Sphere Quarterly Newsletter

Quarter 1 2023 Highlights | April 2023

Public sector and policy

Public sector and policy updates from Q1 2023.

Towards net zero

Cwth Government to lead a review of the National Hydrogen Strategy: the Commonwealth Department of Climate Change, Energy, the Environment and Water announced the review of the National Hydrogen Strategy in Feb-23. Following agreement by representatives of all Australian governments, the Commonwealth will lead the review to ensure Australia remains on a path to be a global hydrogen leader by 2030. Public consultation associated with the strategy review is yet to commence.

Cwth Government commits $70M to the Townsville Region Hydrogen Hub program: the Commonwealth Government announced in Jan-23 the investment of $70M to support the development of a hydrogen hub in Townsville. The competitive Townsville Region Hydrogen Hub program will deliver grants from $30M to $70M towards projects that accelerate the development of a hydrogen industry in North Queensland. The competitive application process is presently open for submissions, closing on 27-Apr-23.

Cwth Government launches community consultation for Hunter Region offshore wind: the Commonwealth Department of Climate Change, Energy, the Environment and Water launched the community consultation process for the possible effects of future offshore renewable energy projects in the Pacific Ocean off the Hunter Region in Feb-23. The geographical area remains at proposal stage only, with written submissions due to close on 28-Apr-23.

CleanCo Queensland launches EOI for the Swanbank Clean Energy Hub: the Queensland Government-owned electricity generation and trading company, CleanCo, launched an Expression of Interest in Mar-23, seeking input to co-design the master plan for the Swanbank Clean Energy Hub. The proposed energy precinct is expected to include solar power, battery storage, and green hydrogen, with a grid connection capacity of up to 1.2GW.

NSW Government declares the Illawarra as the State’s final REZ: the New South Wales Government announced the Illawarra Renewable Energy Zone as the fifth and final renewable energy zone across the State in Feb-23.The Energy Corporation of NSW will commence the next phase of development, which includes ongoing engagement with the local community, industry, councils and other key stakeholders.

NSW Government releases the ‘going circular in clean energy’ issues paper: the New South Wales Government released the Going Circular in Clean Energy Issues Paper in Jan-23. The Paper highlights the key barriers and opportunities to adopting a circular economy for clean energy, with stakeholder feedback sought to inform the development of a circular economy plan for the clean energy sector in NSW.

NSW Government launches $1.5Bn in green hydrogen electricity concessions: the New South Wales Government announced $64M in grant funding for two new hydrogen electrolyser projects in Port Kembla and Moree. These funding commitments were awarded as part of the $1.5Bn plan to incentivise the development of green hydrogen hubs around the State, with two groups of concessions available for green hydrogen producers:

  1. exemptions for schemes levied on electricity consumers

  2. discounts on charges for electricity network services.

VIC Government releases offshore wind strategy: the Victorian Government released the Victorian Offshore Wind Energy Implementation Statement 2 in Mar-23, outlining how the State will leverage industry-led investment in offshore wind for the first tranche of projects that will deliver at least 2GW by 2032. The Strategy also confirms the Victorian Renewable Energy Terminal will be located at the Port of Hastings, with Offshore Wind Energy Victoria working towards a formal procurement process for the first tranche of capacity in 2025.

Towards a circular economy

QLD Government seeks feedback on the draft E-Products Action Plan: the Queensland Government released the draft E-Productions Action Plan in Mar-23. The Action Plan promotes extending the life of e-products to keep the value of materials in the economy for as long as possible, and seeks to prohibit recyclable e-products ending up in landfill - most notably, solar panels. Feedback on the draft Action Plan is open until 17-Apr.

QLD Government announces first grant funding recipients under the QRMF: the Queensland Government announced in Mar-23 the first three projects funded under the $40M Queensland Recycling Modernisation Fund. Successful recipients include:

  • Vinidex ($0.65M) - increase capacity to shred wash and micronise waste PVC materials

  • Ability Enterprises ($0.51M) - plastics recycling project

  • Casafico ($0.18M) - manufacturing plant for processing of plastics, polystyrene and glass.

QLD Government considers expanding the ‘containers for change’ program: the Queensland Government released the Proposal to expand the scope of eligible containers in Queensland’ Container Refund Scheme - Container for Change Discussion Paper, with community feedback closing in Feb-23. The Paper assesses public sentiment on the proposal to expand the scope of containers that are eligible for a refund under the scheme, including:

  • glass containers that have contained wine and pure spirits

  • flavoured mile and pure vegetable or fruit juice (>90% juice) between 1 litre and 3 litres

  • water and wine in aseptic packs (liquid paperboard packs) between 1 litre and 3 litres

QLD Government announces funding for Toowoomba to Warwick Pipeline: the Queensland Government announced in Jan-23 that Cabinet approved more than $370M in funding for the construction of the Toowoomba to Warwick Pipeline and upgrades to the Wivenhoe Pump Station to boost existing capacity.

