Net Zero Zones may boost Australia's transition to net-zero economy

17 May '23

2 min read

Pic: Shutterstock/Daniel Heighton

Insights

An APPEA report suggested creating NZZs across Australia to speed up the shift to a net-zero economy.
NZZs would house energy producers, emission reduction technologies, manufacturing, and industry, potentially covering 79 per cent of facilities and 92 per cent of GHG emissions.
They could also reduce costs and foster regional investment.

The creation of Net Zero Zones (NZZs) across Australia could significantly accelerate the country’s shift to a net-zero economy, as per a report. These zones would serve as hubs for energy producers, emission reduction technologies, manufacturing, and industry, potentially covering 79 per cent of the 215 facilities and 92 per cent of greenhouse gas emissions under the Federal Government's Safeguard Mechanism.

Nine potential zones have been identified that could be equipped with shared infrastructure for natural gas, renewables, carbon capture utilisation and storage (CCUS) technology, and low-carbon hydrogen production, according to a report titled ‘A Review of Net Zero Energy & Industrial Zones’ by the Australian Petroleum Production and Exploration Association (APPEA).

Possible locations include Adelaide-Port Augusta, the Cooper Basin, Perth, the Pilbara, Melbourne-Gippsland, Sydney-Newcastle, Brisbane, the Surat Basin, Central Queensland, and the planned Middle Arm Sustainable Development Precinct near Darwin.

The report suggested that NZZs could facilitate the scale-up of carbon dioxide removal technologies like Direct Air Capture and Carbon Storage (DACCS) and Bioenergy with Carbon Capture and Storage (BECCS), recognised as key to offsetting emissions. They could also leverage existing infrastructure for boosting net zero energy and industrial exports and imports, fostering a future of low-carbon hydrogen exports and possibly the import of CO2 for permanent storage.

APPEA chief executive Samantha McCulloch said: “Net Zero Zones could help Australia accelerate to net zero and seize the economic opportunities of the energy transformation. In a way, it’s like carpooling carbon emissions by working together to help achieve net zero in the fastest and most cost-efficient way for the economy.

“The zones could become magnets for regional investment and provide a framework for different industries to work together to speed up the path to net zero; reduce costs; create and protect jobs in manufacturing, mineral processing and industry; leverage existing infrastructure; provide a focal point for streamlined government approvals; and provide the foundation for net zero energy and industrial exports and imports.”

The APPEA will utilise the report’s analysis as a basis for dialogue with governments, industry, and stakeholders across the regions. The findings were released ahead of the 2023 APPEA Conference & Exhibition themed ‘Lead, Shape, Innovate – Accelerating to Net Zero’ to be held in Adelaide.

Fibre2Fashion News Desk (NB)

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