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ABC News
3 days ago
- Business
- ABC News
Claims WA's main power grid 'slowly collapsing' as its biggest gas plant teeters on edge
One of Western Australia's biggest gas-fired power plants has been teetering on the edge of bankruptcy, fuelling worries its failure could spark a wider crisis in the state's electricity system. It is understood former WA energy minister Reece Whitby last year sought a bailout of more than $30 million for the Newgen power station in Kwinana, south of Perth, as the generator battled to keep its head above water. With a capacity of more than 310 megawatts, Newgen is one of the most important units in WA's main power grid and supplies a significant share of the energy contracted by state-owned utility Synergy. Ian Porter, a 50-year veteran of the energy industry who now runs his own consultancy, said the importance of a plant such as Newgen should not be underestimated. He said it represented anything up to 15 per cent of the production in the state's main grid, which covers the south-western corner of the continent. The Newgen plant is owned by Japanese conglomerate Sumitomo and UK infrastructure group Foresight. Sumitomo is also the owner and operator of another troubled WA plant — the coal-fired Bluewaters near Collie, 180 kilometres south of Perth. Amid the pleas for a bailout, it is believed Mr Whitby argued that a failure by Newgen would directly expose Synergy to the wholesale electricity market, where prices have been soaring in recent times. Such an exposure would come as a further blow to Synergy, which sought its own billion-dollar bailout last year as its financial position continued to deteriorate. But the government is believed to have rebuffed the request, instead saying Synergy should fund any lifeline out of its own pocket. Mr Porter backed the government's decision to reject the bailout proposal, saying it should not be up to taxpayers to rescue privately owned companies. What's more, he said even if the plant became insolvent, that did not necessarily mean it would stop operating. "The company may go, but the assets remain," he said. Central to Newgen's troubles was a big shake-up in late 2023 of WA's biggest electricity market. The revamp was aimed at helping the grid cope with the transition towards renewable energy, which now accounts for about 40 per cent of WA's power. Mr Porter said the rise and rise of renewable energy in the west had been successful in many ways but he noted it had not been without its challenges. Chief among them, he said, was the way in which renewable energy could force out virtually all other generators when the sun was shining and the wind was blowing. Mr Porter said this presented a major problem for thermal generators such as coal and gas plants, which still provided most of the so-called essential system services that kept the grid stable and reliable. To maintain those services, he said the market had been redesigned to ensure market players were better paid for providing them. The problem was, he said, payments only benefited some generators and not others such as Newgen, even though the costs were spread across all market players. "I'm surprised that this would affect a gas generator," he said. "It would certainly affect renewables generators and how they're affected by that. I'm rather puzzled." On top of these problems, it is understood Newgen has also been affected by hurried moves to buttress the grid through back-up services such as large-scale batteries. Financial disclosures by Newgen show the plant has been losing money for some time. According to filings with the Australian Securities and Investments Commission, the generator was underwater to the tune of $1.67 million in the 12 months to June 30 last year. This followed on the heels of a $2.9 million reverse the previous financial year. Its financial health for the current period — the year in which Mr Whitby made his pitch for a bailout — will not be revealed for months yet. Summit Kwinana Power, the operating company behind Newgen, declined to comment. WA Energy Minister Amber-Jade Sanderson also declined a request to be interviewed about Newgen's predicament. Instead, the new minister provided a statement in which she said Newgen's finances were a matter between it and Synergy. "Synergy's contractual arrangements are commercial in confidence," Ms Sanderson said. Shadow Energy Minister Steve Thomas was more forthcoming, saying the problems at Newgen were just the latest sign of distress in the state's main electricity market. Dr Thomas said Newgen was a vital cog in what was arguably the state's most important machine — the grid — and letting the generator fail was a dangerous option. "I'm worried about Newgen, but I'm worried about the entire energy system," Dr Thomas said. "I'm worried about all of the generators who seem to be struggling. "I'm worried that the lights will not stay on in the fullness of time. "And I'm worried that the price for consumers, business and families will be beyond their capacity to pay." Critically, Dr Thomas said the government was facing a reckoning over its plans to get out of coal by 2029. He noted the government was already falling way behind in its efforts to build the new capacity needed to replace its giant Muja and Collie coal plants. If critical gas plants such as Newgen started falling over, too, he said, the state's plans and the broader energy system would end up in tatters. "We're going to see more of this," he said. "As the pressure comes on the government to provide the energy that's required at a cost that business and families can afford, the government is going to be under enormous pressure. "And this may well be just the first step. "The result will be prices through the roof as the system slowly collapses."
