LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO

Page created by Alice Chang
 
CONTINUE READING
LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
LEADERS AND LEGENDS:
THOUSANDS OF CLEAN
JOBS FOR QUEENSLANDERS

CLIMATECOUNCIL.ORG.AU
LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
Thank you for
supporting the
Climate Council.
The Climate Council is an independent, crowd-funded organisation
providing quality information on climate change to the Australian public.

    Published by the Climate Council of Australia Limited.
    ISBN:    978-1-922404-09-1 (print)
             978-1-922404-08-4 (digital)
                                                                                       Ella Weisbrot
    © Climate Council of Australia Ltd 2020.                                           Researcher

    This work is copyright the Climate Council of Australia Ltd. All material
    contained in this work is copyright the Climate Council of Australia Ltd except
    where a third party source is indicated.
    Climate Council of Australia Ltd copyright material is licensed under the
    Creative Commons Attribution 3.0 Australia License. To view a copy of this
    license visit http://creativecommons.org.au.                                       Louis Brailsford
                                                                                       Campaigner
    You are free to copy, communicate and adapt the Climate Council of Australia
    Ltd copyright material so long as you attribute the Climate Council of Australia
    Ltd and the authors in the following manner: Leaders and legends: Thousands
    of clean jobs for Queenslanders.
    Authors: Ella Weisbrot, Louis Brailsford, Andrew Stock and Greg Bourne.
    We would like to thank Dave Copeman for reviewing and providing feedback           Andrew Stock
    on drafts of the report. We also appreciate the assistance of Lachlan Pickering    Climate Councillor
    and Anna Kalliomaki in the preparation of this report.

    —
    Cover image: ‘Silhouette of engineer shakes hands in the construction area’        Greg Bourne
    by HongtaeStocker via Shutterstock.
                                                                                       Climate Councillor
    This report is printed on 100% recycled paper.

         facebook.com/climatecouncil                 info@climatecouncil.org.au

         twitter.com/climatecouncil                  climatecouncil.org.au
LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
CLIMATE COUNCIL                      i

Contents
Key Findings..................................................................................................................................................................................... ii

1.     Introduction...............................................................................................................................................................................1

2.     Renewable Energy Zones...................................................................................................................................................... 4
       2.1        Benefits of renewable energy zones                                                                                                                                             6
       2.2        Renewable energy zones in Australia and overseas                                                                                                                                7

3.     Renewable Energy Zones in Queensland......................................................................................................................... 8

4.     Jobs for Queenslanders in Renewable Energy Zones...................................................................................................15

5.     CopperString 2.0.................................................................................................................................................................... 18
       5.1        Economic opportunities unlocked by CopperString 2.0                                                                                                                           21

6.     Queensland, the Clean Industrial Superpower............................................................................................................ 22
       6.1        More renewable energy means more jobs for Queenslanders                                                                                                                      23
       6.2        New economy mining and minerals processing                                                                                                                                   25
       6.3        Renewable hydrogen                                                                                                                                                           28
       6.4        Clean manufacturing                                                                                                                                                          29
       6.4.1 Battery manufacturing                                                                                                                                                             29
       6.4.2 Clean metals                                                                                                                                                                      30

7.     Conclusion: Seize the Opportunity................................................................................................................................. 34

References....................................................................................................................................................................................... 35

Image credits.................................................................................................................................................................................. 37
LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
ii    LEADERS AND LEGENDS:
      THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

     Key Findings
     1            2
     As Queensland rebuilds its economy from             Queensland has the potential to be a clean
     the COVID-19 crisis, it should seize the            industrial superpower. Generations of
     opportunity to create jobs in renewable             Queenslanders could work in clean industries
     energy and the industries it will power.            such as clean manufacturing, mining,
                                                         minerals processing and hydrogen made from
     › Queensland can harness renewable energy           renewables.
       for long-term job creation and economic
       growth because it has excellent solar and         › Increasing renewable energy generation brings
       wind resources, as well as a skilled industrial     down power prices, creating a global competitive
       workforce.                                          advantage for Queensland in energy-intensive
                                                           industries.
     › Queensland can accelerate the development
       of renewable energy zones (REZs) across the       › Townsville could become a hub for lithium-ion
       state, creating a long-term pipeline of jobs        battery manufacturing and metals processing, and
       in construction and ongoing operations and          central Queensland could become a clean steel
       maintenance jobs.                                   powerhouse, creating 15,000 local jobs by 2050.

     › The proposed REZs in the Darling Downs and        › Townsville, Gladstone and Mackay have the skilled
       Far North Queensland alone could create up to       workforce and established industrial infrastructure
       2,000 jobs in each region by 2025.                  that makes them ideal cities to develop clean
                                                           industries.
     › In the immediate term, the Climate Council’s
       Clean Jobs Plan has found 15,000-20,000 jobs      › Electricity prices in South East Queensland are
       could be created in Queensland across 12 policy     projected to fall by 20% from 2019 to 2022, due
       opportunities, including renewable energy.          in part to the recent boom in renewable energy
                                                           projects.
LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
KEY FINDINGS      iii

3                                                      4
CopperString 2.0 is a proposed transmission            Renewable energy not only creates jobs, it
project connecting North West Queensland               addresses long term challenges like climate
to the National Electricity Market (NEM),              change.
unlocking exceptional wind and solar
resources and new opportunities in mining              › Climate change is already taking a devastating
and minerals processing.                                 toll on Queensland. This year saw another mass
                                                         bleaching event on the Great Barrier Reef, the third
› CopperString 2.0 is expected to reduce                 in five years. Queenslanders have also suffered
  electricity prices across the region by 40% by         from both devastating drought and flooding.
  connecting North West Queensland to the NEM
  and enabling more renewable energy projects.         › The 2019/20 fire season was so severe it saw areas
                                                         of Wet Tropics World Heritage rainforest burn.
› The North West Minerals Province can become            Damage to the forest from climate change has
  a superpower in new economy mining,                    been declared to be as bad as coral bleaching on
  providing minerals required for solar panels,          the Reef.
  wind turbines and batteries. The value of the
  new economy minerals deposits in the region          › Harnessing renewable energy is essential
  exceeds $500 billion.                                  if Australia is to reduce its greenhouse gas
                                                         emissions and address the escalating dangers
› Construction of CopperString 2.0 is expected to        of climate change.
  begin in 2021, creating 750 direct jobs over three
  years. Industrial opportunities unlocked by the
  project are expected to create an additional 3,560
  full-time jobs from Mt Isa to Townsville while
  generating more than $6 billion in royalties for
  the Queensland Government to 2050.

› Expanding domestic mining and processing of
  critical minerals also increases Australia’s self-
  reliance by protecting our supply chains from
  potential disruption.

