From poo to you: Biomethane plant opens

A pioneering renewable biomethane facility in the eastern suburbs of Sydney is in operation.

Sydney Water’s Malabar Wastewater Treatment Plant already processes organic material in wastewater to produce biogas. In the past, the treatment plant has used that biogas to generate electricity and heat, or has flared it off.

In November 2020, ARENA agreed to provide $5.9 million towards the Malabar Biomethane facility to upgrade the biogas to high purity biomethane.

Inflating biogas buffer dome - gif image — Inflating the biogas buffer dome at Jemena’s Malabar Biomethane Injection Plant

Now, the final piece in the puzzle is in place. Jemena’s Malabar Biomethane Injection Plant will add the biomethane to its gas distribution network.

The joint initiative between Sydney Water and Jemena, NSW’s largest gas distributor, is the first of its kind in Australia.

‘Here and now’

Jemena Managing Director, Frank Tudor said biomethane is a ‘here-and-now’ pathway for Australia to reduce emissions.

“Our Malabar Biomethane Injection Plant is turning what Sydney-siders flush away into an energy source that can be used in the same way as natural gas in manufacturing processes and heating and cooking appliances,” Mr Tudor said.

Jemena said its research found that in New South Wales alone, there are enough potential sources of biomethane to meet the needs of around a third of Jemena’s current NSW customers’ needs.

What is the difference between biogas vs biomethane?

Aerial photo of Jemena’s Malabar Biomethane Injection Plant feature image — Jemena’s Malabar Biomethane Injection Plant is the first of its kind in Australia.

Biogas is a mixture of gases and methane produced by bacteria eating organic waste in an oxygen-free environment.

That process is known as anaerobic digestion.

Sources of organic matter range from animal manure, municipal waste and food waste through to processed wastewater and sewage sludge.

The final composition depends on the mix of organic matter, selected bacteria and the processing conditions. Methane alone typically accounts for between 50 to 75 per cent of the volume of biogas. Carbon dioxide (CO2), water vapour and trace amounts of other gases make up the rest.

Biogas is combustible. It can be burnt directly to generate electricity or heat. But, depending on the concentrations of other gases, it burns with only 50 to 75 per cent of the energy of pure methane.

Biomethane output pipe feature image — Biomethane is chemically identical to fossil-fuel derived methane (Photo: Cassandra Hannagan)

Alternatively, a process called upgrading can convert the biogas to near pure biomethane. The process removes the CO2, water vapour and trace gases to leave almost pure – 98 per cent – biomethane.

Biomethane is both chemically identical to fossil-fuel derived methane and suitable for injection into existing natural gas networks. But, because it is produced from organic waste, it is potentially a net zero emissions energy source.

Globally, around 90 per cent of all biomethane is upgraded from biogas.

How ARENA backs bioenergy

ARENA has funded other bioenergy and energy from waste projects.

In April 2023, biomass-to-energy company Renergi finished installation of its grinding pyrolysis reactor in Collie, Western Australia. Pyrolysis heats solid agricultural waste in the absence of oxygen to produce bio-oil, biochar and wood vinegar.

In 2022, Logan City Council in south-east Queensland opened a $28 million Biosolids Gasification Facility. ARENA in 2019 committed $6.2 million towards the then $17.3 million project.

The $510.8 million East Rockingham Energy to Waste Project aims to process up to 330,000 tonnes of residual waste per annum and recover energy to produce 28.9 MW of power. ARENA in 2019 provided $18 million funding to the project, due to complete in late 2026.

ARENA’s 2021 Bioenergy Roadmap estimates Australia’s bioenergy industry could create more than 26,000 jobs by the 2030s and reduce the country’s carbon emissions by 9 per cent.

Renewable energy: What is the right mix for your home?

The world of renewable energy options for your home is rapidly expanding, but it is also getting more complex.

We know Australian households love rooftop solar PV but what about other technologies? Electric hot water, heat pumps, batteries and smart electric vehicle (EV) chargers are now in the mix.

Solar Analytics, supported by $929,000 ARENA funding is developing a free online calculator tool to help navigate the renewable energy waters.

Called Solar Maximiser, the tool aims to help customers understand the potential cost and benefits of various energy offerings.

