ARENA update. Carolyn Goonrey Team Lead, Renewable Futures. Bioenergy Australia Quarterly Meeting 18 September 2014

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1 ARENA update Carolyn Goonrey Team Lead, Renewable Futures Bioenergy Australia Quarterly Meeting 18 September 2014

2 Contents 1. About ARENA 2. ARENA activities this year 3. Bioenergy in ARENA s portfolio 4. Future challenges and opportunities

3 Two core objectives $2.5B Funding to Improve competitiveness of renewable energy technologies 2. Increase supply of renewable energy 3

4 ARENA: Program objectives and outcomes R&D ERP RAR ASCI Supports world class research or conditions specific to Australia Grow skills & capacity Attract investment Demonstration projects to drive innovation Reduce or remove roadblocks Industry development and capacity building Demonstrate a portfolio of RE solutions, including hybrid and integrated systems in offgrid and fringe-of-grid areas Remove roadblocks, leading to greater deployment of RE Industry Address integration and control system risk and reliability perception risk Capacity building SHARE CARRE Demonstrate technical viability of high penetration systems Facilitate the development of supporting technologies Demonstrate the viability of innovative business models Integrating Renewables into the Grid Capitalise on step-change opportunities Potential to make a significant, measurable and strategic contribution to ARENA s objectives Broader portfolio of ARENA projects Need to be post pilot stage Points on IRG Storage Program objectives are drafted broadly - specific sub-objectives have been identified Diversity of portfolio is an important objective 4

5 Research and Development OBJECTIVES: Information Manual page 5 Support excellent R&D projects in priority RE technologies that: Maintain or build on Australia s world class research Show commercial viability Address conditions specific to Australia Support growth of skills, capacity and knowledge for Australian RE technology R&D Attract investment to improve the commercial readiness of priority RE technologies Round 1 priorities Solar energy solutions Round closed on 14 February 2014 More information in the R&D fact sheet and manual at Funding for 12 projects announced 5

6 Regional Australia s Renewables Industry (I-RAR) OBJECTIVES: Grow a portfolio of RE solutions in regional and remote Australia Focus on hybrid and integrated systems in off-grid and fringe-of-grid communities Contribute to knowledge sharing and skills development, especially in regional and remote areas Round Closed on 31 December 2013 ARENA received a total of 62 Expressions of interest (EoI) 3 EoIs included a bioenergy focus ARENA funding announced for 3 projects; Weipa solar farm project Coober Pedy renewable diesel hybrid project Lord Howe Island hybrid renewable energy system More information in the I-RAR fact sheet and manual at 6

7 Emerging Renewables Program (ERP) OBJECTIVES: Drive innovation of Australian RE technologies Reduce or remove roadblocks Achieve Australian RE industry development and capacity building Contribute to SHARE Program is continuously open Projects evaluated continuously on merit basis Majority of ARENA funded bioenergy projects fall under this program More information in the ERP fact sheet and manual at 7

8 ARENA s ERP portfolio at 31 July 2014 ERP projects are approximately 20% of ARENA s Portfolio 19%, 5 projects ERP / Demonstration Portfolio Funding by Technology 33%, 18 projects 6% ARENA Funding by Technology (Including R&D) 4% 9% 6% 12% 8%, 16 projects 6% 31%, 3 projects 4%, 4 projects 5%, 5 projects 57% Bioenergy Solar PV Hybrid and enabling Solar Thermal Geothermal Marine Bioenergy Solar PV Hybrid and enabling REVC Solar Thermal Geothermal Marine To date ARENA has invested $31m in biofuels and $34 m in bioenergy 8

9 Recently Announced ARENA funded bioenergy projects Bioenergy Australia Australia s participation in IEA Bioenergy Taskforce The project will lead Australia s participation in five IEA Bioenergy tasks and disseminate high value knowledge generated through its active participation, contributing to the store of publically available data, information, lessons learnt and knowledge about bioenergy in Australia and internationally. C2K Pty Ltd Feasibility study for off-grid anaerobic digestion viability The project will carry out preparatory activities for the development of an off grid renewable energy island solution to reduce diesel dependency using mine dewatering in the Pilbara region 9

10 ARENA s bioenergy/biofuels portfolio diverse; future projects should focus on key barriers Challenges Bioenergy has a fragmented supply chain; plant economics often depend on co-products Biofuels has lacked market pull and has required large capital expense to go from pilot stage to commercialisation Lack of fuel distribution infrastructure Potential Opportunities for bioenergy projects may increase due to expected price pressures in natural gas market Potential interest from Australian Navy and domestic airlines for refined aviation fuel Possible priority areas for bioenergy and biofuels: Efficient extraction and development of feedstocks Potential for off-grid applications for bioenergy, or opportunities to displace gas Pathways to market to meet local demand 10

11 Thank you