                                                                                   climatecouncil.org.au
LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
1    LEADERS AND LEGENDS:
     THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

    1.               Introduction
                     As we rebuild our economy from the                                  The Climate Council’s Clean Jobs Plan
                     COVID-19 crisis, Queensland has                                     found that 15,000-20,000 new jobs could
                     enormous opportunities to create                                    be created across Queensland within the
                     jobs in renewable energy and the                                    next three years by investing in twelve
                     clean industries it could power. The                                clean policy opportunities (Climate Council
                     state could become a global leader                                  2020). Installing additional large-scale
                     in the clean industries of the future,                              renewable energy, transmission,1 and
                     with generations of Queenslanders                                   battery storage could be a job creator in
                     working in industries such as clean                                 regional Queensland, supporting up to
                     manufacturing, mining, minerals                                     2,200 new jobs in the near term. The Clean
                     processing, and hydrogen made                                       Jobs Plan profiles immediate job creation
                     from renewables.                                                    opportunities that kickstart the economy
                                                                                         while setting us up for the future. This latest
                                                                                         state-specific report focuses on the long-
                                                                                         term job opportunities for Queenslanders
                                                                                         from expanding renewable energy and the
                                                                                         clean industries it would enable.

    Figure 1: Queensland could become a global leader in renewable energy and clean industries.

                     1. Transmission refers to the poles and wires that transport electricity over long distances.
LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
INTRODUCTION   2

Generations of Queenslanders could work
in clean industries such as manufacturing,
mining, and hydrogen made from renewables.

Queensland has a competitive advantage in        Renewable energy not only creates jobs and
renewable energy. The state has excellent        supports new industries, it also addresses
sun and wind resources, abundant space,          long-term challenges like climate change.
and the skilled workforce needed to use          Australia is one the most vulnerable developed
renewable energy for job creation and            countries in the world to the impacts of
economic growth. Development of these            climate change, and Queensland is the most
resources can be accelerated through             vulnerable state in Australia (Climate Council
renewable energy zones (REZs) – regions          2019a). Climate change is already taking a
with high potential renewable energy             devastating toll on Queensland.
resources, where development of renewable
energy and storage can be coordinated with       The Great Barrier Reef this year suffered its
transmission to ensure secure, efficient and     third major bleaching event in five years.
cheap electricity.                               Climate change is the greatest threat to the
                                                 Great Barrier Reef. The Reef supports a huge
By increasing renewable energy                   variety of marine life and an estimated 69,000
generation and critical infrastructure such      Australian jobs (Deloitte Access Economics
as transmission, Queensland will also            2013), and provides $7 billion to the Australian
have a global competitive advantage in           economy every year (Jacobs 2016).
energy-intensive industries such as new
economy mining, manufacturing and                Although there is a lot of rainfall variability
renewable hydrogen, because renewable            across different parts of Queensland, some
energy brings down power prices. More            important trends have been discerned over
competitive industries mean more jobs for        recent decades. Rainfall has been very low
Queenslanders, especially in Central and         over parts of southern Australia during the
North Queensland. Cheaper power will also        cool season (April-October) over the past 20
help protect existing jobs in energy intensive   years. This has affected parts of Southern
industries, such as aluminium production.        and Central Queensland, including areas that
New clean industries are most likely to          derive more than 40% of their annual rainfall
develop and succeed in regions with an           during the April-October period, such as the
existing industrial base, skilled workforce,     Darling Downs South West region and South
and established infrastructure such as ports,    East Queensland. By contrast, in Far North
transport, and energy. Queensland has            Queensland, rainfall has been above average
several such regional cities well positioned     over the past 20-year period (CSIRO and
for success, including Townsville, Gladstone,    BoM 2018). As ocean temperatures increase,
and Mackay.                                      so too does the destructive power of tropical
                                                 cyclones, with expected increases in both the
                                                 maximum wind speed and amount of rainfall
                                                 (Climate Council 2019a).
LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
3   LEADERS AND LEGENDS:
    THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

                Almost half of Queensland’s population is       Heritage rainforest burn (The Guardian
                exposed to high or extreme risk of flooding     2019). The Wet Tropics Management
                (Deloitte 2017). Climate change is increasing   Authority has previously declared that
                the intensity of extreme downpours, leading     climate change damage to the forest is as bad
                to greater risk of floods. Meanwhile, annual    as coral bleaching on the reef (Wet Tropics
                temperatures in Queensland have been            Management Authority 2019).
                rising strongly since around the 1980s, with
                nine out of the ten hottest years on record     In addition to the toll on Queenslanders’
                occurring since 2002. There has also been       health and critical natural assets, climate
                a very marked increase in extreme heat in       change is a major threat to the state
                Queensland over recent decades (BoM 2019).      economy. Agriculture and tourism – two
                                                                pillars of Queensland’s economy – are
                Tropical and sub-tropical Queensland            highly sensitive to climate change and
                are often associated with warm, humid           extreme weather (EY 2019). Queenslanders
                conditions and moist vegetation not             suffered 60% of the economic cost of
                conducive to major bushfires. This is           extreme weather disasters in Australia in
                changing. More frequent heatwaves typified      the decade from 2007 to 2016 (Deloitte 2017),
                by hot, dry air masses coming from the          despite having only around one fifth of the
                interior drive higher temperatures and lower    population. Harnessing renewable energy is
                humidity. This increases evaporation and        essential for Australia to reduce greenhouse
                rapidly dries out fuels, even in rainforests,   gas emissions and address accelerating
                making conditions more conducive to major       climate change. It also presents tremendous
                bushfires (Climate Council 2018).               economic opportunities for Queensland.

                Climate change is becoming the greatest         This report shows that Queensland can
                long-term threat to Queensland’s Wet Tropics    build a resilient, thriving economy by
                World Heritage Area. Although the region        using renewable energy for job creation.
                represents only 0.12% of the total Australian   Thousands of Queenslanders could work in
                landmass, it comprises the world’s oldest       clean industries including manufacturing,
                living rainforests and the largest area of      mining, minerals processing, and renewable
                rainforest in Australia. It also supports the   hydrogen. By embracing its renewable
                highest level of biodiversity of any region     energy potential, Queensland could be a
                in Australia (Wet Tropics Management            clean industry superpower for generations
                Authority 2019). The 2019/20 fire season        to come.
                was so severe it saw areas of this World

    Townsville, Gladstone and Mackay
    have the workforce and infrastructure
    necessary to be leaders in the clean
    industries of the future.
LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
SECTION 02           4
                                                                                            RENEWABLE ENERGY ZONES

2. Renewable
   Energy Zones
   A renewable energy zone (REZ) is a                               A REZ is a planning and development tool
   region with high potential renewable                             that allows governments to prioritise the
   energy resources, such as wind,                                  construction and upgrading of essential
   solar, and pumped hydro, where                                   infrastructure to ensure the supply of
   the development of new renewable                                 electricity is secure, stable, efficient and
   energy and storage projects can                                  lowest-cost (AEMO 2020). Across the
   be coordinated with demand and                                   National Electricity Market (NEM), 2 35
   investment in transmission.                                      potential REZs have been identified by the
                                                                    Australian Energy Market Operator (AEMO)
                                                                    in its Integrated System Plan (ISP), a roadmap
                                                                    for the efficient development of the NEM
                                                                    over the next 20 years (AEMO 2020).