Origin EV charging with customer feature image — Smart EV chargers are among the technologies the Solar Maximiser tool will take into account

Armed with that knowledge, Solar Maximiser will help consumers make better investment decisions. It will also help them find potential suppliers and installers of recommended devices.

The $2.7 million project also includes software to support active control of smart heat pump hot water systems. This means a household’s hot water generation and storage system could be adjusted in real time to align with periods of low cost, high renewable energy generation.

All told, the project is targeting 1,000 hot water systems and 1MW of flexible demand capacity.

To put that in context, a recent ARENA-commissioned report into the role of domestic hot water in flexible demand said:

“Domestic hot water use is responsible for around a fifth of Australian residential greenhouse gas emissions and a quarter of household energy use.”

Electrifying and enabling flexibility with this load could assist with wider grid decarbonisation.

Which renewable energy resources are right for you?

ARENA CEO Darren Miller said the Solar Maximiser tool aims to assist users in understanding which energy resources can provide the greatest benefits on their energy bills.

“Solar Analytics’ free tool will help households identify which resources work best for their homes, whether that is solar PV, electric hot water or batteries,”

“Increasing people’s knowledge of what is possible at their homes and connecting them with potential suppliers for quotes and installations is a step in the right direction to ensure no one is left behind in our energy transition,” Mr Miller said.

Solar Analytics’ CEO, Stefan Jarnason said: “Solar Maximiser will show you whether now is a good time to get rooftop solar, the optimal amount of solar, whether a solar battery is right for you, or if you should get an energy-efficient hot water heat pump.”

ARENA and your home

There are many approaches to reducing the energy needs of your home. For instance, reducing draughts and improving heat insulation are among the simplest practical measures you can take.

ARENA also supports a wide range of renewable energy technologies for the home.

From studies to research and development, from trials to helping deploy new systems, recent programs include:

A Realising Electric Vehicle-to-Grid Services (REVS) trial in Canberra;
A $171 million Community Battery Funding Round to support 342 community scale grid-connected batteries across Australia;
Funding worth a total of $41.5 million to 13 research projects to significantly reduce the cost of solar;

Renergi installs innovative biomass pyrolysis plant

The story of Western Australian bioenergy company Renergi has been a journey from university laboratory via spin-off company, through research and development, on to building, testing, proving and now commercial installation.

Along the way, ARENA has provided support for each step of development.

In 2009, the Federal Government provided $2.5 million funding for a Sustainable Production of Transport Biofuels project led by then John Curtin Distinguished Professor Chun-Zhu Li at Curtin University in WA.

By 2012, the project reported success from combining heating (pyrolysis) of agricultural waste and processing (biorefinery) to produce advanced biofuels.

Along the way, the team filed two patent applications derived from their work.

Then, in late 2012, Dr Li with his colleagues at Curtin University created Renergi. The private company aimed to develop and commercialise renewable energy technologies.

From the laboratory to the field

Dr Chun Zhu Li with Minister for Climate Change and Energy Chris Bowen feature image — Dr Chun-Zhu Li on site with Minister for Climate Change and Energy Chris Bowen

With the help of $5.47 million funding through ARENA’s Emerging Renewables program, Curtin University got to work on a Low Emission Biofuel Technology project.

The aim? To demonstrate in a practical setting that their pyrolysis process could successfully transform agricultural waste into a renewable fuel.

“The purpose of the original project was to produce a second-generation biofuel … which can be added to diesel and petrol,” Dr Li said.

“We developed a pyrolysis technology called grinding pyrolysis.”

Renergi’s innovative approach added metal grinding balls with the biomass into a spinning reactor vessel. Thousands of balls of various sizes help to break up the biomass during the 400 to 500 ºC pyrolysis process. But Dr Li said they also perform a more subtle action.

“For large particles going into the reactor, the external surface will be heated up initially, converting the biomass into biochar, bio-oil vapour and non-condensable gas,” Dr Li said

“And then the grinding action will quickly remove the biochar layer to expose more biomass surface area. In this way, large particles can be quickly pyrolysed.”

As then ARENA CEO Ivor Frischknecht said at the time: “These projects demonstrate how ARENA’s unique role supports renewable energy technologies across the innovation chain, advancing them from the laboratory to the field.”

Renergi’s latest project scales the reactor to a commercial scale.

