Speech
Clean Energy Seminar - Nomura Report Launch
26 October 2009, Tokyo
Introduction
It is a great pleasure to be here today to meet with the leaders of Japan’s clean energy industry and to do so at such an important time – both in terms of the global debate on climate change, and in terms of the ongoing domestic debates within our respective nations.
I have just enjoyed the privilege of a very encouraging roundtable discussion on the subject of clean energy with leaders within Japan’s clean energy sector including:
- Nippon Oil and Nippon GTL Technology Research Association which are active in gas to liquids research
- Eurus Energy Japan Corporation which is a leading investor in wind power generation
- Marubeni Corporation which has invested in South Australia’s Hallet 4 wind power venture
- Sojitz Corporation which is active in the development of coal seam methane and biofuels
I’ve been provided with some very useful insights into how Japan perceives Australia as a potential market for, and collaborator in, the development of clean energy.
Against this backdrop, I welcome today’s opportunity to launch the Nomura Research Institute’s Japan Clean Energy Industry Report. Nomura’s analysis and its subsequent recommendations reinforce my confidence in the prospects for ongoing and enhanced clean energy collaboration between our two countries.
The Nomura report provides Australian business with a roadmap to Japan’s clean energy sector and identifies promising synergies for partnership in the research and commercialization of clean energy technologies.
I also welcome today’s opportunity to promote a broader understanding within Japan of where Australia is positioned in terms of a clean energy future.
In doing so, I have a message which is clear and simple. Australia is determined to play its full and fair part on climate change. The Government is committed to positioning Australia as a clean energy hub in the Asia-Pacific and to ensuring that clean energy is a key component of Australia’s economic and environmental future.
Australia’s Clean Energy Agenda
In May this year, the Australian Government announced a new, ambitious target to reduce our emissions by 25 per cent by 2020, if the world can reach an ambitious global agreement capable of stabilising greenhouse gas concentrations at 450ppm CO2-e or lower.
We want action on climate change. That is why we have introduced legislation for the Carbon Pollution Reduction Scheme back into our Parliament. This is a cap and trade emissions trading scheme that covers around 75 per cent of Australia's emissions.
In addition, we have already passed laws to establish renewable energy targets and increase our renewable energy by four times over the next decade. By 2020, 20 per cent of our electricity will come from renewable sources. This means that the equivalent of all current household electricity in our country will come from clean, renewable energy within just ten years.
Australia has embarked on the biggest investment in energy efficiency in our nation's history. The Government’s Clean Energy Initiative represents a $4.5 billion investment in new, low carbon energy technologies ranging across the spectrum of solar, wind, wave, geothermal, and of course, clean coal.
These investments will help create a world class portfolio of clean energy technology projects which will support smart, green jobs for the future; develop the skills needed for a low carbon economy; and create a positive climate for business investment.
One of our landmark achievements has been the establishment of the Global Carbon Capture and Storage Institute. As a foundation member of the Institute, Japan shares in Australia’s vision of a one-stop shop for the technical expertise needed to realise the goal of 20 large-scale carbon capture and storage projects in operation by 2020.
In addition to the Clean Energy Initiative, the Government has committed $14.9m to a three year clean energy trade and investment strategy by Austrade. The Nomura report is a practical demonstration of Austrade’s clean energy strategy in action.
The strategy provides the financial and staffing resources needed to more effectively promote Australia’s clean energy credentials and to ensure that overseas investors are fully aware of the commercial opportunities associated with Australia’s commitment to a clean energy future.
Gorgon and Clean Energy
In September this year, the Gorgon Joint Venture Partners announced a massive $43 billion investment decision to develop Gorgon’s LNG gas fields off northwest Australia. Let me make several points about the clean energy dimensions of this truly nation building project.
Firstly, Gorgon will boast the world’s biggest carbon capture and storage project with more than $1 billion to be invested in maximising the clean energy credentials of the project. Gorgon will feature carbon geosequestration on a pioneering scale.
Secondly, it’s worth highlighting the far-reaching environmental benefits of the Gorgon project. For every ton of CO2 generated in producing LNG, Australia reduces four tons of CO2 in Japan, and nine tons of CO2 in China when used in place of coal for electricity generation.
Gorgon is the latest chapter in a great Australian story. We are rapidly emerging as the Saudi Arabia of gas – a global clean energy superpower. For many years into the future, Australia will be delivering clean, low emission energy to the Asia Pacific region and beyond, including of course to Japan.
Global Leadership
When Prime Minister Rudd signed the Kyoto Protocol shortly after we assumed Government in 2007, he signaled Australia’s readiness to assume responsibility and leadership on the climate change issue. The billions of dollars we have since invested in a clean energy strategy underscore Australia’s commitment to addressing the challenges of climate change.
In addition to the renewable energy target and CPRS legislation to which I referred earlier, we are also investing in a Solar Flagships program that will see Australia develop some of the world’s largest solar power stations within the next few years.