                                                                    Queensland is rapidly transitioning to an
                                                                    electricity grid powered by renewable energy
                                                                    and storage, in line with the state’s renewable
                                                                    energy target of 50% by 2030 (Queensland
                                                                    Government 2020g). To ensure that this
                                                                    transition is as smooth as possible, it is
                                                                    important that new wind, solar and storage
                                                                    projects are built in areas where there are
                                                                    high quality renewable energy resources,
                                                                    close proximity to transmission, and strong
                                                                    connections to large users of electricity such
                                                                    as cities and major industries. REZs are a
                                                                    key tool for ensuring that renewable energy
                                                                    is integrated into the grid efficiently and at
                                                                    lowest cost.

   2 The National Electricity Market (NEM) is a series of interconnected grids connecting the eastern states of Australia
     (Queensland, New South Wales, Victoria and Tasmania) as well as South Australia and the Australian Capital Territory.
LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
Figure 2: Queensland is rapidly transitioning to an electricity grid powered by renewable energy and storage. REZs ensure
that development is coordinated, efficient and least-cost.

Renewable energy zones are
regions with excellent wind
and solar resources where
development of renewables
can be coordinated with
transmission and demand.
SECTION 02                 6
                                                                                                RENEWABLE ENERGY ZONES

2.1   Benefits of renewable
      energy zones
      In recent years, there has been a surge in                        storage projects. This planned approach
      new wind and solar farms being built and                          also allows potential grid security problems,
      connected to the grid across Australia. The                       such as issues of system strength,3 to be
      lack of coordination when rolling out new                         identified and resolved before projects are
      renewable projects has led to problems                            built (ARENA 2020b).
      such as overloaded transmission lines,
      system security issues and constraints                            In Queensland, the electricity network is
      on renewable energy generation (ARENA                             currently configured to transport electricity
      2020a; RenewEconomy 2020a). While these                           from coal power stations to households
      issues have been manageable with current                          and businesses, primarily in South East
      levels of development, should this continue                       Queensland. Many wind and solar farms
      without sufficient planning for the future,                       are not located in the same location as
      the problems will multiply.                                       coal power stations and many of the best
                                                                        areas for industry expansion are in Central
      REZs help to address these problems and                           and Northern Queensland. This requires
      are key to planning the transition to a                           a reconfiguration of the power grid in
      modern, efficient and reliable electricity                        Queensland to get electricity where it
      system. REZs enable the coordinated, least                        needs to go – that is, new and coordinated
      cost development of new infrastructure,                           investment in and development of the
      such as transmission, to ensure efficient                         transmission network. REZs provide this
      connection of renewable energy and                                coordinated approach.

Renewable energy zones enable
coordinated, efficient and least cost
development of renewable energy,
storage and transmission.

      3 System strength is a commonly used term that refers to a loose collection of issues related to ensuring the secure operation
        of a power system, including the ability of the power system to maintain and control voltage. This is important because it
        means that if there is a disruption to the grid, such as a coal-fired power station tripping or power lines coming down, the
        voltage can recover quickly, minimising impacts for electricity consumers.
7    LEADERS AND LEGENDS:
     THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

    2.2 Renewable energy zones
        in Australia and overseas
                      REZs have proven successful internationally            was followed by the announcement of
                      and have been gaining traction around                  $500 million for a new Renewable Energy
                      Australia. Internationally, the US state of            Fund to support Queensland’s state-
                      Texas completed its Competitive Renewable              owned energy corporations to accelerate
                      Energy Zones (CREZ) project in 2013,                   the development of renewable projects
                      building a transmission network to connect             (Queensland Government 2020e).
                      the excellent wind resources in the state
                      to the major population and industry                   Earlier this year, the New South Wales
                      centres (Powering Texas 2018). The CREZ                Government also announced support for
                      project was successful in ensuring efficient           the development of REZs in that state (NSW
                      construction of transmission, unlocking                Government 2020). In New South Wales,
                      more than 19,000MW of wind generation,                 the expression of interest process for the
                      and contributing to reduced power prices               Central-West Orana REZ – the first REZ to
                      (ERCOT 2017).                                          be announced – attracted huge interest
                                                                             from renewable energy developers. The
                      The Queensland Government recently                     government targeted 3,000MW of new
                      announced it would invest $145 million to              renewable energy and storage projects
                      establish three REZ corridors to create jobs           and received proposals for 27,000MW,
                      and ensure continued investment in large-              representing $38 billion of potential private
                      scale renewable energy projects across the             investment (NSW Government 2020).
                      state (Queensland Government 2020d). This

    Figure 3: Renewable energy zones have proven successful in the US state of Texas and are gaining traction around Australia.
SECTION 03                          8
                                                                         RENEWABLE ENERGY ZONES IN QUEENSLAND

3. Renewable Energy
   Zones in Queensland
      Of the 35 potential REZs identified                               A further four possible zones could
      across the NEM (see Section 2), eight                             be developed in Townsville, Western
      are in Queensland. Four have been                                 Queensland, Wide Bay-Burnett and
      identified by AEMO as particularly                                Barcaldine in the longer term, or with
      important for development over the                                increased demand from major industry or
      next decade. These are located in the                             commitment of new infrastructure (such as
      regions surrounding Cairns, Mackay,                               CopperString 2.0, see Section 5).
      Rockhampton and Gladstone, and
      the Darling Downs. These REZs are                                 Developing REZs will involve not only new
      profiled in boxes 1 to 4 below.                                   renewable energy and storage projects,
                                                                        but also new and upgraded electricity
                                                                        network infrastructure to handle these new
                                                                        wind, solar, battery and pumped hydro
                                                                        projects. As noted in Section 2, the main
                                                                        purpose of REZs is to plan for the needs of
                                                                        the future grid. This includes planning for
                                                                        new and upgraded transmission links and
                                                                        other infrastructure, such as inverters or
                                                                        synchronous condensers.4

Queensland has eight potential
renewable energy zones.

      4 A synchronous condenser is essentially a large spinning machine connected to the grid, similar in function to a free spinning
        motor. Synchronous condensers are one solution to ensuring a stable supply of electricity through the network. While there
        are other means to achieve this in grids with a high share of renewables, synchronous condensers are one important solution.
        Other options, such as inverters, are able to play a similar role.
9    LEADERS AND LEGENDS:
     THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

                      Often, there are opportunities to build               As noted in Section 2.2, the Queensland
                      significant new renewable energy                      Government has announced it will
                      generation before these infrastructure                invest $145 million to establish three REZ
                      upgrades are required. Queensland’s                   corridors in southern, central and northern
                      REZs vary considerably in this regard. The            Queensland, overlapping with the eight
                      southernmost zones (see Figure 5 below                REZs identified by AEMO (Queensland
                      for map), such as the Darling Downs, with             Government 2020d). In September 2020,
                      strong links to the rest of the NEM, have             the state government announced it was
                      more existing capacity. Once the required             opening an expression of interest process
                      upgrades occur in the northern zones, the             for renewable energy and storage projects
                      opportunities are enormous.                           across these areas (Queensland Government
                                                                            2020c). This process will help guide the
                                                                            initial planning of REZs, including their size,
                                                                            location and timing for development.

