POST 75: WEST AUSTRALIA’S ABUNDANT GAS RESERVES HOLDS THE KEY TO ENERGY POLICY

Overview

WA pre election policies are on full display. But one, which really got notice, was Liberal leader Zak Kirkup’s Renewable Hyrdogen energy proposal.

Population Research WA believes this was a huge policy error. We believe WA’s abundance of natural gas for household electricity and feedstock for industries offers Western Australia a competitive advantage, compared to other states.

Natural gas provides a multitude of WA industries with reliable base-load power 24/7. These industries provide more than 220,000 direct and 500,000 indirect jobs.

In Western Australia gas power stations provides more than 60% of total electricity generation. Charles Smith the MLC for the WAP argues the key to cheaper gas bills is through increasing WA’s 15% gas reservation policy for the benefit of WA households.

Renewable Hydrogen use as a energy source is negligible

It seemed an unusual position the WA Liberal’s took with a policy of Renewable hydrogen. There is negligible use of Hydrogen as an energy source worldwide. In Western Australia, Hydrogen energy is only at the feasible study stage.

The costs are much higher than natural gas and there are major safety issues. Hydrogen is much lighter than gas and extremely flammable. Only recently a hydrogen explosion occurred at a Norwegian filling station for fuel-cell cars.

WA has a major advantage with huge natural gas resources offshore and onshore.The cost advantages of natural gas to WA are undisputed.

WA has world-class LNG gas technology and infrastructure. Highly experienced, project managers, technical and trades skills to build and operate gas plants.

In eastern Australia, wholesale gas prices have trebled in recent years to $9 to $11 a gigajoule. In WA, they remain at $3 to $4.

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