challenge in the generation of commercially valuable graphene is the ability to produce consistent and replicable graphene functionalised to meet the requirements of industrial customers. IMAGINE brings knowledge of high volume market applications the understanding of solutions development processes and its own intellectual property.

The proposed Co-operative agreements between MRL and Imagine are intended to maximise revenue opportunities for both parties through develop premium price graphene solutions for high volume industrial markets.

#Graphene #Graphite #MRL #MRF #ASX #IMAGINE #GRAPHINESOLUTIONS

Buru Energy Looks to Brighter Future with Ungani

2015-07-31T01:36:00.001-07:00

Almost four years since it first made the discovery, Buru Energy, and partner Mitsubishi, officially opened the Ungani oil field 100km east of Broome today.

In what the company hopes will be the trigger in a change of fortunes after a tough 12-month period, Buru will produce of 1250 barrels of oil a day at the site with the aim rising to 3000.

Buru received production licences from the Department of Mines and Petroleum in May, following on from the green light it received from traditional owners in April.

However the collapsing oil price put a serious dent in its ambitions for a big-ticket exploration program in the largely untapped onshore Canning Basin, where Ungani sits.

Ungani has produced about 450,000 barrels during two extended production tests spanning two years, with oil trucked to Wyndham for export to refineries. Production flow rates have been capped at 1250 barrels a day.

Buru chairman Eric Streitberg said Ungani was the first oil development in the Canning Basin in over 30 years.

“There was no modern precedent for the development and it took perseverance and co-operation between all the parties to make the transition from a greenfields oil discovery to the current production system,” Mr Streitberg.

Buru and Mitsubushi Start Commercial Production at Ungani Oil Field

2015-07-20T20:15:00.001-07:00

The cash flow from Ungani marks the next chapter in Buru Energy's growth

Australian oil and gas firm Buru Energy and Japanese Mitsubishi have started commercial oil production at Ungani oilfield in the western parts of the country with the spudding of the Praslin-1 conventional well.

Praslin-1 is located at a 15km from the existing Ungani field and is in the Jackaroo 3D seismic data grid.

Ungani oilfield is a 50:50 joint venture between Buru Energy and Mitsubishi.

Initial production rate for Ungani oilfield is 1,250 barrels of oil per day (bopd). It is expected to be raised to 2,500bopd, and then to a further 3,000bopd within the year.

Buru Energy executive chairman Eric Streitberg said: "The cash flow from Ungani marks the next chapter in Buru Energy's growth.

"Combined with our strong cash position ($41.9m at 30 June 2015), we have the financial strength to fund our aggressive exploration programme and create further growth for shareholders.

"We have the strong support of government and traditional owners for our programmes and an extensive and diverse prospect portfolio to drill. This is a privileged position for a company of our size."

Facilities at the field have been upgraded, which are expected to boost its operations and productions while reduce its costs.

Buru and Mitsubishi intend to expand its hydrocarbon reserves through further explorations near the Ungani field.

The owners have signed a contract with Fuel Trans for cost-effective transportation of oil to the port of Wyndham

China's Revenge Serves Body Blows to BHP and Rio

2015-05-28T05:50:00.001-07:00

China's revenge serves body blows to BHP and Rio

It's taken six years, but China is slowly turning the tables on the heavyweight iron ore miners.

In 2009, iron ore giants BHP Billiton and Rio Tinto decided they wanted to take advantage of China's soaring demand for iron ore, which was pushing prices ever higher. So they ditched the 40-year old system of setting annual contract prices in favour of using spot pricing for the majority of their iron ore shipped to China from 2010.

Needless to say, China's steel mills weren't very happy about that. BHP's previous CEO Marius Kloppers is widely acknowledged as the man most responsible for bringing about the change. With BHP and Rio filling a huge amount of China's demand, the steelmakers had little choice but to acquiesce.

The changes, and China's thirst for iron ore, saw the iron ore price soar as high as US$191 per tonne in February 2011, from around US$60 per tonne in 2008. Rio Tinto produced record underlying earnings of US$15.5 billion in the 2011 financial year, with iron ore contributing US$12.9 billion. BHP, for its part, saw net profit rise 74 per cent to US$21.7 billion as revenues rose 36 per cent.

China may also still be sore over aluminium giant Chinalco's aborted US$19.5 billion investment in Rio Tinto back in 2010, which was aimed at gaining resource security. At the time, reports suggest Chinese officials feared that China was too vulnerable to both Rio and BHP, even separately. Rio's board canned the deal, and announced that it was instead forming an iron ore joint venture with BHP. That deal never went ahead – much to the relief of China.

The giant (re)awakens

But China has never forgotten, and appears unlikely to forgive. Now the sleeping giant has awakened, and looks set to turn the tables on Rio and BHP.

Firstly, China needed to loosen its dependence on the two Australian iron ore miners, so it has turned to Brazil's Vale. For many years Vale was snubbed by the Chinese. The iron ore giant had built a number of very large ore carriers to ship ore to China, but they have been banned from docking at Chinese ports since 2012.

Now, China hasn't just removed the restrictions but Vale has also sold 4 of the ore carriers to two of China's biggest shipping companies. Each carrier can transport up to 400,000 tonnes of iron ore, and could reduce Vale's production costs by as much as 25 per cent, according to some estimates. That would bring Vale's landed costs around the same as BHP and Rio's.

Vale also has a 25-year shipping agreement with China Cosco to transport iron ore from Brazil to China. China has gone another step further too, loaning Vale US$4 billion to help fund a US$16.5 billion project, known as S11D.

S11D is expected to produce 90 million tonnes of very high quality iron ore each year, taking Vale's production to 450 million tonnes of iron ore within the next few years.

In two moves, China has decreased its dependence on BHP and Rio, loosening their control over the iron ore market, and thanks to the increase supply of iron ore, achieved lower prices.

One last dance?

Fairfax Media reports today that Chinese-linked companies have applied to the Foreign Investment Review Board seeking permission for an investment with Australia's self-styled 'new force in iron ore' Fortescue Metals Group.

Fortescue, with its US$7.7 billion in net debt, could strengthen its balance sheet with a capital injection, either to pay down debt in return for an equity stake, or refinance existing debt at lower rates. The miner recently issued US$2.3 billion in senior secured notes, but is paying a whopping 9.75 pe cent interest rate, at a time when interest rates around the world are at record low levels.

Fortescue could struggle to repay its debt load if iron ore prices continue to trade at or under US$60 per tonne, with some estimates putting the miner's breakeven price around US$70 per tonne. The company may well be amenable to a deal with the Chinese, particularly after the recent kerfuffle over the iron ore inquiry that was going ahead, but was cancelled.

Australian Households Chase Sun to Lead World on Solar Adoption

2015-05-17T02:36:00.001-07:00

Australian Households Chase Sun to Lead World on Solar Adoption

Australian households are world leaders in solar power installation, according to new figures from Australia's peak industry body representing the fossil fuel and renewable energy sector.