Commercial potential

Renergi bio-oil sample feature image — Combustible bio-oil sample from Renergi’s previous demonstration plant

Continuing from a demonstration-stage project, the current project in Collie is supported by $2 million from the WA Government’s Collie Futures Industry Development Fund and $3.9 million funding from ARENA (later increased to $4.3 million due to rising costs during the COVID crisis). Renergi says the new plant will process municipal solid waste and other biomass, including forestry waste.

Installed in the Shire of Collie in Western Australia, Renergi’s demonstration operation will produce bio-oil, biochar and wood vinegar. All have commercial value.

Bio-oil can be used to fuel electricity generation or refined to produce a renewable component of future aviation fuels, while biochar has many applications, from agriculture to construction, says Dr Li.

“One is to put it directly into the soil as a soil conditioner,” he said.

“Alternatively, you can give the biochar to animals such as cows and sheep as a food supplement. The biochar is then returned to the soil in animal manure.

“And when you return the biochar to the soil directly or in manure, you actually have a safe carbon sequestration.”

“The biochar can also be used as a material in road construction. And that’s again, a safe sequestration of carbon.”

A third product is wood vinegar, which has agricultural and horticultural applications as a fertiliser, and as a pesticide.

What now for Renergi?

Renergi's Collie Shire plant feature image — The spinning reactor vessel grinds biomass using thousands of metal balls

Renergi has also attracted investment from a consortium linked to Sunshot Energy, co-owned by notable climate economist Professor Ross Garnaut. Professor Garnaut is now a director at Renergi.

The consortium is backing the future commercialisation of the Renergi technology at other regional locations around Australia. Councils are expected to be key customers.

Renergi says Collie Shire’s single plant will every year convert all of its combustible portions of municipal solid waste and about 25,000 tonnes of biomass (including forestry waste) into bio-oil and biochar.

“A council could just buy equipment and operate themselves, or we can operate for them,” Dr Li said.

ARENA has also funded other bioenergy projects.

Sydney Water’s Malabar wastewater treatment plant in 2020 received $5.9 million to demonstrate upgrading biogas to biomethane suitable for injection into the gas distribution network.

In 2022, Logan City Council in south-east Queensland opened a $28 million Biosolids Gasification Facility. ARENA in 2019 committed $6.2 million towards the then $17.3 million project.

Renergi marked the completed installation of its Collie plant in April 2023.

Dr Li says the last step in the long journey from university laboratory to full operation will be the final commissioning of the plant.

“Installation is a dream partially come true, but the completion of commissioning will mean the dream has actually come true.”

Budget 2023: ARENA to shape green hydrogen future

ARENA will help develop a $2 billion revenue support program to scale up green hydrogen production.

Hydrogen Headstart aims to position Australia as an early mover and global leader in this field.

Announcing the Hydrogen Headstart measure as part of the 2023 Budget, Treasurer Jim Chalmers in his Budget Speech said: “By acting now, our resources, our researchers and our regions can help power the world.

“Seizing these kinds of industrial and economic opportunities will be the biggest driver and determinant of our future prosperity.

The program will likely support two to three of the biggest hydrogen projects yet built and operated in Australia.

The Government envisages these flagship projects could deliver up to a gigawatt of electrolyser capacity by as early as 2030.

The funding will provide revenue support in the form of a production offset. It will cover the commercial gap between the cost of renewable hydrogen production and the market price.

Expressions of interest are expected to open in early 2024 for project selection through a competitive process.

What is ARENA’s role?

Brisbane's Gibson Island is already home to an ammonia plant which could be supplied with renewable hydrogen. — Brisbane’s Gibson Island is already home to an ammonia plant which could utilise renewable hydrogen.

The 2023 Federal Budget allocated $4.2 million to ARENA to support the development and operation of Hydrogen Headstart.

ARENA will design the program in consultation with Department of Climate Change Energy Environment and Water (DCCEEW), Australian industry and communities.

“With this funding, we are looking to incentivise green hydrogen production in Australia by backing early projects that will be among the largest in the world,” ARENA CEO Darren Miller said.

“This funding will reduce the cost of green hydrogen produced via renewable electricity and will scale up our hydrogen sector. These projects will create thousands of regional jobs and will help reduce emissions in industry in line with our climate targets,” he said.

How has ARENA supported renewable hydrogen?

ARENA already has a proven track record in stimulating innovation in the green hydrogen sector.