The Flagships program will set a target of an additional 1000 megawatts of solar power generation capacity in Australia, which is three times the size of the largest solar energy project currently operating anywhere in the world
Together with Renewables Australia and the Carbon Capture and Storage Flagships program, Solar Flagships represents a trifecta of landmark programs which will support leading-edge technology research, development and demonstration projects.
Japan’s Commitment to Clean Energy
Australia is not alone in its determination to address climate change and I welcome Japan’s strong leadership on this issue. I applaud Prime Minister Hatoyama’s statement that Japan will commit to a target of a 25% cut in emissions from 1990 levels by 2020.
Like Australia, Japan aspires to ambitious levels of carbon reduction which will drive technical innovation and generate green jobs for a low carbon economy. I hope and believe that Australia and Japan can work in partnership as we both confront the technical and other challenges which lie ahead.
Australia’s ambition extends to the Doha Round negotiations and we have welcomed the United States and European Union proposals to liberalise the trade in environmental goods and services. These proposals have the potential to mitigate the effects of climate change and I would encourage Japan to join in supporting this important first step.
Japan has particular strengths in photovoltaic power, lithium ion batteries, sodium-sulfur batteries, capacitors, fuel cells, carbon capture and storage, wind power, geothermal power, bioethanol and solar thermal power. And of course Japan’s automotive sector leads the world in the design and production of hybrid vehicles with lithium-ion batteries.
When the world’s major auto makers consider the sales and mounting back orders for the Toyota and Honda hybrid vehicles, I’m sure they both envy Japan’s technical innovation and leadership, and rue their failure to match Japan’s early drive in pursuit of hybrid and electric powered passenger vehicles.
Carbon capture and storage is a feature of the Gorgon LNG project to which I referred earlier. But it is equally if not more important in the context of the world’s coal industry. Here again, Japan is leading the way with research, development and demonstration.
In Queensland, for example, Mitsubishi Heavy Industries and Mitsubishi Corporation have announced plans to participate in the so-called ZeroGen Project. This is a world-leading low emissions power project that will produce smarter, cleaner power from coal.
ZeroGen is a world first and a great illustration of Japan and Australia working in partnership to deliver clean energy outcomes.
Nomura Research Institute’s Japan Clean Energy Industry Report
Let me conclude by commending Austrade for its initiative in commissioning the Nomura Research Institute to undertake this study. It represents an important blueprint which will guide business leaders and better inform the public policy debate on clean energy.
The Nomura report highlights the potential for cooperative approaches to investment in research and development. Such an approach will encourage technology transfer and the creation of green, smart jobs in both countries. Australian and Japanese companies are ideally placed to respond to the specific recommendations of the Nomura study:
- partnerships in carbon capture and storage, including demonstration projects such as ZeroGen
- collaborative research and development in areas including solar thermal and wind power
- commercialization of clean energy solutions such PV solar panels for eco-friendly design and construction of residential and commercial properties.
Our partnership in carbon capture and storage is already moving in a positive direction. Australia has welcomed Japan as a foundation member of the Global Carbon Capture and Storage Institute and I note that with 17 members, Japan has the highest level of foreign membership within the Institute.
Residential housing construction is an area which promises great scope for collaboration in photovoltaics. Japan is an acknowledged world leader in this field and Australia is blessed with an environment which is ideally suited to solar energy production.
Both Sumitomo Forestry and the Osaka-based Sekisui House are now active in Australia’s residential property market. In collaboration with their Australian partners, these and other Japanese companies are ideally placed to integrate Japan’s world-leading photovoltaic technology into the design and construction of Australian homes.
Australia’s strengths as a clean energy partner rest on a highly skilled R&D base and a policy framework which reflects a genuine political commitment to shape Australia’s clean energy future. The Nomura study further identifies a range of other strengths which position Australia as a high value clean energy partner.
With 90% of Australia receiving almost 2000KWh per square meter, we are an ideal testing ground for solar power technologies. And with the world’s hottest non-volcanic geothermal environment and powerful westerly winds, Australia is the ideal location for the development and demonstration of clean energy technologies across the spectrum.
These are just some of the strengths which underpin the success of Australian clean energy leaders such as Roaring Forties in the wind power sector, Energy Development in the biomass sector, Dyesol in solar power technology and Ceramic Fuels in the development of fuel cells for household use.
Let me also add that the potential for collaboration is not confined solely to Japan and Australia. As highlighted in a recent study by the ANU’s Professor Peter Drysdale, there is great potential for Japanese and Australian companies to extend their commercial collaboration to third country markets across the Asia Pacific. There is no reason why a clean energy partnership should not extend beyond our respective national borders.
Conclusion
Ladies and gentlemen, thank you very much for your time this afternoon. I have enjoyed this opportunity to outline some of the key features of our clean energy strategy, and to highlight Australia’s determination to play a full and active part on climate change.
Australia and Japan have a shared vision of a low carbon future which secures quality of life outcomes and green jobs for our respective communities. Working in partnership and collaboration, I have every confidence in our ability to overcome the inevitable challenges which lie ahead.
On that closing note, I take great pleasure in announcing the formal launch of the Nomura Institute’s Japan Clean Energy Industry Report. Thank you.
ENDS