The Energy Supply Association of Australia, representing the fossil fuel and renewable energy sector, has sourced data from around the world revealing household solar photovoltaic (PV) penetration in Australia is way out in front of any other nation.

The report shows almost 15 per cent of Australian households have adopted the technology to power their homes.

This is more than triple that of Germans, who are second on the world stage and typically thought of as the most prolific solar adopters.

The report breaks the data down to countries and jurisdictions illustrating where the world's most enthusiastic installers of small-scale solar energy are located.

"Germany, the US, Spain and others are held up as being at the forefront of solar power, but it is Australia, where households have taken it upon themselves to install solar PV, that easily lead the world when it comes to solar penetration," the ESAA report states.

The ACT had 15,637 household installations as of September last year, according to ActewAGL figures. Based on 2011 census data this put the ACT at about 10 per cent of households connected to solar – South Australia leads the way with almost 25 per cent of households connected to solar PV.

Although Australia leads the charge on small-scale installations, Germany is out front with utility-scale solar installations.

In terms of total solar energy produced per million people, Germany's capacity is about triple that of Australia's.

Australian Solar Council chief executive John Grimes said that was due to policies that had focused on domestic solar systems.

"The economics are compelling," Mr Grimes said. "The cost of the technology continues to fall at such a rate that it is already much cheaper to install solar than it is to buy electricity from the grid. And with the advent of cheap energy storage technology – battery technology – that really closes the loop.

"People like the Energy Supply Association and others should rightly be thinking about this. If they don't start to embrace the technology as opposed to resist it, their members companies – the big utilities – are set to become the Kodaks of the future."

See more at: http://australiasolar.blogspot.com.au/2015/05/australian-households-chase-sun-to-lead.html#sthash.248JT0Dp.dpuf

You Can't Have Solar Without Silver

2014-08-30T18:27:00.001-07:00

You Can't Have Solar Without Silver

With a history that dates back more than 5,000 years, silver has been an incredibly valuable metal through the ages. It was once used as a trading currency along the Asian spice routes and was even the standard for U.S. currency for a while.

However, the precious metal holds far more value than just as a currency. In fact, more than half of the world's silver is actually used for industrial purposes as it is used in X-rays, low-e windows, and even solar panels. As it turns out, even solar energy wouldn't work the same way if it wasn't for silver.

Making Solar Shine

Silver is a unique metal. It has the highest electrical and thermal conductivity of all metals, and it's the most reflective. These physical properties make it a highly valued industrial metal, especially when used in solar cells.

Silver is actually a primary ingredient in photovoltaic cells, and 90% of crystalline silicon photovoltaic cells, which are the most common solar cell, use a silver paste. What happens is that when sunlight hits the silicon cell it generates electrons.

The silver used in the cell works as a conductor to collect these electrons in order to form a useful electric current. The silver then transports the electricity out of the cell so it can be used. Further, the conductive nature of silver enhances the reflection of the sunlight to improve the energy that's collected. Therefore, if it wasn't for silver solar wouldn't be as efficient in turning sunlight into energy.

Shining a Light on Silver in Solar

The average solar panel actually uses about two-thirds of an ounce of silver, which is about 20 grams. That might not sound like a lot, but at around $20 an ounce it contributes more to the cost of solar than it does to the other industrial products that use silver. For example, a laptop only contains 750 milligrams to 1.25 grams of silver while a cell phone contains just 200-300 milligrams of silver, so silver is a tiny fraction of the cost of those devices.

Overall, the solar industry uses about 5% of the world's annual silver supply, or an estimated 52.4 million ounces. However, as demand for solar increases, especially in China, the demand for silver used in solar could double. Because of this it is estimated that by next year the solar industry will use 100 million ounces of silver.

Because of the volatility in the price of solar, panel makers are working on using less of it on each panel. Still, the overall increase in demand for new solar panels is what's driving the demand silver used by the solar industry.

This increased demand for silver could have a real impact on the solar marketplace in the years to come as solar could push up the price of silver. So, should silver prices surge it could have an impact on the production costs of solar panels, which would then impact the economics of the solar industry.

Final Thoughts

Silver is a precious metal to the solar industry. Because of this any future spike in the price of silver could hold back the growth of the industry.

It's a trend to keep an eye on as surging silver prices could dim the prospects of the solar industry in the future because it's becoming such a large consumer of the precious metal.

A New Adaptive Material Could Halve the Cost of Solar Power

2014-07-30T22:27:00.001-07:00

Solar power is one of the most reliable forms of renewable power-but it's still expensive. Now, a team has developed a smart, adaptive material that could slash the its cost in half.

Developed by start-up Glint Photonics, the new material has optical properties that can change to help it capture as much light as possible. Currently, large-scale solar plants have to use tracking technology to ensure that their cells maximize their exposure to sunlight; this new material changes its reflectivity in response to heat from concentrated light to capture light across a wide range of angles.

The new technology is a kind of coating for use in a solar cell which focuses light into a piece of glass. An array of thin lenses concentrate sunlight across a broad range of angles, before it's passed to a glass sheet, coated on both sides with reflective coating. The front coating, however, is made of the new material, and Technology Review explains how it works:

When a beam of concentrated light from the array of lenses hits the material, it heats up part of it, causing that part to stop being reflective, which in turn allows light to enter the glass sheet. The material remains reflective everywhere else, helping to trap that light inside the glass-and the light bounces around until it reaches the thin edge of the glass, where a small solar cell is mounted to generate electricity.

As the day wears on, the lenses throw the light-captured across a broad range of incident angles, remember-onto a different spot on the glass sheet, always allowing light in only where the beam of light falls. In turn, it reduces the need to keep the device pointed directly at the sun. Glint Photonics claims that the technology could produce solar power at a cost of four cents per kilowatt-hour, compared to eight cents per kilowatt-hour for normal solar panels.

The technology is still a proof of concept-its efficiencies still need to be upped, and the whole thing need to be scaled to work at commercial volumes-but it's a very promising development.

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Solar Australia: Australia's 'Vast' Solar Resources Closer to Being Tapped In a Big Way

2014-07-30T20:26:00.001-07:00

Australia’s largest solar plant moves one step closer to completion with the first of 1.35 million solar photovoltaic (PV) modules being installed on Wednesday at AGL’s Nyngan Solar plant in central NSW.

Located on a 250-hectare site about 550 km north-west of Sydney, the $290 million plant will have a capacity of 102 megawatts, or enough to power about 33,000 homes.

The plant is expected to be completed by next July and generate an estimated $137 million for the regional economy over its 30-year life span, said Scott Thomas, AGL’s general manager power development.

“AGL has already invested over $3 billion in renewable energy generation in Australia and with projects like the Nyngan Solar Plant, (it) is increasing the proportion of zero-carbon emission generation in the National Electricity Market,” Mr Thomas said.

