Transforming Western Australia's Gas-Dependent Industries: A Path to Energy Transition Leadership
Key Ideas
- Western Australia's gas consumption, led by four industrial sectors, could be significantly reduced through the adoption of new technologies and abundant renewable energy sources.
- While the state's gas demand is projected to grow, the potential for reducing gas dependency and transitioning to green hydrogen presents significant benefits for industry and the environment.
- Targeted actions recommended by IEEFA include developing a roadmap for gas demand reduction, integrating renewable energy into new projects, and supporting the electrification of gas-intensive industries.
- By seizing untapped opportunities to decrease gas demand and embrace the global energy transition, Western Australia could emerge as a leader in sustainable industry practices and renewable energy adoption.
Western Australia (WA) stands out in Australia for its growing gas consumption, particularly driven by key industrial sectors such as LNG processing, electricity generation, alumina refining, and ammonia production. While the rest of the country is moving away from gas, WA's reliance on this resource is increasing, which poses challenges in terms of sustainability and future competitiveness. The state's gas demand is expected to continue rising in the coming years, potentially locking in higher dependency and facing supply constraints.
However, there are opportunities for WA to transform its industries and reduce gas consumption by embracing new technologies and leveraging renewable energy sources. For instance, the adoption of electric turbines in LNG plants could significantly cut emissions and operational costs. Moreover, capturing fugitive methane and shifting to green hydrogen production in sectors like ammonia could further enhance sustainability and efficiency.
The transition to green hydrogen is particularly highlighted as a promising path for WA, given its potential benefits for ammonia production and the overall reduction of gas usage. Initiatives such as requiring miners to use green hydrogen for explosives could drive this shift without substantial cost increases. Additionally, electrification through technologies like mechanical vapour recompression offers viable alternatives to gas in sectors like alumina production.
Despite the slow progress in transitioning to renewables, WA boasts excellent renewable resources, which could be harnessed to accelerate the shift away from gas. By taking targeted actions such as setting clear reduction targets, integrating renewable energy into new projects, and supporting the electrification of gas-intensive industries, WA could lead the way in energy transition and sustainable industry practices.
Ultimately, by seizing the untapped opportunities to reduce gas demand and embrace the global energy transition, Western Australia has the potential to not only transform its industries but also emerge as a frontrunner in renewable energy adoption and sustainable practices.
Topics
Utilities
Renewable Energy
Energy Transition
Renewables
Industry
Electricity Generation
Emissions Reduction
Gas Consumption
Green Markets
Latest News