    Figure 4: REZs will help drive down power bills and spur job creation throughout Queensland.
SECTION 03              10
                                                                           RENEWABLE ENERGY ZONES IN QUEENSLAND

Figure 5: Renewable energy zones in Queensland. Source: AEMO (2020).

                                 2020 RENEWABLE ENERGY ZONE CANDIDATES

                                                                       Candidate Renewable Energy Zone (REZ)5

                                                                       Indicative wind farm

                                                                       Indicative solar farm

                                       Q1                              Indicative pumped hydro

                                                                       Indicative battery storage
                                                     Cairns
                                      Q2

                                          Forsayth
                                                         Q3
                                                              Townsville

                                                                       Proserpine

                                                                             Mackay
                                                         Q4

                                             Q5

                              Longreach
                                                                                   Rockhampton
                                                                                       Gladstone
                                                                            Q6

                                                                                               Bundaberg

                                                                                        Q7

          Q1 Far North QLD
                                                                            Q8
          Q2 North Qld Clean Energy Hub
                                                                                                    Brisbane
          Q3 Northern Qld
          Q4 Isaac
          Q5 Barcaldine
          Q6 Fitzroy
          Q7 Wide Bay
          Q8 Darling Downs

                                                                                        5 Note: Boundaries are approximate.
11   LEADERS AND LEGENDS:
     THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

         BOX 1: DARLING DOWNS (TOOWOOMBA) RENEWABLE ENERGY ZONE (REZ)

                                                      The Darling Downs REZ has good solar and
                                                      wind resources, with already 840MW of wind
            Chinchilla                                and solar projects existing or committed to
                                   Nanango
                                                      construction.
                     Dalby
                    Toowoomba              Brisbane
                                                      The existing transmission lines can support
                                                      3,000MW of new renewable energy projects
                         Warwick
                                                      beyond those that are already committed.
                                                      An expansion of the interconnector from
                                                      Queensland to New South Wales would
                                                      increase capacity for renewable energy projects
                                                      in this REZ even further.
               Proposed Darling Downs REZ
                                                      A large expansion of renewable energy in the
                                                      area will require four synchronous condensers
          Location:                                   or other technologies to maintain system
          This REZ encompasses the Darling            strength by 2030. This region is perfectly
          Downs west of Brisbane, including           placed to export electricity south to New South
          Warwick, Toowoomba, Dalby, Nanango          Wales and east to Brisbane.
          and Chinchilla.

          New renewable energy capacity by 2030:
          2,800MW of renewable energy
          (equivalent to more than the power
          generated by Queensland’s Stanwell
          coal-fired power station) and 250MW of
          energy storage (AEMO 2020).

          Key benefits:
          › This region is perfectly placed to
            export electricity south to New South
            Wales and east to Brisbane.
SECTION 03      12
                                                   RENEWABLE ENERGY ZONES IN QUEENSLAND

BOX 2: FITZROY (ROCKHAMPTON & GLADSTONE) RENEWABLE ENERGY ZONE (REZ)

                                          The Fitzroy REZ has good solar and wind
                                          resources, although there are currently no
                                          existing or committed renewable energy projects
                    Rockhampton
                                          in this region.
                         Gladstone
         Callide
                    Biloela               The existing transmission lines in Central
                                          Queensland can support 2,000-2,500MW of new
                                          renewable energy projects but this capacity is
                                          shared with the Isaac REZ to the north. The build
                                          out of this renewable energy zone and others in
                                          central Queensland will require transmission
                                          upgrades to take advantage of the excellent
     Proposed Fitzroy (Rockhampton        renewable energy opportunities in the area.
     & Gladstone) REZ
                                          System strength is relatively good in the area,
                                          with one synchronous condenser or similar to be
Location:                                 installed by 2030 to maintain system strength.
This REZ is centred on the cities of      This region is located close to existing heavy
Rockhampton and Gladstone, running        industry in Central Queensland centred around
inland to Biloela and Callide.            Rockhampton and Gladstone, including the
                                          aluminium and cement production industries.
New renewable energy capacity by 2030:    Building out this renewable energy zone could
900MW of renewable energy (roughly        facilitate an expansion of manufacturing in the
equivalent to three-quarters of the       area by supplying clean and affordable power.
power generated by Queensland’s
Callide B coal-fired power station) and
400MW of energy storage (AEMO 2020).

Key benefits:
› Close to existing industry in
  Central Queensland.

› Creates new opportunities for
  manufacturing in the region.
13   LEADERS AND LEGENDS:
     THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

         BOX 3: ISAAC (MACKAY) RENEWABLE ENERGY ZONE (REZ)

                                                      The Isaac REZ has good solar and wind
            Abbot Point      Bowen                    resources, with a large number of solar farms
            Collinsville                              already operating in the region.

                                  Mackay
                                                      The existing transmission lines in Central
              Moranbah                                Queensland have spare capacity of 2,000-
                                                      2,500MW for new renewable energy projects
                                      Marlborough     but this capacity is shared with the Fitzroy
                                                      REZ to the south. The Isaac REZ will require
                                                      upgrades to transmission to enable an
                                                      expansion of renewable energy.

               Proposed Isaac (Mackay) REZ            System strength in the area is good and, as
                                                      with the Fitzroy REZ, this region is located
                                                      close to existing industry in Central and North
          Location:                                   Queensland, in this case centred around
          This REZ includes a large part of Central   Mackay. There is a great opportunity to expand
          and North Queensland, running along         manufacturing in the region by building out
          the coast north from Marlborough up         this REZ.
          to Bowen and Abbot Point via Mackay.
          The REZ also runs inland through
          Collinsville and Moranbah.

          New renewable energy capacity by 2030:
          1,350MW of renewable energy
          development (roughly equivalent to
          the power generated by Queensland’s
          Callide B coal-fired power station) and
          800MW of energy storage (AEMO 2020).

          Key benefits:
          › Close to existing industry in
            Central and North Queensland.

          › Creates new opportunities for
            manufacturing in the region.
SECTION 03       14
                                                    RENEWABLE ENERGY ZONES IN QUEENSLAND

BOX 4: FAR NORTH QUEENSLAND (CAIRNS) RENEWABLE ENERGY ZONE (REZ)

                                           The Far North Queensland REZ has excellent
                                           wind resources and good solar resources. The
                                           region has four existing renewable energy
                  Cooktown
                                           projects, including wind, solar and hydro.

                   Port Douglas
                    Cairns                 The existing transmission line can support an
                                           additional 700MW of new renewable energy. A
                      Innisfail
                                           range of transmission upgrades are proposed by
                      Tully
                                           2030 but these are partly contingent on further
                                           upgrades in Central and North Queensland to
                                           enable the transfer of electricity south.

     Proposed Far North Queensland         Two synchronous condensers or equivalent
     (Cairns) REZ                          will be required by 2030 to maintain system
                                           strength. Far North Queensland has some of
                                           Australia’s best wind resources, which tend to be
Location:                                  available at different times to the wind resources
This REZ hugs the coast of Far North       in other states, providing a complementary
Queensland, beginning in Tully and         source of electricity (AEMO 2020).
Innisfail in the south, running north
through Cairns and Port Douglas up to
Cooktown.