Yahoo
3 days ago
- Business
- Yahoo
NeoSmelt receives $12.9m in federal support for low-emission steel production pilot plant
NeoSmelt has received A$19.8m from the Australian Renewable Energy Agency (ARENA) to support the front-end engineering design (FEED) study for its pilot plant in Western Australia (WA). The project aims to develop Australia's largest ironmaking electric smelting furnace to demonstrate a method for producing molten iron with reduced carbon emissions. NeoSmelt is a joint venture (JV) dedicated to producing lower-emission steel from Pilbara iron ore. Managed by BlueScope, it comprises founders BlueScope, BHP and Rio Tinto, and two new equity participants: Woodside Energy and Mitsui Iron Ore Development. All five participants holding equal equity stakes. The JV announced Kwinana Industrial Area as the location for the project in December last year. BlueScope Australia CEO Tania Archibald, on behalf of the JV, said: 'Today marks a significant step forward in developing a technology for lower-carbon emissions steelmaking using Pilbara ore, and we are delighted by ARENA's A$19.8m commitment to support the feasibility phase of this groundbreaking R&D [research and development] pilot plant. 'With this backing from government and industry leaders, we now have the opportunity to develop world-leading technology that will have potential application across the global steel industry and provides the foundation for a future Australian lower-carbon emissions iron export industry.' The ARENA funding complements a A$75m contribution from the WA Government announced last year. The feasibility study for the project is currently ongoing and will inform a final investment decision expected in 2026. The pilot plant, expected to begin operations in 2028, is projected to produce between 30,000 and 40,000 tonnes of molten iron annually. Initially, the plant will use natural gas supplied by Woodside Energy to reduce iron ore to direct reduced iron. The long-term goal is to utilise lower-carbon emissions hydrogen for this process. If successful, the NeoSmelt project could offer a sustainable alternative to traditional blast furnace steelmaking, potentially ensuring the longevity of Australia's iron ore industry. "NeoSmelt receives $12.9m in federal support for low-emission steel production pilot plant" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
NeoSmelt welcomes Federal Government support and signs two new participants for groundbreaking steel decarbonisation project
PERTH, Australia, June 17, 2025--(BUSINESS WIRE)--NeoSmelt, a consortium of leading resources, energy and manufacturing companies working together on ways to produce lower-emissions steel1 from Pilbara iron ore, welcomes Australian Renewable Energy Agency (ARENA) support for its planned Western Australian pilot plant. The consortium, founded by BlueScope, BHP and Rio Tinto also welcomes two new equity participants – Woodside Energy and Mitsui Iron Ore Development – to the NeoSmelt joint venture, with the five participants taking equal equity stakes in the joint venture. NeoSmelt, which is managed by BlueScope, plans to develop Australia's largest ironmaking electric smelting furnace2 (ESF) pilot plant at the Kwinana Industrial Area, south of Perth, to demonstrate a method to produce lower-carbon emissions molten iron from Western Australian iron ore. ARENA has committed A$19.8 million to support a Front-End Engineering Design (FEED) study for the NeoSmelt project, which aims to prove Pilbara iron ore can be used to produce lower-carbon3 iron using a direct reduced iron - electric smelting furnace (DRI-ESF) pathway. If successful, this has the potential to unlock longer term alternatives to the traditional blast furnace steelmaking route and help ensure the longevity of Australia's iron ore industry. The project has now entered the feasibility phase. The feasibility study will help inform a final investment decision, expected in 2026. BlueScope Chief Executive Australia, Tania Archibald, on behalf of the Joint Venture said: "Today marks a significant step forward in developing a technology for lower-carbon emissions steelmaking using Pilbara ore, and we're delighted by ARENA's $19.8 million commitment to support the feasibility phase of this groundbreaking R&D pilot plant. "We also officially welcome Woodside Energy and Mitsui Iron Ore Development to the NeoSmelt joint venture, joining founding participants BlueScope, BHP and Rio Tinto. With this backing from government and industry leaders, we now have the opportunity to develop world leading technology that will have potential application across the global steel industry and provides the foundation for a future Australian lower-carbon emissions iron export industry." Federal Resources Minister and Member for Brand, Madeleine King said: "The fuels, metals, fertiliser, chemicals and grain shipped from Kwinana have powered Western Australia and the region since the 1950s. "Now Kwinana is playing a central role in the world's energy transition and a big part in global efforts to decarbonise. If we can decarbonise steel making, we will create far