Kurri Kurri conflicts: new gas plant is a field day for party donors
A $600 million subsidy for a gas plant in Kurri Kurri makes no commercial sense for the taxpayer, but there are plenty of windfalls for Liberal Party donors.
Former Newcastle mayor and property developer Jeff McCloy (Image: AAP/Dan Himbrechts)
Has there ever been a project that so neatly fits the government’s political agenda as well as the commercial interests of its mates?
The $600 million subsidy announced for a gas plant in Kurri Kurri makes no commercial sense for the taxpayer, but there are windfalls everywhere you look for Liberal donors.
What’s in store for renewable energy in the new Federal Budget?
Renewable solutions have been put on the backburner in the 2021/22 Federal Budget, which has leaned heavily into gas production and emission reduction.
Treasurer Josh Frydenberg splashed the cash in the latest Budget, aiming to undo the damage done by COVID-19 last year. But it seems there was little left in the kitty when it came to investment in renewable projects like wind and solar. Instead, more than $1.8 billion has been tipped into the sector, focusing on new technologies (primarily in gas production) that will reduce emissions.
Minister for Energy and Emissions Reduction Angus Taylor said the Budget would work towards “bolstering our position as a leader” in developing low emissions technologies.
11 May 2021
A raft of policy announcements, rumoured internal decisions and general economic trends are all pointing to a looming downturn in fossil exports for Australia, with many more announcements set to come in the coming months prior to the global COP26 meeting later this year.
China, comfortably one of Australia’s largest customers and a country heavily reliant on Australia’s gas exports, was recently reported by Bloomberg as issuing instructions to delay shipments of gas from Australia. This is part of an ongoing trade dispute rather than any clear climate policies within China.
However, it highlights that Australia remains significantly exposed to this type of posturing due to its heavy economic reliance on fossil exports to China. And at the April Biden Climate Summit, China announced that it plans to “strictly control” its coal plants over the next five years, and to begin reducing coal output in China over the five years after that.
Government s $60m boost to get more gas into the market 07/05/2021|10min
The federal government has released an interim plan ahead of next week’s budget which will include nearly $60 million in funding to fire up the nation’s proposed gas-lead recovery.
“Unlocking additional supply is key to driving down prices for all Australian gas users,” the Interim National Gas Infrastructure Plan read.
Speaking to Sky News, Energy Minister Angus Taylor said a post-pandemic gas-lead recovery was “absolutely happening” and the effects could already be seen on the cost of gas.
“That’s helping to bring down the price of electricity,” he said.
7 May 2021
The Morrison government will pour a further $58.6 million into the gas industry as part of a funding package for new gas storage facilities and a gas import terminal on Australia’s east coast.
The funding will be included in the federal budget, to be handed down on Tuesday next week and represents a doubling-down by the Morrison government on its ‘gas led recovery’ push to expand the gas industry.
The package includes support for Squadron Energy, backed by resources billionaire Andrew Forrest, to build a new gas import terminal at Port Kembla. It comes as the UN releases a new report that calls for a dramatic cut in methane emissions – much of which comes from the extraction of fossil gas – over the next decade.