A new report by the Australian Petroleum Production and Exploration Association (APPEA) has highlighted potential locations to form Net Zero Zones, grouping existing resources and infrastructure, uniting industries, and boosting jobs and the net zero transformation.
The nine zones would establish shared infrastructure for natural gas, renewables, carbon capture utilisation and storage (CCUS) technology and low-carbon hydrogen production.
A Review of Net Zero Energy & Industrial Zones found that the zones could cover 79 per cent of the 215 facilities captured by the Federal Government’s Safeguard Mechanism, and 92 per cent of their greenhouse gas emissions.
The zones are conceptualised in the report, an interim scoping study developed by APPEA with technical support from CSIRO to guide thinking and planning as part of the
debate over how Australia can reach net zero.
The proposed zones could be located in:
- Adelaide – Port Augusta and the Cooper Basin in South Australia
- Perth and the Pilbara in Western Australia
- Melbourne – Gippsland in southern Victoria
- Sydney – Newcastle in New South Wales
- Brisbane and the Surat Basin as well as Central Queensland
- The planned Middle Arm Sustainable Development Precinct near Darwin
APPEA will use the review’s analysis as a foundation for discussions and engagement with governments, industry and stakeholders across the regions.
The report’s release was ahead of the 2023 APPEA Conference & Exhibition, being held in Adelaide from 15 to 18 May 2023, and in line with the conference theme – Lead, Shape, Innovate – Accelerating to Net Zero.
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,” Ms McCulloch said.
“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.
“These zones would involve collaboration across different industries. It is about thinking holistically about emissions reductions in these regions.
“Analysis confirms the important role of the gas industry and what it can contribute to the net zero challenge – cleaner energy and back up for renewable electricity while our infrastructure and expertise can help deliver step-change technologies such as CCUS and low-carbon hydrogen production.”
Ms McCulloch said leveraging existing infrastructure can ensure regions that powered the Australian economy to where it is today won’t be left behind as the economy gets restructured for the future.
“The report highlights that equipping these nine regions with natural gas supply, firmed renewable energy, CO² transport and storage infrastructure, and low-carbon hydrogen would provide the building blocks necessary to reach net zero in the fastest, most cost-efficient way,” Ms McCulloch said.