The Baird government has lately stepped up public support for the renewable energy industry, placing it at odds with Coalition counterparts at the state and federal level.

Last week, Environment Minister Rob Stokes called for NSW to be “Australia’s answer to California” in promoting solar and wind energy, and also backed leaving the national renewable energy target – now being reviewed for a possible cut by an Abbott-government appointed panel – at current settings.

AGL’s Nyngan plant and a sister 53-megawatt solar project in Broken Hill will cost about $440 million to build, including $166.7 million in grants from the Australian Renewable Energy Agency (ARENA) and $64.9 million from NSW coffers.

For Nyngan alone, the cost will be $290 million, with ARENA’s funds totalling $116.1 million and $43.3 million from NSW.

“The NSW government’s support for this project has been vital and a very important role in the widespread development of utility scale solar across NSW and across Australia,” Leslie Williams, Parliamentary Secretary for Renewable Energy, said.

“NSW has vast solar resources and has long been a standout leader in photovoltaic research,” Ms Williams said. “We are now taking the next step and becoming a standout leader in renewable energy development.”

Laid out end to end, Nyngan’s PV panels would stretch about 1600 km, or roughly the distance from Sydney to Melbourne and back.

The twin solar plants may be among the last large-scale renewable plants to be developed for some time as on-going investor concern about the future of the Renewable Energy Target (RET) has all but frozen new spending in the sector in Australia.

Just $40 million was invested in the first half of 2014 – the lowest since 2001 – and a fraction of the almost $2.7 billion poured into large-scale renewable energy in 2013, Bloomberg New Energy Finance reported earlier this month.

Small-scale renewable energy has seen a less precipitous decline although cuts in feed-in tariffs and other support have seen PV installations slide from 60,114 systems in the first quarter of 2013 to 45,369 in the three months to June 2014, according to the Australian Solar Council.

Solar Incentives Slashed Under New Rules

2012-09-10T16:30:00.001-07:00

The Baillieu government has cut incentives for rooftop solar panels for next year as part of a shake-up of how small-scale renewable energy is priced in the state.

The changes reduce the Victorian feed-in-tariff for solar to eight cents for each kilowatt hour fed into the grid in 2013 - down from the existing rate of 25 cents - and fulfils recommendations by the state's competition advisory body.

The changes will not affect customers with existing contracts and tariff rates. Households that have paperwork lodged by September 30 with electricity suppliers can also still get access to the existing 25-cent tariff.

A review released today by the Victorian Competition and Efficiency Commission recommends a six-to-eight cents a kilowatt hour tariff be put in place, with the government accepting the top end of that range for 2013.

The tariff will then be adjusted by the government each year in 2014, 2015 and 2016 based on the wholesale electricity price, before moving to a fully floating market price in 2017.

The tariff scheme will also be opened to other forms of renewable energy systems generating 100 kilowatts or less.

The changes fall short of calls by the renewable energy industry that a fair rate of tariff for solar was 12 to 16 cents per kilowatt-hour.

Announcing the changes this afternoon, Energy Minister Michael O'Brien said the falling costs of solar panel systems and rising power prices meant households were taking up solar without the need for over-generous subsidies from other power users.

He said an older 60-cents per kilowatt-hour tariff — closed by the Baillieu government last year — would cost Victorian households $41 million a year to 2024 through electricity bills in subsidies to homes with solar panels.

"People in public housing, tenants who cannot access solar, are paying higher electricity bills in order to subsidise the rooftop solar for other people. Now that wasn't sustainable at those rates, they were over generous," Mr O'Brien said.

Labor's energy spokeswoman, Lily D'Ambrosio, criticised the decision, saying thousands of Victorian families were installing solar panels to reduce their power bills amid increasing cost-of-living pressures.

''The Baillieu government has again shown it just doesn’t care about supporting families who want to reduce their energy costs while also doing their bit for the environment,'' she said.

Thirty Hunter Jobs at XStrata Lost As Miner Wields Axe

2012-09-10T06:25:00.001-07:00

Thirty Hunter Jobs at XStrata Lost As Miner Wields Axe

ABOUT 30 Hunter Valley coal miners face the axe after Xstrata announced plans yesterday to slash 600 jobs in NSW and Queensland in response to low coal prices, high production costs and the strong Australian dollar.

Union officials in the Hunter Valley said the mining giant intended to shed about 15 frontline jobs at its Ravensworth underground mine with a similar number expected to go at its Ulan underground mine, north of Mudgee.

Construction, Forestry, Mining and Energy Union NSW northern district president Peter Jordan said members were told both mines would be scaled back from seven-day-a-week operations to five. He said delegates were "optimistic" affected staff could be re-deployed within Xstrata or managed through voluntary redundancies.

But he said there was no indication how many of the hundreds of contractors - who work at about a dozen of Xstrata's sites across the Hunter and the rest of NSW - would be impacted after the company said cuts would include both permanent staff and contractors.

BHP has also announced 300 jobs will go with the closure of its Gregory open cut at Emerald in Queensland.

"Xstrata Coal is undertaking a planned restructuring to respond to industry-wide pressures including low coal prices, high input costs and a strong Australian dollar against the US dollar. Following this review, and in keeping with the cost savings objectives announced at our half-year earnings, we will be reducing our employee numbers by approximately 600," Xstrata said.

Xstrata said cuts would also come from its corporate headquarters in Sydney and consolidating its office-based operations in Queensland.

"We do not expect a material impact on Australian production volumes," the company said.
However it confirmed growth projects at Ravens- worth North, Ulan West and its expansion at Rolleston were "proceeding"..

Mr O'Farrell said the loss of Xstrata jobs was "a body blow".

"It reflects not only national economic conditions, but it reflects a higher Australian dollar, lower prices for resources, and both are dictated by international conditions" he said.

Fotowatio Plans to Build Australia’s Largest Solar-Power Project

2012-09-05T05:21:00.001-07:00

Fotowatio Renewable Ventures, the solar-power plant developer backed by U.S. energy investor Denham Capital Management LP, won the right to build a 20-megawatt project near Australia’s capital.

Fotowatio will participate in the Australian Capital Territory’s feed-in tariff program, which rewards generators of solar power by paying above-market prices for the electricity, Simon Corbell, ACT minister for the environment and sustainable development, said today in a statement.

The Royalla solar farm, to be built about 25 kilometers (16 miles) south of Canberra, will become the largest in Australia by 2014, according to the statement. The venture will help in an effort to lower carbon emissions and shift away from fossil fuels, the ACT government said.

Fotowatio, which is based in the Netherlands, sought a new project in Australia after losing a competition earlier this year for federal government funds to build a large-scale solar plant in New South Wales state. Denham Capital in March reached an agreement with Fotowatio to invest $190 million in solar projects in markets including Australia.

