LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS - CLIMATECOUNCIL.ORG.AU - APO
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Thank you for supporting the Climate Council. The Climate Council is an independent, crowd-funded organisation providing quality information on climate change to the Australian public. Published by the Climate Council of Australia Limited. ISBN: 978-1-922404-09-1 (print) 978-1-922404-08-4 (digital) Ella Weisbrot © Climate Council of Australia Ltd 2020. Researcher This work is copyright the Climate Council of Australia Ltd. All material contained in this work is copyright the Climate Council of Australia Ltd except where a third party source is indicated. Climate Council of Australia Ltd copyright material is licensed under the Creative Commons Attribution 3.0 Australia License. To view a copy of this license visit http://creativecommons.org.au. Louis Brailsford Campaigner You are free to copy, communicate and adapt the Climate Council of Australia Ltd copyright material so long as you attribute the Climate Council of Australia Ltd and the authors in the following manner: Leaders and legends: Thousands of clean jobs for Queenslanders. Authors: Ella Weisbrot, Louis Brailsford, Andrew Stock and Greg Bourne. We would like to thank Dave Copeman for reviewing and providing feedback Andrew Stock on drafts of the report. We also appreciate the assistance of Lachlan Pickering Climate Councillor and Anna Kalliomaki in the preparation of this report. — Cover image: ‘Silhouette of engineer shakes hands in the construction area’ Greg Bourne by HongtaeStocker via Shutterstock. Climate Councillor This report is printed on 100% recycled paper. facebook.com/climatecouncil info@climatecouncil.org.au twitter.com/climatecouncil climatecouncil.org.au
CLIMATE COUNCIL i Contents Key Findings..................................................................................................................................................................................... ii 1. Introduction...............................................................................................................................................................................1 2. Renewable Energy Zones...................................................................................................................................................... 4 2.1 Benefits of renewable energy zones 6 2.2 Renewable energy zones in Australia and overseas 7 3. Renewable Energy Zones in Queensland......................................................................................................................... 8 4. Jobs for Queenslanders in Renewable Energy Zones...................................................................................................15 5. CopperString 2.0.................................................................................................................................................................... 18 5.1 Economic opportunities unlocked by CopperString 2.0 21 6. Queensland, the Clean Industrial Superpower............................................................................................................ 22 6.1 More renewable energy means more jobs for Queenslanders 23 6.2 New economy mining and minerals processing 25 6.3 Renewable hydrogen 28 6.4 Clean manufacturing 29 6.4.1 Battery manufacturing 29 6.4.2 Clean metals 30 7. Conclusion: Seize the Opportunity................................................................................................................................. 34 References....................................................................................................................................................................................... 35 Image credits.................................................................................................................................................................................. 37
ii LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS Key Findings 1 2 As Queensland rebuilds its economy from Queensland has the potential to be a clean the COVID-19 crisis, it should seize the industrial superpower. Generations of opportunity to create jobs in renewable Queenslanders could work in clean industries energy and the industries it will power. such as clean manufacturing, mining, minerals processing and hydrogen made from › Queensland can harness renewable energy renewables. for long-term job creation and economic growth because it has excellent solar and › Increasing renewable energy generation brings wind resources, as well as a skilled industrial down power prices, creating a global competitive workforce. advantage for Queensland in energy-intensive industries. › Queensland can accelerate the development of renewable energy zones (REZs) across the › Townsville could become a hub for lithium-ion state, creating a long-term pipeline of jobs battery manufacturing and metals processing, and in construction and ongoing operations and central Queensland could become a clean steel maintenance jobs. powerhouse, creating 15,000 local jobs by 2050. › The proposed REZs in the Darling Downs and › Townsville, Gladstone and Mackay have the skilled Far North Queensland alone could create up to workforce and established industrial infrastructure 2,000 jobs in each region by 2025. that makes them ideal cities to develop clean industries. › In the immediate term, the Climate Council’s Clean Jobs Plan has found 15,000-20,000 jobs › Electricity prices in South East Queensland are could be created in Queensland across 12 policy projected to fall by 20% from 2019 to 2022, due opportunities, including renewable energy. in part to the recent boom in renewable energy projects.
KEY FINDINGS iii 3 4 CopperString 2.0 is a proposed transmission Renewable energy not only creates jobs, it project connecting North West Queensland addresses long term challenges like climate to the National Electricity Market (NEM), change. unlocking exceptional wind and solar resources and new opportunities in mining › Climate change is already taking a devastating and minerals processing. toll on Queensland. This year saw another mass bleaching event on the Great Barrier Reef, the third › CopperString 2.0 is expected to reduce in five years. Queenslanders have also suffered electricity prices across the region by 40% by from both devastating drought and flooding. connecting North West Queensland to the NEM and enabling more renewable energy projects. › The 2019/20 fire season was so severe it saw areas of Wet Tropics World Heritage rainforest burn. › The North West Minerals Province can become Damage to the forest from climate change has a superpower in new economy mining, been declared to be as bad as coral bleaching on providing minerals required for solar panels, the Reef. wind turbines and batteries. The value of the new economy minerals deposits in the region › Harnessing renewable energy is essential exceeds $500 billion. if Australia is to reduce its greenhouse gas emissions and address the escalating dangers › Construction of CopperString 2.0 is expected to of climate change. begin in 2021, creating 750 direct jobs over three years. Industrial opportunities unlocked by the project are expected to create an additional 3,560 full-time jobs from Mt Isa to Townsville while generating more than $6 billion in royalties for the Queensland Government to 2050. › Expanding domestic mining and processing of critical minerals also increases Australia’s self- reliance by protecting our supply chains from potential disruption. climatecouncil.org.au
1 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS 1. Introduction As we rebuild our economy from the The Climate Council’s Clean Jobs Plan COVID-19 crisis, Queensland has found that 15,000-20,000 new jobs could enormous opportunities to create be created across Queensland within the jobs in renewable energy and the next three years by investing in twelve clean industries it could power. The clean policy opportunities (Climate Council state could become a global leader 2020). Installing additional large-scale in the clean industries of the future, renewable energy, transmission,1 and with generations of Queenslanders battery storage could be a job creator in working in industries such as clean regional Queensland, supporting up to manufacturing, mining, minerals 2,200 new jobs in the near term. The Clean processing, and hydrogen made Jobs Plan profiles immediate job creation from renewables. opportunities that kickstart the economy while setting us up for the future. This latest state-specific report focuses on the long- term job opportunities for Queenslanders from expanding renewable energy and the clean industries it would enable. Figure 1: Queensland could become a global leader in renewable energy and clean industries. 1. Transmission refers to the poles and wires that transport electricity over long distances.