NSW Government releases circular design principles: the New South Wales Government released the Circular Design Guidelines for the Built Environment in Feb-23, providing  whole-of-life principles for transitioning building, precincts and infrastructure to a circular economy.

NSW Government introduces reforms to the waste levy framework: the New South Wales Government implemented amendments to the Protection of the Environment Operations (Waste) Regulation 2014 in Feb-23 that change the circumstances under which the waste levy is applied in the State. Several notable amendments which are likely to have material consequences for the viability of energy recovery facilities across the State include:

  • clarification regarding how to determine the amount of waste at a waste facility for the purpose of determining when the occupier of the facility must pay the waste levy

  • clarification on the definition of ‘scheduled waste disposal facility’ - to now include ‘waste disposal (thermal treatment)’. 

Sphere understands that engagement between the State and industry representatives is ongoing given the possibility for unintended consequences for landfill diversion.

NSW Government introduces reforms that charge mines for water access in Sydney drinking water catchments: the NSW Government announced new trading rules under the Water Management Act 2000 in Mar-23; requiring mines located within the Sydney Special Areas to obtain water allocations to account for their incidental surface water take under the Water Management Act 2000 and pay for this water. The reforms were introduced in response to the recommendations made by the Independent Expert Panel for Mining in the Catchment.

VIC’s 30-year infrastructure strategy released for public comment: Infrastructure Victoria commenced the first phase of engagement of Victoria’s 30-year infrastructure strategy 2022-2055 in Feb-23, seeking community feedback on the 2025 strategy objectives, defining the major infrastructure challenges across the State and identifying infrastructure options and policies to address them.

WA’s Plan for Plastics - Stage 2 comes into effect: stage 2 of Western Australia’s Plan for Plastics came into effect in Feb-23, expanding the ban on the sale and supply of single-use or disposable plastic items and materials prior to Jul-25. Staggered transition periods for the phase-out of stage 2 items will commence from Sep-23, allowing businesses to run down supply and make plans for alternative processes and packaging.

WA Government considers expanding the container deposit scheme: the Western Australia Government released the ‘Container deposit scheme - expanding the scope of eligible beverage containers’ Discussion Paper in Dec-22. The Paper seeks community and stakeholder feedback on the proposal to expand the scope of containers to be included in the scheme, including:

  • grape wine and spirits in glass bottles up to 3 litres

  • grape wine in plastic containers and sachets 250ml - 3 litres

  • grape wine and water in casks 1-3 litres

  • all fruit and vegetable juice, flavoured milk and cordial containers up to 3 litres.

NT Government invites community feedback on circular economy strategy: the Northern Territory Government released a draft Circular Economy Strategy for community feedback in Mar-23. The Strategy is aimed at reducing waste and promoting sustainable practices through actions such as supporting local businesses, reducing single-use plastics, and investing in recycling infrastructure.

NZ Government releases national waste strategy: the New Zealand Government released the National Waste Strategy in Mar-23, outlining the proposed pathway towards a circular economy and long-term outlook to 2050. A multi-step pathway was adopted in preparing the Strategy, including:

  1. embedding circular thinking into systems: enabling systems are working well and behaviour is changing, by 2030

  2. expanding to make circular normal: circular management of materials is normal, expected and well supported, by 2040

  3. helping others do the same: New Zealand has a low-emissions, low-waste circular economy and is helping other countries make the change, by 2050.

Soft Plastics Taskforce releases roadmap to restarts collection scheme: the Soft Plastics Taskforce, made up of supermarket retailers ALDI, Coles and Woolworths under an interim authorisation from the Australian Competition and Consumer Commission, released a Roadmap to Restart in Mar-23. The Roadmap outlines the steps required to launch a new supermarket soft plastic collection scheme, and the current state of play in the Australian recycling industry.

General government

NSW Government election: the New South Wales State election was held on 25-Mar, with the Labor Party elected as the new government for the next four-year term. Key policy announcements made by the Labor Government during the election campaign include:

  • legislating an emissions reduction target of 50% by 2030 and net zero by 2050

  • constitutional enshrinement of restrictions on the ability of future governments to privatise state assets including Hunter Water and Sydney Water

  • establishing a state-owned renewable energy investment vehicle, NSW Energy Security Corporation, which will be seeded with $1Bn in funding from the existing Restart NSW Fund

  • establishing a Hydrogen Centre of Excellence by 2026 to partner with industry participants to provide vocational training support in the form of apprenticeships and upskilling of qualified professionals.


