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AUST�LIANTHEEnergy ReviewO I L – G A S – E L E C T R I C I T Y – R E N E W A B L E S

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ISSUE 78, MARCH 2017

GASTECH 2017 P12NEWS: RENEWABLE ENERGY P8 A DAY IN THE LIFE P22

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AUSTRALIA imports 97 per cent of the fuels it consumes, leaving only 30 days of internal supply if international ties are cut, Woodside chief operations officer Mike Utsler has said.

Speaking at day three of AOG17, Mr Utsler said he found it “alarming” the country imported almost all of the fuel needed to live each day.

“If somebody cuts the pathway between Singapore and here, we have 21-27 days of fuel as a country, in which to operate, and yet we have one of the largest resource rich continents imaginable,” he said.

“As an Australian, by residency and by long term expectation, that should alarm and concern all of us.”

Mr Utsler said government, industry and Australia as a whole needed to develop one voice through an energy policy to create clarity of purpose and intent.

“We have to be in the position to leverage this amazing speed at which innovation/technology is being developed, and learn to collaborate between ourselves, between other industries, and other geographies to ensure that we remain in a position to make Australia Oil and Gas Inc competitive on a global stage,” he said.

He said technologies, such as 3D metallurgical printing, were rapidly changing the speed to which the industry delivered.

“The building of Pluto, one of the first modularised liquefaction trains implemented, [took] 88 modules to build just to the liquefaction train; a total of about 160 modules built to create Pluto in its one train operation,”

he said.“Today Pluto could be built from a

liquefaction standpoint from three modules, and that’s less than 10 years.”

Subsea operations were also a way forward for the industry, Mr Utsler said.

“What we’re looking at – and these numbers will vary depending on whose

views you look at – between now and 2030, nearly 25 per cent of the world’s oil production is expected to be produced in subsea operations,” he said.

Woodside chief operations officer Mike Utsler presenting at AOG17.

Woodside chief outlines growth areasRemaining competitive

“WE HAVE TO BE IN THE POSITION TO LEVERAGE THIS AMAZING SPEED AT WHICH INNOVATION/TECHNOLOGY IS BEING DEVELOPED."

CONTINUED ON PAGE 3

ELIZABETH FABRI

2 MARCH 2017

THE AUST�LIAN ENERGY REVIEWCONTENTS

Renewable Energy 8

NEWS 1

MARCH EDITIONOUT NOW

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A Day In The Life p22

INDUSTRY PROFILESCatering, Accommodation & Facilities Management 18

Emergency Response Services 19

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Marine Vessels 21

SPECIAL FEATURES

Key Players in Renewable Energy 14

Gastech 2017 12

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RENEWABLE ENERGY

feature p 14

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3MARCH 2017

THE AUST�LIAN ENERGY REVIEW NEWS

ELIZABETH FABRI

ELIZABETH FABRI

The Western Surat Gas Project Glenora area. Image Senex.

Senex accelerates Western Surat project

SENEX has committed $50 million towards its flagship Western Surat Gas Project, to fast track gas production of 10 TJ/day by mid-2018.

Approved in February, the spend was Senex’ first major investment in the project and would enable the company to begin its 30 well drilling campaign and construction of gas and water handling infrastructure, in parallel with appraisal activities west of the Eos block.

Senex managing director and chief executive Ian Davies said the program would result in significant gas volumes from drill ready acreage, with first wells expected to be completed by mid 2017.

“We have seen immediate gas to surface from the Glenora pilot wells, brought online for continuous production in early February,” Mr Davies said.

“We have also seen evidence of strong gas flows from wells on the Eos block during rehabilitation works being undertaken on legacy QGC wells.

“These results demonstrate that coal seams in the Glenora and Eos blocks have already been partially dewatered by neighbouring operations. “

He said the program would support an accelerated project timeline, with potential to drill, complete and connect another 30 to 50 wells throughout 2018.

“Under this scenario and subject to regulatory approvals, Senex can seamlessly transition to a development phase targeting gas production of over 16 TJ/day by 2019, equivalent to one million barrels of oil equivalent per annum.

“The recently announced strategic arrangement between Senex and EIG Global Energy Partners will facilitate these plans and support the delivery of material year-on-year volume growth.

“Finally, the 2017 work program will give us the opportunity to fully embed our design, contracting and execution methodologies in order to demonstrate best in class safety and cost performance.”

The news was welcomed by Queensland Natural Resources and Mines minister Anthony Lynham who said the investment was “great news for industry jobs and businesses”. “Ongoing investment in our $70 billion CSG-LNG industry shows we have the policy settings right in Queensland,” Dr Lynham said.

“Senex’s investment, like QGC’s $1.7 billion Charlie project west of Wandoan, show that Queensland remains an attractive resources investment destination.”

NERA releases 10 yr plan

Image: Rio Tinto.

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NATIONAL Energy Resources Australia (NERA) has released a 10 year roadmap that will help the energy industry transition from a decade of project construction and expansion to production and maintenance.

Launched at AOG17, the 156-page Sector Competitiveness Plan – a 10 year roadmap for the future of the industry report outlined ways forward for the sector to combat increasing global competition, volatile commodity prices and the changing energy market and speed of technology.

“After decades of sustained economic growth, Australia is now experiencing a serious decline in productivity while technological change and disruption is accelerating,” NERA chief executive Miranda Taylor said.

“As a country, we cannot keep doing what we have always done or we will stagnate – we need to urgently find different ways to do things.

“The local energy resources marketplace is far too small for us to be internally focused.

“We must create global connections and access the global marketplace if Australia is to be competitive and productive.”

Ms Taylor said while Australian research was recognised as world-class, the country’s small marketplace and reluctance to be early adopters of new technology had driven many innovators overseas, with little flow on benefits to Australia.

The new plan said more than $10 billion of value could be added to the economy through improvements to the

supply chain, workforce, innovation and regulatory reform.

Resources and Northern Australia minister Matt Canavan said the 10-year plan identified steps for continued prosperity for the sector despite numerous challenges.

“NERA’s plan has identified how the sector can work together to enhance operational models and technology capabilities; improve capacity, skills

and culture; and address the regulatory environment in which it operates,” Mr Canavan said.

“The Australian Government has established six growth centres to encourage collaboration in areas of competitive strength.

“I welcome this plan to provide a long-term road map for the sector, to ensure it continues to create jobs and opportunities in regional Australia.”

NERA chief executive Miranda Taylor.

“In the future, the next wave of developments – be it offshore Australia or around the world – [are] going to be about developing smaller pools through extended reach back to existing infrastructure to allow us to continue to load our existing infrastructure and maximise value.

“Woodside is involved in ensuring both of those critical components are addressed, driving technology to extend the horizontal

and lateral connectivity of subsea to surface and to assure the reliability and efficiency of that subsea infrastructure to operate for decades on end.”

Ensuring a skilled workforce was also on the agenda.

“In 1983 through 1986, 5 million people worked in the oil and gas industry worldwide; 1 million left,” he said.