INTRODUCTION 2 Generations of Queenslanders could work in clean industries such as manufacturing, mining, and hydrogen made from renewables. Queensland has a competitive advantage in Renewable energy not only creates jobs and renewable energy. The state has excellent supports new industries, it also addresses sun and wind resources, abundant space, long-term challenges like climate change. and the skilled workforce needed to use Australia is one the most vulnerable developed renewable energy for job creation and countries in the world to the impacts of economic growth. Development of these climate change, and Queensland is the most resources can be accelerated through vulnerable state in Australia (Climate Council renewable energy zones (REZs) – regions 2019a). Climate change is already taking a with high potential renewable energy devastating toll on Queensland. resources, where development of renewable energy and storage can be coordinated with The Great Barrier Reef this year suffered its transmission to ensure secure, efficient and third major bleaching event in five years. cheap electricity. Climate change is the greatest threat to the Great Barrier Reef. The Reef supports a huge By increasing renewable energy variety of marine life and an estimated 69,000 generation and critical infrastructure such Australian jobs (Deloitte Access Economics as transmission, Queensland will also 2013), and provides $7 billion to the Australian have a global competitive advantage in economy every year (Jacobs 2016). energy-intensive industries such as new economy mining, manufacturing and Although there is a lot of rainfall variability renewable hydrogen, because renewable across different parts of Queensland, some energy brings down power prices. More important trends have been discerned over competitive industries mean more jobs for recent decades. Rainfall has been very low Queenslanders, especially in Central and over parts of southern Australia during the North Queensland. Cheaper power will also cool season (April-October) over the past 20 help protect existing jobs in energy intensive years. This has affected parts of Southern industries, such as aluminium production. and Central Queensland, including areas that New clean industries are most likely to derive more than 40% of their annual rainfall develop and succeed in regions with an during the April-October period, such as the existing industrial base, skilled workforce, Darling Downs South West region and South and established infrastructure such as ports, East Queensland. By contrast, in Far North transport, and energy. Queensland has Queensland, rainfall has been above average several such regional cities well positioned over the past 20-year period (CSIRO and for success, including Townsville, Gladstone, BoM 2018). As ocean temperatures increase, and Mackay. so too does the destructive power of tropical cyclones, with expected increases in both the maximum wind speed and amount of rainfall (Climate Council 2019a).
3 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS Almost half of Queensland’s population is Heritage rainforest burn (The Guardian exposed to high or extreme risk of flooding 2019). The Wet Tropics Management (Deloitte 2017). Climate change is increasing Authority has previously declared that the intensity of extreme downpours, leading climate change damage to the forest is as bad to greater risk of floods. Meanwhile, annual as coral bleaching on the reef (Wet Tropics temperatures in Queensland have been Management Authority 2019). rising strongly since around the 1980s, with nine out of the ten hottest years on record In addition to the toll on Queenslanders’ occurring since 2002. There has also been health and critical natural assets, climate a very marked increase in extreme heat in change is a major threat to the state Queensland over recent decades (BoM 2019). economy. Agriculture and tourism – two pillars of Queensland’s economy – are Tropical and sub-tropical Queensland highly sensitive to climate change and are often associated with warm, humid extreme weather (EY 2019). Queenslanders conditions and moist vegetation not suffered 60% of the economic cost of conducive to major bushfires. This is extreme weather disasters in Australia in changing. More frequent heatwaves typified the decade from 2007 to 2016 (Deloitte 2017), by hot, dry air masses coming from the despite having only around one fifth of the interior drive higher temperatures and lower population. Harnessing renewable energy is humidity. This increases evaporation and essential for Australia to reduce greenhouse rapidly dries out fuels, even in rainforests, gas emissions and address accelerating making conditions more conducive to major climate change. It also presents tremendous bushfires (Climate Council 2018). economic opportunities for Queensland. Climate change is becoming the greatest This report shows that Queensland can long-term threat to Queensland’s Wet Tropics build a resilient, thriving economy by World Heritage Area. Although the region using renewable energy for job creation. represents only 0.12% of the total Australian Thousands of Queenslanders could work in landmass, it comprises the world’s oldest clean industries including manufacturing, living rainforests and the largest area of mining, minerals processing, and renewable rainforest in Australia. It also supports the hydrogen. By embracing its renewable highest level of biodiversity of any region energy potential, Queensland could be a in Australia (Wet Tropics Management clean industry superpower for generations Authority 2019). The 2019/20 fire season to come. was so severe it saw areas of this World Townsville, Gladstone and Mackay have the workforce and infrastructure necessary to be leaders in the clean industries of the future.