Energy Build Costs in Australia Very Worrisome, Says Shell

2012-09-02T17:33:00.001-07:00

A SENIOR Royal Dutch Shell executive said today the cost of building energy projects in Australia is becoming "very worrisome" as the European oil giant prepares to decide whether it will spend billions more dollars in the resource-rich nation.

Shell has already committed almost $US30 billion to Australian gas-export projects being built over the next five years. The company's Australian head, Ann Pickard, said the figure is poised to become $US50 billion if final decisions are made on other projects that Shell has on the drawing board.

"So the costs have to stay competitive," Ms Pickard told a conference.

Australia is central to the growth plans of many big oil companies including Shell and Chevron as they attempt to meet intensifying demand for cleaner-burning fuels from fuel-strapped Asian nations such as Japan and rapidly industrialising countries such as China. Natural gas has overtaken oil to count for 51 per cent of Shell's total fossil fuel output.

Australia's vast natural gas reserves, political stability and proximity to Asia make it an attractive place to invest. Over $US175 billion worth of gas-export projects under construction on its coastline stand to catapult the country above Qatar as the world's biggest liquefied natural gas, or LNG, exporter by the end of the decade. LNG is natural gas chilled to liquid and exported by sea.

The industry here though faces challenges. A lack of skilled labour combined with a surge in development activity that's also occurring in the country's booming mining sector has squeezed labour supplies and made Australia one of the most expensive places in the world to produce LNG. And a soaring Australian dollar is making locally-based skills and equipment more expensive for foreign-based companies.

Such cost pressures are building at a time when companies mull whether to start exporting LNG to Asia from North America and East Africa, potentially increasing competition for Australian projects, particularly those not currently under construction.

Shell hasn't yet made a final decision on whether to proceed with a massive LNG venture in Queensland with PetroChina that will attempt to chill gas trapped in coal seams for export. And although Shell's just increased its shareholding in the Browse LNG development in Western Australia, an investment decision on that project isn't expected until next year.

"I'm hoping we can get some more projects going but the costs here are getting to be very worrisome," Ms Pickard told reporters.

Shell is hoping it can source workers more easily and more cheaply by timing a final investment decision on its Queensland LNG joint venture a few years after three rival developments there. Still, Ms Pickard said it's possible Shell could process its gas through a rival LNG plant in Queensland rather than build its own plant.

"That's certainly an option. But the intent of PetroChina and Shell, of course, it to continue with our own project," she said.

As for Browse, joint venture partners including Woodside Petroleum Ltd. (WPL.AU) are spending over $US1 billion investigating the commercial viability of piping the gas to a new LNG plant in the environmentally sensitive Kimberley region.

Shell's decision this week to almost triple its stake in the project by taking Chevron's 17.5 per cent interest has fanned speculating the resource could be processed on a floating LNG, or FLNG, vessel instead. A pioneer of FLNG technology, Shell is targeting first production from the world's first FLNG vessel from its Prelude field, located near Browse, in 2016.

"We'll take the cost estimates and see if we've got a commercial project in the Kimberley or not. Then, obviously in consultation with the government, we'll make a decision on whether we'll go forward in the Kimberley or look at other alternatives," Ms Pickard said.

Clean Energy With a Pinch of salt

2012-09-01T21:58:00.001-07:00

A sodium-ion battery being developed in Australia is set to increase solar energy use and reduce our dependence on fossil fuels, according to researchers.

Although bulkier than commonly used lithium batteries, sodium-ion batteries will be cheaper, less toxic, and more environmentally friendly, said Manickam Minakshi, a chemistry and mineral scientist at Murdoch University, in Perth Australia.

“Our water-based sodium-ion battery has shown excellent potential for affordable, low-temperature storage,” he said.

Better batteries

Other batteries used for renewable energy storage – such as molten salt or molten sulphur – only work at high temperatures, making them expensive and impractical. Also, like lead-acid batteries, they are very corrosive and environmental pollutants, which aren't problems with sodium-ion batteries, said Minakshi.

The Murdoch team is now moving towards large-scale commercialisation, and the future could see these batteries connected to solar panels in every home. “This is a very exciting time,” said Minakshi.
The new sodium-ion battery has particular potential when coupled with the green power of solar energy. Widespread use of power from solar panels is limited because there are periods known as ‘non-generation’ times, when power cannot be produced. These include, for example, overcast weather or night-times.

Power in the dark

“Using solar energy panels to get power will only make sense when you can store the power when the Sun’s not shining,” said Stephen Thurgate, vice-president of program development partnerships at Sydney’s Macquarie University.

Murdoch’s new sodium-ion batteries could have applications in small networks with their own battery systems or ‘smart grids’ that use information and communication technology to reduce dependence on centralised power stations, said Thurgate.

While commonly used rechargeable lithium batteries have a higher voltage, making them more suitable for transport and vehicular power sources, they come with a lot of issues, said Minakshi.

Sodium: cheap and abundant

Lithium, for example, is more expensive and far less abundant than sodium in the Earth’s crust.
Another advantage of sodium-ion batteries is that they have a higher density, meaning they are able to store more energy for their weight. Combined with their low costs, they could open up affordable green energy to the developing world.

Lithium and sodium share similar chemical properties, but the sodium ion is 2.5 times the size of lithium, and a big challenge for the Murdoch researchers was finding a ‘host material’ for these large ions.

“Ions travel out of the cathode and into the anode to form a current,” said Minakshi. “As an imperfect analogy, you can think of them as mesh filters that ions pass through. We had to find materials with larger gaps in their mesh.”

Paving a path for alternative energy technology

Murdoch’s new development doesn’t spell the death of the lithium battery, which is still ideal for transportation because of its lighter weight, said Danielle Meyrick, deputy dean of the School of Chemical and Mathematical Sciences. “Sodium is slightly heavier and is much more suitable for stationary energy storage applications [such as] industry,” she said.

The sodium-ion technology could also enable the use of renewable energy in households, moving away from traditional energy generation sources.

“This kind of battery facilitates security of supply and continuity of electricity supply to households," said Meyrick. “It facilitates storage in times when there’s no sunlight, when there’s no wind, [and] when there’s no snow.”

Although there is more research to be done on finding the optimum scale of the battery and cell size, Thurgate said the findings were promising.

“The fact that [sodium-ion batteries are] based on readily available materials, that it’s an aqueous solvent [water-based] – so there’s no fear of the thing being flammable – [and] the fact the energy density is very high... are all great,” she said.

Strong on Solar: Australia Eyes CSP Leadership

2012-08-30T05:07:00.001-07:00

A move into concentrating solar thermal power (CSP) could not only drive Australia's de-carbonization but establish a global technology lead, says a new analysis from the Australia Solar Institute.