ARENA recently announced $25 million for Hydrogen Research & Development (R&D) funding. This R&D funding round is still open, with a closing date for applications set for June 1 2023.

In January, ARENA allocated another $50 million to four hydrogen projects, supported as part of the joint Australian-German HyGATE initiative.

Last year, ARENA provided a grant of $13.7 million towards a $38 million front-end engineering and design (FEED) study into the feasibility of plans to build one of the world’s largest renewable energy powered electrolysers on Gibson Island in Queensland.

ARENA also in 2022 conditionally approved $47.5 million for the first 10 MW electrolyser plant in the Pilbara. That funding is part of a $103 million Renewable Hydrogen Deployment Round.

All told, ARENA has provided $236 million to 43 renewable hydrogen projects from early-stage research to deployment projects and studies.

Projects have included hydrogen refuelling and hydrogen trucks, hydrogen for producing green ammonia, hydrogen for use in alumina refining, gas blending and remote power.

“Australia has an unparalleled opportunity to become a global green hydrogen leader, but we can’t afford to lose our momentum as other competing countries step up their ambitions and support,” Mr Miller said.

“ARENA is delighted to be involved in the design of this game-changing hydrogen funding initiative,” he said.

ARENA targets better, more frequent EV charging stations

Australian drivers are currently amongst the most reluctant in the world to take up fully electric vehicles (EVs).

Chinese drivers led the way in 2022, buying an estimated 4.4 million EVs, or around 22 per cent of China’s new car sales.

Over the same period, more than 12 per cent of new car purchases in Europe were an EV. The same figure approached 6 per cent in the USA, while it reached almost 9 per cent in Canada.

In Australia, we bought just 33,416 new EVs in 2022, according to the Federal Chamber of Automotive industries. Although numbers are up in early 2023, that’s only 3.1 per cent of Australia’s more than one million new car sales.

Meanwhile, Australia’s petrol, diesel and fuelled light vehicles are responsible for about 11 per cent of the nation’s greenhouse gas emissions.

The Government in April 2023 released its National Electric Vehicle Strategy which “looks at reducing barriers to electric vehicle uptake.”

Minister for Climate Change and Energy Chris Bowen said: “This strategy provides the coordination and leadership to drive down costs and improve infrastructure so–that we get more affordable and accessible electric vehicles on the market.”

Among those significant barriers to the uptake of EVs in Australia is a lack of charging infrastructure.

Now, ARENA has announced $70 million in funding aimed at boosting the availability of charging stations across Australia.

Specifically, this pool of funding will initially support innovation in both public charging facilities and the management of charging.

What are public charging stations?

Infographic: How fast can I charge my EV feature image — Click on the image above to view the full-size graphic

Charging opportunities for electric vehicles come in many flavours. For instance, different charging times, different voltages and currents, and various types of locations.

Just to complicate things, Tesla, Australia’s top-selling EV manufacturer, has its own proprietary Supercharger network. The US-based company has recently started to open its Australian network of around 50 Supercharger to non-Tesla vehicles but is experiencing delays.

Low-power, Level 1 charging is available for all EVs simply by plugging straight into a wall socket at home. An overnight “trickle charge” could add around 90km of driving range. Fully charging an EV might take 30 to 40 hours.

Level 2, AC chargers have a higher power rating, up to 22kW. They come in domestic or public versions. An overnight connection at home might fully charge an EV from empty.

Level 3, fast DC chargers start at a 50kW power rating. They will typically add 150km of driving range for every hour a compatible car is connected. To charge from nearly empty to nearly full (from 10 to 80 per cent is a common industry measurement) would take between 70 to 80 minutes.

Ultra-fast, sometimes known as hyper-fast, DC charging points operate at 350 kW. In the right conditions, some compatible EVs could fully recharge in 10 to 15 minutes.

According to the Electric Vehicle Council, a national body representing interested parties in the electric vehicle industry in Australia, in December 2022, there were fewer than 2400 public charging locations. Of those, just 365 had fast chargers, and only 99 offered ultra-fast chargers.

Compare that with Canada, which has a similar land size, albeit a slightly larger population. In 2022, Canada had more than 8700 charging stations. That number included almost 1500 fast or ultra-fast DC charging stations.

Faster is better, right?

Electric vehicle charging station — Public charging stations often feature multiple chargers, suitable for many EV models.