SECTION 02 4 RENEWABLE ENERGY ZONES 2. Renewable Energy Zones A renewable energy zone (REZ) is a A REZ is a planning and development tool region with high potential renewable that allows governments to prioritise the energy resources, such as wind, construction and upgrading of essential solar, and pumped hydro, where infrastructure to ensure the supply of the development of new renewable electricity is secure, stable, efficient and energy and storage projects can lowest-cost (AEMO 2020). Across the be coordinated with demand and National Electricity Market (NEM), 2 35 investment in transmission. potential REZs have been identified by the Australian Energy Market Operator (AEMO) in its Integrated System Plan (ISP), a roadmap for the efficient development of the NEM over the next 20 years (AEMO 2020). Queensland is rapidly transitioning to an electricity grid powered by renewable energy and storage, in line with the state’s renewable energy target of 50% by 2030 (Queensland Government 2020g). To ensure that this transition is as smooth as possible, it is important that new wind, solar and storage projects are built in areas where there are high quality renewable energy resources, close proximity to transmission, and strong connections to large users of electricity such as cities and major industries. REZs are a key tool for ensuring that renewable energy is integrated into the grid efficiently and at lowest cost. 2 The National Electricity Market (NEM) is a series of interconnected grids connecting the eastern states of Australia (Queensland, New South Wales, Victoria and Tasmania) as well as South Australia and the Australian Capital Territory.
Figure 2: Queensland is rapidly transitioning to an electricity grid powered by renewable energy and storage. REZs ensure that development is coordinated, efficient and least-cost. Renewable energy zones are regions with excellent wind and solar resources where development of renewables can be coordinated with transmission and demand.
SECTION 02 6 RENEWABLE ENERGY ZONES 2.1 Benefits of renewable energy zones In recent years, there has been a surge in storage projects. This planned approach new wind and solar farms being built and also allows potential grid security problems, connected to the grid across Australia. The such as issues of system strength,3 to be lack of coordination when rolling out new identified and resolved before projects are renewable projects has led to problems built (ARENA 2020b). such as overloaded transmission lines, system security issues and constraints In Queensland, the electricity network is on renewable energy generation (ARENA currently configured to transport electricity 2020a; RenewEconomy 2020a). While these from coal power stations to households issues have been manageable with current and businesses, primarily in South East levels of development, should this continue Queensland. Many wind and solar farms without sufficient planning for the future, are not located in the same location as the problems will multiply. coal power stations and many of the best areas for industry expansion are in Central REZs help to address these problems and and Northern Queensland. This requires are key to planning the transition to a a reconfiguration of the power grid in modern, efficient and reliable electricity Queensland to get electricity where it system. REZs enable the coordinated, least needs to go – that is, new and coordinated cost development of new infrastructure, investment in and development of the such as transmission, to ensure efficient transmission network. REZs provide this connection of renewable energy and coordinated approach. Renewable energy zones enable coordinated, efficient and least cost development of renewable energy, storage and transmission. 3 System strength is a commonly used term that refers to a loose collection of issues related to ensuring the secure operation of a power system, including the ability of the power system to maintain and control voltage. This is important because it means that if there is a disruption to the grid, such as a coal-fired power station tripping or power lines coming down, the voltage can recover quickly, minimising impacts for electricity consumers.
7 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS 2.2 Renewable energy zones in Australia and overseas REZs have proven successful internationally was followed by the announcement of and have been gaining traction around $500 million for a new Renewable Energy Australia. Internationally, the US state of Fund to support Queensland’s state- Texas completed its Competitive Renewable owned energy corporations to accelerate Energy Zones (CREZ) project in 2013, the development of renewable projects building a transmission network to connect (Queensland Government 2020e). the excellent wind resources in the state to the major population and industry Earlier this year, the New South Wales centres (Powering Texas 2018). The CREZ Government also announced support for project was successful in ensuring efficient the development of REZs in that state (NSW construction of transmission, unlocking Government 2020). In New South Wales, more than 19,000MW of wind generation, the expression of interest process for the and contributing to reduced power prices Central-West Orana REZ – the first REZ to (ERCOT 2017). be announced – attracted huge interest from renewable energy developers. The The Queensland Government recently government targeted 3,000MW of new announced it would invest $145 million to renewable energy and storage projects establish three REZ corridors to create jobs and received proposals for 27,000MW, and ensure continued investment in large- representing $38 billion of potential private scale renewable energy projects across the investment (NSW Government 2020). state (Queensland Government 2020d). This Figure 3: Renewable energy zones have proven successful in the US state of Texas and are gaining traction around Australia.
SECTION 03 8 RENEWABLE ENERGY ZONES IN QUEENSLAND 3. Renewable Energy Zones in Queensland Of the 35 potential REZs identified A further four possible zones could across the NEM (see Section 2), eight be developed in Townsville, Western are in Queensland. Four have been Queensland, Wide Bay-Burnett and identified by AEMO as particularly Barcaldine in the longer term, or with important for development over the increased demand from major industry or next decade. These are located in the commitment of new infrastructure (such as regions surrounding Cairns, Mackay, CopperString 2.0, see Section 5). Rockhampton and Gladstone, and the Darling Downs. These REZs are Developing REZs will involve not only new profiled in boxes 1 to 4 below. renewable energy and storage projects, but also new and upgraded electricity network infrastructure to handle these new wind, solar, battery and pumped hydro projects. As noted in Section 2, the main purpose of REZs is to plan for the needs of the future grid. This includes planning for new and upgraded transmission links and other infrastructure, such as inverters or synchronous condensers.4 Queensland has eight potential renewable energy zones. 4 A synchronous condenser is essentially a large spinning machine connected to the grid, similar in function to a free spinning motor. Synchronous condensers are one solution to ensuring a stable supply of electricity through the network. While there are other means to achieve this in grids with a high share of renewables, synchronous condensers are one important solution. Other options, such as inverters, are able to play a similar role.
9 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS Often, there are opportunities to build As noted in Section 2.2, the Queensland significant new renewable energy Government has announced it will generation before these infrastructure invest $145 million to establish three REZ upgrades are required. Queensland’s corridors in southern, central and northern REZs vary considerably in this regard. The Queensland, overlapping with the eight southernmost zones (see Figure 5 below REZs identified by AEMO (Queensland for map), such as the Darling Downs, with Government 2020d). In September 2020, strong links to the rest of the NEM, have the state government announced it was more existing capacity. Once the required opening an expression of interest process upgrades occur in the northern zones, the for renewable energy and storage projects opportunities are enormous. across these areas (Queensland Government 2020c). This process will help guide the initial planning of REZs, including their size, location and timing for development. Figure 4: REZs will help drive down power bills and spur job creation throughout Queensland.