“It was a decade before we replaced that loss of skills and competencies

worldwide.“Today you won’t be surprised to hear

more than 2 million people have left the industry of 8 to 9 million – how will we replace those skills and competencies?”

He said the industry needed to work together to identify the real number of Australian workers in oil and gas and ensure there was enough skill-ready people to meet the challenges over the next 30 years.

“WE MUST CREATE GLOBAL

CONNECTIONS AND ACCESS THE GLOBAL

MARKETPLACE IF AUSTRALIA

IS TO BE COMPETITIVE

AND PRODUCTIVE.”

Woodside chief outlines growth areasCONTINUED FROM PAGE 1

4 MARCH 2017

THE AUST�LIAN ENERGY REVIEWNEWS

CAMERON DRUMMOND

NASA will loan Woodside an Anthropomorphic Robonaut System for a 60-month deployment.

A MEETING of State and Federal energy ministers in August 2016 highlighted the critical role gas will play in Australia’s rapidly evolving energy sector.

While media focus has been primarily on the export of gas via liquefied natural gas (LNG), energy policy focus has switched to the importance of gas for power generation.

Josh Frydenberg, Federal Minister for Energy and Environment, recently spoke of the need for more gas supplies and “the growing importance of gas as a transition fuel as we move to incorporate more renewables into the system.”

Gas is playing a critical balancing role, helping to ease the transition from today’s coal-intensive electric power generation to a lower carbon world.

However, with LNG export volumes anticipated to increase by 35 per cent a year to 2017–18, one aspect raising alarm in the market is the predicted rising cost of gas in Australia with domestic gas prices approaching LNG export parity.

The ramp up in LNG production is undeniably having a major positive impact on the Australian economy. The value of Australia’s LNG exports is forecast to increase by 50 per cent a year to $37 billion (nominal value) in 2017–18, supported by higher LNG prices and export volumes. LNG contract prices, under which most Australian LNG is sold, are forecast to increase in line with oil prices.

Over the next two to three years, Australian producers are expected to capture an increasing share of imports into major markets in north-east Asia as long-term LNG import contracts commence.

An extraordinary paradox

While there’s broad acknowledgement of the role gas plays in providing backup

for intermittent renewable sources, the challenge will be ensuring there is adequate supply of domestic gas to prevent price spikes becoming the norm.

We may have a situation where Australia becomes the world’s biggest exporter of gas via its LNG industry and yet also becomes a gas importer to bridge the supply gaps in its domestic market. It’s a serious issue with reports of Australian companies struggling to secure long-term gas contracts at affordable rates.

At its recent investor day briefing, AGL Energy unveiled it is considering building a gas import terminal to bring cheaper natural gas into the south-eastern states because of limited domestic gas availability and high local prices. There's a reasonable chance AGL may find it is more economic to import gas from any number of low cost producers, rather than tap into supplies under its feet.

Furthermore, the Australian Petroleum Production and Exploration Association (APPEA) has commented that increasingly tight supplies on the east coast and the absence of new exploration could result in a supply shortfall by 2019.

The best solution for easing southeastern Australia's looming shortage of natural gas would be to boost onshore production in Victoria and New South Wales, the two most populous states. However, it may be very challenging to gain state government buy-in – for example, the Victorian Government introduced legislation banning exploration and development of unconventional gas, including fracking, at the beginning of 2016.

The Australian Energy Market Operator’s 2016 Gas Statement of Opportunities highlighted the critical importance of continuing to develop gas resources and the need for policy settings to facilitate gas supply in the future.

The impact of the Queensland LNG industry on domestic gas prices has become particularly evident in recent months. Some LNG producers have had to purchase significant volumes of gas to feed their newly running LNG trains. Spot gas prices have been steadily rising across all regions in the National Energy Market with domestic gas pricing moving towards export parity.

It’s not just the pull of LNG export

markets impacting domestic gas prices - other factors are also at work. Supply disruptions (coal plant maintenance programs, interconnector upgrades) have increased the need for gas-fired generation to bridge the supply gap. Residential gas demand has also picked up, driven by seasonal trends.

There are also reports of gas production hubs like Moomba and Longford operating near to full capacity during winter, with short-term outages at several production facilities. Stored gas and higher marginal cost fields are being drawn up more regularly, pushing up the cost of supply. Faced with higher costs, wholesale market gas producers are at risk of deferring investments in new gas supply developments. This will further tighten the domestic supply outlook in Australia and apply additional upwards pressure on gas prices.

Throughout history, the state of play in the oil and gas industry has been one of constant and unpredictable change.

There have been many examples of unexpected “about faces” in energy trade. Examples include:

• the US retrofitting its import terminals and becoming an LNG exporter last year

• Japan’s JERA poised to soon become an LNG seller

• the shift in LNG pricing from term to spot and the decoupling of oil linked pricing

• “small becoming the new big” with the development of mini and micro LNG

• producers working collaboratively with other parties in the value chain, ie shipping companies and buyers to develop new markets and applications, such as LNG for transportation.

The future for Australia as the world’s largest LNG exporter is certain. Its future as a gas importer is less clear, but given the current trajectory, it may ironically eventuate.

The Australian oil and gas paradoxWill the world’s largest LNG exporter become an importer?

Bernadette Cullinane, Deloitte National oil and gas leader

Woodside partners with NASA WOODSIDE Petroleum has become the first oil and gas company to strike a partnership with the National Aeronautics and Space Administration (NASA), and will collaborate to deploy a NASA-developed Robonaut at unmanned offshore platforms.

Under the partnership, NASA will loan Woodside an Anthropomorphic Robonaut System for a 60-month deployment in Perth, to explore how the technology could be used to improve safety, reliability and efficiency in high-risk remote environments where Woodside operates.

Woodside would combine its advanced cognitive science technology being developed at its WA operations with NASA’s expertise in Robonauts, which is already in use at the International Space Station.

As part of the project, Woodside would research ways the Robonaut could perform tasks from more than 300 ideas suggested by the company’s operators, engineers and maintenance workers.

Woodside chief technology officer Shaun Gregory welcomed the collaboration.

“This is a unique partnership for NASA and is an exciting opportunity to accelerate Woodside’s innovative cognitive science program,” Mr Gregory said.

“The partnership fits well with our collaborative approach to innovation.

“We want the best thinkers from inside and outside our company to be working on solutions that unlock value in our operations.

“It also supports the WA innovation agenda and will help our State realise its potential to be a global centre for scientific and technological excellence,” he said.

http://www.simmondsbristow.com.au

THE APA Group has struck a deal to supply infrastructure for Cooper Energy’s planned $605 million Sole gas project off the Victorian coast.

APA has signed a heads of agreement to acquire and operate Cooper’s Orbust gas processing plant in conjunction with Cooper’s development of its Sole gas field.

As owner of the Orbust gas plant, APA would fund the expansion and upgrade of the plant to process gas from Sole, expected to cost $250m, leaving Cooper with $355m for the development of the project.