The simple answer is … not that simple. It depends on many factors such as cost, availability, kilometres travelled, EV model, available off-road time.

For people who can charge at home or office, a low-speed, low-cost option may still be the preferred choice.

For instance, if an office can install five Level-1 chargers for the cost of one Level-2 charger, that might be the better choice since the average vehicle in Australia travels only 36 km daily.

People who can’t charge at home or work, or people on road trips, need different solutions.

But planning for “pit stop” or fast petrol station-style charging points is complicated because all EVs are not made equal.

There are relatively few EV models that can take advantage of 350 kW charging.

Even if more 350 kW-compatible EV models roll out, the short-term need for hyper-fast chargers may not change significantly.

A 2021 report assessing the needs for public charging infrastructure in the US predicts average charging capacity will increase from 67 kW in 2020, to 94 kW in 2025, and 162 kW by 2030.

Driving the Nation Fund

The Government in its 2022-23 Federal Budget tasked ARENA with administering $146.1 million over the next five years as part of its larger Driving the Nation Fund.

The $70 million new funding round will focus on innovative projects in public charging and managing charging. It will build on ARENA’s previous work on electric vehicles to support projects to decarbonise road transport.

The funding is intended to support projects to expand electric vehicle charging and hydrogen refuelling infrastructure across Australia.

ARENA will also retain agency over $249.7 million, previously allocated under the Future Fuels Program. To avoid confusion, ARENA’s Future Fuels Program funded projects will be delivered under Driving the Nation Program.

ARENA Acting CEO Chris Faris said Driving the Nation will build upon ARENA’s previous support for electric vehicle charging across Australia.

“With light vehicles accounting for around 11 per cent of Australian greenhouse emissions, it is vital that we continue to fast track the transition to electric vehicles over the next decade.”

“As more EVs become available to Australians and their costs decline, it’s important that the availability of high-quality charging infrastructure keeps pace with the take-up of EVs”.

“The Driving the Nation Program will help by driving innovation in public charging, finding better and smarter ways for everyone to be able to access EV charging, even if they can’t charge at home.

“We want more people to be comfortable to make the choice for their next vehicle purchase to be an EV.”

For more information on the Driving the Nation focus areas and how to apply, visit ARENA’s funding page.

Driving force: Could electric vehicles reshape the grid?

Long-time ARENAWIRE readers may remember funding announced in July 2020 for a “batteries on wheels” electric vehicle project.

The Realising Electric Vehicle-to-Grid Services (REVS) trial in Canberra attracted $2.73 million of ARENA funding. Run by ACT power company ActewAGL, the trial investigated whether a fleet of electric vehicles could provide similar grid services to big batteries and virtual power plants.

Well, the trial is now completed and the results are promising.

REVS has demonstrated Vehicle-to-Grid (V2G) technology can provide support for the grid. In particular, it shows V2G can provide Frequency Control Ancillary Service (FCAS), which help maintain a steady frequency on the electricity grid.

If it lives up to its promise, V2G could reduce the need for investment in alternative FCAS devices such as big batteries. And we’re talking big numbers.

REVS calculates market growth will see almost 16 million passenger vehicles of all types on the road in 2040. Even if only 10 per cent – or about 1.5 million – of those vehicles were V2G capable and providing 11 GW of dispatchable storage, then that could potentially offset more than $6 billion in grid investment.

That, in turn, would lower the cost of electricity.

The project also anticipates that by monetising its FCAS capability, a V2G could in the future generate significant revenue for its owner.

Technical and cost barriers

But there are technical and cost barriers to be overcome.

Some of those technical barriers could be addressed by adjusting standards, rules and regulations.

For instance, a V2G unit connected to the grid acts as both a contributor of electricity to the network, and as a consumer of electricity from it. Currently, Australian standards do not cover this kind of device. New standards will need to be developed.

There are also problems with the idea of combining V2G devices to a Virtual Power Plant (VPP).

ActewAGL is working with the Australian Energy Market Operator (AEMO) which sets the rules around connecting VPPs to the grid.

And regulatory requirements around phase balance cannot currently be met without a significant investment in software.

Data will be collected to determine the level of imbalance and implement strategies to address it.

So, while much has been learnt, there’s a lot of work to still do. Watch this space.

Renewable hydrogen, iron and steel researchers, step on up

Step up hydrogen researchers, come forward iron and steel scientists.

