The Guardian reported that the Port of Newcastle, Australia, the world's largest coal export port, announced today that it will transition to 100% renewable energy for its electricity needs starting today (7th). Meanwhile, coal-fired power generation in Australia's National Electricity Market has fallen to its lowest level since the last quarter of 2021.
Newcastle Port aims to reduce coal revenue to 50% by 2030
While coal exports remain high at an average of 165 million tonnes per year, the Port of Newcastle has already established a decarbonisation plan for 2040 and aims to increase revenue from non-coal businesses, reducing coal's share of total revenue to 50% by 2030. The measures announced today are part of these transformation plans.
The port has signed a large-scale retail power purchase agreement with Iberdrola, the operator of the Bodangora wind farm in New South Wales.
Newcastle Port CEO Craig Carmody said the title of the world's largest coal export port is "not as good as it used to be" and that changes must be made to stem losses and avoid closure.
“I’d rather do it now, while we still control our own destiny and while we still have revenue, than wait until revenue collapses and no one wants to lend us money,” Carmody said. “Our port makes 84 cents a ton shipping coal, but $6 to $8 a ton shipping all sorts of other products. It’s pretty clear where to spend the money.”
As part of its transformation, the Port of Newcastle has replaced 97% of its fleet with electric vehicles and invested in other infrastructure projects to decarbonize its operations.
Australia's climate commissioner: states should encourage accelerated development of renewable energy
Andrew Stock, a member of the Climate Council and a founding board member of the Clean Energy Finance Corporation, welcomed the Port of Newcastle's transformation but said it still had a long way to go.
"It's good they're taking this seriously," he said. However, according to their current plans, it will take another decade (until 2030) for the port to achieve 50% revenue diversification. "During this period, a large amount of coal will still be shipped through the port, despite the clear recommendations of the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) to transition," he said. "And even by 2030, Newcastle Port will still be 50% of its revenue coming from coal."
Take South Australia as an example. On certain days, the state's electricity consumption can be provided by 100% renewable energy. Stock said that state governments should refer to this practice and "rapidly promote the use of renewable energy."
Source: CSRone (https://csrone.com/news/7237)