New renewable energy capacity by 2030:
950MW of renewable energy (roughly
equivalent to the power generated by
Queensland’s Callide B coal-fired power
station) (AEMO 2020).

Key benefits:
› Some of Australia’s best wind
  resources, which tend to be available
  at different times to the wind
  resources in other states, providing a
  complementary source of electricity.
15   LEADERS AND LEGENDS:
     THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

     4. Jobs for Queenslanders
        in Renewable Energy
        Zones
                 Thousands of jobs can be created         The Climate Council’s Clean Jobs Plan
                 throughout regional Queensland in        found that an estimated 15,000 – 20,000
                 a range of different industries in the   direct jobs could be created across the state
                 construction and ongoing operations      within the next three years by investing
                 and maintenance of REZs.                 in twelve clean economic recovery policy
                                                          opportunities (Climate Council 2020).
                                                          Installing additional large-scale renewable
                                                          energy, transmission and battery storage
                                                          could be a significant job creator in regional
                                                          Queensland, supporting 1,800 – 2,200 new
                                                          direct jobs in the near term, while rebooting
                                                          the economy and tackling long term
                                                          challenges like climate change at the same
                                                          time (Climate Council 2020).

                                                          Recent jobs modelling by other
                                                          organisations has also found job creation
                                                          opportunities in renewable energy. The
                                                          Clean Energy Council has found that the
                                                          renewable energy industry already supports
                                                          at least 6,000 direct and indirect jobs in
                                                          Queensland (Clean Energy Council 2020).
                                                          This could double to more than 11,000
                                                          jobs within a few years with strong policy

     The Clean Jobs Plan                                  support. Without policy support the sector
                                                          could lose almost 3,000 existing jobs (Clean
     found that 15,000 –                                  Energy Council 2020).

     20,000 new jobs could
     be created across
     Queensland within
     the next three years.
Figure 6: The renewable energy industry could support more than 11,000 jobs in Queensland by 2025 with strong policy support.

The proposed REZs in the Darling Downs
and Far North Queensland could create up
to 2,000 jobs in each region by 2025.

While the development of REZs would
establish a long-term pipeline of                                 These jobs in new renewable energy projects
construction jobs, half of these jobs                             would include direct jobs across a wide range
could be in ongoing operations and                                of occupations, including:
maintenance roles by 2035, creating long-
term, skilled jobs for Queenslanders. Up to
75% of these jobs would be located outside
of Brisbane. The proposed REZs in the
Darling Downs and Far North Queensland                                  Electricians                Electrical trade
                                                                                                       assistants
alone could create up to 2,000 jobs in each
region by 2025 (Clean Energy Council
2020). Further jobs would be created in the
installation and upgrading of transmission
necessary to support these REZs.                                          Drivers                       Roofers

Once established, the low-cost renewable
electricity generation from the REZs will
become a key competitive advantage for
energy-intensive Queensland industries                             Office managers and           Construction and
                                                                   administrative staff          project managers
enabling sustainable long-term job
creation – Section 6 looks at these
opportunities in more detail.

                                                                       Site managers             Mechanical trades
                                                                      and supervisors            and technicians

                                                             Source: Clean Energy Council (2020).
17    LEADERS AND LEGENDS:
      THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

                                                                       Increasing renewable energy generation will
                                                                       lower energy bills, which can help create new
                                                                       manufacturing jobs throughout Queensland.
                                                                       Manufacturing hubs have already been set
                                                                       up in both Gladstone and Rockhampton,
                                                                       providing centres for training and advice on
                                                                       advanced manufacturing (Manufacturers’
                                                                       Monthly 2020). Expanding renewable energy
                                                                       in the nearby REZs would help to ensure
                                                                       affordable power is supplied to the region,
                                                                       enabling a further expansion of existing
                                                                       manufacturing, as covered in more detail in
                                                                       Section 6.

     Figure 7: Renewable energy projects create jobs across a wide
     range of different occupations including electricians, drivers,
     construction and mechanical trades.

     Renewable energy zones
     would help unlock further
     manufacturing opportunities
     throughout Queensland.
SECTION 05       18
                                                                                                             COPPERSTRING 2.0

5. CopperString 2.0
      The CopperString 2.0 project offers                                CopperString 2.06 is a proposal to build a
      another opportunity to use renewable                               transmission link from Mt Isa to Townsville.
      energy to create jobs and support                                  North West Queensland is not connected to
      industries such as mining and                                      the National Electricity Market (NEM) and
      minerals processing in Queensland.                                 the region, including industry in the North
                                                                         West Minerals Province (see Box 5 below),
                                                                         currently relies on two expensive gas-fired
                                                                         power stations near Mt Isa. Electricity prices
                                                                         in the region tend to be more than double
                                                                         the price paid for electricity in Townsville,
                                                                         creating a major disadvantage for local
                                                                         industry (AFR 2019).

                                                                         CopperString 2.0 would connect the
                                                                         North West Minerals Province to the NEM,
                                                                         significantly lowering electricity prices
                                                                         (Queensland Government 2020a). The
                                                                         proposed high voltage AC transmission
                                                                         line would stretch for roughly 1,000 km (see
                                                                         Figure 8 below for the map) (CopperString

CopperString 2.0 is                                                      2.0 2019). CopperString 2.0 would also unlock
                                                                         new renewable energy generation. This

expected to reduce                                                       region has some of the best solar and wind
                                                                         resources in Australia, and CopperString 2.0

electricity prices                                                       could provide the transmission necessary
                                                                         to develop these resources and connect

in North West                                                            them to the NEM (Queensland Government
                                                                         2020a). On average, this is expected to
                                                                         reduce electricity prices in the region by 40%
Queensland by 40%.                                                       (CopperString 2.0 2020).7

      6 The project is referred to as CopperString 2.0 because this is the second time the project has been proposed, after the
        previous plan was not supported by the previous state government.

      7 This report from CopperString 2.0 is a summary of studies from ACIL Allen Consulting, IZMIN Pty Ltd, Neuchatel Partners,
        Soren Consulting, and analysis from KPMG.
19    LEADERS AND LEGENDS:
      THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

                         The development of CopperString 2.0                   Government in August 2019 to help the
                         has received support from both the State              proponents of CopperString 2.0 develop their
                         and Federal Governments. In May 2020,                 business case (Queensland Government
                         the Queensland Government announced                   2020a). The Federal Government also
                         $14.8 million to support the development              provided $4.7 million in 2019 to help with
                         of CopperString 2.0 as part of the state’s            early works (AFR 2019).
                         COVID-19 economic recovery plan. While
                         the funding is conditional on project
                         milestones and subject to approvals, the
                         aim is for construction to begin in the first
                         half of 2021. This funding is additional to
                         $1.18 million provided by the Queensland

     Figure 8: Map of Proposed Copperstring 2.0 transmission line. Source: CopperString 2.0 (2019).