SECTION 03 10 RENEWABLE ENERGY ZONES IN QUEENSLAND Figure 5: Renewable energy zones in Queensland. Source: AEMO (2020). 2020 RENEWABLE ENERGY ZONE CANDIDATES Candidate Renewable Energy Zone (REZ)5 Indicative wind farm Indicative solar farm Q1 Indicative pumped hydro Indicative battery storage Cairns Q2 Forsayth Q3 Townsville Proserpine Mackay Q4 Q5 Longreach Rockhampton Gladstone Q6 Bundaberg Q7 Q1 Far North QLD Q8 Q2 North Qld Clean Energy Hub Brisbane Q3 Northern Qld Q4 Isaac Q5 Barcaldine Q6 Fitzroy Q7 Wide Bay Q8 Darling Downs 5 Note: Boundaries are approximate.
11 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS BOX 1: DARLING DOWNS (TOOWOOMBA) RENEWABLE ENERGY ZONE (REZ) The Darling Downs REZ has good solar and wind resources, with already 840MW of wind Chinchilla and solar projects existing or committed to Nanango construction. Dalby Toowoomba Brisbane The existing transmission lines can support 3,000MW of new renewable energy projects Warwick beyond those that are already committed. An expansion of the interconnector from Queensland to New South Wales would increase capacity for renewable energy projects in this REZ even further. Proposed Darling Downs REZ A large expansion of renewable energy in the area will require four synchronous condensers Location: or other technologies to maintain system This REZ encompasses the Darling strength by 2030. This region is perfectly Downs west of Brisbane, including placed to export electricity south to New South Warwick, Toowoomba, Dalby, Nanango Wales and east to Brisbane. and Chinchilla. New renewable energy capacity by 2030: 2,800MW of renewable energy (equivalent to more than the power generated by Queensland’s Stanwell coal-fired power station) and 250MW of energy storage (AEMO 2020). Key benefits: › This region is perfectly placed to export electricity south to New South Wales and east to Brisbane.
SECTION 03 12 RENEWABLE ENERGY ZONES IN QUEENSLAND BOX 2: FITZROY (ROCKHAMPTON & GLADSTONE) RENEWABLE ENERGY ZONE (REZ) The Fitzroy REZ has good solar and wind resources, although there are currently no existing or committed renewable energy projects Rockhampton in this region. Gladstone Callide Biloela The existing transmission lines in Central Queensland can support 2,000-2,500MW of new renewable energy projects but this capacity is shared with the Isaac REZ to the north. The build out of this renewable energy zone and others in central Queensland will require transmission upgrades to take advantage of the excellent Proposed Fitzroy (Rockhampton renewable energy opportunities in the area. & Gladstone) REZ System strength is relatively good in the area, with one synchronous condenser or similar to be Location: installed by 2030 to maintain system strength. This REZ is centred on the cities of This region is located close to existing heavy Rockhampton and Gladstone, running industry in Central Queensland centred around inland to Biloela and Callide. Rockhampton and Gladstone, including the aluminium and cement production industries. New renewable energy capacity by 2030: Building out this renewable energy zone could 900MW of renewable energy (roughly facilitate an expansion of manufacturing in the equivalent to three-quarters of the area by supplying clean and affordable power. power generated by Queensland’s Callide B coal-fired power station) and 400MW of energy storage (AEMO 2020). Key benefits: › Close to existing industry in Central Queensland. › Creates new opportunities for manufacturing in the region.
13 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS BOX 3: ISAAC (MACKAY) RENEWABLE ENERGY ZONE (REZ) The Isaac REZ has good solar and wind Abbot Point Bowen resources, with a large number of solar farms Collinsville already operating in the region. Mackay The existing transmission lines in Central Moranbah Queensland have spare capacity of 2,000- 2,500MW for new renewable energy projects Marlborough but this capacity is shared with the Fitzroy REZ to the south. The Isaac REZ will require upgrades to transmission to enable an expansion of renewable energy. Proposed Isaac (Mackay) REZ System strength in the area is good and, as with the Fitzroy REZ, this region is located close to existing industry in Central and North Location: Queensland, in this case centred around This REZ includes a large part of Central Mackay. There is a great opportunity to expand and North Queensland, running along manufacturing in the region by building out the coast north from Marlborough up this REZ. to Bowen and Abbot Point via Mackay. The REZ also runs inland through Collinsville and Moranbah. New renewable energy capacity by 2030: 1,350MW of renewable energy development (roughly equivalent to the power generated by Queensland’s Callide B coal-fired power station) and 800MW of energy storage (AEMO 2020). Key benefits: › Close to existing industry in Central and North Queensland. › Creates new opportunities for manufacturing in the region.
SECTION 03 14 RENEWABLE ENERGY ZONES IN QUEENSLAND BOX 4: FAR NORTH QUEENSLAND (CAIRNS) RENEWABLE ENERGY ZONE (REZ) The Far North Queensland REZ has excellent wind resources and good solar resources. The region has four existing renewable energy Cooktown projects, including wind, solar and hydro. Port Douglas Cairns The existing transmission line can support an additional 700MW of new renewable energy. A Innisfail range of transmission upgrades are proposed by Tully 2030 but these are partly contingent on further upgrades in Central and North Queensland to enable the transfer of electricity south. Proposed Far North Queensland Two synchronous condensers or equivalent (Cairns) REZ will be required by 2030 to maintain system strength. Far North Queensland has some of Australia’s best wind resources, which tend to be Location: available at different times to the wind resources This REZ hugs the coast of Far North in other states, providing a complementary Queensland, beginning in Tully and source of electricity (AEMO 2020). Innisfail in the south, running north through Cairns and Port Douglas up to Cooktown. New renewable energy capacity by 2030: 950MW of renewable energy (roughly equivalent to the power generated by Queensland’s Callide B coal-fired power station) (AEMO 2020). Key benefits: › Some of Australia’s best wind resources, which tend to be available at different times to the wind resources in other states, providing a complementary source of electricity.