Solar Dawn, as its name suggests, is a CSP project with aspirations as a catalyst. Based near Chinchilla — "Australia's melon capital" — in rural Queensland, at 250 MW, if completed its impact would be felt worldwide.

"Hugely significant for the industry" is how Dr. Keith Lovegrove of IT Power Australia describes the A$1.2 billion (US$1.2 billion) initiative. The scheme is backed by Australia's federal Solar Flagships Programme and the consortium behind Solar Dawn has dubbed it "the largest solar project in the Southern Hemisphere".

But, while Solar Dawn could bring up the sun for Australian CSP with a jolt, its chances of seeing daylight are fading. On 1 July 2012, the scheme missed an extended deadline for funding. The state of Queensland promptly withdrew its support, leaving a A$75 million (US$79 million) hole. "None of us knows what's happening," says Lovegrove.

But he would deny that Australian CSP's prospects are also dimming. Spectacular daybreak may look off the cards, but several glimmers of light are showing.

For a start, less ambitious CSP projects remain on track. Just down the road from the proposed site for Solar Dawn, the 44 MW Kogan Creek Solar Boost is now under construction. On completion, the hybrid plant will feed additional solar generated steam to the existing 750 MW coal-fired Kogan Creek Power Station.

In strategic terms, CSP's fit for Australia's meteorology, economy and climate objectives is also arguably as snug as a lifeguard's Speedos. In the recent report Realising the Potential of Solar Power in Australia, a team led by Lovegrove floats the idea of CSP providing up to 15 GW in "the near-to-mid-term".

Without a radical overhaul of its grid, Australia could have 2 GW in CSP by 2020 and 10 GW by 2030, according to the report's roadmap. In the longer term, the technology could meet half of the country's energy needs by 2050.

Letting the sunshine in

Blistering sunshine obviously figures in Australia's appeal for CSP. As a technology, concentrating solar thermal requires "excellent direct normal insolation from the sun, mostly met in the 15° to 35° latitude bands," in the words of the International Energy Agency.

But top solar locations are, almost by definition, a poor match with existing distribution and transmission infrastructure. Australian networks have developed to transmit electricity from large central generators near coal, gas or hydro resources. Electricity from CSP would need to flow over long distances in different directions.

To see precisely how well CSP could map onto solar resources and existing systems, Lovegrove's team examined the potential of various types of CSP, both off-grid and grid connected. The study concluded that 15 GW of CSP capacity could be achieved with "only modest grid extensions". Initial installations could cover hybrid systems at existing fossil-fuel plants and smaller off-grid plants for mines and towns. Further down the line, "nation-building" grid extensions could unlock more substantial solar resources.

Of this 15 GW potential, 8 GW would be high-capacity standalone plants with enough thermal storage to justify fairly modest grid extensions. Another 2 GW would be hybrid plants delivering steam to established coal-fired plants, while 3-4 GW would be standalone plants with capacities of 50-150 MW linked to existing grids. Medium-scale grid-connected and off-grid plants are also seen as likely to take off, although totalling less 1 GW of capacity.

Cleaning the energy mix

In any case, the hurdles to adding CSP capacity to Australia's grids could be overshadowed by the risks of sticking with fossil fuel. By coincidence, Solar Dawn's recent thunderclap broke amid a political storm over an attempted overhaul of the energy mix.

Also on 1 July, 2012, Prime Minister Julia Gillard's flagship Carbon Price came into force. From now on, the country's 294 top polluters must pay A$23 (US$24) for each tonne of carbon emitted, although the price is expected to ease from 2015. A glance at Australia's current energy mix reveals why the law's proposers were willing to brave fierce public opposition. Australia's 50 GW of installed capacity is among the world's dirtiest, with coal providing three quarters of electricity. In per-capita carbon emissions, Australia is the developed world's number one.

The new law - labelled the Carbon Tax by its many opponents - is aimed at cutting carbon emissions from 2000 levels by 5 per cent by 2020 and by 80 per cent by 2050. While renewables take on a larger slice of energy mix, a closure program for heavily polluting coal fired plants should help speed Australia down the league of top polluters.

In any cleaner generation future, solar power offers two advantages over other renewables. An analysis of electricity prices within a recent report for ASI by ROAM Consulting, Solar Generation Australian Market Monitoring, found that solar should prosper because its hours of peak generation coincide with peak demand. But CSP holds another ace in its ability to meet peak and baseload demand through storage.

Storing up baseload capacity

For now, in fact, concentrating photovoltaic (CPV) technology is making similar headway to CSP in Australia. Construction is underway on Solar Systems' 2 MW Mildura Solar pilot plant, where a 100 MW facility will be built if the demonstration project prospers. Yet basic economics could still favour solar thermal technology. "CSP without storage is twice as expensive as large-scale PV," says Lovegrove. "Why bother? The real reason is storage."

CSP technologies can feature thermal storage units. As heat can be stored far more efficiently than electricity, these plants open up a rare opportunity for renewables to provide baseload and peaking power. The value of CSP's capacity to meet demand could also rise over time. A future energy mix with more intermittent renewables such as wind would put a high premium on energy storage.

What's more, the ability to effectively time shift solar generation would also protect CSP revenues once more solar power comes on line, with additional PV capacity creating a bulge in daytime generation that would be expected to curb prices, cutting its premium. "Anything fixed in time of dispatch can cause a fall in pricing," says Lovegrove. "Storage means you can adapt to the new peak."

The "strategic" case for CSP

In addition, the ASI sees a strategic case for investing in CSP. "It suits Australia because we're sunny and have experience in power stations," says Lovegrove.

Solar Dawn would provide a showcase for home-grown compact linear Fresnel collector (CLFC) technology already in place at the coal-fired Liddell Power station and being installed at the Kogan Solar Boost. Areva Solar, which is driving both the Solar Dawn and Solar Boost projects, was formed by the purchase of Ausra Solar, a firm that originated in Sydney in 2002.

A lull in global CSP activity could also let Australia make its mark. "Nothing that Australia can do will affect the photovoltaic industry - which is now taken up by China - but one of our conclusions is that CSP offers an opportunity in a technology area that suits Australia," says Lovegrove.

In fact, rather than a crowded field, Australian CSP could emerge into a void. After driving the industry for many years, Spain's commitment to CSP could waver amid its on-going financial crisis. In the US, federal backing for CSP now looks uncertain. Increasingly, the industry is looking to India, where the Jawaharlal Nehru National Solar Mission aims for 20 GW of CSP and PV by 2022, as well as Middle East and North African states.

The prospects for Australian CSP technology in new markets such as India are buoyed by Areva's recent contract to set up two 125 MW CSP plants in Rajasthan. Areva will provide construction management services for the project, scheduled for commercial operation by May 2013.

CSP still too pricey

But one drawback outweighs the host of benefits that CSP could bring. ASI's report pegs the levelised cost of energy (LCOE) for utility-scale solar thermal at about A$250 (US$261)/MWh. Meanwhile, the maximum revenue in main grid-connected markets currently totals about A$120 (US$125)/MWh, including renewable certificates.