Projects and transactions

Projects and transactions updates from Q1 2023.

Towards net zero

Non-binding indicative offers submitted for Sun Cable: Sun Cable, the developer behind the proposed $22Bn solar and storage project in the Northern Territory, reportedly received several non-binding indicative offers as part of the multi-step sale process. Sun Cable previously entered voluntary administration in Jan-23, with FTI Consulting appointed as voluntary administrators of the company with an aim to either recapitalise the company or sell it to new owners.

Shell Energy plans to build, own and operate the Wallerawang 9 Battery: Shell Energy announced the acquisition of development rights for a 500MW/1000MWh Battery Energy Storage System project, located within the former Wallerawang Power Station, in Jan-23. Shell Energy will be responsible for the grid connections process and, subject to a final investment decision, is planning to build, own and operate the battery on 20 hectares of land to be leased from developer Greenspot.

Stage 1 of the New England Solar project officially opens: stage 1 of ACEN Australia’s New England Solar project, the largest solar farm to be developed in New South Wales, was opened by Climate Change and Energy Minister the Hon. Chris Bowen MP on 16-Mar. The project is being developed in two stages, with a proposed capacity of 720MW solar installation combined with a 50MW/50MWh big battery, which has the scope to be scaled up to 200MW/400MWh.

Submissions close for the delivery of the Hydrogen Jobs Plan in SA: proposal submissions closed on 14-Mar for the delivery of the Hydrogen Jobs Plan - a structured tender process facilitated by the Office of Hydrogen Power South Australia. The tender sought proposals for the delivery of 250MW of hydrogen production, 200MW of hydrogen powered generation and supporting hydrogen storage infrastructure, to be owned and operated by the South Australian Government, by the end of 2025.

QLD Government acquires the CopperString 2.0 transmission project: the Queensland Government announced the acquisition of 100% ownership of Copperstring 2.0 project to unlock Australia’s largest renewable energy zone in North Queensland. Publicly owned transmission business, Powerlink, will lead work on the high voltage transmission line to connect the North West Minerals Province to the National Electricity Market. Early works on the $5Bn project is expected to commence this year, with construction commencing in 2024.

Vast Solar CSP reference plant receives $65M funding from ARENA: the Australian Renewable Energy Agency announced the approval of $65M in funding Vast Solar to construct VS1 in Feb-23, a first-of-a-kind 30MW/288MWh concentrated solar power plant in Port Augusta. The grant funding is conditional upon the project reaching financial close, which is targeted to occur in late 2023.

NSW Government narrows Central-West Orana REZ negotiations: the New South Wales Government has reportedly progressed to final negotiations with two of the three shortlisted proponents for the 3GW Central-West Orana Renewable Energy Zone grid operator tender. The project is expected to unlock up to $5Bn in private investment and enable generators (such as solar and wind) to export electricity to the rest of the network.

Infinite Green Energy completes Northam Solar Farm acquisition: Infinite Green Energy, a green hydrogen developer based in Western Australia, announced the acquisition of Perth’s Northam Solar Farm and execution of its first offtake agreement in Feb-23. The $8M solar farm acquisition was completed via a competitive tender process, with a further $3M capital raised being undertaken to fund production capacity of the Northam project (MEG HP1).

Towards a circular economy

Sims announces divestiture of 50% shareholding in LMS Energy Pty Ltd: Sims Limited announced the commencement of a sale process for its 50% shareholding in LMS Energy Pty Ltd - Australia’s largest landfill biogas company with more than 60 operating biogas projects across Australia, New Zealand and the United States. The announcement by Sims in Mar-23 follows a strategic review process and focus on recycling capital to expand the core metal business.

Cleanaway targets 2024 final investment decision for Victorian WtE facility: Cleanaway Waste Management is reportedly working towards a final investment decision on a ~$700M Waste to Energy (WtE) facility in Victoria by 2024. In addition to environmental and planning approvals, the facility will also require a cap licence under the Victorian Waste to Energy Framework, which sets a 1 million tonne per year cap on the amount of waste that can be sent to thermal WtE in Victoria to 2040.

Downer EDI Limited seeks divestiture of 45% Repurpose It shareholding: Downer EDI Limited announced the divestment of a 45% shareholding in Melbourne-based recycling company, Repurpose It, as part of a Feb-23 investor presentation. The sale process forms part of a broader divestment program to simplify the business portfolio and realise shareholder value.