ARENA is launching two separate research & development (R&D) rounds with a total funding pool of $50 million.

Running concurrently, the two rounds will focus on early-stage technologies for renewable hydrogen and low emissions iron and steel.

Each round has an allocation of $25 million.

ARENA is seeking applications for funding, expected to be allocated in the range of $500,000 to $5 million.

The funding will be provided in two phases: an initial laboratory-based research phase and; a follow-up commercialisation phase.

ARENA Acting CEO Chris Faris said the two rounds will build on Australia’s legacy of research and development.

“Australia has a proud history at the forefront of technological innovation to support our industrial base,” he said

“As global markets increasingly demand low carbon products, we need new solutions to bring us closer to net zero. And we need to get that research out of the lab and into industrial applications.”

What is the Hydrogen Research and Development Round?

Renewable hydrogen production and commercial use is still in its early stages, but it offers tremendous opportunities for Australia. ARENA is already supporting projects investigating hydrogen’s potential role as an energy source, an industrial feedstock, and as an export commodity.

The Hydrogen Research and Development Round will focus on two aspects of the renewable hydrogen value chain:

• improving and optimising the production of renewable hydrogen and hydrogen derivatives such as ammonia;
• investigating storage and distribution solutions.

Developments in hydrogen production have mostly, and successfully, focused on electrolyser technology. ARENA is targeting improvements in hydrogen production efficiency, improved operational flexibility and reduction in capital costs such as reducing the need for precious metals.

Alternative production methods, including photocatalysis are also eligible under the funding round.

As the use of hydrogen grows, so will the need to store and distribute it. Both are currently more expensive and less efficient than natural gas. ARENA wants to find solutions to these problems to help the renewable hydrogen industry scale up.

What about Iron and Steel?

Port Kembla Steelworks feature image — The Port Kembla Steelworks in NSW has a production capacity of just over three million tonnes of steel per year

Australia is the world’s largest producer of iron ore and most of it (including significant associated emissions) is exported.

But we also make steel. So, Australia has interests in the entire steel value chain, which is responsible for roughly seven per cent of the world’s greenhouse gas emissions.

Decarbonising the steel value chain has a number of obstacles including high capital costs and unproven technologies.

This R&D round will focus low emissions technologies and emissions reduction solutions using Australian ores.

Critical work

“Renewable hydrogen and low emissions iron and steel will be critical to Australia’s net zero economy,” Mr Faris said.

“We’re already seeing renewable hydrogen scaling up, but there’s still more to be done to improve efficiency, while storing and transporting the fuel at scale are looming challenges.

“Iron and steel production represents enormous emissions reduction opportunities for Australia and our trading partners.

“The research and development we’re funding now through these programs will underpin our clean industries of tomorrow.”

In 2018, ARENA committed $22.1 million to 16 research and development projects in renewable hydrogen technologies across the supply chain.

Notable projects funded include Hysata’s development of a high efficiency electrolyser technology, Hydgene’s biomass to hydrogen production technology and Jupiter Ionics direct ammonia production method.

All these R&D projects have since developed from their associated universities into commercial startups.

You can read more about ARENA’s 2018 R&D round in our knowledge sharing report.

Can community batteries plug an energy storage gap?

More than 3 million Australian households now have rooftop solar installed. That’s more per capita than any other nation.

All that solar energy is helping us to switch our electricity system to clean energy. But it also causes its own headaches, particularly in the critical area of grid stability.

In March, the CSIRO released the Renewable Energy Storage Roadmap report. It predicts Australia will need a massive increase in energy storage to support the renewable energy transition. By 2030, the roadmap predicts the National Energy Market will need six times more than is available today.

Even once pumped hydro storage projects like Snowy 2.0 are up and running, there is still expected to be a shortfall of 11 GW of storage capacity needed to firm up the variable renewables in our electricity system.

Large scale batteries, like the eight grid-forming projects supported by ARENA’s recent $176 million funding round, are already making a major contribution.

But what about energy storage at a more local, community level?

Individual solar-owning households appear reluctant to install home batteries. Roughly, only 180,000 have done so, although that figure is growing.

Community batteries might be the missing link in our energy storage needs. They could provide energy storage both for the distribution network and for local needs.

