Speakers: Hon Tim Ayres, Malcolm Roberts, Speaker 13, Varun Ghosh, Unknown Speaker
Energy storageFossil fuelsManufacturingHon Tim AyresMalcolm RobertsSpeaker 13Varun GhoshUnknown SpeakerSenate Environment and Communications Legislation CommitteeSupplementary Budget Estimates 2026–27Senate Environment and Communications Legislation Committee, 26 Oct 20268504
Transcript
Varun Ghosh
senator senators can I can I justinterpose there for a moment. Um>> Minister if you want to conclude youranswer and then I'll come back toSenator Roberts. Senator Roberts I Iappreciate you might not like the answerbut if you could refrain frominterrupting at least while it's goingon and then we'll come back to you.
Hon Tim Ayres
the the the um the contracting forelectricity officials can go throughthat will will be from multiplegeneration sources.It will be the lowest cost firmedcapability for Australia.>> that don't interrupt me please>> don't interrupt me please.>> We we we have the world's best wind andsolar resources. They can't.>> Please don't interrupt me. Please don'tinterrupt me. We have the world's bestwind and solar resources backed by gas,backed by storage.Uh that is a firm capability. Uh now uhRiointoand the other owners of these facilitiesare very clearabout what it is that they require.Absent delivering that, they will maketheir aluminium somewhere else. Senator,and if you followed your plan and theplan of Mr. Newman,I mean, talk about hotel bills, SenatorHenderson, talking about Mr. Newman'shotel bills. Um, the the these jobswould go overseas. It is only practicalaction nowthat is delivering a real futurenot a pretend futurefor those 6,000 jobs.Uh and that is that is the way that thisgovernment will approach it practicallyin cooperation with the states andterritoriesuh working with the firms that actuallyhave responsibility for running thesefacilities.not a not a magical mystery tourthrough what it is that uh uh uncredibleuh say is the future of the electricitynetwork like because we've got aresponsibility to discharge on behalf ofthe country and on behalf of the Huntercommunity and the workers and familiesthat they support.
Malcolm Roberts
>> Right. You also mentioned gas as part ofyour answer vaguely. The globalmanufacturing capacity for large-scalegas turbines is controlled by just threecompanies. GE Venova, Seaman's Energy,and Mitsubishi Heavy Industries. Thosecompanies have their order books closed.They're full and have deliveriesscheduled out to 2033.Whatever large scale gas turbines wehave on order now is all we are going toget for 7 to 10 years. So I note thatSnowy's Curry Curry gas plant did gettheir generators in time fromMitsubishi. That gives you 650 to 725megawatt of power for 10 hours a day.Just 10 hours. Except for one thing, thegas pipeline supplying the plant canonly supply 70 terles of gas when fulllong enough for 10 hours of generation.Except it takes longer than 24 hours toreplenish, to refill. the the pipelineis basically the storage demandingon demanding on demand from other usersin the Newcastle gas bridge. So thepeople in Newcastle might find ashortage of gas. So let's just set thataside. Tomago needs 950 megawattevery megawatt hour every hour 24/7 24/7or in other words 22,800 megawatt perhour megawatt hours daily. This givesthis gas gives you 7,000. Where are yougetting the rest of the firmedelectricity from formica? So you've youhaven't there's no firm power for solarand wind. There's gas giving you 7,000.Where's the rest coming from?
Speaker 13
>> So there'll be a a process that this isstill, you know, under negotiation withwith Rio. There'll be a process where wetransition to a fully renewable poweredum uh tomago that will involve firmingfrom batteries, gas and pumped hydro. Sothe the exact detail of those timeframes um and the composition will beyou know subject to commercialnegotiations but that's that's the planat a high level. You'd look at firmingthrough batteries, gas, and hydro. AndSnowy, of course, has Snowy 2.0, but italso has the ability to offer capcontracts into the markets underexisting pumped hydro program.
Malcolm Roberts
>> Thank you, Mr. Brian. Um, you saidbattery and a process. Al Energy isbuilding the AGL Tomago battery rightnext door to the smelter offering 2,000megawatt hours a day. Provided it cansource the weather dependent power,solar and wind to replenish the battery.You are still well short well short oftheir needs. Even if the sun and windcooperate, where is the rest coming
Speaker 13
from? Well, there'll be a portfolio ofassets drawn. I think the primeminister's talked about 3 gawatt ofassets. I expect the majority of thosewould be in New South Wales. So we see anumber of wind projects coming throughin the um um uh central west arana resand the southwest res. No no doubtthey'll play a part. Uh so those thosewould be where the where the power'scoming from.>> Okay.>> I just draw your attention also to thebo smelter in Queensland. Uh like Riowere able to move to you know arenewable power that uh site bythemselves. Also, what we're trying todo here is is replicate in New SouthWales what's being delivered inQueensland by by Rio by itself.