Australia's renewable energy landscape: Harnessing the power of our oceans

A brief look at Australia’s current renewable energy landscape

According to Australia’s Department of Climate Change, Energy, the Environment and Water, in 2020-21 Australia’s total electricity generation was approximately 266 TWh, the highest total generation on record for Australia. This was made up of a combination of fossil fuels (51% coal, 18% gas, 2% oil), renewables (solar 12%, wind 10%, hydro 6%) and private generation (households and businesses 17%).

The Australian Government has set a target of reaching a net zero economy by 2050, with a particular focus on technology as being a key enabler of this target. Australia’s renewable energy landscape has been rapidly growing in recent years, with a significant increase in renewable energy capacity and investment in clean energy projects.

Currently, Australia’s renewable energy sector is predominantly made up of the following energy sources:

Solar energy - accounting for approximately 12% of Australia’s energy generation in 2021, solar provides Australia with a reliable energy source with more than 2.8 million rooftop solar PV systems installed across the country and utility-scale projects expanding across the country.

While solar energy is a clean and renewable energy source, it is not without limitations. For example, solar energy is dependent on the amount of sunlight available and is not able to produce energy during the evenings or during bad weather. This makes it less predictable and reliable than some other forms of energy.

Additionally, there are environmental impacts associated with the production of solar panels and solar energy such as the use of chemicals in production, and environmental and biodiversity impacts due to the land requirements for large-scale solar farms.

Wind energy – accounting for approximately 10% of Australia’s energy generation in 2021, wind energy is a growing industry in Australia with several large-scale wind farms already established across the country and more planned for development. The Victorian Government recently announced plans for the development of several offshore windfarms in Victoria's Gippsland region.

While wind power is a clean and renewable energy source, it is also not without limitations. As with solar, wind energy is dependent on favourable weather conditions such as wind speed and direction, making it less predictable and reliable than some other forms of energy.

Additionally, there are environmental issues associated with the recycling of turbines at the end of their life where typically they have been buried in the ground. There has now been some recent innovations emerging around recyclable wind turbines, as well as significant opportunities for considering a more circular solution to wind energy.

While Australia does not yet have any operational offshore wind farms, there are several across Victoria, Western Australia, South Australia, and Tasmania that are either proposed or in development.

Hydro energy – accounting for approximately 6% of Australia’s energy generation in 2021, Hydro power is a relatively small but important source of renewable energy in Australia.

There are several hydroelectric power plants located in various states across Australia. The Snowy Mountains hydroelectric scheme, located in The Snowy Mountains of New South Wales, is the largest hydroelectric project in Australia and is one of the largest in the world. Other significant hydroelectric power plants in Australia include the Murray Hydroelectric Power Station in Victoria and the Tarraleah Power Station in Tasmania.

While hydroelectric power is a clean and renewable energy source, there are also environmental impacts which must be considered, including the displacement of local communities, the loss of natural habitats, and changes to river flow patterns.

Harnessing the power of Australia’s oceans

According to The Department of Climate Change, Energy, Environment and Water, Australia’s ambition is to:

• Become a renewable energy superpower
• Decarbonise our economy, and
• Increase clean energy exports to contribute to regional and global decarbonisation

Australia has been establishing a strong foundation of innovation in the renewable energy sector spanning solar, wind, hydrogen, and wave power. While solar and wind energy remain a strong focus for Australia and have earned a place in supporting Australia’s growing energy needs, they are not without their limitations which have been covered in some detail above.

More recently, Australia is seeing some ambitious innovations in hydrogen and wave energy, which are proving themselves to be potentially viable long-term solutions to decarbonising Australia and providing some stability to Australia’s renewable energy production.

Ocean Energy refers to various methods and technologies that harness the ocean to produce energy. According to a report by the International Energy Agency (IEA), oceans are one of the world’s largest untapped sources of renewable energy. Globally, the total installed capacity of ocean energy is relatively small, however, there is significant interest and investment in this area, and it is expected to grow in the coming years.

There have been a number of innovative advancements in the ocean energy technology space and with more focus on renewable energy and net zero targets, investment and innovation in this sector is expected to rise significantly.