Cooper would retain 100 per cent ownership of the upstream gas supply, paying a tariff to APA as gas was processed through the Orbust plant on its way to the east coast market.

APA managing director Mick McCormack said the company had been actively seeking opportunities to fund and develop new projects in the midstream infrastructure sector.

“Acquisition and development of the Orbost gas processing plant represents a significant opportunity for APA to expand this aspect of its business,” Mr McCormack said.

“We believe that the Sole gas project has the potential to be a source of significant

new gas supply to the Eastern Australian market.

“We look forward to working with Cooper Energy to finalise our arrangements so that Cooper Energy can bring this project to commercialisation through APA owned energy infrastructure.”

Cooper managing director said that the company would now concentrate its capital and efforts on exploration, upstream development and production and gas marketing.

“With this Heads of Agreement in place, we are now able to proceed with the final phase of securing what we need to finance the Sole Gas Project.”

THE BHP Billiton board has approved its US$2.2 billion investment for the development of the Mad Dog Phase 2 project in the Gulf of Mexico.

BHP holds a 23.9 per cent interest in the project in a joint venture with operator BP (60.5 per cent), and Union Oil Company of California – a Chevron affiliate (15.6 per cent).

The approval was expected as BP’s board gave its own approval for the expansion late last year.

The project, in the Green Canyon area in the Gulf of Mexico, is an extension of the existing Mad Dog field and has an estimated total cost of $US9bn.

It includes a new floating production facility with the capacity to produce up to 140,000 gross barrels of crude oil per day from up to 14 production wells.

Steve Pastor, BHP Billiton President Operations Petroleum said Mad Dog Phase 2 is one of the largest, discovered and undeveloped resources in the Gulf of Mexico.

“It offers an attractive investment opportunity for BHP Billiton and aligns with our strategic objective to build our conventional portfolio through the development of large, long-life, high-quality resources,” he said.

Production is expected to begin in the 2022 financial year.

6 MARCH 2017NEWS THE AUST�LIAN ENERGY REVIEW

APA backs Sole project

CAMERON DRUMMOND

CAMERON DRUMMOND

CAMERON DRUMMOND

Cooper Energy will now look into finance options for the development of the Sole gas field. Image: Cooper Energy.

BHP approves Mad Dog Phase 2

The Mad Dog oil field in the Gulf of Mexico. Image: Stock.

WESFARMERS managing director Richard Goyder will take over as chairman of Woodside Petroleum, his second major appointment since Wesfarmers announced he would be stepping down from his position earlier this year.

Mr Goyder – already a commissioner – was named as the next chairman of the Australian Football League, replacing Mike Fitzpatrick on 4 April.

Mr Goyder will join Woodside as a non-executive director and chairman-elect effective 1 August this year, and take over from current chairman Michael Chaney at the close of next year’s annual general meeting in April next year.

Mr Chaney, who joined the Woodside board in 2005 and became chairman in 2007, said it was fitting that such a prominent and respected Australian business leader should become the next chairman of the company.

“It has been a great pleasure to serve as Woodside’s chairman and to lead an exceptional Board,” Mr Chaney said.

“Richard will bring a skill set that complements existing expertise and will take over as chairman at an exciting time for the company as we grow our portfolio in Australia and globally.

“Richard has demonstrated his focus on delivering value for shareholders and commitment to excellence throughout his extensive business career.

“I am certain he will provide outstanding leadership through Woodside’s next phase of growth.”

Goyder appointed new Woodside chairman

Richard Goyder. Image: Wesfarmers.

http://www.konecranes.com.au

8 MARCH 2017

THE AUST�LIAN ENERGY REVIEWNEWS

EnergyAustralia signs solar and wind PPA’s

NEWS: RENEWABLE ENERGY

ENERGY tech start up GreenSync has launched a new decentralised energy exchange (deX) program that will allow households and businesses to trade their battery and rooftop solar generated power to the grid.

The world-first trial aimed to encourage more consumers to take full advantage of their solar and battery storage systems, and ensure more stability for the grid in peak times to avoid further blackouts.

The deX project was one of the first projects developed through the Australian Renewable Energy Agency’s (ARENA) A-Lab initiative looking into innovations to support the future of renewable energy.

ARENA would be providing $450,000 in funding to support the project, valued at $930,200.

“In a win for energy consumers, deX will enable owners of solar and batteries to earn extra money for helping to keep the lights on by participating in the sizeable grid services market,” ARENA chief executive Ivor Frischknecht said.

“Australia has world-leading levels of rooftop solar, however there’s currently no marketplace for consumers to access the full value of these systems.

“deX is a software based marketplace that will for the first time allow households and businesses to trade the grid services their batteries and rooftop solar can provide with their local network operators.

“This could encourage more investment in solar and batteries, supporting the grid, reducing the need for infrastructure investment and ultimately reducing the cost of renewables in Australia.”

GreenSync would developing the software in association with industry partners including United Energy, ActewAGL, Mojo Power, Australian National University, and the ACT and Victorian governments with pilot trials carried out in both States.

“Reliability of the energy system and delivering new value streams to consumers are key priorities driving deX,” GreenSync founder and chief executive Phil Blythe said.

“deX will revolutionise peak electricity management and drive more effective investment in energy infrastructure.”

Software trial a world first

ELIZABETH FABRI

ELIZABETH FABRI

GreenSync founder and chief executive Dr Phil Blythe.

The Gannawarra Solar Farm site. Image: Edify Energy.

POWER retailer EnergyAustralia has signed three power purchase agreements to buy electricity from the Gannawarra and Ross River solar farms and Bodangora wind project in eastern Australia as part of its $1.5 billion program to purchase energy from emerging wind and solar projects.

The Ross River deal would see the company obtain 80 per cent of the electricity generated by Queensland’s 142-megawatt solar farm currently in development, over a 13 year period.

“Providing reliable, affordable and cleaner supplies of energy has never been more important than it is today,” EnergyAustralia managing director Catherine Tanna said.

“As an owner of coal-fired power stations EnergyAustralia has a responsibility to provide leadership on the best, most cost-effective means of reducing emissions and addressing climate change.

“For us, that means broadening Australia’s energy mix by finding and supporting quality renewable projects, like the Ross River Solar Farm, on behalf of our customers.”

The second 13-year agreement was to purchase all electricity from the 60MW Gannawarra Solar Farm being developed in northern Victoria.

Project construction will start this year with completion expected in early 2018.

“The Gannawarra Solar Farm is the first project in Victoria and third overall we’ve announced in EnergyAustralia’s $1.5 billion program to buy around 500MW of power from

new wind and solar energy projects across eastern Australia,” Ms Tanna said.

“When complete, Gannawarra will be Victoria’s first large-scale solar farm and another critical link in Australia’s transition to a cleaner energy future.”

The third PPA agreement signed in

February was for 60 per cent of the output from the proposed 113.2MW Bodangora wind farm project being developed in NSW by Infigen Energy.

Once completed, Bodangora would produce enough energy to power more than 49,000 homes.