In fairness, the gap between CSP and fossil fuel is not as unbridgeable as these figures suggest. A complex study of potential revenue suggests CSP's ability to meet baseload and peak demand through being dispatchable doubles the value of its production. This "time value" means CST would have earned A$87 (US$91)/MWh over 2005-2010 while wholesale prices averaged only A$42 (US$44)/MWh.
But ASI Executive Director Mark Twidell identifies the gap between revenues on the market and the cost of technology as it moves from demonstration to commercialisation as "the critical issue facing CSP technologies".

"There is a range of market and policy drivers that will impact on the widespread, large-scale deployment of CSP but ultimately it is about bringing down cost and closing the cost-revenue gap, which is the responsibility of industry, government and the research sector," he says. An added challenge for CSP is the impact of Australia's commodity boom, which has pushed up the price of construction in the areas where new plants would go up.

Getting to the right price

The study projects that CSP will be competitive with Australia's grid at some point between 2018 and 2030. "There is a 90 per cent probability it will fall within that range," says Lovegrove. Rising demand and falling CSP capital costs would both drive this transformation. While real energy values are forecast to rise by between 1 per cent and 3 per cent per year, capital costs are predicted to drop by between 20 per cent and 50 per cent by 2020.

"CSP is right at the top of the cost curve," says Lovegrove. His optimism rests on the likely trajectory of global deployment as well as a SunShot Vision Study in the U.S., which found "heaps of opportunity to reduce the costs of various elements". In his view, the industry can reasonably expect costs to fall in line with those in the wind industry, giving a progress ratio (PR) of 0.8 or 0.9 with each doubling of installed capacity.

That said, the ASI hardly expects CSP to take off in Australia entirely on its own merits. The purpose of Realising the Potential of Solar Power in Australia is rather to alert authorities to the wider benefits of CSP so these can be rewarded.

A call for new policies

For now, wholesale electricity markets largely determine CSP plants' revenues, with renewable energy certificates adding about A$30-40 (US$31-41)/MWh. But Lovegrove argues plants' income should also reflect their specific advantages for networks.

As CSP plants are likely to be in rural or relatively remote locations, they could reduce high line losses. Installations could also earn additional revenues through reducing network costs by providing reliable generation at the end of near-capacity lines. Capacity value - the extent to which CSP can cut investment in other dispatchable systems - provides a further case for enhanced revenues. In addition, rising capacity of fluctuating renewables such as wind and solar PV could raise the value of ancillary services for balancing the grid, which CSP with storage is equipped to provide.
The ASI report advocates such technology-neutral incentives as one element in a four-pronged approach. Second, Lovegrove and his team suggest the sector aim to better communicate its value proposition to key organizations, retailers and financiers. They also call for "CSP-solar precincts" in areas of high solar resource, where connections for CSP would be provided to cut development costs. Finally, the report recommends a push in R&D to reduce costs and build confidence. Key areas where Australia could focus include deployments of less than 50 MW, fossil-fuelled hybridisation and advanced cooling technologies suited to water supply constraints.

Getting the message across

But will Australia's authorities heed the ASI's call? That may hinge on the next federal election, due by the end of 2013. The opposition led by the Liberal Party's Tony Abbott looks set to romp home. Which could be ominous for all renewables. Abbott has made a "pledge in blood" to repeal the Carbon Price. But Mark Twidell prefers to stress elements of consensus. "The independent Australian Renewable Energy Agency (ARENA), which has bipartisan support and funding legislated through to 2020, will make investments to develop renewable energy technologies and to help lower their costs, including meritorious CSP projects."

In his view, there is even hope for Solar Dawn. "The Australian government remains committed to the deployment of large-scale solar," he says.

Lovegrove seems more willing to acknowledges headwinds. "It's such an uncertain environment. If you ask most the key stakeholders, what they'd really like is some certainty, so that they can start planning. It's incredibly tricky to see what will happen." While "very, very optimistic" about the sector's global outlook, he is less sanguine about its future in his homeland.

"Whether Australia manages to shoot itself in the foot or not remains to be seen,' he says. On the upside, he sees potential for Australia to 'relatively easily" take a leadership role to become "a major, major player".

But he admits that CSP's advocates have a complex message to get across."Everybody loves renewables in a motherhood sort of way, but very few people have cottoned onto the importance of matching demand throughout the day," he says.

Carbon Tax Not Yet ‘Catastrophic’: Abbott

2012-08-27T00:51:00.001-07:00

Opposition Leader Tony Abbott has conceded the introduction of the carbon tax has not immediately been “catastrophic”.

But he is adamant its long-term effects will eventually spell disaster for Australia’s economy.
Speaking at the Tasmanian state council of the Liberal Party, Mr Abbott restated his promise to abolish the controversial tax if he is elected prime minister at the election due next year.

“Yes, the initial impact of the carbon tax may not be absolutely catastrophic,” he told the council conference.

“But I ask you Tasmanians to understand the logic - if there is any - in a five-and-a-half per cent increase in your power prices because of the carbon tax, even though some 85 per cent of your electricity is hydro-generated.”

Mr Abbott said government modelling of the tax’s impact painted a dire picture for Australia’s future.

“I’m often accused of running a scare campaign about the carbon tax,” he said.
“I invite people who think I could be exaggerating the impact of the carbon tax to look at the government’s own modelling.”

He said it showed Australians would on average be $5000 worse off by 2050 and the country would miss out on $1 trillion.

“It’s as if our country were to shut down for a whole year because of the carbon tax,” he said.
“This is an unmitigated economic disaster for our country.”

Mr Abbott announced he had formed a working group of Liberal senators to examine how the struggling Tasmanian economy can be grown.

Australians Led The World in Home Solar Installs in 2011

2012-08-20T05:46:00.001-07:00

Australian households installed more residential rooftop solar power systems last year than any other nation.

Approximately 392,500 new home solar systems were activated in 2011 according to data from the Clean Energy Regulator and the International Energy Agency.

A fact sheet released by REC Agents Association (RAA) based on data from the Clean Energy Regulator states Australians had installed nearly 1.5 million solar hot water and solar panel systems to the end of June.

As at 30 June, 2012, renewable energy certificates had been created for 753,844 solar panel systems; representing 1,671,489 kW capacity. A further 743,842 heat pump and solar hot water systems had been installed.

Close to 18 per cent of all Australian families now has one or the other or both installed – 9 per cent of households have solar electricity generation systems.

“Recognition must go to the Howard Government for having the vision to establish a world leading Renewable Energy Target, to the Rudd Government for increasing that target four-fold and to the Gillard Government for delivering on the promise of the Renewable Energy Target,” says Ric Brazzale, President of RAA.

