Staying competitive means understanding your energy profile and exploring behind-the-meter renewables, battery and thermal storage, gas loads, and demand response solutions.

With 39% of the National Energy Market (NEM) already powered by renewables, we’re accelerating toward net zero by 2050. But is this just another policy target, or a game-changing opportunity?

Let’s break it down – how will this shift impact your operations, costs, and strategy? And most importantly, how can your business take action now?

What is the 2030 Renewable Energy Target?

The target commits Australia to generating 82% of its electricity from renewables within the next 5 years. This target is part of the government’s current aim to achieve 43% emission reductions by 2030. To get there, significant investment will go into:

• Scaling up renewable generation: Increasing the number of wind farms, solar farms, and hydroelectric projects across the country.
• Grid upgrades: Programs like the Federal Government’s Rewiring the Nation will overhaul the electricity grid to handle higher volumes of renewable energy.
• Energy storage: Enhanced battery technology and other energy storage solutions will help ensure the reliability of renewable power.
  

This shift isn’t just a policy initiative – it’s a reimagining of how Australia produces and consumes energy.

How this target will impact businesses

The renewable energy transition will create both opportunities and challenges for businesses. Here’s what you need to know:

Opportunities for businesses

1. Lower energy costs
   Renewables like solar and wind are already some of the cheapest energy sources available. In fact, behind the meter solar and storage is potentially the lowest cost of energy and a worthy part of a total site Net Zero Plan. As renewable and storage penetration increases, electricity prices are expected to stabilise and become more affordable in the long run
2. Access to incentives
   Governments at all levels are offering subsidies, grants, and tax breaks to businesses that adopt renewable technologies or improve energy efficiency. This includes programs to help businesses install solar panels, purchase batteries, or electrify their operations. The opportunity for business is to integrate government incentives into their overall financial planning process.
3. Enhanced reputation
   Sustainability is no longer just a “nice-to-have.” Customers, investors, and other stakeholders increasingly expect businesses to prioritise sustainability. Embracing renewables can differentiate your business, attract environmentally conscious customers, and enhance brand loyalty.
4. Future-proofing your operations
   Acting now to align with renewable energy targets can reduce your exposure to future risks, such as rising carbon taxes, stricter environmental regulations, or energy supply disruptions.
5. Demand response
   The variability of renewable energy means that being able to shed load or export from solar or storage back to the grid at short notice can be a substantial income generator.  Aggregated together these Virtual Power Plants is a fast-growing component for the grid.

Challenges to be aware of

1. Upfront costs
   Transitioning to renewable energy – whether through on-site solar, battery storage, or electrification – requires initial investment. This investment into transitioning will come with some financial risk, however, these costs often pay off in reduced operational expenses over time.
2. Infrastructure readiness
   While programs like Rewiring the Nation aim to modernise the grid, businesses may face short-term challenges as the grid adapts to increased renewable capacity. This could include fluctuations in energy reliability or supply.
3. Policy complexity
   The energy landscape is evolving rapidly, with new policies, programs, and incentives being introduced frequently. Keeping up-to-date will be crucial for businesses looking to maximise benefits.

Key takeaways for businesses

• Renewables are becoming the new normal: With costs decreasing and support increasing, transitioning to renewable energy is not just a moral choice but a sound business decision.
• Sustainability is a competitive advantage: Demonstrating your commitment to renewable energy can strengthen your market position and appeal to eco-conscious stakeholders.
• Planning is essential: Businesses that proactively plan for this shift – whether by investing in renewables, improving energy efficiency, or leveraging incentives – will be best positioned for success.
• We can do a lot more now: With available technology, we could be doing a lot more to accelerate our emissions reduction and make the transition to renewables before the deadlines.
  
  

The CCA also stated; “Working to reduce emissions now, using existing technologies, is for more efficient and effective than waiting and hoping that bigger breakthroughs will do all the work”.

How Northmore Gordon can help

Navigating this energy transition can be complex, but you don’t have to do it alone. At Northmore Gordon, we specialise in helping businesses reduce emissions, improve energy efficiency, and access renewable energy opportunities.

We can assist with

• Identifying and accessing government incentives to make your transition more affordable.
• Developing energy and sustainability strategies tailored to your operations.
• Implementing renewable energy solutions that align with your goals and budget.

Let’s make the most of the 2030 Target

Australia’s renewable energy target isn’t just a government mandate – it’s a game-changer for businesses. By acting now, you can reduce costs, stay ahead of regulations, and position your business as a leader in sustainability.