Lower bills and emissions, greater grid stability

Solar panels on rooftops at Alkimos Beach. Image: Lendlease — Households in Alkimos Beach, Western Australia took part in a community battery trial. Image: Lendlease

At times of plentiful solar generation, such as the middle of the day, the battery can be charged. At times of local peak demand or at night, stored energy can provide power back to the community and ease grid constraints.

But community batteries are a relatively new and untried technology. They are still rare in Australia and globally.

The problem is in the detailed understanding of how they might operate in the real world.

That’s why ARENA is rolling out a funding program to fix that knowledge gap and understand how to scale-up their use.

ARENA CEO Darren Miller said community batteries represent the next step in optimising distributed energy resources in the electricity grid.

“Not everyone is able to install rooftop solar, but by storing electricity close to the point of consumer demand, we can reduce network costs and alleviate constraints in areas with high solar penetration. This will ultimately reduce electricity costs for all consumers,” he said.

The $171 million program administered by ARENA will support 342 community batteries to be built across Australia.

As part of the Federal Budget 2022/23, the Albanese Government committed to build 400 community batteries across Australia. A further 58 batteries are to be funded under a separate program which recently closed.

Overall, the program is intended to lower energy bills, cut emissions, reduce pressure on the grid and support more rooftop solar being installed.

More detailed questions to be addressed include around the economics of community batteries, battery size and configuration, business models, and the pros and cons of both front-of meter and behind-the meter setups.

ARENA expects the initial $120 million round will provide valuable lessons to inform industry and future applicants for a second round.

What are community batteries?

Community batteries fit into the renewable energy storage gap between small, household batteries and big, utility scale batteries.

Household batteries are typically in the 5 kWh to 15 kWh range, whereas the most recent grid-scale battery projects to receive ARENA funding are up to 20,000 times larger.

Community battery projects are expected to occupy the middle ground with between 50 kW and several megawatts nameplate capacity.

In terms of size and appearance, community batteries can range from a fridge to a small shed, or as big as a shipping container.

An ARENA supported trial in Alkimos Beach, Western Australian connected 100 households to a 1.1 MW community battery.

Participating households shared in $81,376 of power bill savings over the five-year trial.

Benefits for network operators and retailers included reduced electricity consumption during periods of high demand for grid power.

At the other end of the scale, United Energy is installing community batteries the size of fridges mounted to power poles in south eastern Melbourne under an ARENA-funded trial.

What is Round 1 funding?

Round 1 of ARENA funding is split between two streams:

Stream A: Distributed Network Service Providers (DNSPs)
Stream B: Applicants that are not DNSPs

Under this round, each applicant must plan to connect a minimum of five batteries to the electricity distribution network.

Each battery must be within the range of 50 kW to 5 MW in size.

Batteries that are co-located or share a connection point will be considered a single community battery.

Expressions of Interest opened in early April for between $3 million to $20 million in funding.

However, projects should be completed within 24 months of execution of an agreement.

Projects that require more planning and development should keep an eye out for details of Round 2 funding. More details for Round 2 are expected to be announced in late 2023.
ARENA will be hosting two information sessions on the Community Batteries Funding Program in April.

Further information on how to apply can be found at ARENA’s funding page.

CSIRO Roadmap points to big energy storage gap

Renewable energy storage must undergo massive growth if Australia is to achieve net zero by 2050.

A new report from the CSIRO and supported by ARENA funding, says between 10 to 14 times more storage could be needed in the coming decades to support the National Electricity Market (NEM).

The Renewable Energy Storage Roadmap forecasts rapidly rising electricity demand across industries and sectors as they electrify.

To help close the gap, the report urges consideration of all forms of energy storage.

CSIRO Energy Director Dr Dietmar Tourbier says the Roadmap is a major step towards pinpointing fit-for-purpose solutions for energy storage.

“For example, batteries may be the best option for local and short duration storage of electricity,” Dr Tourbier said.

“While thermal or heat energy (like steam) might be technology better suited for heat intensive industries,” he said.

Storage shortfall

By 2030, the report says, the NEM will need around six times more power storage than in 2024.

Even the combined 3,700 MW storage committed in short duration storage and pumped hydro, such as Snowy 2.0 in NSW, Kidston in Queensland and Cethana in Tasmania, will cover only a fraction, leaving a shortfall of 11,400 MW.

Customer-owned storage will cover some of that gap, the report says.