“Whilst four million Australians now have solar on their roofs, many more Australians are keen to get on board. The Renewable Energy Target must be maintained, expanded and extended over time to help deliver solar to all Australians.”

Some corners of industry have called for the scrapping of the Renewable Energy Target due to the introduction of a carbon price. However, last month, Australia’s Minister for Climate Change and Energy Efficiency Greg Combet stated this would “fail to deliver the transformation needed in our energy sector and only increase the cost of that transformation in later years.”

REC Agents Association represents businesses creating and trading inRenewable Energy Certificates (RECs); the mechanism behind Australia’s Renewable Energy Target and the basis of the Solar Credits Scheme. Often referred to as a solar rebate, Solar Credits is an initiative that subsidises solar panel systems.

Low Income earners Burnt As Cost Of Solar Subsidy Spirals

2012-08-06T17:15:00.001-07:00

RENTERS, pensioners and other low-income earners are paying for their wealthier neighbours to enjoy cheaper power under the state's skyrocketing solar subsidy system.

The Queensland Consumers Association says costs to subsidise solar are forecast to triple, as the state's bill to fund the scheme continues to grow.

More than 100,000 applications were received last month from homeowners wanting to profit from the state's generous 44c per kilowatt hour tariff - twice the retail power rate - which will continue for 16 years.

By installing solar systems up to 5kW, the mostly well-heeled applicants stand to earn $200-$300 a quarter from a subsidy that is costing their non-solar neighbours more each year.

One of those who applied was Algester resident Ron Ruys, who feels badly for his neighbours who are indirectly helping to pay for a $10,000 5kW system that will earn him extra income.

"I'm going to do it and I'm going to make money out of it," he said. "But it is unfair to other people because of the subsidy. I don't think people know what the 44c means to their bill."

Energy Minister Mark McArdle has estimated the tariff would cost $1.8 billion by 2028 if the scheme remained unchanged. The July 9 deadline limiting future payments at an 8c cent rate.

The Government projects that the annual cost of the subsidy will rise from $50 to $100 for each household from the surge in applications, and another $50 for upgrades to the power grid.

Whether the increases will become a reality depends on whether the Government is successful in cutting expenses elsewhere in the budgets of power suppliers, including "community services".

Queensland Consumers Association vice-president Ian Jarratt said the threat of a $100 annual hike should be a concern for many people trying to stretch their income.

"A dollar is always more for a pensioner," he said.

The association said it voiced concerns about the scheme's cost several years ago to state officials. "Things had been done far too quickly and not thought through enough, especially about the cost to consumers who could not afford to install solar systems," Mr Jarratt said.

The solar scheme has had some benefits: creating employment for thousands of installers, reducing the state's dependence on coal and lowering carbon emissions.

Prices of home solar systems have dropped 50 per cent.

Installer numbers have increased from 78 in 2008 to more than 1100 today. The number of customers has increased from 1200 to around 180,000.

On the downside, "all Queensland households and small businesses indirectly foot the bill", Mr McArdle said.

The Government said it was obliged by legislation to continue the 44c tariff for the next 16 years, and risked lawsuits if it reneged.

PM Julia Gillard Blames Electricity Bill Shock on The States

2012-08-06T17:04:00.000-07:00

PRIME Minister Julia Gillard will launch an attack on the states today over soaring power prices, barely a month after her own price-inflating carbon tax began.

And she will use the latest figures to back up her argument - which show household power bills have increased by a staggering 62.4 per cent in South Australia over the past four years, adding $1086 in expenses to the average bill before the carbon price even kicked in.

That equals the second highest jump along with Western Australia, but is less than the 69.2 per cent hike in New South Wales since 2008-09.

Ms Gillard will say the burden on households from her carbon price will add a comparatively small $115 to that pain this financial year.

In a bold square-up to state governments who she says have too often benefited from revenue increases from electricity prices, she will claim the states are doing very well out of the misery of households and declare it simply cannot continue.

"Power bills have become the new petrol prices: not just an essential of life that always seems to be going up, but a vital commodity, where what we consume each day, or pay every quarter, seems far beyond our control," she will say in the address to the Energy Policy Institute of Australia.

"Prices have gone up - have gone up far and fast."
Government figures show the conservative-run states of NSW, Queensland and WA, where network services remain state-owned, have experienced windfall gains in revenue including 60 per cent growth for NSW, 16 per cent for Queensland, and almost 200 per cent growth for WA since 2009-10.

"Following the recent round of price increases, revenue for enterprises wholly owned by State Governments is up 50 per cent over the previous five-year period," she will say.

"This was in a period when revenue for the rest of the market players grew less than 30 per cent ... for too long, some state governments have been increasing their revenue at the expense of the family electricity bill - that has to stop.

Plugging in will cost up to 70 per cent more in NSW this winter. In Victoria it will cost just 10 per cent extra. Picture: Herald Sun

"Australia did not need nearly 50 per cent price increases for households over the last four years and Australians can't afford the same kinds of increases over the next four years.
"It's a huge cost to our economy and it's a threat to fairness in our society."

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Solar Panel Firms ‘Mislead' Over Carbon

2012-07-07T03:42:00.001-07:00

Two solar panel companies have been found to have made misleading comments about the impact of the carbon tax on electricity prices.

POLARIS Solar and ACT Renewable Energy said in leaflets distributed in Western Australia and the ACT in late 2011 and early 2012 that customers should buy solar panels because electricity prices would increase by 20 per cent due to the carbon price.

The brochures also claimed the cost of power would rise by more than 400 per cent by 2019.
The Australian Competition and Consumer Commission found the information was "clearly misleading".

While the brochures said the figures were based on independent studies, they were in fact based on unverified claims in an energy industry association ad.

"There was no reasonable basis for these claims to be made," ACCC acting chairman Michael Schaper said in a statement.

Polaris Solar and ACT Renewable Energy gave an undertaking on Tuesday not to engage in similar conduct in the future and ensure all directors are trained in consumer law.

Assistant Treasurer David Bradbury said it was an important reminder to businesses they could not make false claims about the carbon price.

"This also underscores the fact that the reckless and negative scare campaign run by Tony Abbott and vested interests is putting businesses at risk of breaking the law," Mr Bradbury said.

Subsidy Cut Halts Solar Expansion

2012-06-27T19:42:00.001-07:00

A SOLAR panel supplier has axed its plans to expand into Queensland after the government revealed it would slash the benefit for supplying power back into the grid - from 44¢ per kilowatt hour to 8¢.

Madison Australia's rethink came as industry lobby group Clean Energy Council argued the policy change could put thousands of jobs at risk, saying householders would reconsider the benefits of installing solar panels given the time taken to recoup their investment.

But Energy Minister Mark McArdle described the solar industry as viable, saying the scheme needed to be changed because all energy users were paying extra on their power bills to subsidise the feed-in tariff for solar panel owners.

