5 of 64 Apr 2023 19:40
“While we applaud the introduction of the safeguard mechanism, we believe that offsetting should be a temporary measure to enable companies to transition to cleaner technologies, ideally only accessible to industries which don’t have a clear path in the transition to net zero,” said Marcus Dawe, co-founder and CEO of MCi Carbon.
“Australian gas is an important factor in Japan’s energy, so this pushes both economies towards carbon emission avoidance and reduction.”
Mr Bowen said on Monday that the changes include “specific treatment” for value-added manufacturing like steel, cement and aluminium” and more than $1 billion to help heavy industry invest in decarbonisation.
Credit Suisse energy analyst Saul Kavonic said political factors may yet swing Sunrise towards Dili.
“You tend to find the left-wing factions within Labor tend to have quite a sympathetic view towards Timor,” he said.
However, he said the raw economics of the project still favour it being developed in Darwin, given that locating it in East Timor could require $US5 to $US10 billion in subsidies, which could add $US3 to $US5 per million British thermal units (MMBtu) of gas.
By contrast imposing a carbon price on all the project’s scope one and two emissions might add US10c per MMBtu, Mr Kavonic said.
Antonio de Sousa, the president of the country’s petroleum company Timor Gap, said in February the ease of securing approvals for gas projects in East Timor compared with the escalating difficulties in Australia should help persuade Woodside to build the multibillion-dollar gas-processing plant there. He cited Santos’s struggle to get the Barossa project approved after a shock court ruling last year.
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