However, should that not materialise, the task will fall to utility-scale developers, the report says. But it warns that planning, approvals and investment decisions could delay any such projects.

CSIRO CEO Dr Larry Marshall says the sector must explore new technologies to fill the gap.

“There is no silver bullet for reaching net zero,” Dr Marshall said.

“We need multiple shots from renewables, batteries, hydrogen, thermal storage, pumped hydro, sustainable aviation fuels, and a host of new science-driven technologies.”

What is ARENA doing to support renewable energy storage?

MGA Thermal Energy co-founders Alexander Post and Erich Kisi — MGA Thermal stores energy in blocks packed with chips of a miscible gap alloy

ARENA has supported and continues to support development of all the above, plus more.

Late last year, ARENA announced the recipients of its large scale battery round. Eight projects will collectively receive $176 million to provide 2.0 gigawatts of grid-forming storage.

In October 2022, ARENA conditionally approved $45 million to Hydrostor to build a 200 MW compressed-air technology project in Broken Hill.

And in February of this year, ARENA conditionally committed $65 million to Vast Solar. The company plans to build a first-of-a-kind concentrated solar thermal project in at Port Augusta.

MGA Thermal is developing with ARENA’s help a miscible gap alloy thermal energy storage system. And ARENA has also supported RayGen to develop an innovative thermal storage system using its concentrated solar PV technology.

ARENA CEO Darren Miller said the Roadmap highlights the critical need to increase the level of energy storage across the system, including thermal storage for industrial processes.

“ARENA has been supporting the development of energy storage for more than a decade,” Mr Miller said.

“We have invested more than $500 million across batteries and other storage technologies,” he said.

“ARENA plays a major role in increasing the options available to meet Australia’s medium- and long-term storage needs by supporting a range of emerging technologies.”

Alongside existing projects, ARENA will soon launch a funding round to support community batteries.

ARENA passes $2 billion funding milestone

Two billion dollars. That’s how much funding ARENA has successfully signed off on since its establishment on July 1, 2012.

On December 5, 2022, 10 projects started with ARENA committing a total of just over $48 million. That took the sum of all ARENA funding to $2.04 billion.

While it’s not possible to say precisely which project received the two-billionth dollar, nine of the 10 were part of ARENA’s recent research and development funding round to accelerate ultra low cost solar.

Solar’s starring role

The likelihood of a solar project receiving this milestone funding is fitting.

On its very first day of existence, ARENA provided funding for a CSIRO backed project, “Hybrid Concentrating Solar Thermal Systems”. Since then, ARENA has provided a total of more than $1 billion to solar PV and solar thermal projects.

In the latest round of solar funding in January 2023, ARENA committed another $41.5 million across 13 research projects. They were chosen from a string of high-quality applicants to a funding round opened in February 2022.

That funding round is helping projects that align with ARENA’s “Solar 30 30 30” targets of boosting solar module efficiency to 30 per cent, cutting the cost of installing solar at utility scale to 30 cents per watt, within a 2030 deadline..

ARENA’s crucial funding

ARENA CEO Darren Miller said ARENA would be looking not just to help boost solar innovation but also other technologies crucial to achieving net zero.

“It is a major milestone for ARENA to surpass $2 billion in funding across such a diverse portfolio of projects and technologies.”

“ARENA’s funding spans the entire renewable energy innovation chain,” Mr Miller said.

“From early-stage research to large scale deployment, our programs and funding are supporting projects from universities and start-ups to some of Australia’s biggest companies to tackle the toughest challenges in the energy transition.

“Just in the last 12 months, we’re proud to be supporting other funding rounds. Our recent large scale battery round is supporting 2.7 gigawatts of grid forming large scale battery storage. Other rounds fund hydrogen, low emission metals, flexible demand and decarbonising transport to name but a few.

“We’re not resting on our laurels though. As we look ahead to 2030 and beyond, we recognise there is much more to do to reach our climate targets and get to net zero.

“Our Advancing Renewables Program is continuously open for applications that address our strategic priorities outlined in our Investment Plan. And we have several, more specific funding rounds open for applicants right now.”

Two rounds currently open are Regional Microgrids and Industrial Energy Transformation Studies Program.

Coming up shortly, ARENA will also be launching a funding round to support community batteries.

In this way, ARENA aims to accelerate the affordability of new technologies and build investor confidence in renewable energy projects now and into the future.