The Australian Ocean Energy Group (AOEG) recently unveiled plans for a world-first Integrated Ocean Energy Marketplace (IOEM) in Albany Western Australia. National Energy Resources Australia is a key collaborator of the project and has said the Marketplace will demonstrate the value of wave and tidal energy as critical enablers of offshore wind and solar power in an integrated renewable energy microgrid system. This-first-of-a-kind innovation hub will demonstrate how the technologies can be combined in a complementary system to enhance energy resilience and sustainability of remote coastal areas and in offshore industries (such as offshore food production, ports, remote monitoring and O&G). In addition, it will support Australian businesses to commercialise their technology locally, with enormous export potential. When developed, the Marketplace will 'mirror' a commercial, integrated ocean energy system that generates and sells electricity to its customer.

Wave Energy

Globally, wave energy is still a relatively new technology and Australia has significant potential for wave energy development due to its long coastlines and access to abundant wave resources. According to a report by CSIRO, wave energy could account for up to 11% of Australia’s energy supply by 2050 and notes there are currently around 200 wave energy devices in various stages of testing and development.

Preliminary studies from CSIRO showed the southern coastline of Australia was a great wave resource due to strong Southern Ocean winds generating consistently large waves which travel northwards to Australia's southern coastline. The large consistent swell provides ideal conditions for wave energy production.

Some of Australia’s notable innovations in the wave energy space include:

Wave Swell, based in Melbourne Victoria, has developed a world leading proprietary technology that converts energy from the ocean into clean and zero emission electricity. A 200kW pilot demonstration project has recently been completed and proved successful at King Island, connecting to the local grid, and delivering energy to the community.

Carnegie Clean Energy is another wave energy company based in Western Australia that uses submerged buoys to capture the energy of ocean waves and convert it into electricity. The company has completed several successful trials of the technology including a project off the coast in Western Australia that generated energy for a naval base. The company is currently developing an improved technology that will create a step-change in performance and cost reduction. This work will deliver an optimised design that uses machine learning, an advanced electric power take-off, new hydrodynamic techniques, and improved system configuration.

Tidal Current Energy

Tidal currents are caused by gravitational forces, and are concentrated in narrow bodies of water such as around islands or inlets. It is predicted that tidal Stream Energy will contribute significantly to the decarbonisation of our global energy systems. Tidal stream devices harness the lateral flow of currents by turning a turbine to produce clean, renewable energy.

According to ARENA, Australia is home to some of the largest tides in the world, with the capacity to make a significant contribution to Australia’s future renewable energy needs.

The Australian Tidal Energy project, completed in 2021 and led by University of Tasmania, CSIRO and University of Queensland, spent 3 years mapping the country’s tidal energy resource in unprecedented detail and assessing its economic feasibility and ability to contribute to Australia’s energy needs. The report found the most energetic and promising tidal sites were distributed across the northern shelf of Australia, particularly on the North-West shelf, with sparse distribution to the south of Australia that included Banks Strait, NE Tasmania, and Port Philip Heads, Victoria. You can read the full report here.

As at today, there are no operational commercial-scale tidal energy projects in Australia, however, there are projects at various stages of the lifecycle including research and development, feasibility studies, and demonstration pilots.

Clarence Strait Tidal Energy Project will establish a demonstration pilot in Darwin, which will enable the construction of a commercial-scale tidal power station of initially 30-50 MW by 2030 and subsequently drive the development of the full field capacity of over 450 MW by 2050 as energy storage and transfer technology develops.

Offshore Wind Energy

Offshore wind farms utilise the force of the winds at sea to generate energy which is then supplied back into the energy grid. Offshore wind is a renewable and infinite energy source and is recognised as playing an essential role in Australia’s transition towards net zero.

According to The Department of Climate Change, Energy, Environment and Water, the Australian offshore wind industry is predicted to support high-quality jobs for regional coastal communities, with the potential to create significant new employment, and billions of dollars of investment in Australia’s coastal economies. Estimates for job opportunities from an offshore wind industry in Australia range from 3,000 to 8,000 jobs annually.