“THIS COULD ENCOURAGE MORE INVESTMENT IN SOLAR AND BATTERIES, SUPPORTING THE GRID, REDUCING THE NEED FOR INFRASTRUCTURE INVESTMENT AND ULTIMATELY REDUCING THE COST OF RENEWABLES IN AUSTRALIA.”

http://www.vectorenergy.com.au

10 MARCH 2017

THE AUST�LIAN ENERGY REVIEW

A new lead-acid battery storage technology developed in Australia is ready to be commercialised after signing a global manufacturing deal and receiving funding from the Australian Renewable Energy Agency (ARENA).

Energy storage business Ecoult – an offshoot of the CSIRO – signed a deal with India’s largest battery manufacturer, Excise Industries, to manufacture and distribute the company’s UltraBattery technology across South Asia.

Originally invented by the CSIRO, the UltraBattery is an efficient, fast-charging and low maintenance technology suitable for both-grid and off-grid power systems.

Its capabilities range from 1 kilowatt home use, to several megawatt grid-scale applications.

Recognising the technology’s potential, the Australian Renewable Energy Agency (ARENA) committed $4.1 million of recoupable funding for Sydney-based Ecoult to further enhance and commercialise Ecoult’s battery technology.

The funding will add to Ecoult’s $10.6m investment to take product development to the next level.

ARENA CEO Ivor Frischknecht said providing support for battery storage technologies like the UltraBattery was at the core of ensuring a smooth transition to a renewable energy future.

“Storage is critical for increasing the reliability of our on-grid and off-grid power systems,” Mr Frischknecht said.

“It can give customers more control over

their energy by storing solar through the day to use during the evening peak.”

Ecoult chief executive John Wood said ARENA’s new funding would support the expansion of the company’s engineering team in Sydney to improve its technology to help shift dependency on fossil fuel consumption to renewables.

“Over the past 10 years, since our inception at CSIRO, and with the assistance of the critical funding from ARENA, our team has developed energy storage systems to enhance renewable adoption in Australia at the same time contributing to the global evolution in the way people and companies

think about application of energy storage alongside renewable energy,” Mr Wood said.

In 2013, ARENA provided $583,780 to Ecoult for the early development of the technology which led to the creation of the small, kilowatt-scale battery storage device known as the ‘UltraFlex’.

The following year Ecoult successfully ran a project with its technology to reduce diesel use at off-grid mobile base stations south of Sydney, showing that the system paid for itself in diesel cost savings within 18 months.

The UltraFlex was recently selected by the

Institute for Transformative Technologies (ITT) for its rural electrification program to bring low-emission power and energy storage to remote, rural communities.

Mr Wood said ITT testing of the UltraBattery was currently underway in India.

“The sites where UltraBattery can add economic, environmental and social value in India are not just about telecommunications,” Mr Wood said.

“They are sites that have the potential to bring education, health benefits, jobs and very-low-carbon electricity to some of the world’s most remote communities.”

GENEX Power has received $100 million in debt finance from the Clean Energy Finance Corporation (CEFC) and European financier Société Générale to achieve financial close for phase one of its 50MW Kidston solar project 270km north of Townsville, QLD.

Genex said the funding ensured that construction of the project remained on track, with first generation from the solar panels into the grid expected in the December quarter this year.

“With project construction underway for phase one, Genex will turn to securing financial arrangements for its 250MW pumped storage hydro project, as well as the completion of technical feasibility

studies for the [phase two] 270MW Kidston solar project,” the company said.

When completed, the project will be the first of its kind in Australia to co-locate a large-scale solar farm with large-scale pumped hydro storage.

Genex estimated that the 250MW pumped hydro storage project would support 1500MWh of continuous power in a single 6-hour generation cycle.

CAMERON DRUMMOND

CAMERON DRUMMOND

ELIZABETH FABRI

Ecoult chief executive John Wood with the company’s UltraBattery.

The Kidston solar project. Image: ARENA.

UltraBattery goes global

Genex achieves financial close

NEWS: RENEWABLE ENERGY

THE Victorian Government has launched a $2 million program to promote sustainable energy production through the development of waste to energy conversion technologies.

The Waste to Energy Infrastructure Fund aimed to divert food waste from landfill and convert this into energy via technologies such as anaerobic digestion and thermal treatment of waste.

In 2014-15 the State’s commercial and industrial sectors produced more than 300,000 tonnes of food waste, of which only 22 per cent was recycled.

“Waste to energy projects offer opportunities for Victoria, by creating jobs, helping to reduce business costs, generating sustainable energy and reducing pressure on landfill,” Victoria Energy, Environment and Climate Change minister Lily D’Ambrosio said.

“This program supports investment in renewable energy technologies that will help Victoria become a low carbon economy and reach our target of zero net greenhouse gas emissions by 2050.

“A variety of industrial and organic waste products can be used in waste to energy projects, however thanks to our agricultural base and food-culture, Victorian farms, food processors and commercial operations are well-placed to benefit from turning waste to energy.”

Expressions of interest for the project close 3 April.

Waste to energy program gets support

12 SPECIAL FEATURESGASTECH 2017

MARCH 2017THE AUST�LIAN ENERGY REVIEW

Japan is hosting the world’s largest gas and LNG event in 2017, with a comprehensive program covering the entire value chain, and discussing the industry’s needs, trends and innovations.

Global players converge in Tokyo

SINCE 1972, Gastech has held an industry event at a different location every year, to bring together the international industry for cutting-edge discussions, exhibitions and networking.

Four decades later, it is the world’s leading gas and LNG event, enabling more than 25,000 commercial experts and technical innovators from the up, mid and downstream sectors of the supply chain to discover business-changing insights, explore innovative solutions, and build profitable business connections.

Forty-five industry stakeholders, representing both commercial and technical fields make up Gastech’s governing body.

The group evaluates and approves each year’s conference agenda, including themes and topics, keynotes speakers and presented papers.

The 2017 Gastech Exhibition and Conference will be held in Tokyo, Japan, on 4 to 7 April, at the Makuhari Messe Chiba. It is hosted by the Japan Gastech Consortium, 10 leading companies

representing the Japanese energy sector: JERA, Mitsubishi Corporation, Mitsui & Co, Tokyo Gas, INPEX, ITOCHU, Japan Petroleum Exploration Co (JAPEX), JX Nippon Oil & Energy, Marubeni Corporation and Sumitomo Corporation.

Collectively, these companies play a vital role in determining energy security, supply and establishing policy to secure Japan’s long-term economic future.

Gastech’s diverse base of delegates represents major international oil companies, national oil companies, global utility companies, engineering contractors, ship builders, manufacturers, distributors, service providers, government representatives and decision-makers.

Gastech Japan Constorium Chairman Nobuo Tanaka stated the event is the “most important meeting place for the global gas and LNG industry”.

“Gastech’s broad, diverse program is shaped by energy professionals to deliver outstanding insight, create exceptional networking and new business opportunities, whilst ensuring a robust return-on-invest-ment,” he said.

