Climate Change Authority - On Good Authority Newsletter

Friday, May 30, 2025

Climate Change Authority


 

 

 

 

On Good Authority

30 May 2025

 

In addition to our news in brief, this week we look at the Superpower Insititute's analysis of how Australia could become a world leader in green iron production.

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News in Brief

 

 

South32 exploring steam electrification pathways in alumina refining

South32 has received $4.4 million in funding from the Australian Renewable Energy Agency (ARENA) to examine using renewable electricity to produce steam at its Worsely Alumina Refinery. Approximately 70% of emissions from alumina refining are from steam production, which is used for heat in the refining process and generally powered by fossil fuels. ARENA's funding to South32 will support a pre-feasibility study looking at different electrification technologies.

 

 

 

BZE releases first regional decarbonisation readiness assessment

Industry think tank Beyond Zero Emissions (BZE) released an assessment of the Hunter region's readiness for clean industry development. Powering up the Hunter highlights progress in clean exports, local manufacturing and training, but flags major issues with delays in transmission network and renewables projects. BZE found that a lack of infrastructure and access to reliable and affordable clean energy is preventing local manufacturers from decarbonising at speed. This is the first of a series of assessments BZE will deliver under its National Action Plan.  

 

 

 

A warm and dry autumn for many, but not in NSW

Rain pummelled the Mid North Coast of New South Wales (NSW) last week, with some areas receiving more than 200 mm of rain in 24 hours. Low-lying regions experienced significant flooding. The Manning River for example reached record levels, passing the 1929 record of 6 metres. At the same time, large parts of South Australia, Victoria, Tasmania and Western Australia are in drought amid some of the lowest rainfall on record.

Researchers are continuing to understand the links between climate change and extreme weather events. Long-term climate change is causing NSW to warm. This is increasing the likelihood of extreme weather events such as heavy rainfall and storm surges near the coast.

 

 

 

Australian solar company receives $46 million to expand local manufacturing

ARENA has awarded up to $46 million to Australian solar company 5B to increase the manufacturing capacity of its automated solar deployment system. 5B says its prefabricated technology requires less labour to install and generates electricity earlier at lower cost. The funding will support 5B to expand its Adelaide manufacturing facility over the next 3 years.

 

 

 

Costs increasing for new transmission lines in Australia

Costs for overhead transmission lines have increased 25%-55% since last year, the Australian Energy Market Operator (AEMO) has found in a draft report on electricity network options released for consultation towards its 2026 Integrated System Plan for the National Electricity Market (NEM). AEMO has identified social license issues, workforce shortages and supply chain pressures as factors driving up costs.

AEMO is for the first time considering and consulting about the opportunities for upgrades to distribution networks - the poles and wires that transport electricity from the transmission network to electricity consumers. Such upgrades can unlock more local energy resources, such as rooftop solar and community batteries.

 

 

 

New homes in Australia have emissions even before you live in them

With housing supply a national priority, emissions from the construction of new homes are set to rise without urgent action, a new report finds. In the report, the Green Building Council of Australia shows building a new detached home releases more than 7 times the emissions released over the life of the house. Emissions from building a new home come from producing and transporting materials, and construction activity.

The report calls for action to reduce emissions from the construction of new homes. These include:

  • setting national carbon standards to reduce emissions by 20% on 2020 levels by 2031
  • improving and maintaining data and disclosure tools
  • supporting innovation for low-carbon and recyclable building materials
  • planning mechanisms to encourage higher density, smaller and simpler homes.

 

 

 

NSW proposes first urban renewable zone

The NSW Government has announced plans to develop Australia's first urban renewable energy zone (REZ) in the Illawarra region. Unlike the state's four other major renewable zones, which feature large-scale wind and solar projects, the Illawarra REZ will be based around rooftop solar, home batteries, and electric vehicles. The proposal follows last year's announcement of Australia's first community-led electrification project, Electrify 2515. The project aims to fully electrify 500 homes in the north Illawarra region through $5.4 million worth of government subsidies.

 

 

 

New research on risks of Antarctic ice melt

New research highlighted in the Conversation reveals the ocean current that protects Antarctica is becoming disrupted, raising the risk of more temperate water reaching the continent's ice shelf. More warm water could eat away at Antarctica's ice, affecting the Earth's climate system and contributing to sea level rise. The authors of the study state that cutting carbon emissions is essential to mitigate these impacts on Antarctica and the climate.

 

 

Our feature this week

 

Australia's green iron: a sustainable growth vision

The Superpower Institute finds that, with the right policy settings, Australia could become a world leader in green iron production. Green iron is made using green hydrogen and renewable energy, while traditional ironmaking uses coking coal and fossil fuels.

Building a green iron industry could strengthen Australia's role in sustainable industrial growth. The report finds that the industry may generate up to AUD $386 billion a year by 2060. It could also cut global emissions by about 4% by replacing iron made using traditional methods with green iron.

The report presents the results of the modelling of green iron production in five locations - the Eyre Peninsula in South Australia, Geraldton, Pilbara, and Kwinana in Western Australia, and Gladstone in Queensland. These regions comprise, in various combinations, access to renewable energy resources, iron ore grades and infrastructure for producing iron by direct reduction using green hydrogen and electric furnaces.

The Superpower Institutes notes that while there is enormous potential for green iron production in Australia, targeted public policy interventions are needed to support industry development. The report outlines policy measures for incentivising green iron production and building global demand. It identifies measures essential to correct market failures, including the absence of a global carbon price, the lack of early-mover support, and underinvestment in common-use infrastructure.

The plan offers a vision for how Australia could position itself at the forefront of clean energy trade. Australian producers could become key suppliers to international steelmakers looking to cut emissions. A green iron industry could provide a buffer as Australia's fossil fuel exports decline, protecting national income and contributing to economic prosperity.

This week's edition of OGA was brought to you by Bec, Geoffrey, Jane, Kim, Lucy, Rhiannon, and the Media and Public Affairs Team.


Kind regards,

Brad Archer
Chief Executive Officer