The Victorian Government has set ambitious targets of at least 2GW of offshore wind capacity by 2032, 4GW by 2035 and 9GW by 2040, with the Minister for Climate Change and Energy recently opening Australia’s first 15,000 square kilometre offshore wind energy zone in Gippsland Victoria (Bass Straight). Following on from a 5-month Feasibility License Application period spanning from December 2022 to April 2023, it is estimated there are approximately 15 proposed offshore wind farms which are now under review and consideration for a Feasibility License by the Offshore Infrastructure Registrar. Companies that are awarded a Feasibility License will have up to 7 years to conduct a full Feasibility Study in the area, before expecting to reach a Final Investment Decision (FID) to proceed with construction. 

In addition to numerous proposed offshore wind farms with licenses under review and which are not yet publicly announced, several companies have publicly released their plans for offshore wind energy in Australia including:

Star of the South will be Australia’s first and most advanced offshore wind farm and has recently been given the green light to go ahead in Victoria’s Gippsland region to supply up to 20% of Victoria’s growing energy needs.

Southern Winds Offshore Wind Project, by Blue Float Energy, has released plans for offshore wind farms located in Portland Victoria as well as South Australia. The company plans to apply for a Feasibility License in 2024 and commence construction in 2028 and is expected to provide up to 1.2GW of renewable energy to meet Australia’s energy needs.

Australis Energy has publicly released plans for the development of 3 offshore wind farms in Australian waters including the Cape Winds Project to be located in Victoria, the Kingston Project to be located in South Australia, and the Myalup Project to be located in Western Australia. Combined, these 3 projects have the capacity to generate up to 4GW of renewable energy for Australia.

Spinifex Offshore Wind Project, by Alinta Energy, is proposed for development in Victoria’s Portland area and is planned to help decarbonise a local aluminium smelter which is currently responsible for consuming up to 10% of Victoria’s electricity.

Ocean-Based Microgrids

A microgrid is a self-contained energy network that can generate and store electricity onsite which can be used to power small communities without any dependence on centralised energy grids. 

In 2020, the Australian Government announced AUD 2.47 billion in funding for measures that aim to lower energy prices, reduce emissions, and boost the economy. As part of this initiative, the Program has been allocated AUD 50 million over six years (2020-21 to 2025-26) to support pilot projects for microgrids in regional Australia. 

More recently, the Australian Government announced the Regional Australia Microgrid Pilots Program, which aims to support the development of microgrid projects that:

• Have been found to be feasible through a feasibility study or equivalent investigation 
• Include the deployment of equipment and technology solutions that enable the microgrid demonstration 
• Demonstrate improved resilience and reliability of microgrids in regional areas 
• Are capable of resolving remaining barriers to final investment and full deployment.

The Garden Island Microgrid Project by Carnegie Clean Energy, received grant funding through ARENA and was the world’s first wave energy integrated microgrid that was able to produce both renewable energy and desalinated water. The Garden Island Microgrid has a power supply agreement with The Department of Defence in Western Australia, with the ability to produce up to 2MW of energy.

OneTide, an Australian company, has developed an innovative Mobile Microgrid energy system with integrated water filtration, desalination, and purification. Potential applications for OneTide’s Mobile Microgrid are diverse, ranging from remote communities, islands, navigational aids, communication outposts, to mining and offshore energy operations, defence, and disaster, humanitarian, and medical aid. Weighing only 60kgs, the Mobile Microgrid is a completely mobile and relocatable renewable energy solution, capable of being rapidly deployed anywhere by air, land, or sea.

Saltwater Air-Conditioning (SWAC)

Decarbonising the heating and cooling sector is one of the main challenges of Australia's energy transition. Accounting for approximately 50% of global energy consumption, heat is the largest energy use and contributes 40% of global carbon dioxide (CO2) emissions, according to the IEA.

Saltwater air-conditioning (SWAC) is an alternate energy system that takes cool water from the ocean and uses it for cooling. SWAC systems are a sustainable solution for cooling homes and businesses close to Australia’s shorelines, however, there are currently no commercial-scale SWAC projects in Australia with plans to contribute to Australia’s energy grid.