Preferred proponent for the Parkes WtE project to be announced post-election: the New South Wales Government is reportedly waiting until after the state election before announcing a preferred proponent in mid-2023 as part of the Parkes Special Activation Precinct WtE tender. The preferred proponent will be awarded a contract to build, own and operate the plant. 

YVW submits development licence application for Lilydale WtE facility: Yarra Valley Water Corporation submitted a development licence request from the Environment Protection Authority Victoria in Jan-23 to develop a WtE facility located at the Lilydale Treatment Plant. The proposed anaerobic digestion facility would generate approximately 13,000MWh of electricity energy to operate the project and the co-located Lilydale Sewerage Treatment Plant and recycled water pump station.

Sydney Water approves the Upper South Creek Advanced Water Recycling Centre: Sydney Water announced in Feb-23 the utility will invest more than $1Bn to build the Upper South Creek Advanced Water Recycling Facility after receiving State and Commonwealth government environmental approvals. Separately, Sydney Water announced that Fulton Hogan had been awarded the contract for the first two upgrades to the Rouse Hill Water Resource Recovery Facility.

Fitzroy to Gladstone pipeline approved for construction: the Queensland Government announced the approval for the construction of the Fitzroy to Gladstone pipeline, a $352M project that will provide a reliable source of water to support the region's growing industries and communities. The pipeline will span 438km and deliver up to 80,000ML of water per year, boosting water security and helping to stimulate economic growth in the area.

Six international businesses launch the Hydrogen Consortium in pursuit of green hydrogen-powered aircraft: six international businesses, including Airbus, Christchurch Airport, Fortescue Future Industries and Air New Zealand, launched the Hydrogen Consortium, aimed at developing green hydrogen-powered aircraft and supporting infrastructure. The consortium will focus on research and development, with a goal of producing a zero-emission aircraft by 2035. 

HESC Project receives $2.5Bn grant from Japan’s Green Innovation Fund: the Hydrogen Energy Supply Chain (HESC) project, a joint venture between Australian and Japanese companies aimed at producing clean hydrogen from brown coal, received a $2.5Bn  grant. The project aims to demonstrate the technical and economic feasibility of producing clean hydrogen using carbon capture and storage technology. The grant will support the construction of a hydrogen production facility in Victoria’s Latrobe Valley, as well as the transport of the hydrogen to Japan for use in fuel cell vehicles and power generation.

SA Government commits $12.5M to Marubeni’s demonstration plant: the South Australian government committed $12.5M to support the construction of a green hydrogen demonstration plant by Japanese company Marubeni in Port Bonython. The plant will produce up to 250 tonnes of green hydrogen per year using solar and wind energy. The project is part of a larger initiative to establish a green hydrogen supply chain between South Australia and Indonesia, with plans to export the hydrogen to Japan and other markets in the future.

Construction commences on the $12.5M Hydrogen and Renewable Energy Training Facility in Townsville: the Queensland Government announced the commencement of construction of two new facilities at TAFE Queensland’s Bohle campus - providing training and skills development in the areas of renewable energy, hydrogen production, and energy storage. The project is aimed at supporting the development of a skilled workforce for the growing renewable energy and hydrogen industries in Australia. The training facility is expected to be completed by mid-2024, with the capacity to train up to 1,200 students per year.

Total Eren Australia establishes Perth office to lead renewable hydrogen projects: renewable energy company, Total Eren, established a new office in Perth to lead its renewable hydrogen projects in Australia, including a proposed 150MW electrolyzer facility in the Pilbara region. The project is expected to produce up to 25,000 tonnes of green hydrogen per year, which could be used in industries such as transport, mining, and power generation. Total Eren is also exploring other green hydrogen opportunities in Australia, including partnerships with local companies and participation in renewable energy tenders. 

Sphere at a glance

Sphere updates from Q1 2023.

Kate Dryden participated in the WMRR YP debate: on 15-Mar, Kate Dryden participated in the Waste Management and Resource Recovery Association’s Young Professionals debate. Kate chaired the negative team who won the debate, arguing that Australia will not reach its resource recovery target of 80% by 2030. It was a fun and light-hearted discussion for the next generation of waste and resource recovery professionals that pulled on the head, the heart and even had a bit of talk about the Delorean time machine.

Sphere’s team is expanding: Sphere’s strategic growth plans for 2023 are well underway. If you are interested in joining our senior team of strategic and commercially-minded professionals to accelerate the world’s transition to a circular economy, please connect with us for a confidential discussion.