Dramatically reducing Australia’s use of gas would secure the future of industrial manufacturing and the jobs of hundreds of thousands of workers, according to a bold new report that looks to reset the national debate about gas.
Commissioned by the Australian Manufacturing Workers’ Union (AMWU) and Lock the Gate Alliance, Springmount Advisory’s Turning Down the Gas report finds at least 90% of industrial gas use can already be electrified or regassed with green hydrogen, and technology solutions are rapidly being developed for the remaining 10%. The report, which was officially launched at Parliament House in Canberra, is available here.
The report finds that supporting existing local industry to make the shift will secure jobs, eliminate the risk of gas shortages and free local manufacturing from the threat of volatile gas prices.
Under scenarios outlined in the report, gas demand would decrease 216 petajoules by 2035, reducing east coast wholesale gas expenses by at least $2.5 billion, and cutting greenhouse gas emissions by more than 11 million tonnes each year.
National Secretary of the AMWU Steve Murphy said, “Australia must prioritise our finite and precious gas resources to support the industries that employ hundreds of thousands of highly skilled workers and that underpin every aspect of Australian life, from food production and health, to infrastructure and household goods.
“There is a clear national interest in ensuring that local manufacturing industries are supported and thrive as the world decarbonises. We commissioned this report because it is clear to us that the interests of gas companies are cutting across the interests of Australian workers, Australian industry, our rightful place as the leader in our region for a fair and just industrial transition.
“I’m a firm believer that we can meet our commitments to climate action and create secure jobs in manufacturing if we make those two goals a national priority.”
The report finds:
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The three LNG terminals on Curtis Island near Gladstone make up 30 percent of East Coast industrial gas demand. Restricting the sale of uncontracted gas for export would address short term shortage concerns, while the electrification or phase down of two of the three East Coast LNG facilities by 2035 would reduce domestic gas demand by 79 PJ.
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Replacing gas use in manufacturing with electricity using technology that is commercially available today would reduce demand by 112 PJ by 2035.
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Doing the same in commercial buildings would reduce gas demand by 25 PJ by 2035.
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“Regassing” and substituting metals smelting and refining, iron and steel manufacturing, and chemical manufacturing with green hydrogen would cut gas use by 62 PJ by 2035.
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Targeted government support including more research could help truly “hard to abate” sectors like cement and glass manufacturing wean themselves off fossil gas by 8 PJ by 2035.
Report author, Tom Quinn, of Springmount Advisory said, “The challenge we were set in this report was to examine what part of reducing industrial gas demand could be done easily, and which sectors needed more time and security to decarbonise. At heart, this is about energy independence for Australia’s manufacturing sector, which has been under strain as a result of the high prices and volatile supply brought on by LNG exports.”
Lock the Gate Alliance spokesperson Georgina Woods said, “The east coast LNG export industry dramatically increased energy and fuel costs and is draining domestic gas supplies. Rural communities are being pushed to accept damage to farms and water resources from unconventional gas to supposedly fix a problem the gas companies created.
“Australia doesn’t have a gas shortage, but it does have a chronic failure to put the national interest ahead of the interests of wealthy gas companies. We have a better vision: a country that supports Australia’s manufacturing sector to decarbonise, protecting jobs, farms and water resources and preventing dangerous global warming.”
ENDS