By C. J. De Mel, Jadetimes News
Hidden among the thick bushland in the outer suburbs of southern Sydney lies a sprawling facility housing a significant technological breakthrough. Australian company SunDrive Solar has developed its "special sauce": a top secret formula that solves a critical, high value problem. The company's major innovation is replacing the silver used in solar cells with copper, a feat previously considered impossible.
"Silver is expensive, scarce, and environmentally harmful, limiting the global rollout of solar energy," explains Maia Schweizer, Chief Commercial Officer of SunDrive Solar. "Copper, although also in demand, is 1,000 times more abundant and 100 times less costly."
Government Support and Ambitions
SunDrive Solar is a beneficiary of the Australian government’s Future Made in Australia plan, a policy suite aiming to transform the country into a "renewable energy superpower" by investing in domestic green industries. However, some experts question whether the $A22.7 billion ($15 billion; £11.8 billion) package, which includes tax incentives, loans, and grants, is sufficient to meet these lofty goals.
Climate scientists argue that to become a significant player in the net zero transition, Australia must cease its reliance on fossil fuels. Historically, Australia's economy has been powered by natural resources like coal, gas, and iron ore. Despite its wealth in critical minerals essential for low emission technologies, these resources are often exported raw and refined abroad, primarily in China. This "dig and ship" model has branded Australia as the world's quarry, missing out on substantial value further up the supply chain.
Economic and Security Considerations
Lithium, used in renewable energy storage and electric vehicle batteries, exemplifies this issue. Despite supplying over half of the world's lithium, Australia captures just 0.5% of the global $57 billion lithium battery market, according to the national science agency.
The Future Made in Australia policy, announced in April, aims to change this by offering tax breaks and loans to companies processing critical minerals domestically. The government argues this is a national security priority, as nations reassess their trade dependence on China and seek to insulate themselves against supply chain disruptions. Prime Minister Anthony Albanese emphasized the need for bold actions to seize the opportunities ahead.
Local Innovations and Industry Skepticism
Queensland based Alpha HPA, another company under the government’s plan, prides itself on producing ultrahigh purity aluminium with a lower carbon footprint than international competitors. Thanks to a A$400 million federal loan, it is constructing one of the world’s largest alumina refineries near Gladstone, expected to create hundreds of local jobs.
Alpha HPA’s Chief Operating Officer, Rob Williamson, expresses pride in overcoming skepticism about Australia’s manufacturing capabilities after decades of outsourcing to China. Similarly, SunDrive is transforming an old coal power station into a massive solar panel manufacturing hub. Despite Australia having the highest rate of solar panel installations globally, only 1% are made locally, with China dominating over 80% of global production.
Industry Support and Challenges
The Made in Australia pledge has garnered support from the country’s largest renewable energy trade bodies, who see the investments as potentially transformative. John Grimes, head of the Smart Energy Council, views it as an opportunity for Australia to export climate solutions rather than climate problems. However, climate experts warn that the government’s continued endorsement of gas until 2050 undermines these green ambitions, sending mixed messages to investors.
Polly Hemming, director of the Australia Institute’s climate and energy program, criticizes the government's dual approach. Despite approving new gas and coal projects and securing long term markets for these fossil fuels, the government claims to champion green energy. Climate scientist Bill Hare echoes these concerns, highlighting a contradiction between the green energy policies and the ongoing gas strategy.
Funding and Future Prospects
An analysis by Hemming’s think tank reveals that state and federal governments spent A$14.5 billion subsidizing fossil fuels last year, with future estimates predicting even higher expenditures. In contrast, the A$13.7 billion allocated for critical mineral processing and green hydrogen development is seen as insufficient, as it is spread over a decade in tax breaks starting from 2027. This model, policymakers argue, ensures taxpayer money isn't wasted.
Despite skepticism about green hydrogen’s viability, Grimes argues it is crucial for reducing emissions in Australia’s mining sector. He views the government’s green investments as a significant first step, warning that without pivoting from coal, gas, and iron ore, Australia risks economic irrelevance.
Global Context and Urgency
Australia isn’t alone in aiming to lead the new green economy. Countries worldwide are proposing ambitious initiatives, such as the EU’s Green Deal and the US’s Inflation Reduction Act. The International Energy Agency notes that policymakers have invested over A$2 trillion in clean energy since 2020.
Australia has natural advantages like abundant wind and solar resources, critical mineral reserves, and robust mining infrastructure. If utilized effectively, experts believe Australia can secure its place as a vital green trading partner. However, achieving this requires greater investment in research and development, which is currently at a 30 year low.
Prime Minister Albanese has stressed the situation's urgency, stating, "We have to get cracking. We have unlimited potential, but we do not have unlimited time. If we don’t seize this moment, it will pass. If we don’t act to shape the future, the future will shape us."