fewer emissions when building the cities of the world." The ARENA funding adds to the A$75 million contribution from the Western Australian Government announced last year. Western Australian Premier Roger Cook said: "Local manufacturing is crucial to my Government's plan for a future that is Made in WA - which is why we are working closely with the Commonwealth Government and NeoSmelt to diversify Western Australia's economy. That way, we can maintain WA's nation-leading economy by supporting continued investment in new industries and creating more jobs for the future. "As a Kwinana local, I'm proud to see this NeoSmelt facility play a part in our State's decarbonisation. This cutting-edge facility is an example of how governments and businesses are coming together to put WA at the forefront of the global push to slash emissions from steel production." If approved, operations at the NeoSmelt pilot plant, which is expected to produce 30,000 to 40,000 tonnes of molten iron a year, are planned to begin in 2028. With Woodside as the preferred energy supplier, the pilot plant would initially use natural gas to reduce iron ore to DRI. Once operational, the project aims to use lower-carbon emissions hydrogen to reduce iron ore. Additional information Pilot Electric Smelting Facility The NeoSmelt pilot plant is intended to test and optimise production of iron from the electric smelting furnace (ESF), a type of furnace being developed by leading steel producers and technology companies targeting lower-carbon emission-intensity steel. The ESF is capable of producing iron suitable for the basic oxygen furnace steelmaking process. Iron ore is first converted to direct reduced iron (DRI) before being charged into the ESF. Together, the DRI-ESF equipment can replace the traditional blast furnace. Estimates show reductions of up to 80^ per cent in CO2 emission intensity are potentially achievable processing Pilbara iron ore through a DRI-ESF pathway, compared with the current industry average for the conventional blast furnace steel route. Other lower CO2 emission-intensity production routes, such as electric arc furnaces, require scrap steel and DRI produced from high grade iron ore. The ESF potentially allows for greater flexibility in input raw materials, addressing one of the key barriers to wider adoption of lower-carbon emissions technology. The ESF also has the potential to be integrated into a steel plant's existing downstream production units. Footnotes 1 Compared to the conventional blast furnace – basic oxygen furnace (BF-BOF) process 2 Also known in the industry as an "electric melter". 3 Lower-carbon has the characteristic of having lower levels of associated potential greenhouse gas emissions when compared to historical and/or current conventions or analogues, for example relating to an otherwise similar resource, process, production facility, product or service, or activity. ^ Assumes utilisation of renewable energy to power the DRI-ESF facility and zero emissions hydrogen in the DRI plant. The remaining CO2 emissions are from carbon required in the process of making liquid iron suitable for the basic oxygen furnace steelmaking process. View source version on Contacts BlueScope Michael ReayM +61 437 862 472E Minister King Nick ButterlyM + 61 499 947 024E Premier Cook Jordan MurrayM +61 419 102 823E Category: General Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
ABC News
6 days ago
- Business
- ABC News
Australia is set to embrace energy from waste, but should it?
Overlooking the huge Woodlawn landfill about three hours from Sydney, the scale of Australia's waste challenge is laid bare. All day, every day, a procession of trucks make their way to the bottom of the former open pit mine and dump their loads of rubbish. Nearly half of Sydney's non-recyclable waste winds up here. "1,000,000 tonnes (per year) arrives here at Woodlawn on a train," CEO of Veolia Australia and NZ, Richard Kirkman told 7.30. "That's what we do with it. We put it in this landfill." Just down the road from the landfill, Veolia is proposing to build a plant that will burn rubbish in a high-tech furnace to produce electricity. The technology, known as energy from waste, is common around the world. "There's an incredible opportunity, I think, in Australia to convert from land-filling our residual waste to move to energy from waste," Mr Kirkman said. The proposed energy from waste plant at Woodlawn would burn 380,000 tonnes of rubbish a year, producing enough electricity to power about 40,000 homes. But it will also emit carbon dioxide into the atmosphere when rubbish is burned, and produce tens of thousands of tonnes of bottom ash — in the form of non-combustible materials like stones, grit, glass, and rocks. There are currently 11 energy from waste plants either operating or proposed across the country. In the Perth suburb of Kwinana, Australia's first energy from waste plant opened in 2024 after years of delays. Another plant, located in East Rockingham, Western Australia, is almost complete. Six energy from waste plants are planned in Victoria, two in New South Wales, and one in