Climate change has already provided several opportunities for the pipeline industry. APIA is actively involved in the federal Government’s research work on carbon capture and storage (CCS). While most of this work looks at the technology required to capture emissions caused by energy generators (and possibly manufacturing and LNG processing) as well as work on the geographical challenges and technical requirements of carbon dioxide storage, there remains some critical work to establish the safest and most efficient form of pipeline transportation of carbon dioxide. Australia’s focus on the transportation part of CCS is ahead of many other countries’ work. Also, we have already seen an increase in construction of water pipelines as the drought has continued in many parts of Australia.
Then there is the Carbon Pollution Reduction Scheme (CPRS) and the need to move toward an increase in gas-fired power generation as the only practical alternative to coal at this time. Obviously, the gas industry as a whole should see an increase in activity as this emissions reduction scheme is phased in, which would see a reduction in coal-fired power generation and an increase in both gas-fired power and energy generated from renewable sources. Introduction of the CPRS has been delayed – but it will come. The scheme puts a “˜cap’ on emissions and sells emissions credits that can be traded, leading to a price that should force emitters to reduce their pollution. A “˜pure’ emissions trading scheme (ETS) would automatically increase the demand for gas, which has half the emissions of coal-fired power. But the politics of introducing such a scheme means it will not be “˜pure’ and the Government will be forced to assist industries negatively affected by the changes.
Under a “˜pure’ CPRS (previously called an ETS but the Government changed the name because polling showed that the public didn’t like the world “˜trading’), renewable energy sources should also be more attractive due to the higher cost of emissions. But, of course, the technology for renewable energy requires further development before energy sources such as wind and solar can be genuinely competitive. So, the Government will step in with assistance for the renewable energy industry.
None of this assistance is directed toward the gas industry, yet the belief is that, under the CPRS, power generation will automatically begin switching from coal to gas. Also, the belief is that, with all the Government assistance being provided to the renewable energy industry, and the fact that renewable energy is – by its nature – intermittent, then demand for gas will increase as a back-up fuel.
This might be so, but there is little recognition of the infrastructure needed in order to bring the gas online as it is required. Large industries, high-employment industries, “˜popular/sexy’ industries will all receive Government handouts, but the gas industry will continue to do a great job of supplying gas in spite of all the odds and the $4 billion in assistance to other industries. This includes the gas export industry through Government assistance to LNG so that the fuel can compete in the international market against companies from countries with no ETS.
Nevertheless, the gas industry – and the gas transmission industry in particular – can and will embrace the climate change challenge. Our industry is innovative and proactive and we will make the most of the opportunities.
We also know how to enjoy ourselves, and the APIA Annual Convention and Exhibition helps to ensure that! Once again, the papers promise to be professional and interesting, and pipeliners are preparing for four days of business and fun.
See you there!
APIA Secretariat
Chief Executive: Ms Cheryl Cartwright
Business Manager: Mr Steve Dobbie
Policy Advisor: Mr Steve Davies
Membership Manager: Ms Gisela Thaurer
Function and Administration Officer: Ms Jacqui Yates
Accounts Administrator (P/T): Mr Peter Heffernan
Research Manager (P/T): Dr Ankie Larsson
Technical Adviser (P/T): Mr Ed Gaykema