4 April What the Federal budget and election mean for the sector April 4, 2022 By AMPLA Admin General 0 The Federal election has now been set for May 21st and follows the recent 2022/23 Federal Budget announcement and Opposition’s reply. The Liberal party’s budget positions the energy and resources sector for growth with $2.4 billion allocated to the industry, energy and emissions reduction portfolio. The budget included an investment of $1.3 billion to maintain energy security and reduce the pressure on prices while encouraging emissions reduction. The Federal election has now been set for May 21st and follows the recent 2022/23 Federal Budget announcement and Opposition’s reply. The Liberal party’s budget positions the energy and resources sector for growth with $2.4 billion allocated to the industry, energy and emissions reduction portfolio. The budget included an investment of $1.3 billion to maintain energy security and reduce the pressure on prices while encouraging emissions reduction. This includes: $300 million to support low emission LNG and clean hydrogen production in Darwin. This is coupled with carbon capture and storage infrastructure, positioning Darwin to become a world leading clean energy hub. Given its proximity to natural gas and greenhouse gas storage resources, the region is well positioned for growth; $247 million was earmarked to support private sector investment in low emissions technologies including the hydrogen Guarantee of Origin scheme; $200 million has been allocated to support new low emissions manufacturing facilities in the Pilbara region and a further $100 million to de-risk private sector investment in firm generation and grid infrastructure in the region; $200 million will be used to increase onshore processing value-add to iron ore exports. This is expected to support low emissions steel production in countries like Japan and South Korea; $148 million to support investment in reliable power including the deployment of microgrids in regional communities; $100 million to make the Port of Newcastle hydrogen-ready; and $50 million has been earmarked to accelerate the development of priority gas infrastructure projects in line with the Future Gas Infrastructure Investment Framework. Additional measures include supporting the Clean Energy Supply Chain Forum and the Hydrogen Energy Supply Chain pilot. Keeping wholesale electricity prices below $70/MWh is another focus with delivery of the Marinus Link undersea interconnect to connect Tasmania’s Battery of the Nation project with the mainland. In addition, investments will also be made in the Hunter Power Project to provide reliable electricity. In total the Government has also committed to invest more than $22 billion in low emissions technologies this decade to continue on the path to achieve net zero emissions by 2050. The Government also reacted to the increased cost of living fuelled by the war in Ukraine by announcing a temporary reduction in the fuel excise by 50% for six months. Businesses will still receive fuel tax credits for eligible fuel use. The Opposition’s budget reply speech also focused on infrastructure and growth. Key initiatives impacting the sector include: Subsidising 465,000 TAFE places to skill, up skill and resell the workforce to support net zero goals; Allocating an additional 20,000 university places to ensure Australia has the skills it needs to grow; Upgrading the electricity grid to fix energy transmission and reduce prices; For facilities covered by the Government’s Safeguard Mechanism, reducing emissions gradually and predictably over time to achieve net zero by 2050; Up to $3 billion to invest in initiatives like green metals, clean energy component manufacturing, hydrogen electrolysers and fuel switching; Establishing a Powering the Regions Fund to provide financial support to initiatives that improve energy efficiency in new and existing industries in regional Australia; Investing up to $15 billion in projects to create jobs through initiatives like equity and guarantees in resources, enabling capabilities and renewables and low emissions technologies; Focus on revitalising manufacturing including adding value to our resources by strengthening our ability to create finished goods like batteries; and Investing in infrastructure including roads, rail and ports to improve efficiency. With both parties focused on economic growth, cost of living and climate change, the next few weeks are likely to bring more promises to boost the industry. Related Articles SANTOS V TIPAKALIPPA: JUDICIAL GUIDANCE ON THE REQUIREMENTS FOR OFFSHORE PETROLEUM EP CONSULTATION In the Santos v Tipakalippa decision, the Full Federal Court has given guidance to offshore petroleum titleholders in respect of the consultation obligations that they need to satisfy in order to obtain NOPSEMA’s acceptance of environment plans that they submit for the purposes of conducting their respective petroleum activities. The Full Federal Court’s decision may, however, have wider impacts, including on the consultation that may be required to be undertaken by a project proponent under the Commonwealth Offshore Electricity Infrastructure legislation in order to develop an offshore renewable energy project. 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It’s worth noting that the KMPG survey was conducted before the COVID-19 pandemic. However, the concerns raised have ongoing relevance both now and into the future. Showing 0 Comment Comments are closed.