Japan’s energy outlook and market position

As Japan plans its energy landscape beyond 2030, security of gas and LNG supply are the top priorities.

As the world’s largest importer of LNG – importing nearly one third of all global supply – Japan relies heavily on the predictability of stable and trustworthy supplies of natural gas and LNG.

Gastech stated that, with LNG prices having fallen to close to 50 percent of peak levels being paid in 2014, Japan (and other major Asian buyers) now find themselves in the rare position of being able to dictate and drive pricing and contracts closer to their own terms of interest.

“A deregulated electricity market has opened up new competition between Japanese utility companies and further key changes will be announced in 2017 by the government, which makes this year one of the most pivotal in Japan’s energy history,” Gastech stated.

“The country has a wealth of experience in the sector, making it the ideal location for the upcoming Gastech exhibition and conference.

“It is a hub for discussion and networking among global energy experts, and the event is unique because it provides a Global Meeting Service, which enables attendees to pre-book meetings, with those meetings facilitated during the event. This provides a natural background for Japan’s leading energy players that are keen to develop their presence in the global arena.”

Major utilities such as Tokyo Gas and JERA (a buying partnership formed from Tokyo Electric Power Company and Chubu Electric) are leading the way in driving new international partnerships between Asian customers seeking to

LOUISE BAXTER THE FOUR-DAY, MULTI-STREAMED

CONFERENCE REFLECTS THE INTERNATIONAL

GAS AND LNG MARKET’S BUSINESS-CRITICAL NEEDS.

13MARCH 2017

THE AUST�LIAN ENERGY REVIEW GASTECH 2017

drive improved terms and conditions in their fuel procurement.

JERA recently acquired French giant EDF Trading’s coal & freight division, while leading general trading houses such as Mitsubishi Corp, Mitsui & Co and Marubeni already invest substantially in various upstream and LNG export projects across the globe.

“As one of the largest importers of energy products, the emergence of trends and markets such as marine, renewables, and low-carbon systems will undoubtedly have a massive impact,” Tokyo Gas executive advisor Shigeru Muraki said.

“Conferences such as Gastech are essential, because they bring the key players in the sector together to discuss the key trends and policies that will affect the industry.

Our top management would like to meet with the major oil companies and gas players, such as Shell, BP, ExxonMobil, KOGAS, and CPC Corporation.”

JERA senior executive vice president Hiroki Sato stated the company was “very excited about the event”, particularly being held in Japan for the first time.

“Our ultimate goal is for the convention to be a success, and to cement Japan’s position on the global energy market, not only for buyers but for suppliers,” Mr Sato said.

Exhibition

Gastech is the world’s largest international natural gas and LNG exhibition. A 54,000 square-metre exhibition floor will showcase 600 exhibitors, divided into specialty zones: Operations Management and HSSE; LNG Facilities and Infrastructure; Shipping and Marine Engineering; and Transmission and Distribution.

There will also be nine country pavilions – Japan, France, Germany, The Netherlands, Singapore, Italy, Korea, China and Canada – and two product showcase theatres.

To facilitate networking, the floor will also include cafes, delegate lounge areas, lunches,

VIP dinners and private meeting rooms.The exhibition is supported by leading

brands including Shell, Qatargas, Rasgas, Chevron, KPMG, Uniper, GE Oil & Gas and ENGIE.

Conference

Gastech’s 2017 conference program features 200 speakers, 130 presentations, and 2500 international delegates.

The four-day, multi-streamed

conference will reflect the international gas and LNG market’s business-critical needs, and provides attendees with an agenda that includes original commercial and technical content, as well as ample exclusive networking opportunities.

This year’s program has a special focus on commercial and technical content. Created for attendees in strategic, commercial positions, the Commercial Conference features a series of presentations and panel discussions lead

by senior speakers, sharing new ideas and insights to help delegates profit in today's competitive and challenging gas and LNG market.

Commercial discussion and session topics include: ‘Contracting, Pricing and Trading of Gas and LNG’; ‘The Future of Gas in the New Dawn of Tighter Economics and Lower Carbon Emissions’; ‘New Frontiers, Joint Partnerships and Investments’; and ‘Gas and LNG Projects – Updates and Investments’.

The newly introduced Technical Conference is designed specifically for delegates from technical disciplines. Featuring 60 insightful sessions led by technical experts, it is an opportunity for the exchange of ideas between domestic and international attendees from similar disciplines, to discover innovative solutions for their business operations.

Technical session topics include: Production and Processing of Gas and LNG; Operational and Downstream; Transportation and Storage; Floating and Small-Scale LNG.

Gastech will also be holding a series of special events for specific industry sectors, including Young Gastech, LNG Procurement and Women in Energy.

The Gastech 2017 Conference & Exhibition will be held at Makuhari Messe Chiba in Tokyo, Japan, on 4–7 April. For further details and booking information, visit gastechevent.com.

Gastech Japan Constorium Chairman Nobuo Tanaka.

“CONFERENCES SUCH AS GASTECH ARE ESSENTIAL,

BECAUSE THEY BRING THE KEY PLAYERS IN THE SECTOR TOGETHER TO

DISCUSS THE KEY TRENDS AND POLICIES THAT WILL AFFECT THE INDUSTRY.”

14 MARCH 2017

THE AUST�LIAN ENERGY REVIEWKEY PLAYERS IN RENEWABLE ENERGY

Clean power is the subject of rampant political debate, but all sides agree it will contribute in some way to securing Australia’s energy future. The question is: how big a role will renewables get to play?

Renewable energy: a key player

AUSTRALIA’S energy landscape is a diverse one, spanning from fossil fuel sources, such as coal and gas, to renewable energy innovations.

As with any major industry shift, there has been conflict between the traditional and the new; a debate that extends to government policy and business investment.

Renewable energy sources are obtained from natural resources that can be constantly replenished. Technologies that use, or enable the use of, one or more renewable energy sources include solar, wind, hydropower, geothermal, bioenergy and ocean energy.

According to the most recent energy statistics from the Department of Industry, Innovation and Science, released in 2015, oil remained the largest primary energy source in Australia, at 38 per cent in 2013–14, followed by coal (32 per cent) and natural gas (24 per cent). Renewables accounted for 6 per cent of Australia’s energy mix. The report also showed that renewables grew by 2 per cent in 2013–14 and its consumption of 345.7 petajoules made up 5.9 per cent of total fuel consumption in that period.

Since it was established in 2012, the Federal Government’s Australian Renewable Energy Agency (ARENA) has supported 61 completed renewables projects across the country, contributing $94.2 million in

funding towards research and development.On 1 February 2017, Prime Minister

Malcolm Turnbull called on ARENA and the Clean Energy Finance Corporation (CEFC) to focus on encouraging the development

of flexible capacity and large-scale storage projects in Australia, as it transitions to low emissions technologies.

ARENA chief executive Ivor Frischknecht said the agency would call for expressions of

LOUISE BAXTER

Construction on Train 3 at Gorgon. All images: Chevron.