15 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS 4. Jobs for Queenslanders in Renewable Energy Zones Thousands of jobs can be created The Climate Council’s Clean Jobs Plan throughout regional Queensland in found that an estimated 15,000 – 20,000 a range of different industries in the direct jobs could be created across the state construction and ongoing operations within the next three years by investing and maintenance of REZs. in twelve clean economic recovery policy opportunities (Climate Council 2020). Installing additional large-scale renewable energy, transmission and battery storage could be a significant job creator in regional Queensland, supporting 1,800 – 2,200 new direct jobs in the near term, while rebooting the economy and tackling long term challenges like climate change at the same time (Climate Council 2020). Recent jobs modelling by other organisations has also found job creation opportunities in renewable energy. The Clean Energy Council has found that the renewable energy industry already supports at least 6,000 direct and indirect jobs in Queensland (Clean Energy Council 2020). This could double to more than 11,000 jobs within a few years with strong policy The Clean Jobs Plan support. Without policy support the sector could lose almost 3,000 existing jobs (Clean found that 15,000 – Energy Council 2020). 20,000 new jobs could be created across Queensland within the next three years.
Figure 6: The renewable energy industry could support more than 11,000 jobs in Queensland by 2025 with strong policy support. The proposed REZs in the Darling Downs and Far North Queensland could create up to 2,000 jobs in each region by 2025. While the development of REZs would establish a long-term pipeline of These jobs in new renewable energy projects construction jobs, half of these jobs would include direct jobs across a wide range could be in ongoing operations and of occupations, including: maintenance roles by 2035, creating long- term, skilled jobs for Queenslanders. Up to 75% of these jobs would be located outside of Brisbane. The proposed REZs in the Darling Downs and Far North Queensland Electricians Electrical trade assistants alone could create up to 2,000 jobs in each region by 2025 (Clean Energy Council 2020). Further jobs would be created in the installation and upgrading of transmission necessary to support these REZs. Drivers Roofers Once established, the low-cost renewable electricity generation from the REZs will become a key competitive advantage for energy-intensive Queensland industries Office managers and Construction and administrative staff project managers enabling sustainable long-term job creation – Section 6 looks at these opportunities in more detail. Site managers Mechanical trades and supervisors and technicians Source: Clean Energy Council (2020).
17 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS Increasing renewable energy generation will lower energy bills, which can help create new manufacturing jobs throughout Queensland. Manufacturing hubs have already been set up in both Gladstone and Rockhampton, providing centres for training and advice on advanced manufacturing (Manufacturers’ Monthly 2020). Expanding renewable energy in the nearby REZs would help to ensure affordable power is supplied to the region, enabling a further expansion of existing manufacturing, as covered in more detail in Section 6. Figure 7: Renewable energy projects create jobs across a wide range of different occupations including electricians, drivers, construction and mechanical trades. Renewable energy zones would help unlock further manufacturing opportunities throughout Queensland.
SECTION 05 18 COPPERSTRING 2.0 5. CopperString 2.0 The CopperString 2.0 project offers CopperString 2.06 is a proposal to build a another opportunity to use renewable transmission link from Mt Isa to Townsville. energy to create jobs and support North West Queensland is not connected to industries such as mining and the National Electricity Market (NEM) and minerals processing in Queensland. the region, including industry in the North West Minerals Province (see Box 5 below), currently relies on two expensive gas-fired power stations near Mt Isa. Electricity prices in the region tend to be more than double the price paid for electricity in Townsville, creating a major disadvantage for local industry (AFR 2019). CopperString 2.0 would connect the North West Minerals Province to the NEM, significantly lowering electricity prices (Queensland Government 2020a). The proposed high voltage AC transmission line would stretch for roughly 1,000 km (see Figure 8 below for the map) (CopperString CopperString 2.0 is 2.0 2019). CopperString 2.0 would also unlock new renewable energy generation. This expected to reduce region has some of the best solar and wind resources in Australia, and CopperString 2.0 electricity prices could provide the transmission necessary to develop these resources and connect in North West them to the NEM (Queensland Government 2020a). On average, this is expected to reduce electricity prices in the region by 40% Queensland by 40%. (CopperString 2.0 2020).7 6 The project is referred to as CopperString 2.0 because this is the second time the project has been proposed, after the previous plan was not supported by the previous state government. 7 This report from CopperString 2.0 is a summary of studies from ACIL Allen Consulting, IZMIN Pty Ltd, Neuchatel Partners, Soren Consulting, and analysis from KPMG.