                                                                                            Ross
                                                                                          Substation
                                                                                                             Townsville

                                                                            Charter Towers

                        Cloncurry                   Richmond
                                                                         Pentland
                                    Julia Creek
             Mount Isa                                         Hughenden
                                                                                                 Woodstock
                                                                                                 Substation

                                                                                                           Strathmore II
                                    Dajarra Road                                                            Substation
           Mount Isa                 Substation
                                                                  Hughenden
           Substation                                             Substation

                  Phosphate Hill      Cannington
                   Substation          Substation                                    Highway
                                                                                     Proposed Transmission Line Route
                                                                                     Existing Substation
                                                                                     Proposed Substation
SECTION 05    20
                                                                                                   COPPERSTRING 2.0

   BOX 5: THE NORTH WEST MINERALS PROVINCE

The North West Minerals Province, centred                   information on the industrial opportunities
around Mt Isa and Cloncurry, extends from                   from new economy minerals.) New economy
the Northern Territory border up to the Gulf of             minerals found in the North West Minerals
Carpentaria and is home to some of the world’s              Province include copper, cobalt, gold, graphite,
richest mineral deposits. Minerals and metals               zinc, molybdenum, rhenium, and rare earth
found in the area include copper, lead, zinc, and           elements including dysprosium and holmium
silver, as well as phosphate deposits and rare              (CopperString 2.0 2020).
earth elements (Queensland Government 2017).
                                                            The Province is already one of the world’s largest
The value of the known resources in the                     mining regions and mining and minerals
North West Minerals Province is estimated at                processing is a major employer in North West
more than $680 billion, with ‘new economy                   Queensland. The region has faced challenges in
minerals’ accounting for more than $500 billion             recent years with some operations closing and
(CopperString 2.0 2020). ‘New economy minerals’             activity impacted by lower commodity prices
refer to metals and mineral elements required               (Queensland Government 2017). As discussed
for advanced and emerging technologies such                 below and in Section 6, the CopperString 2.0
as electric vehicles, consumer electronics, solar           project and new renewable energy generation
panels, and wind turbines. These are expected               could increase the competitiveness of these local
to experience strong and growing global                     industries and unlock Queensland’s potential as a
demand over the coming decades (Queensland                  global leader in new economy minerals.
Government 2020b). (See Section 6 for more

Figure 9: Mt Isa is at the heart of the North West Minerals Province. CopperString 2.0 could support and unlock new
jobs and industries for communities from Mt Isa to Townsville.
21   LEADERS AND LEGENDS:
     THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

     5.1         Economic opportunities
                 unlocked by CopperString 2.0
                 Construction of the CopperString 2.0           unlocked by CopperString 2.0 are expected
                 transmission line is expected to create 750    to create an additional 3,560 full-time jobs
                 new full-time jobs over three years, and       sustained over thirty years in the North West
                 the project will support 30 ongoing jobs in    Minerals Province (CopperString 2.0 2020).
                 operations and maintenance (CopperString       Initial modelling from ACIL Allen and Soren
                 2.0 2019).                                     Consulting also suggests that the project could
                                                                add more than $139 billion to Queensland’s
                 The more significant job creation              Gross State Product over the period to
                 opportunity, however, comes from the           2050 and generate more than $6 billion in
                 industries that CopperString 2.0 could         additional royalty revenue for the Queensland
                 support and unlock for communities             Government (CopperString 2.0 2020).
                 from Mt Isa to Townsville. Access to
                 cheaper electricity will increase the global   As discussed in the next section, importantly,
                 competitiveness of local industries such as    these opportunities go beyond mining.
                 mining and minerals processing, industrial     Regional centres such as Townsville have
                 manufacturing and agriculture, and create      the potential to become ‘value add hubs’ for
                 new export opportunities for the Port of       the resources mined locally, supporting
                 Townsville (CopperString 2.0 2020).            industries such as minerals processing
                                                                and battery manufacturing (Queensland
                 More competitive industries mean more          Government 2020a).
                 jobs for Queensland. According to ACIL
                 Allen Consulting, industrial opportunities

     CopperString 2.0 could unlock an
     additional 3,560 full time jobs in the
     North West Minerals Province.
SECTION 06       22
                                            QUEENSLAND, THE CLEAN INDUSTRIAL SUPERPOWER

6. Queensland, the Clean
   Industrial Superpower
      Installation of significant large-scale    These new clean industries are some of the
      renewable energy, enabled through          most promising opportunities for leading
      REZs, will bring down power prices         the economic recovery in Queensland.
      and set Queensland up to be a leader       They also emerged as some of the most
      in clean industries of the future, such    popular opportunities discussed in a
      as manufacturing, mining, minerals         recent series of industry and community
      processing, and renewable hydrogen.        consultations in Cairns, Townsville,
      Generations of Queenslanders will          Toowoomba, South Burnett, Gladstone,
      gain long-term, skilled jobs in high       and Rockhampton (The Next Economy
      demand global industries if the state      2020). In addition to enjoying broad public
      seizes the opportunities presented by      support and creating good, long-term jobs
      renewable energy.                          in regional Queensland, industries such as
                                                 renewable energy and clean manufacturing
                                                 help to boost and diversify local economies
                                                 and reduce greenhouse gas emissions,
                                                 improving resilience of local communities
                                                 (The Next Economy 2020).

Generations of Queenslanders could
work in global industries of the
future, such as clean manufacturing,
mining and renewable hydrogen.
23    LEADERS AND LEGENDS:
      THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

     6.1              More renewable energy means
                      more jobs for Queenslanders
                      Australia has a competitive advantage in
                      renewable energy: we are the sunniest and
                                                                                  Townsville,
                      one of the windiest countries in the world
                      and have the abundant space and technical
                                                                                  Gladstone and
                      expertise available to make use of these                    Mackay are well
                      resources (Garnaut 2019). Queensland
                      – and Central and North Queensland in                       positioned to lead
                      particular – has everything it needs to lead
                      in harnessing renewable energy for job                      the development
                      creation and economic growth. The state is
                      endowed with excellent renewable resources
                                                                                  of new clean
                      and a skilled workforce. In addition, new
                      clean industries are most likely to develop
                                                                                  industries.
                      in regions with an existing industrial
                      base and established infrastructure such
                      as ports, transport, energy, and training
                      infrastructure. Queensland has several
                      such regional cities, including Townsville,
                      Gladstone, and Mackay (Garnaut 2019).

     Figure 10: Queensland has a competitive advantage in renewable energy and can lead in harnessing renewable energy for
     job creation and economic growth.
SECTION 06   24
                                                          QUEENSLAND, THE CLEAN INDUSTRIAL SUPERPOWER

Increasing renewable energy brings               The combination of a competitive advantage
down power prices. Wind and solar are            in renewable energy resources and the fact
now the cheapest forms of new energy             that renewable energy is now the lowest cost
generation in Australia, even when backed        form of electricity means that Queensland
by storage technologies such as batteries        could create a long-term competitive
and pumped hydro (CSIRO 2018). The               advantage in energy-intensive industries.
transition to renewable energy is already        Coupling that low-cost electricity with
lowering electricity prices in Australia, with   top quality mineral resources will create
retail prices projected to fall by more than     sustainable long-term jobs in globally
7% from 2019 to 2022, due in part to an          competitive processing and value-adding
increase in renewable energy generation.         industries. All industries in Queensland,
South East Queensland is projected to enjoy      including traditional industries such as
the largest fall (20%) in prices, due in part    agriculture, stand to benefit from lower power
to the recent boom in renewable energy           prices. This enables enormous potential for
projects in the state (AEMC 2019).               job creation, bolstering existing industries
                                                 and enabling the creation of new ones. The
                                                 following sections outline opportunities
                                                 for Queensland in industries such as clean
                                                 manufacturing, mining and minerals
                                                 processing, and renewable hydrogen.