SPENDING FOR 2017 WOULD TARGET

SHORTER-CYCLE TIME, HIGH-RETURN

INVESTMENTS AND COMPLETING MAJOR

PROJECTS UNDER CONSTRUCTION.

A satellite image of Genex' Kidston Energy Hub site in Northern QLD. Image: Genex.

“RENEWABLES HAVE A VERY IMPORTANT ROLE TO PLAY, BUT WE ARE ALSO CONSCIOUS OF THE NEED TO MANAGE THEIR INTERMITTENCY BY INVESTING IN STORAGE TECHNOLOGY AND ENSURING NECESSARY BASELOAD POWER.”

15MARCH 2017

THE AUST�LIAN ENERGY REVIEW KEY PLAYERS IN RENEWABLE ENERGY

interest for demonstration projects under its Advancing Renewables Program (ARP). It is expected that ARENA would allocate at least $20 million to the successful projects.

To be eligible, projects must provide flexible capacity to the system such as battery storage, pumped hydro, concentrated solar thermal, biomass and demand management technology.

“As ARENA and the CEFC work to accelerate Australia’s shift to an affordable and reliable renewable energy future, we know that the energy sector and the whole economy face a range of challenges in ensuring it is an orderly transition,” Mr Frischknecht said.

“Developing large-scale flexible capacity projects, such as grid scale batteries and pumped hydro, will be a crucial part of the solution.”

CEFC chief executive Oliver Yates said the development of clean energy needed to be matched with energy storage and grid stability services.

“We are blessed with diverse renewable energy resources across the nation that can produce power at different times,” Mr Yates said.

“When we complement renewable generation with the addition of energy storage and grid support, we can develop an electricity supply that is cost-effective, reliable, clean and secure.”

Last year the agencies worked together on the Large Scale Solar Competitive Round, which will result in 12 new solar plants being constructed across the country. That joint program has seen costs fall to the point that Australian large scale solar PV technology is now cost competitive with other generation technologies.

Government policy: where does renewable energy fit?

The Coalition has firmly established its commitment to the continued use of fossil fuels in Australia, and foresees renewable energy technology playing a supplementary role in the energy mix.

After inheriting the Renewable Energy Target – a legislated target designed to ensure Australia uses more renewable energy and reduces its emissions – the Coalition has debated the continuation of the scheme within its ranks.

However, in January 2017, Environment and Energy minister Josh Frydenberg said the Government had “no plans” to cut the current RET, which aims to achieve 23.5 per cent of Australia's energy (the equivalent of 33,000 gigawatt hours) from clean sources by 2020.

In February, Mr Frydenberg reiterated the Government’s focus on energy security, and connected South Australia’s adoption of renewable energy (with a 50 per cent target by 2025) with its recent spate of statewide blackouts.

“The Government’s number one energy priority is energy security,” he said, in a speech to the Sydney Institute on 20 February.

“The state-wide blackout in South Australia on 28 September was a wake-up call to the nation. Three more blackouts have followed in December, January and February.

“These events show the vulnerability of a jurisdiction that relies too heavily on intermittent sources of generation such as wind and solar without the necessary storage and back-up support.

“On average 41 per cent of electricity generation in South Australia comes from wind and solar – among the highest penetration on a per capita basis anywhere in the world. We should not dismiss the new technologies that can maintain coal and gas as a key part of our energy mix while at the same time substantially reducing emissions,” he said.

In a February statement, the Minister also said the Turnbull Government believed Australia deserved an “all-of-the-above, technology-neutral energy policy”.

“Renewables have a very important role to play, but we are also conscious of

the need to manage their intermittency by investing in storage technology and ensuring necessary baseload power,” he said.

On the other side of the political fence, Opposition Leader Bill Shorten reaffirmed Labor’s 50 per cent RET on February 23, and accused the Government of waging a “scare campaign” on clean energy.

“Forget the word games – 50 per cent renewables by 2030 is Labor’s target, our goal, our objective and our aspiration, call it what you like,” Mr Shorten told a Bloomberg energy conference.

“Fifty per cent renewables is what we want Australia to achieve, 2030 is when we want to get there, and with the right leadership, we can get there.”

Mr Shorten also argued that the $48 billion price tag linked to the 50 per cent target referred to private sector investment “brought into the economy”.

Clean Energy Council chief executive Kane Thornton has called for more collaboration between the two major parties, and said the absence of long-term energy and climate policy had left a vacuum beyond the end of the decade.

“We have just had a discussion about government support for new coal plants, when Bloomberg New Energy Finance has found that the cheapest power generation it is possible to build today is wind and solar,” Mr Thornton said.

“We need to move the discussion from a political face-off between different power generation technologies and onto the strategic changes we need to make today to ensure a reliable grid tomorrow.

“The whole energy sector is calling for the government to get on with the challenging task of energy market reform and the development of a credible national energy strategy,” he said.

Clean energy in Australia: what and where?

According to the Bureau of Resources and Energy Economics, Australia’s renewable energy consumption in 2015 comprised biomass (wood, woodwaste and bagasse) at 53 per cent, hydroelectricity (19.2 per cent), wind 10.7 per cent, solar PV 5.1 per cent, biogas 4.7 per cent, solar hot water 3.8 per cent and biofuels 3.6 per cent.

Bioenergy (the sum of all energy derived from plant matter) represented 61.3 per cent (211.9PJ) of Australia's total renewable energy consumption in 2015.

The Australian Capital Territory has eagerly embraced clean energy, targeting

90 per cent of its fuel consumption to come from renewable sources by 2020.

South Australia’s commitment to wind technology has made it a leader in the sector’s development, with the state hosting more than 50 per cent of the current installed wind capacity in Australia.

Frank Woitiez, chief executive of renewable energy firm Neoen Australia, which owns and operates the 315MW Hornsdale wind farm in South Australia, said the correlation between the State’s blackouts and renewable projects was a “very short-sighted response that proves to be widely untrue”.

“There is no turning back; we are in Australia, and globally, transitioning towards a decarbonised world, economy and sources of energy,” Mr Woitiez said.

“Wind, solar, and storage are the pillars of the future of Australian energy system.”

In December 2016, ARENA accelerated rollout of big solar by committing up to $8.9 million towards Genex’s $126 million Kidston Solar Project in North Queensland – the 12th solar plant funded by the agency, aiming to triple Australia’s large-scale solar capacity.

“ARENA’s unprecedented investment in large-scale solar is expected to unlock almost $1 billion in commercial investment that will mostly be spent in regional Australian economies,” Mr Frischknecht said.

“Nationally, the six plants in Queensland, five in New South Wales and one in Western Australia will be a huge boost to regional areas with the expected creation of around 2300 direct jobs and thousands more indirect jobs.”

“WE ARE BLESSED WITH DIVERSE RENEWABLE ENERGY RESOURCES ACROSS THE NATION THAT CAN PRODUCE POWER AT DIFFERENT TIMES.”