19 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS The development of CopperString 2.0 Government in August 2019 to help the has received support from both the State proponents of CopperString 2.0 develop their and Federal Governments. In May 2020, business case (Queensland Government the Queensland Government announced 2020a). The Federal Government also $14.8 million to support the development provided $4.7 million in 2019 to help with of CopperString 2.0 as part of the state’s early works (AFR 2019). COVID-19 economic recovery plan. While the funding is conditional on project milestones and subject to approvals, the aim is for construction to begin in the first half of 2021. This funding is additional to $1.18 million provided by the Queensland Figure 8: Map of Proposed Copperstring 2.0 transmission line. Source: CopperString 2.0 (2019). Ross Substation Townsville Charter Towers Cloncurry Richmond Pentland Julia Creek Mount Isa Hughenden Woodstock Substation Strathmore II Dajarra Road Substation Mount Isa Substation Hughenden Substation Substation Phosphate Hill Cannington Substation Substation Highway Proposed Transmission Line Route Existing Substation Proposed Substation
SECTION 05 20 COPPERSTRING 2.0 BOX 5: THE NORTH WEST MINERALS PROVINCE The North West Minerals Province, centred information on the industrial opportunities around Mt Isa and Cloncurry, extends from from new economy minerals.) New economy the Northern Territory border up to the Gulf of minerals found in the North West Minerals Carpentaria and is home to some of the world’s Province include copper, cobalt, gold, graphite, richest mineral deposits. Minerals and metals zinc, molybdenum, rhenium, and rare earth found in the area include copper, lead, zinc, and elements including dysprosium and holmium silver, as well as phosphate deposits and rare (CopperString 2.0 2020). earth elements (Queensland Government 2017). The Province is already one of the world’s largest The value of the known resources in the mining regions and mining and minerals North West Minerals Province is estimated at processing is a major employer in North West more than $680 billion, with ‘new economy Queensland. The region has faced challenges in minerals’ accounting for more than $500 billion recent years with some operations closing and (CopperString 2.0 2020). ‘New economy minerals’ activity impacted by lower commodity prices refer to metals and mineral elements required (Queensland Government 2017). As discussed for advanced and emerging technologies such below and in Section 6, the CopperString 2.0 as electric vehicles, consumer electronics, solar project and new renewable energy generation panels, and wind turbines. These are expected could increase the competitiveness of these local to experience strong and growing global industries and unlock Queensland’s potential as a demand over the coming decades (Queensland global leader in new economy minerals. Government 2020b). (See Section 6 for more Figure 9: Mt Isa is at the heart of the North West Minerals Province. CopperString 2.0 could support and unlock new jobs and industries for communities from Mt Isa to Townsville.
21 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS 5.1 Economic opportunities unlocked by CopperString 2.0 Construction of the CopperString 2.0 unlocked by CopperString 2.0 are expected transmission line is expected to create 750 to create an additional 3,560 full-time jobs new full-time jobs over three years, and sustained over thirty years in the North West the project will support 30 ongoing jobs in Minerals Province (CopperString 2.0 2020). operations and maintenance (CopperString Initial modelling from ACIL Allen and Soren 2.0 2019). Consulting also suggests that the project could add more than $139 billion to Queensland’s The more significant job creation Gross State Product over the period to opportunity, however, comes from the 2050 and generate more than $6 billion in industries that CopperString 2.0 could additional royalty revenue for the Queensland support and unlock for communities Government (CopperString 2.0 2020). from Mt Isa to Townsville. Access to cheaper electricity will increase the global As discussed in the next section, importantly, competitiveness of local industries such as these opportunities go beyond mining. mining and minerals processing, industrial Regional centres such as Townsville have manufacturing and agriculture, and create the potential to become ‘value add hubs’ for new export opportunities for the Port of the resources mined locally, supporting Townsville (CopperString 2.0 2020). industries such as minerals processing and battery manufacturing (Queensland More competitive industries mean more Government 2020a). jobs for Queensland. According to ACIL Allen Consulting, industrial opportunities CopperString 2.0 could unlock an additional 3,560 full time jobs in the North West Minerals Province.
SECTION 06 22 QUEENSLAND, THE CLEAN INDUSTRIAL SUPERPOWER 6. Queensland, the Clean Industrial Superpower Installation of significant large-scale These new clean industries are some of the renewable energy, enabled through most promising opportunities for leading REZs, will bring down power prices the economic recovery in Queensland. and set Queensland up to be a leader They also emerged as some of the most in clean industries of the future, such popular opportunities discussed in a as manufacturing, mining, minerals recent series of industry and community processing, and renewable hydrogen. consultations in Cairns, Townsville, Generations of Queenslanders will Toowoomba, South Burnett, Gladstone, gain long-term, skilled jobs in high and Rockhampton (The Next Economy demand global industries if the state 2020). In addition to enjoying broad public seizes the opportunities presented by support and creating good, long-term jobs renewable energy. in regional Queensland, industries such as renewable energy and clean manufacturing help to boost and diversify local economies and reduce greenhouse gas emissions, improving resilience of local communities (The Next Economy 2020). Generations of Queenslanders could work in global industries of the future, such as clean manufacturing, mining and renewable hydrogen.
23 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS 6.1 More renewable energy means more jobs for Queenslanders Australia has a competitive advantage in renewable energy: we are the sunniest and Townsville, one of the windiest countries in the world and have the abundant space and technical Gladstone and expertise available to make use of these Mackay are well resources (Garnaut 2019). Queensland – and Central and North Queensland in positioned to lead particular – has everything it needs to lead in harnessing renewable energy for job the development creation and economic growth. The state is endowed with excellent renewable resources of new clean and a skilled workforce. In addition, new clean industries are most likely to develop industries. in regions with an existing industrial base and established infrastructure such as ports, transport, energy, and training infrastructure. Queensland has several such regional cities, including Townsville, Gladstone, and Mackay (Garnaut 2019). Figure 10: Queensland has a competitive advantage in renewable energy and can lead in harnessing renewable energy for job creation and economic growth.
SECTION 06 24 QUEENSLAND, THE CLEAN INDUSTRIAL SUPERPOWER Increasing renewable energy brings The combination of a competitive advantage down power prices. Wind and solar are in renewable energy resources and the fact now the cheapest forms of new energy that renewable energy is now the lowest cost generation in Australia, even when backed form of electricity means that Queensland by storage technologies such as batteries could create a long-term competitive and pumped hydro (CSIRO 2018). The advantage in energy-intensive industries. transition to renewable energy is already Coupling that low-cost electricity with lowering electricity prices in Australia, with top quality mineral resources will create retail prices projected to fall by more than sustainable long-term jobs in globally 7% from 2019 to 2022, due in part to an competitive processing and value-adding increase in renewable energy generation. industries. All industries in Queensland, South East Queensland is projected to enjoy including traditional industries such as the largest fall (20%) in prices, due in part agriculture, stand to benefit from lower power to the recent boom in renewable energy prices. This enables enormous potential for projects in the state (AEMC 2019). job creation, bolstering existing industries and enabling the creation of new ones. The following sections outline opportunities for Queensland in industries such as clean manufacturing, mining and minerals processing, and renewable hydrogen. Renewable energy brings down power prices, creating a competitive advantage in energy-intensive industries.
