Abby L. Harvey
GHG Monitor
4/24/2015
Australian energy company AGL will close all of its existing coal plants by 2050 and will not build, finance or acquire any new plants which do not utilize carbon capture and storage technology, the company announced in a new Greenhouse Gas Policy released late last week. “AGL is the nation’s largest privately owned renewable energy investor and we will continue to invest in low-emissions technologies to reduce the emissions intensity of Australia’s electricity supply. It is important that government policy incentivise investment in lower-emitting technology while at the same time ensuring that older, less efficient and reliable power stations are removed from Australia’s energy mix. Decarbonisation and modernisation of Australia’s electricity system are important goals requiring effective policy,” AGL Managing Director and CEO Andy Vesey said in a release.
AGL indicated its decision to move away from unabated coal in coming decades was driven by Australia’s current dependence on fossil fuels, global efforts to limit global warming to less than 2 degrees Celsius and technology improvements in low-carbon generation options such as CCS. If Australia is to continue to use fossil fuels while also supporting climate change mitigation efforts, high-emitting sources such as unabated coal will have to be abandoned, the policy document suggests. “Continued use of coal and gas for power generation by mid-century is likely to be dependent upon cost-effective deployment of very low emissions technology, such as Carbon Capture & Storage (CCS). Long-term policy certainty is a pre-requisite for decarbonisation to occur efficiently and affordably for consumers. Both renewable and lower-emission fossil fuel generation will form an integral part of the energy generation mix throughout the transition to a low-emission global economy,” the document states.
The policy document also says that due to Australia’s position as a significant exporter of fossil fuels, it would be in the best interest of the country to support, through policy and investment, the development of low carbon technologies. “Development and deployment of new or improved near-zero emission technologies (e.g. CCS) should be a focus of domestic GHG reduction policy due to the value at risk of reduced Australian exports,” the document says. Further, AGL recommends a number of policies to be adopted by the government including “emissions standards for all new power stations; regulation which drives the progressive closure of older, emissions-intensive power stations or retrofitting with CCS technology; and continued incentives for renewable energy with increased scope to include all zero and near-zero emission energy sources.”