“50 PER CENT RENEWABLES IS WHAT WE WANT

AUSTRALIA TO ACHIEVE, 2030 IS WHEN WE WANT TO

GET THERE.”

“THE WHOLE ENERGY SECTOR IS CALLING

FOR THE GOVERNMENT TO GET ON WITH THE

CHALLENGING TASK OF ENERGY MARKET REFORM AND THE DEVELOPMENT

OF A CREDIBLE NATIONAL ENERGY STRATEGY.”

16 INDUSTRY PROFILESCOMPANIES GEARING UP

MARCH 2017THE AUST�LIAN ENERGY REVIEW

VECTOR Energy, part of the Vector group in New Zealand, is bringing its proven track record in the integration of energy storage solutions to the Australian mining industry.

Vector Energy has one of the largest energy storage teams in Australia.

Utilising their knowledge, experience and technology, they can design, install, commission and integrate robust and fit-for-purpose solutions for mining’s most stringent applications.

Delivering practical end-to-end solutions for its customers, Vector Energy has a full service offering including energy storage integration utilising innovative battery technologies, renewable hybrid power systems and microgrids, solar power generation, virtual power stations, performance monitoring and control and project financing options for approved

customers.Vector Limited is leading the

integration of disruptive technologies and has integrated one of the largest energy storage systems in the Southern Hemisphere utilising Tesla Powerpack. In October 2016, Vector integrated a 1MW/2.3MWh energy storage system on a substation that could help to reduce peak demand, extend the life of the substation and provide supplementary power to improve reliability.

In terms of investment, it also allows Vector Limited to defer large-scale expenditure in conventional infrastructure that may in time become obsolete.

Vector Energy will work with individual clients to understand their businesses’ energy needs and offer a tailored solution.

Renewable energy solutions for mine sites

Vector Energy has one of the largest energy storage teams in Australia.

IT’S rare for an employer these days to not value a well-trained employee.

At the same time, finding the money for necessary training can be a challenge for the budget.

It can also be a bit of a head scratcher when it comes to understanding how government funding might be able to offset that cost.

Government funding impacts what an employee and/or employer might pay when it comes to training. Understanding where that funding comes from and what impacts on eligibility can be pretty helpful.

When the overall training package changes (as happened in late 2015) this can stir up questions and confusion as well.

Funding can come from a variety of sources, including both the State and Federal level, as well as private industry organisations.

It is important to keep in mind that the exact funding scheme available changes from time to time.

It is also important to remember that not everyone qualifies for government funding.

To get the funding, you have to be considered an “eligible learner”.

Remember too, that each State sets their State level funding scheme and the rules can be very different from one to another, even though they may be called the same thing (for example: User Choice).

Water treatment operators and water industry operations are recognised as highly in-demand skills in the Queensland economy.

That means our industry is pretty well supported by most of the major

funding schemes in Queensland. Industry organisations, such as LGAQ or the QLD Water Directorate, may also have some funding available to support industry specific training.

In addition, depending on where you live and where the training will be delivered, sometimes the government provides additional funding.

Current schemes in Queensland include: User Choice, Certificate 3 Guarantee, and Higher Level Skills.

These schemes are open to “eligible learners”, which means that incentives and funding opportunities are generally restricted to Australian citizens, permanent residents or NZ passport holders (for Queensland State Government funding you must also permanently reside in Queensland).

Beyond this, eligibility requirements differ between schemes, with varying degrees of detail and complexity.

When it comes to the new training package (NWP released December 2015, which replaced the old NWP07), don’t automatically assume that you need to start from scratch.

There are opportunities to upgrade your qualification to the appropriate new Certificate III offerings, particularly Certificate III in Water Industry Operations NWP30215 & Certificate III in Water Industry Treatment NWP30315.

The new package rules allow more flexibility and portability of equivalent units into the new Certificate III's.

Some learners may only need to complete a single new unit of study, NWPGEN001 – Apply the risk management principles of the water industry standards, guidelines and legislation.

The remaining 10 units of competency likely may be credit transferred or

completed by RPL (recognition of prior learning).

So, when in doubt, reach out to your

registered training organisation, and find out what can be done to customise a training plan to suit your needs and your budget.

By Liz MillanChief trainerSimmonds & Bristow

Simmonds & Bristow chief trainer Liz Millan.

Understanding Government funded training in QLD

17MARCH 2017

THE AUST�LIAN ENERGY REVIEW17CATERING, ACCOMMODATION& FACILITIES MANAGEMENT

18 MARCH 2017

THE AUST�LIAN ENERGY REVIEWEMERGENCY RESPONSE SERVICES

QUALITY accredited Industrial Medic Services (IMS) works within Australia and overseas delivering medical and emergency response personnel, equipment, facilities and vehicles.

The Australian-based company is focused on best practice pre-hospital care, ambulance response and medical support in high risk and remote locations across the country.

From its beginnings as a provider of ambulance services, IMS has become a large and respected supplier of remote paramedic, ambulance, emergency response and workplace medical services and support.

The company also provides major site emergency response and medical services, four-wheel drive ambulance vehicles, fire and rescue equipment and onsite medical rooms with high quality fittings and capabilities.

IMS has built a significant portfolio featuring major clients in the oil and gas industry, providing a significant service offering to exploration and drilling contractors through to large production facilities.

“The last five years has seen an impressive growth in our business through strategic service delivery, investment in our infrastructure, listening to our clients and providing industry leading services,” IMS field operations director Craig Harris said.

“Our services are underpinned by our professional team of paramedics, intensive care paramedics and registered nurses working each day in specialist roles and challenging environments.

“IMS is pleased to be considered as a definite choice and the 'go to' provider of site medical services for a range of major companies, based on our reputation for

quality, performance and service delivery,” Mr Harris said.

IMS is also certified ISO:9001 Quality

Management, OHS and EHS via SAI Global, as well as Achilles FPS Asia Pacific (Oil and Gas).

All IMS services are supported by a 24 hour communications with emergency physicians based in Adelaide.

Emergency services for remote locations

Industrial Medic Services works worldwide to deliver medical and emergency personnel, equipment, facilities and vehicles.

19MARCH 2017

THE AUST�LIAN ENERGY REVIEW19EXPLORATION CONSULTANTS

20 MARCH 2017

THE AUST�LIAN ENERGY REVIEWMARINE VESSELS

AUSTRALIAN-based Offshore Unlimited services the offshore oil and gas industry, using a modern fleet of high speed offshore support vessels and tugs.

Offshore Unlimited provides a comprehensive range of services including offshore installation re-supply, seismic ship support, ROV and dive support, standby, crew transfer, survey and inspection and chase boat services.

Offshore Unlimited vessels are predominantly based in Exmouth, WA, and are coupled with extensive shore support that includes warehouse facilities and logistics capabilities.

The Offshore Unlimited fleet includes two twin screw offshore tugs: the Pacific Crest and Ocean Dynasty.

Built in 2007 and 2008 respectively, these vessels were delivered to Hobart in May 2014 and have had significant refits to bring them up to the company’s high standard of safety and accommodation, which included upgrades to their accommodation, electronics and communication equipment.