25 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS 6.2 New economy mining and minerals processing Developing REZs and key transmission Province (see Section 5) is growing and set infrastructure such as CopperString 2.0 to boom in the future. Demand is projected would unlock significant new job creation to increase – in most cases dramatically in mining and minerals processing, – for metals including aluminium, cobalt, especially in North and North West copper, lead, lithium, nickel, manganese, Queensland (see Section 5). Mining is steel, titanium, zinc, cadmium, molybdenum already a major employer in the region and rare earth elements (World Bank 2017). and Queensland has untapped deposits of For example, production of an electric car many critical and new economy minerals uses roughly five times more of these new (see Figure 11 below). Energy is the largest economy minerals than a conventional cost for the minerals processing industry, petrol car (IEA 2020). Many of these metals so access to low cost energy would increase are found in Queensland (Geoscience global competitiveness (Centre for Future Australia 2019). Several are currently Work 2020), enabling expansion of these refined and processed in Queensland, industries in Queensland. such as aluminium and zinc, and there are opportunities to develop new mining, International demand for new economy processing and value-adding industries minerals, such as those found in powered by renewable energy. Queensland’s North West Minerals Queensland can use its natural resources – both minerals and renewable energy – to become a superpower in the fast-growing new economy minerals industry.
SECTION 06 26 QUEENSLAND, THE CLEAN INDUSTRIAL SUPERPOWER Figure 11: Mineral deposits in Queensland. Source: Commonwealth of Australia (2019a). MAJOR CRITICAL MINERAL OPERATING AND DEVELOPING MINES IN QUEENSLAND Commodity type Antimony Cobalt (PGE) Graphite Hafnium Heavy mineral sands Lithium Indium Manganese Molybdenum Platinum-group elements Rare earth elements Scandium Tungsten Vanadium Critical commodity Operating mine Mineral deposit Townsville Mount Isa Mackay Gladstone Goondicum North Stradbroke Island BRISBANE
27 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS In addition to export opportunities, there ore exports beginning in 2020, similarly are also strategic advantages to developing demonstrating the vulnerability of these domestic mining and processing of new global critical minerals markets to disruption economy minerals. This increases self- (IEA 2020). reliance by helping to protect Australia’s minerals supply from potential market Queensland has a huge opportunity to use disruption, such as political instability its natural resources – both minerals and overseas, regulatory changes or trade renewable energy – to become a critical restrictions. For example, China is currently player in the fast-growing new economy dominant in many of these markets, minerals industry. If Queensland can supply including rare earth elements, where it is the raw materials for the technologies responsible for over 80% of global production that will reduce global emissions, such as (Commonwealth of Australia 2019a). In batteries, solar panels and wind turbines, 2010, China attempted to limit its export and power the mining and processing of of rare earths, creating significant market these materials with renewable energy, disruption. In 2018, the Democratic Republic Queensland could truly establish itself as a of the Congo nearly tripled the royalty rate zero-emissions industry powerhouse. on its cobalt, and Indonesia banned nickel BOX 6: ENSURING A SUSTAINABLE MINING INDUSTRY While a booming new economy minerals Environmental damage can also be mitigated by industry presents many opportunities for North designing more efficient mining and processing West Queensland, a concerted effort will be methods, and rigorous environmental impact needed to reduce any environmental, health and assessments, protections, and continual social risks that may be associated with these monitoring. This includes smarter design projects. For example, health outcomes will and less wasteful manufacturing processes, need to be prioritised in Mt Isa and surrounding extending product-life, and more reuse, regions to ensure that communities are not recycling, and repairing (Energy Transition exposed to the effects of lead or other heavy Hub 2019). Powering all mining and minerals metals (Climate Council 2019a). processing operations with renewable energy will also help to reduce the environmental To manage the health risks of lead mining and impacts of these industries. smelting in Mount Isa, it is important to fund universal blood lead level testing, follow up and Maximising social goods from new mining intervention for anyone with unsafe blood lead industries, and minimising the chance of any levels. Specific outreach programs are needed for negative impacts, means ensuring that the Indigenous communities, as Indigenous children benefits flow first and foremost to Traditional have been found to have higher blood lead levels Owners and others in the local community. than non-Indigenous children. Remediation Companies must adhere to the best practices in of existing contaminated areas should also be responsible mining, in particular the principle prioritised (Climate Council 2019a). of free, prior and informed consent, and always ensuring protection of Indigenous heritage.