Renewable energy brings
down power prices, creating
a competitive advantage in
energy-intensive industries.
25   LEADERS AND LEGENDS:
     THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

     6.2 New economy mining
         and minerals processing
                 Developing REZs and key transmission           Province (see Section 5) is growing and set
                 infrastructure such as CopperString 2.0        to boom in the future. Demand is projected
                 would unlock significant new job creation      to increase – in most cases dramatically
                 in mining and minerals processing,             – for metals including aluminium, cobalt,
                 especially in North and North West             copper, lead, lithium, nickel, manganese,
                 Queensland (see Section 5). Mining is          steel, titanium, zinc, cadmium, molybdenum
                 already a major employer in the region         and rare earth elements (World Bank 2017).
                 and Queensland has untapped deposits of        For example, production of an electric car
                 many critical and new economy minerals         uses roughly five times more of these new
                 (see Figure 11 below). Energy is the largest   economy minerals than a conventional
                 cost for the minerals processing industry,     petrol car (IEA 2020). Many of these metals
                 so access to low cost energy would increase    are found in Queensland (Geoscience
                 global competitiveness (Centre for Future      Australia 2019). Several are currently
                 Work 2020), enabling expansion of these        refined and processed in Queensland,
                 industries in Queensland.                      such as aluminium and zinc, and there
                                                                are opportunities to develop new mining,
                 International demand for new economy           processing and value-adding industries
                 minerals, such as those found in               powered by renewable energy.
                 Queensland’s North West Minerals

     Queensland can use its natural resources –
     both minerals and renewable energy – to
     become a superpower in the fast-growing
     new economy minerals industry.
SECTION 06       26
                                                               QUEENSLAND, THE CLEAN INDUSTRIAL SUPERPOWER

Figure 11: Mineral deposits in Queensland. Source: Commonwealth of Australia (2019a).

              MAJOR CRITICAL MINERAL OPERATING AND DEVELOPING MINES IN QUEENSLAND

                                                                                  Commodity type
                                                                                        Antimony
                                                                                        Cobalt (PGE)
                                                                                        Graphite
                                                                                        Hafnium
                                                                                        Heavy mineral sands
                                                                                        Lithium
                                                                                        Indium
                                                                                        Manganese
                                                                                        Molybdenum
                                                                                        Platinum-group elements
                                                                                        Rare earth elements
                                                                                        Scandium
                                                                                        Tungsten
                                                                                        Vanadium

                                                                                  Critical commodity
                                                                                        Operating mine
                                                                                        Mineral deposit
                                                             Townsville

                         Mount Isa

                                                                           Mackay

                                                                                        Gladstone

                                                                                             Goondicum

                                                                                                      North
                                                                                                   Stradbroke
                                                                                                     Island

                                                                                                 BRISBANE
27   LEADERS AND LEGENDS:
     THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

                   In addition to export opportunities, there      ore exports beginning in 2020, similarly
                   are also strategic advantages to developing     demonstrating the vulnerability of these
                   domestic mining and processing of new           global critical minerals markets to disruption
                   economy minerals. This increases self-          (IEA 2020).
                   reliance by helping to protect Australia’s
                   minerals supply from potential market           Queensland has a huge opportunity to use
                   disruption, such as political instability       its natural resources – both minerals and
                   overseas, regulatory changes or trade           renewable energy – to become a critical
                   restrictions. For example, China is currently   player in the fast-growing new economy
                   dominant in many of these markets,              minerals industry. If Queensland can supply
                   including rare earth elements, where it is      the raw materials for the technologies
                   responsible for over 80% of global production   that will reduce global emissions, such as
                   (Commonwealth of Australia 2019a). In           batteries, solar panels and wind turbines,
                   2010, China attempted to limit its export       and power the mining and processing of
                   of rare earths, creating significant market     these materials with renewable energy,
                   disruption. In 2018, the Democratic Republic    Queensland could truly establish itself as a
                   of the Congo nearly tripled the royalty rate    zero-emissions industry powerhouse.
                   on its cobalt, and Indonesia banned nickel

         BOX 6: ENSURING A SUSTAINABLE MINING INDUSTRY

      While a booming new economy minerals                 Environmental damage can also be mitigated by
      industry presents many opportunities for North       designing more efficient mining and processing
      West Queensland, a concerted effort will be          methods, and rigorous environmental impact
      needed to reduce any environmental, health and       assessments, protections, and continual
      social risks that may be associated with these       monitoring. This includes smarter design
      projects. For example, health outcomes will          and less wasteful manufacturing processes,
      need to be prioritised in Mt Isa and surrounding     extending product-life, and more reuse,
      regions to ensure that communities are not           recycling, and repairing (Energy Transition
      exposed to the effects of lead or other heavy        Hub 2019). Powering all mining and minerals
      metals (Climate Council 2019a).                      processing operations with renewable energy
                                                           will also help to reduce the environmental
      To manage the health risks of lead mining and        impacts of these industries.
      smelting in Mount Isa, it is important to fund
      universal blood lead level testing, follow up and    Maximising social goods from new mining
      intervention for anyone with unsafe blood lead       industries, and minimising the chance of any
      levels. Specific outreach programs are needed for    negative impacts, means ensuring that the
      Indigenous communities, as Indigenous children       benefits flow first and foremost to Traditional
      have been found to have higher blood lead levels     Owners and others in the local community.
      than non-Indigenous children. Remediation            Companies must adhere to the best practices in
      of existing contaminated areas should also be        responsible mining, in particular the principle
      prioritised (Climate Council 2019a).                 of free, prior and informed consent, and always
                                                           ensuring protection of Indigenous heritage.
SECTION 06             28
                                                  QUEENSLAND, THE CLEAN INDUSTRIAL SUPERPOWER