Another addition to the company’s fleet is No Limitation – an 18.5m Legend-built monohull, originally designed as a single engine touring and accommodation vessel and converted by Offshore Unlimited to a twin screw 23m offshore support vessel with increased fuel capacity, deck space, modern communications and electronics systems.

Outer Limit, a 36m catamaran, has had a very busy 12 months with extensive survey and ROV inspection works scopes completed in PNG and the Bass Strait.

Offshore Unlimited prides itself on employing experienced crew with extensive skills and range of knowledge gained through

years of working in the offshore oil and gas industry.

Its employees are highly trained and always kept abreast of all new procedures and practices.

All operations are conducted with safety and care for the environment as a priority, adhering to the company’s ISO 9001:2008

quality management, ISO 14001:2004 environment and 18001:2007 OHSAS management systems.

Offshore Unlimited operations in the last 12 months have included seismic chase vessel scopes at North West Shelf and Great Australian Bight; various survey and inspection works in PNG and the Bass Strait;

and near shore and dive support on the Wheatstone and Gorgon projects.

Offshore Unlimited works closely with its clients to provide a safe and efficient work environment in the field, while the shore-based team provides the necessary round-the-clock support to ensure all client expectations are met.

Modern fleet for oil and gas industry

Offshore Unlimited uses high speed, modern supplier vessels and tugs.

21MARCH 2017

THE AUST�LIAN ENERGY REVIEW21A DAY IN THE LIFE

Q. Describe your education and professional background.

I have over 40 years of mining and oil exploration and development experience and 29 years’ corporate experience in roles including chairman and managing director of listed companies. Over my career I have founded and led several companies to develop mines in Australia and Africa.

My BSc (Hons) was in Geology and Physics and I went on to obtain a PhD in Sedimentology and Oceanography.

I’m currently the executive chairman of 1414 Degrees Ltd and of Fenix Mining. 1414 Degrees has commissioned its prototype thermal energy storage system for electricity grid scale deployment and is assessing the first commercial sites for a 10MWh and a 200MWh module.

Between 2000 and 2001 I served as executive chairman of Terramin Australia, during which time I developed the $100 million Angas Mine in Australia and completed a $40m Feasibility Study of the Tala Hamza project in Algeria.

I am the founding president of Western Mediterranean Zinc Spa in Algeria and I was founding chairman and director of Tarcoola Gold and served as director and chairman of a number of ASX listed companies guiding their restructure and relisting.

I’ve raised over $65m through metals trading houses and formed a $40m partnership with China Nonferrous Metal Industry's Foreign Engineering & Construction Co (NFC) to augment debt and equity funding for mine construction.

Q. What does a typical day look like

for you?

There isn’t a typical day which is why I’m in this business!

There are new challenges every day and I enjoy taking on interesting businesses and turning them into viable entities.

This week we’ve had a lot media coverage, so I’m currently fielding a large number of investor enquiries. Capital raising for different aspects of the commercialisation of the products is a key priority as chairman of 1414 Degrees. I will also spend a lot of my time talking to and negotiating with potential cooperative partners as we go into our commercialisation phase.

A lot of my time is also spent managing our various stakeholders, from the board to technical, operations, marketing and financial functions, I need to ensure we are all tightly focussed on the short term and long term goals of the company.

Q. 1414 Degrees is about to launch a

new thermal energy storage system. Can you describe this product and how

it works? Over the past 10 years the company has developed technology to store electricity as

thermal energy in molten silicon. This patented thermal energy storage

system (TESS) will store electricity at a cost estimated to be 10 times cheaper than batteries at the megawatt scale. It will fill the gap in storage between batteries for small applications (mobile phones to home scale) and pumped hydro power at the big end.

The company has invested more than $3 million, with assistance from the Federal Government’s AusIndustry program, to create a product that is highly efficient, safe, and scalable with low emissions and unlike any other energy storage product.

The company is pioneering scalable bulk energy storage with its revolutionary system. The TESS uses abundantly available elemental silicon for storing and retrieving electrical energy enabling low cost storage of energy and a stable supply back to the grid - a critical requirement as renewable generation increases globally.

We have calculated that it can install sufficient storage, capable of supplying hundreds of megawatt hours of electricity, at just $70,000 per MWh of electricity regenerated.

As well as producing electricity, the clean heat output can be used in industry, e.g. food processing, that currently burns gas or diesel or to provide district heat for towns.

We’re not competing with batteries. The company will be working in the space of district heating, major industry, electricity

producers and suburb scale residential developments.

The idea will be to position these machines near industry or get industry to move near to the very big units because it will be able to offer very clean, cost-effective heat.

We don’t have any dirty emissions like from gas or coal as the heat comes out as hot air and can be used in a whole manner of uses, or in a steam turbine.

Q. Did you face any challenges bringing this technology into

production?

Of course. There are a whole series of challenges but we have the capability to deal with them.

The main challenges will be around managing the supply chain so that we are able to scale the production globally.

Q. What are the biggest issues facing the energy sector at present, and how

can the industry tackle these? We are facing a pivotal moment in the local and global energy market, with soaring prices, instability, and harmful emissions. With the growth of renewable energy the issue is how to deal with the intermittency of production.

The solution could smooth out renewable energy’s irregular generation and also help prevent or isolate blackouts from

transmission failures during storms. We have a huge amount of renewable energy capacity being wasted due to a mismatch between generation and demand.

Our new technology presents an opportunity to disrupt the energy market by providing a highly efficient, safe, scalable, and low emission solution. The use of readily available silicon rocks ensures its sustainability and its affordability.

We see the exponential growth opportunities and know we can impact change by making power supplies cheaper and cleaner.

Q. What’s next for 1414 Degrees?

The prototype for 1414 Degrees has been built in the Tonsley Park Innovation Precinct, South Australia with assistance from AusIndustry.

The next stage is the installation of optimised commercial modules at demonstrator sites. In parallel with the installations, research and development work will continue on new technology for the thermal storage device aimed at achieving at least 50 per cent cost reduction for materials. Negotiations are underway with several key industry sites for the 10MWh installation, and wind farm operators are very interested in getting involved to raise efficiency and cash flows.

We are also preparing to launch a Public Offer, seeking to list on the ASX and looking to raise up to $10m from investors.

After spending the last 10 years developing a patented thermal energy storage system, 1414 Degrees has commissioned its prototype and is ready for its first commercial installations. Elizabeth Fabri spoke to the company chairperson Dr Kevin Moriarity about his experience in the industry

and how 1414 Degrees’ system will reduce energy costs, increase the efficiency of renewable generation, and stabilise grid supply.

Dr Kevin Moriarity1414 Degrees chairperson

“OUR NEW TECHNOLOGY PRESENTS AN

OPPORTUNITY TO DISRUPT THE ENERGY

MARKET BY PROVIDING A HIGHLY EFFICIENT, SAFE,

SCALABLE, AND LOW EMISSION SOLUTION.”