Ocean Thermal Energy Conversion (OTEC)

OTEC technology generates renewable energy by using the temperature differential between the deep cold and warmer surface waters of the ocean to power a turbine, generating electricity. Typically, OTEC energy generation is only viable in tropical and subtropical areas where the year-round temperature differential is greater than 20 degrees Celsius, such as most Caribbean and Pacific countries. In 2014, IRENA identified almost 100 nations with access to OTEC resources within their economic zone.

In addition to generating renewable energy, OTEC technology can be used to desalinate water and when we consider the ideal locations for OTEC, being coastal communities and remote islands that are more prone to natural disasters, water desalination becomes a critical element of this technology.

While OTEC has the potential to provide a sustainable and renewable energy source, it is still in the early stages of development and has not been widely adopted globally. OTEC prototypes are typically land based, however, there are floating prototypes under development around the world.

There are currently no commercial OTEC energy production facilities in Australia.

Salinity Gradient Energy

According to IRENA, Salinity gradient power is the energy created from the difference in salt concentration between two fluids, commonly fresh and salt water, e.g., when a river flows into the sea. Salinity gradient energy is a renewable energy source with the potential to provide stable baseload energy, with the energy released from 1 m3 fresh water being comparable to the energy released by the same m3 falling over a height of 260 m.

Earlier in the 2000’s there were a number of studies conducted to determine the feasibility and viability of Salinity Gradient Energy across the globe as well as in Australia.

A study by Griffith University in 2013 found that Australia had significant potential for Salinity Gradient energy production due to 1) The proximity of the major energy consumption centres to the ocean; 2) The high evaporation rates that could be used to generate more concentrated solutions with higher power production potential; 3) The existence of vast areas of salt beds that could be used to generate brine; 4) The projected desalination plants that could be coupled with osmotic power plants and 5) Government incentives for research on renewable energy.

A report by Sustainable Development UN in 2015 found that Salinity Gradient Energy could provide an enormous theoretical potential energy generation capacity of ~1.9 TW, which was at the time 80% of the total global demand of energy. However, several challenges and barriers were also noted at the time including limited advancements in the technology, the high cost of developing the technology, and potential environmental and biodiversity impacts due to the need for dams and water barriers.

A more recent report by The American Chemical Society in 2021 discusses the economic infeasibility of Salinity Gradient Energy Comparing the LCOE and capacity factor of PRO to other low carbon energy sources suggests that reductions in PRO component costs are unlikely to make PRO cost competitive with renewable energy technologies.

There have been no Salinity Gradient Energy advancements made in Australia.

Advancements in Australia’s Biofuel and Hydrogen industries

Hydrogen

Hydrogen is emerging as a key contributor towards Australia’s clean energy transition. Since the release of Australia’s National Hydrogen Strategy in 2019 there is now a $127 billion pipeline of announced hydrogen investment in Australia.

Hydrogen is a clean energy source, requiring only water and energy, and emitting only water as a waste product when used to produce power. It is a stable energy source that could be used in Australia to provide baseload continuous power to our energy grids.

Some of Australia’s notable innovations in the hydrogen space include:

H2PowerBox, based in Victoria, is empowering green energy independence for remote and off-grid Australia through its mobile hydrogen power solution. H2PowerBox integrates solar and hydrogen to provide 24/7 zero-emissions energy.

ENGIE, based in France but with significant investment into Australia’s hydrogen industry, aims to be a leader in the production of renewable hydrogen on a large scale. It has recently reached a Final Investment Decision in the development of one of the world’s first industrial-scale renewable hydrogen projects, located in Western Australia, with development completion planned in 2024.

Viva Energy is in the process of undertaking a hydrogen mobility demonstration project in Geelong, Victoria, to provide a hydrogen refuelling station for electric vehicles. The service station is planned to commence operations in late 2023 and will be Australia’s first publicly accessible commercial hydrogen refuelling station.