6.3 Renewable hydrogen
        Renewable hydrogen – that is, hydrogen           for renewable hydrogen production. Due to
        produced from renewable energy – is likely       Townsville’s existing port infrastructure, the
        to play a key role in the clean economy of       region would be particularly appropriate for
        the future, offering a solution for reducing     the development of a renewable hydrogen
        emissions in industries such as steel-making     export industry (CopperString 2.0 2020). If
        and long-range and heavy haulage transport.      15,000MW of new renewable energy was
        Renewable hydrogen, sometimes called             installed and dedicated to the production of
        green hydrogen, is set to become a major         hydrogen in this region, it could bring an
        global market, expected to grow twelve-fold      estimated export value of $4.4 billion through
        from 2020 to 2025 (Wood Mackenzie 2019).         the Port of Townsville (CopperString 2.0 2020).
        This is due in part to strong hydrogen targets
        from countries in our region such as Japan       Gladstone is already a major industrial hub,
        and South Korea. With a rapid expansion          and its proximity to the Fitzroy REZ means
        of renewable energy, Queensland has the          it has the potential to be a key centre for the
        potential to develop a strong renewable          renewable hydrogen industry (Queensland
        hydrogen industry (Commonwealth of               Government 2019). There are already several
        Australia 2019b).                                major hydrogen projects in the planning
                                                         stages in Gladstone, such as the Austrom
        States and territories around Australia, and     Hydrogen project targeting the export
        countries around the world, are currently        market and the Hydrogen Utility project
        developing plans to build their renewable        aiming to produce hydrogen and ammonia
        hydrogen industries (Climate Council 2019b).     (IEEFA 2020). Also in the region, the Central
        Last year, the Queensland Government             Queensland Power project is a plan to develop
        released the Queensland Hydrogen Industry        2,000MW of new wind, solar and storage
        Strategy 2019-2024, outlining the state’s        and supporting transmission infrastructure
        vision to be a leader in renewable hydrogen      over the next ten years, aiming to contribute
        production by 2030, and established the $15      to new clean industries such as renewable
        million Hydrogen Industry Development Fund       hydrogen (Energy Estate 2020).
        (Climate Council 2019b). The state already has
        a range of renewable hydrogen pilot projects     In addition to creating local jobs in
        (Queensland Government 2020f).                   production, renewable hydrogen creates
                                                         a range of industrial opportunities for
        The potential corridor of renewable energy       Queensland. Renewable hydrogen
        projects enabled by the Copperstring 2.0         could become a new export commodity.
        transmission line could create opportunities     Alternatively (or, more likely, in addition),
                                                         renewable hydrogen could become an input
                                                         to domestic manufacturing and industrial
                                                         processes. This would support new value-
                                                         adding industries, developing clean (zero
                                                         emissions) manufactured goods locally,
Queensland has the potential                             which could become a high-value export

to develop a strong renewable                            industry. Queensland’s opportunities for
                                                         clean manufacturing are discussed in the
hydrogen industry.                                       following section.
29   LEADERS AND LEGENDS:
     THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS

     6.4 Clean manufacturing
                 Manufacturing is one highly energy-              6.4.1 BATTERY MANUFACTURING
                 intensive sector that could grow significantly
                 in Queensland from increased renewable           Queensland could become a leader in
                 energy generation. Almost all advanced           advanced manufacturing that will be at
                 manufacturing processes can use renewable        the centre of the global clean economy for
                 energy as an input, and energy is the largest    decades to come. One such opportunity is
                 cost for many types of manufacturing             manufacturing lithium-ion batteries, which
                 (Centre for Future Work 2020). Transitioning     are used in a range of applications including
                 to renewable energy could save the existing      electric vehicles, energy storage, and
                 Australian manufacturing sector 23% on           consumer electronics. This is a fast-growing
                 their power bills, increasing to 33% by 2050     global market, projected to grow to more
                 as the cost of renewable energy production       than US$100 billion by 2025 from US$30
                 continues to fall (Centre for Future Work        billion in 2017 (Centre for Future Work 2020).
                 2020). The faster Queensland moves on
                 installing large-scale renewable energy,         Australia is the world’s largest producer of
                 the greater the potential savings for the        lithium, with much of this coming from
                 manufacturing sector.                            Western Australia (Commonwealth of
                                                                  Australia 2019a). Queensland is a major
                 There is strong support across regional          producer of some of the other nine elements
                 communities, such as Cairns, Townsville          required to produce a lithium-ion battery,
                 and Gladstone, to build Queensland’s             including copper, nickel, cobalt, phosphate,
                 manufacturing industry to create jobs as well    and aluminium (Commonwealth of Australia
                 as to increase self-sufficiency and diversify    2018). Townsville has been identified as a
                 export industries (The Next Economy              promising location for lithium-ion battery
                 2020). This section looks particularly at the    manufacturing, due to its proximity to
                 opportunities in battery manufacturing and       the North West Minerals Province and its
                 clean metals.                                    established industrial base and expertise
                                                                  (Commonwealth of Australia 2018).

     Queensland could grow its
     advanced manufacturing sector
     with low cost renewable energy.
SECTION 06   30
                                                      QUEENSLAND, THE CLEAN INDUSTRIAL SUPERPOWER

There are already plans for a lithium-ion    6.4.2 CLEAN METALS
battery cell gigafactory in Townsville,
proposed by the Imperium3 consortium         The combination of abundant renewable
(PV Magazine 2020). The Queensland           energy resources and a local mining and
Government provided $3.1 million for a       minerals processing industry means Central
feasibility study in 2018 and approved       and North Queensland could develop a
the study in August 2020, allowing the       thriving clean metals industry. Demand
project to proceed with financing. The       for products manufactured with renewable
project aims to begin construction in 2022   energy is already growing and this will
and operations by the beginning of 2024      only accelerate as governments around the
(AuManufacturing 2020). As discussed in      world seek to reduce their greenhouse gas
Section 5, CopperString 2.0 could further    emissions in line with their Paris Agreement
increase the competitiveness of Townsville   commitments of limiting global temperature
as a hub for battery manufacturing by        rise to well below 2°C. Businesses are also
decreasing electricity prices and allowing   looking for opportunities to contribute and
the expansion of the new economy             to manage their risks, and shareholders
minerals industry across the region.         are increasingly demanding climate action
                                             (Energy Transition Hub 2019; EY 2019). This
There are also proposals to develop nickel   is particularly the case for clean metals,
and cobalt refineries in Townsville for      because metal production is responsible
use in lithium-ion batteries. Pure Battery   for roughly 9% of all global greenhouse gas
Technologies is looking to develop a         emissions, with steel alone responsible for 7%
$100 million battery metals refinery to      of emissions (Energy Transition Hub 2019).
commercialise technology developed by
the University of Queensland. It estimates   For example, the European Commission is
the facility would create about 100 jobs     considering introducing a Carbon Border
in Townsville (Townsville Bulletin 2020).    Adjustment Mechanism, as part of the
Queensland Pacific Metals has plans to       European Union’s efforts to achieve net zero
develop the Townsville Energy Chemicals      emissions by 2050 (European Commission
Hub (TECH), focused on value-adding          2020). This would effectively impose a tax
battery metals processing, including         on imported goods such as steel to reflect
nickel, cobalt and high purity alumina       the ‘embodied’ emissions within that
(Pure Minerals Limited 2020). Both           product (BCG 2020), providing an immediate
companies have identified Townsville         competitive advantage to goods produced
as an ideal location due to its skilled      using renewable energy. This creates both
workforce and established infrastructure,    opportunities for those who move quickly to
especially its port.                         expand renewable energy and develop clean
                                             manufacturing, and risks for those who do not.

                                             Queenslanders are already expressing

Townsville could become a hub
for battery manufacturing.
You can also read