Queensland. Proponents have long argued that energy from waste is more sustainable than landfill because energy is created from what would otherwise be thrown away. But many critics argue that the practice should be known by what we used to call it: incineration. And they dispute that it is in any way sustainable. "I don't want my kids to grow up in a throwaway society, one that is unsustainable and where your attitude to waste is, 'I can just toss it away because we can throw it in an incinerator and burn it'," said farmer Tom Martin, part of the Longwater Agricultural Association, a local group trying to stop the Woodlawn project. For decades energy from waste plants surged in Europe. There are now 500 plants that provide electricity and heating and Denmark was a pioneer. Copenhagen's Amager Bakke plant is famed for its ski run on the roof, where visitors can enjoy downhill fun literally on top of rubbish. But University of Copenhagen researcher Stine Madsen says that recently — as Denmark focuses on its greenhouse gas emissions target — the perception of energy from waste has changed dramatically. "There's really a growing focus on the CO2 emissions that come from waste incineration. And to meet that national target, incineration is considered problematic because it leads to CO2 emissions," Ms Madsen said. Mr Kirkman says emissions from energy from waste plants are far less damaging than those from landfills. "We have to reduce the methane we emit from landfills, and it's proven that [energy from waste] is better. That's why it's public policy," he said. The emissions are just one problem Denmark has with the process. The country doesn't produce enough rubbish to keep them going and has to import waste to keep the plants running. "You have a state-of-the-art facility, but you also need to feed it with waste … and the whole narrative around waste is changing." Near the proposed Woodlawn plant in NSW, many locals are angry. State policy bans incinerators in metropolitan Sydney, but not in the areas where they live. "We feel very discriminated against," said Paige Davis from Communities Against The Tarago Incinerator (CATTI). "The NSW government has decided from a precautionary principle that incinerators can't be built in Sydney because of the risk to human health and the environment. What about us? Why don't we count?" Local farmer Tom Martin worries for the health of his livestock, with the energy from waste plant just five kilometres away. He believes if incinerating rubbish isn't suitable in Sydney, it shouldn't be suitable near his farm. In the Melbourne suburb of Hampton Park, Jill Nambu and her neighbours are opposing a new waste transfer station. Hundreds of rubbish trucks a day could be coming and going for the next 25 years. Veolia, which runs the landfill site wants to build a waste transfer station for rubbish. Trucks will then carry trash to a proposed energy from waste plant in Maryvale, 120 kilometres away in Gippsland. "It makes me want to cry," Ms Nambu said. "I don't understand why they have to put it literally right in a community residential area." Groups opposed to the waste transfer station have also protested at Victoria's parliament. Veolia's development application was refused by the state's Environmental Protection Agency, but the company is appealing the decision. Mr Kirkland says he understands why locals may object to these projects but believes they are essential. "Every week they put their bin out, and it has to be collected, and it has to go somewhere." Watch 7.30, Mondays to Thursdays 7:30pm on ABC iview and ABC TV Do you know more about this story? Get in touch with 7.30 here.
West Australian
29-04-2025
- Sport
- West Australian
Geraldton Golf Club hosts the Easter Amateur Open with starters from all over the State competing
The Geraldton Golf Club hosted the annual Easter Amateur Open earlier this month with close to 100 starters over the three days travelling from all over WA representing different clubs. The annual event is held over the Easter weekend with the Friday being the Ambrose event whilst Saturday and Sunday are the competition Stableford events. The three days of competition provides competitors with an opportunity to represent their club and play a high level of golf on one of the best courses in the Mid West. The Easter Amateur Open event again proved to be a success with competitors enjoying stunning weather as Geraldton Golf Club put on a great show for all involved. Next year's event will be held from April 3 to 5 with those interested in playing urged to organise accommodation to secure a place in the field and the great weekend of golf. RESULTS Women's Overall Results Gross Winner with 38 points - Katherine Marais (Wanneroo) Gross Runner Up with 37 points - Lydia Porter (GGC) Nett Winner with 64 points - Jenny Stewart (GGC) Nett Runner Up with 63 points - Laura Symington (Kwinana) Men's Overall Results Gross Winner with 64 points - Joel Winkley (SPGC) Gross Runner Up with 58 points - Carl Shilling (GGC) Nett Winner with 73 points - Murray Riseley (Toodyay) Nett Runner Up with 71 points - Shaun Symington (Kwinana)