Stanwell Corp.’s renewable hydrogen facility, located in Central Queensland, has now completed its Feasibility Study, and is moving towards Front End Engineering Design (FEED) of the project. The facility will export renewable hydrogen to Japan and supply large industrial customers in the Central Queensland region to support emissions reduction for domestic industry by 2027. When built, the renewable hydrogen project will be the largest in Queensland and is expected to provide approximately 8,900 new jobs. The project will also deliver $17.2 billion in hydrogen exports and $12.4 billion to Queensland’s Gross State Product over its 30-year life.

Biofuel

Biofuel is a sustainable fuel source that is derived from biological sources such as waste matter, feedstocks, wood, plants, and algae. Biofuel is commonly used as a substitute for transportation fuels such as diesel and ethanol, with sugarcane and wheat being the most common sources of biofuel in Australia.

Over the years, there has been significant exploration and research done around the world on the use of algae for biofuel with several large companies, including ExxonMobil, investing significant money and time into research and development projects in this space. Unfortunately over time, each of the projects has been shut down due to high costs and technology limitations.

Though biofuel consumption in Australia remains relatively low, the industry is growing as the country moves towards its clean energy and net zero targets, with the Federal Government providing financial incentives through its Biofuel Production Grants to encourage investment in the industry.

Australia, with its large agricultural industry and proximity to the ocean, provides abundant opportunities for exploring innovative biofuel solutions outside of algae.

Notable developments in Australia’s biofuel industry include:

Northern Oil Advanced Biofuel pilot project, located in Central Queensland, secured a $3.1m grant through Australia’s Renewable Energy Agency (ARENA), and was Australia’s first commercial scale biocrude and biofuel refinery. The refinery produces renewable biodiesel and jet fuels.

Oceania Biofuels is currently developing a world-class biofuel refinery in Gladstone, Queensland, which will use locally sourced water and waste including Tallow, Agri Feedstocks and used cooking oils to produce Sustainable Airline Fuel (SAF) and renewable biodiesel. Construction of the plant will be complete at the end of 2024 with the company planning to begin operations at the start of 2025. The project is expected to provide approximately 500 local jobs, providing a significant economic boost for the local community.

The role of digital technology in the advancement of Australia’s renewable energy industry

Technology will play a critical role in the development, integration, advancement, and optimisation of Australia’s renewable energy industry. Some examples include:

Optimal Reality – Digital Ocean Twin

Optimal Reality (Digital Twins) technology provides a significant opportunity for the creation of virtual replicas of Australia’s physical and natural environments. A digital twin of Australia’s oceans would allow for better planning and decision making in the ocean energy industry including:

• Optimal locations for offshore wind farms based on weather patterns over time, wind, soil, and weather parameters, optimal transmission routes for connecting into grids
• Optimal locations for wave technology based on wave heights and weather conditions
• Improved planning capabilities and policy making for the fishing, aquaculture, and marine activity industries

Virtual Power Plants (VPP)

A virtual power plant uses decentralised energy resources such as private solar panels and wind turbines that are coordinated through digital technology and intelligent control systems to provide renewable energy on demand.

AGL is an example of an energy company that provides customers with existing solar installations the opportunity to sign up for a VPP and earn credits on their energy bills.

Decentralised Energy Markets

With private solar energy generation capacity and storage growing, there is an opportunity to leverage platforms such as Blockchain for peer-to-peer energy trading, where excess energy can be traded to create a decentralised energy market.

Smart Microgrids 

While the concept of microgrids has been around for some time, Smart Microgrids are a newer technology that uses software and intelligent controls to manage electricity flow in networks.

Schneider Electric is one company that has been making strong progress in Smart Microgrids, with the development of their EcoStruxure Microgrids that feature:

• Cloud-based platform running Model Predictive Control algorithms enabling the microgrid's optimisation strategy and providing user access to monitor microgrid information and associated KPIs
• The local edge controller interfaces with the Distributed Energy Resource for monitoring and control and enables to run real time use cases
• Forecast algorithms based on historic data, weather forecast, and operating schedule updated every 15 minutes