Mr McArdle announced yesterday the feed-in tariff for providing power back to the grid would be cut to 8¢ per kilowatt hour, but anyone already in the Solar Bonus Scheme as of July 9 would continue to receive the 44¢ benefit.

Madison Australia director Yorath Briscoe said his Melbourne-based solar installation and retailing company was about to sign contracts in coming weeks to expand into the Gold Coast market.

He said the company had been planning to directly employ six staff in Queensland and contract up to 18 tradespeople, but the cut to the feed-in tariff would hit demand.

“There's going to be massive demand the next 10 days but after that there will be nothing,” he said, adding the company would no longer pursue the Queensland expansion plans.

“It's quite shocking that a government would pull the plug like this.”
The Clean Energy Council said under the current Queensland system, an average householder would break even on the initial investment after 4.5 years.

The average payback period would jump to about 10 years under one scenario modelled in research commissioned by the Clean Energy Council before yesterday's announcement.

But the cost of buying and installing solar panels was expected to progressively decrease in coming years so the break-even point could be less than 10 years for future customers, a council spokesman said.

Warning Issued Over Anti-Carbon Tax Posters

2012-06-26T05:39:00.000-07:00

Labor is warning small businesses against displaying the Coalition's anti-carbon tax posters, saying they risk million-dollar fines if the information is found to be misleading.

The Coalition has sent the fliers to bakeries, butchers, dry cleaners and fruit shops just days before the carbon tax is due to take effect.

The tactic is a further sign that both sides of politics are preparing to ramp up their campaigning efforts surrounding the tax.

Opposition Leader Tony Abbott told a meeting of Coalition MPs that he and other senior party figures would be campaigning "across the country", warning people the tax would push up the cost of living and threaten jobs.

Labor is also preparing a coordinated campaign this weekend to reassure the community about the effects of the tax.

Special Minister of State Gary Gray plans to visit the South Australian city of Whyalla on Sunday - a community Mr Abbott said would be "wiped off the map" because of the carbon pricing scheme.

Earlier today, Mr Abbott visited an RSPCA compound in Canberra to point out that "thousands" of charities would be worse off under the tax despite Government reassurances.

The head of the RSPCA in the ACT, Michael Linke, estimates the cost of the carbon tax will be somewhere between $5,000 and $10,000 per year for the local organisation.

"At this stage we're not expecting job losses here in Canberra," Mr Linke told reporters at Mr Abbott's media conference.
"There is absolutely no way that I'm going to compromise animal welfare, so we are going to have to shave costs in other areas."

The Government says more than $300 million is available to councils, community groups and charities to help offset the costs of the carbon tax.

Prime Minister Julia Gillard used Question Time to ridicule Mr Abbott's visit to the animal welfare charity.
"I can assure the Leader of the Opposition (that) on July 1, cats will still purr, dogs will still bark and the Australian economy will continue to get stronger," Ms Gillard told Parliament.

"Presumably tomorrow he will be out trying to scare Skippy the bush kangaroo, and the day after he'll be out trying to scare Puff the Magic Dragon, and so it will go on."

Posters

And Labor is also warning businesses to be "very, very careful" about being part of Mr Abbott's campaign by displaying posters in their shop fronts.

"Don't allow him to drag you into his cynical scare campaign because the consequences of that are very serious," Assistant Treasurer David Bradbury told Parliament.

"If you do mislead your customers, then you could face fines of up to $1.1 million."

But the Coalition has rejected suggestions their small business posters are misleading.

"The fliers do nothing more than explain the Government own modelling and policy," Opposition small business spokesman Bruce Billson said.

"This is just another example of the Gillard Government trying to intimidate small business to not pass on or talk about the impact of the carbon tax."

The Australian Competition and Consumer Commission has set up a hotline for members of the public to make complaints about misleading carbon tax claims.

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Firms 'Less Prepared' For Low-Carbon World

2012-06-26T04:34:00.001-07:00

Just days before Labor's pollution price takes effect, a new survey suggests Australian firms are feeling less prepared now for a low-carbon future than they were 12 months ago.

The Economist Intelligence Unit (EIU) report, released on Tuesday, also finds only a third of respondents believe the opportunities created by imposing a carbon tax will outweigh the risks in the long term.
That's down from about 50 per cent in the inaugural survey in 2011.

The report says executives may have been overconfident before the details of Labor's scheme were announced in mid-2011.

Global uncertainty may also be behind the shift in sentiment, coupled with the fact that "corporate nervousness on the eve of the introduction of the carbon pricing scheme is bound to be at its peak".
But the Gillard government can take heart from other key findings.

About 85 per cent of directly affected businesses and two-thirds of all companies are already acting to reduce pollution.

"These findings indicate Australia's carbon pricing legislation has spurred firms to take action to reduce their carbon emissions," the report, commissioned by GE, states.

"This will ultimately reduce the country's overall carbon footprint."

GE ecomagination director Ben Waters is encouraged by the fact carbon pricing is already driving energy efficiency.

"We've been in the realm of opinion and policy advice but now we've got a law that's about to start," he told AAP.

"It's about getting into action, which is what business does best."

Almost three-quarters of the 136 senior executives surveyed by the EIU believe carbon pricing is here to stay - although almost half think a better regime will eventually replace Labor's current proposal.

That's partly because two-thirds believe the $23-a-tonne starting price is too high.

"It is likely that Australia, which is just about to take its first steps towards carbon pricing, will have to go through several years of discussion and trading before reaching equilibrium," the report states.

The Gillard government's carbon tax will transform into an emissions trading scheme in mid-2015.

The EIU analysis also suggests the corporate carbon agenda has shifted towards "cost reduction" in 2012.

Of the 300 biggest emitters that will pay the tax from July 1, more than half have set up dedicated roles or teams to identify greater carbon or energy efficiency measures internally.

Harvey Norman Invests in Solar Panels

2012-06-19T07:07:00.001-07:00

RETAILER Harvey Norman plans to be a market leader in the domestic solar industry after placing a substantial order for user-friendly solar panels.

United States-based Westinghouse said today it had received an order for five megawatts of its Solar Instant Connect solar panel systems from Harvey Norman.

The order represents a significant investment in the green technology, which will result in Westinghouse's shipments in 2012 more than doubling from 2011.

Harvey Norman said the uptake of solar energy in Australia was stronger than in most other parts of the world, with over 830 megawatts sold in the local market in 2011.

"With Australian power pricing continuing to rise, we are continuing to see very strong demand for solar installations," Harvey Norman commercial division franchisee Alan Stephenson said in a statement.

"In addition to supplying kitchen, bathroom items, hot water and air conditioning systems, we have established a solar business, which we believe will be a market leader."

The newly ordered solar panels require Australian certification, and the first shipments to Harvey Norman are expected to begin in late-2012, Westinghouse said.
Solar Australia: Harvey Norman Invests in Solar Panels