SECTION 06 28 QUEENSLAND, THE CLEAN INDUSTRIAL SUPERPOWER 6.3 Renewable hydrogen Renewable hydrogen – that is, hydrogen for renewable hydrogen production. Due to produced from renewable energy – is likely Townsville’s existing port infrastructure, the to play a key role in the clean economy of region would be particularly appropriate for the future, offering a solution for reducing the development of a renewable hydrogen emissions in industries such as steel-making export industry (CopperString 2.0 2020). If and long-range and heavy haulage transport. 15,000MW of new renewable energy was Renewable hydrogen, sometimes called installed and dedicated to the production of green hydrogen, is set to become a major hydrogen in this region, it could bring an global market, expected to grow twelve-fold estimated export value of $4.4 billion through from 2020 to 2025 (Wood Mackenzie 2019). the Port of Townsville (CopperString 2.0 2020). This is due in part to strong hydrogen targets from countries in our region such as Japan Gladstone is already a major industrial hub, and South Korea. With a rapid expansion and its proximity to the Fitzroy REZ means of renewable energy, Queensland has the it has the potential to be a key centre for the potential to develop a strong renewable renewable hydrogen industry (Queensland hydrogen industry (Commonwealth of Government 2019). There are already several Australia 2019b). major hydrogen projects in the planning stages in Gladstone, such as the Austrom States and territories around Australia, and Hydrogen project targeting the export countries around the world, are currently market and the Hydrogen Utility project developing plans to build their renewable aiming to produce hydrogen and ammonia hydrogen industries (Climate Council 2019b). (IEEFA 2020). Also in the region, the Central Last year, the Queensland Government Queensland Power project is a plan to develop released the Queensland Hydrogen Industry 2,000MW of new wind, solar and storage Strategy 2019-2024, outlining the state’s and supporting transmission infrastructure vision to be a leader in renewable hydrogen over the next ten years, aiming to contribute production by 2030, and established the $15 to new clean industries such as renewable million Hydrogen Industry Development Fund hydrogen (Energy Estate 2020). (Climate Council 2019b). The state already has a range of renewable hydrogen pilot projects In addition to creating local jobs in (Queensland Government 2020f). production, renewable hydrogen creates a range of industrial opportunities for The potential corridor of renewable energy Queensland. Renewable hydrogen projects enabled by the Copperstring 2.0 could become a new export commodity. transmission line could create opportunities Alternatively (or, more likely, in addition), renewable hydrogen could become an input to domestic manufacturing and industrial processes. This would support new value- adding industries, developing clean (zero emissions) manufactured goods locally, Queensland has the potential which could become a high-value export to develop a strong renewable industry. Queensland’s opportunities for clean manufacturing are discussed in the hydrogen industry. following section.
29 LEADERS AND LEGENDS: THOUSANDS OF CLEAN JOBS FOR QUEENSLANDERS 6.4 Clean manufacturing Manufacturing is one highly energy- 6.4.1 BATTERY MANUFACTURING intensive sector that could grow significantly in Queensland from increased renewable Queensland could become a leader in energy generation. Almost all advanced advanced manufacturing that will be at manufacturing processes can use renewable the centre of the global clean economy for energy as an input, and energy is the largest decades to come. One such opportunity is cost for many types of manufacturing manufacturing lithium-ion batteries, which (Centre for Future Work 2020). Transitioning are used in a range of applications including to renewable energy could save the existing electric vehicles, energy storage, and Australian manufacturing sector 23% on consumer electronics. This is a fast-growing their power bills, increasing to 33% by 2050 global market, projected to grow to more as the cost of renewable energy production than US$100 billion by 2025 from US$30 continues to fall (Centre for Future Work billion in 2017 (Centre for Future Work 2020). 2020). The faster Queensland moves on installing large-scale renewable energy, Australia is the world’s largest producer of the greater the potential savings for the lithium, with much of this coming from manufacturing sector. Western Australia (Commonwealth of Australia 2019a). Queensland is a major There is strong support across regional producer of some of the other nine elements communities, such as Cairns, Townsville required to produce a lithium-ion battery, and Gladstone, to build Queensland’s including copper, nickel, cobalt, phosphate, manufacturing industry to create jobs as well and aluminium (Commonwealth of Australia as to increase self-sufficiency and diversify 2018). Townsville has been identified as a export industries (The Next Economy promising location for lithium-ion battery 2020). This section looks particularly at the manufacturing, due to its proximity to opportunities in battery manufacturing and the North West Minerals Province and its clean metals. established industrial base and expertise (Commonwealth of Australia 2018). Queensland could grow its advanced manufacturing sector with low cost renewable energy.
SECTION 06 30 QUEENSLAND, THE CLEAN INDUSTRIAL SUPERPOWER There are already plans for a lithium-ion 6.4.2 CLEAN METALS battery cell gigafactory in Townsville, proposed by the Imperium3 consortium The combination of abundant renewable (PV Magazine 2020). The Queensland energy resources and a local mining and Government provided $3.1 million for a minerals processing industry means Central feasibility study in 2018 and approved and North Queensland could develop a the study in August 2020, allowing the thriving clean metals industry. Demand project to proceed with financing. The for products manufactured with renewable project aims to begin construction in 2022 energy is already growing and this will and operations by the beginning of 2024 only accelerate as governments around the (AuManufacturing 2020). As discussed in world seek to reduce their greenhouse gas Section 5, CopperString 2.0 could further emissions in line with their Paris Agreement increase the competitiveness of Townsville commitments of limiting global temperature as a hub for battery manufacturing by rise to well below 2°C. Businesses are also decreasing electricity prices and allowing looking for opportunities to contribute and the expansion of the new economy to manage their risks, and shareholders minerals industry across the region. are increasingly demanding climate action (Energy Transition Hub 2019; EY 2019). This There are also proposals to develop nickel is particularly the case for clean metals, and cobalt refineries in Townsville for because metal production is responsible use in lithium-ion batteries. Pure Battery for roughly 9% of all global greenhouse gas Technologies is looking to develop a emissions, with steel alone responsible for 7% $100 million battery metals refinery to of emissions (Energy Transition Hub 2019). commercialise technology developed by the University of Queensland. It estimates For example, the European Commission is the facility would create about 100 jobs considering introducing a Carbon Border in Townsville (Townsville Bulletin 2020). Adjustment Mechanism, as part of the Queensland Pacific Metals has plans to European Union’s efforts to achieve net zero develop the Townsville Energy Chemicals emissions by 2050 (European Commission Hub (TECH), focused on value-adding 2020). This would effectively impose a tax battery metals processing, including on imported goods such as steel to reflect nickel, cobalt and high purity alumina the ‘embodied’ emissions within that (Pure Minerals Limited 2020). Both product (BCG 2020), providing an immediate companies have identified Townsville competitive advantage to goods produced as an ideal location due to its skilled using renewable energy. This creates both workforce and established infrastructure, opportunities for those who move quickly to especially its port. expand renewable energy and develop clean manufacturing, and risks for those who do not. Queenslanders are already expressing Townsville could become a hub for battery manufacturing.
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