If you’re ready to embrace the future of energy or want to understand how the 2030 target impacts your business, let’s start the conversation. Together, we can turn these changes into opportunities.

Contact Hamish McGovern at h.mcgovern@northmoregordon.com to find out more.

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But what is green hydrogen? And for that matter, what are all the other colours of hydrogen?

Black hydrogen. Gray hydrogen. Blue hydrogen. Green hydrogen…

All hydrogen is colourless and odourless — the hydrogen rainbow simply defines how the hydrogen was produced. While the structure and properties of the hydrogen molecule do not change between the colours, the production method does play a significant role in how carbon-intensive the hydrogen lifecycle is.

Black & Brown Hydrogen — The Dirtiest

Black and brown hydrogen are both produced from the fossil fuel coal-black hydrogen is from bituminous coal and brown from lignite. These are the dirtiest methods of hydrogen production because it is created through the gasification of coal, which releases CO2 and other greenhouse gasses into the atmosphere. 

Gray Hydrogen — The Most Common

Gray hydrogen is produced from natural gas, and it is the most common type of hydrogen produced and used worldwide. The primary process used in gray hydrogen production is steam-methane reforming, a reaction involving natural gas, steam, and heat that works to isolate hydrogen. In addition to hydrogen gas, the process also creates CO and CO2 which are released into the atmosphere.

Although using natural gas is not as carbon-intensive as gasification of coal, it is still a fossil fuel. As such, its use in hydrogen production is non-renewable and emits GHG emissions that contribute to climate change. 

Blue Hydrogen — Low-Carbon Intensity

Blue hydrogen is also produced from natural gas, but the process involves carbon capture and storage (CCS) technology that prevents the majority of carbon emissions created by the steam reforming process from being released into the atmosphere.

Due to the involvement of CCS technology, blue hydrogen has a reduced carbon intensity and may even be referred to as carbon neutral (although that may be a bit misleading as the CCS technology will not capture 100% of the GHG emissions).

Blue hydrogen production is less carbon-intensive than black, brown or gray hydrogen, but its dependence on fossil fuels does not make it as environmentally sound as green hydrogen.

Green Hydrogen — The Cleanest

Green hydrogen is often referred to as ‘clean hydrogen’ because it is produced using electricity from clean energy sources — such as solar or wind power — to split water into hydrogen and oxygen atoms through a process called electrolysis.

Because solar and wind power do not emit greenhouse gases when delivering electricity, this green hydrogen method offers a clean alternative to hydrogen production. Although it is not yet economically competitive at a commercial scale, green hydrogen could be a major contributor to decarbonizing hard-to-abate sectors such as steel manufacturing and the chemicals industry, which rely on fossil fuel feedstocks in the production process.

In addition to replacing portions of gray hydrogen, green hydrogen also poses potential as a clean hydrogen source for the transportation, building, and power sectors. Green hydrogen can serve as a key precursor ingredient in producing synthetic jet fuel and derivatives. Adopting this clean fuel would allow the shipping and aviation industries, which have been historically difficult to decarbonise given the infeasibility of direct electrification, to transfer to low-carbon intensive fuels and effectively reduce their GHG emissions.  

There are several barriers to the widespread adoption of green hydrogen, such as constructing refuelling infrastructure, lowering costs, and developing storage strategies. The buzz around green hydrogen is growing, and as it becomes a more popular option, analysts assert that it will become more economic than gray hydrogen.   

Future Outlook For Hydrogen

Talk on hydrogen is trending, yet it’s important to note that hydrogen production is a mature market that has served the international industry for decades. Hydrogen is used as an industrial feedstock in prominent processes such as oil refining and ammonia production. Hydrogen production has increased over the past decade, a trend that is anticipated to continue for the foreseeable future.

Advancements and scaling of green hydrogen technology could play a significant role in replacing gray (black & brown) hydrogen, and it could also provide clean fuel for transportation or stored energy to complement intermittent renewable energy sources. Considering how economic solar and wind power have become, it is now critical that we develop innovative techniques and strategies to drive down capital costs of electrolytic equipment and to effectively interconnect hydrogen solutions into our energy framework. Doing so will open up incredible potential for hydrogen to complement the larger global transition to a clean energy economy.  

Australia is actively embracing opportunities around hydrogen. Green hydrogen energy hubs are part of the NSW Renewable Energy Zone (REZ) buildout plan, and The Australian Renewable Energy Agency (ARENA) has secured $105 million to fund three commercial green hydrogen facilities slated for Victoria and Western Australia.

With national and international commitments to reduce carbon emissions and reach net-zero status by 2050, green hydrogen can play a critical role in decarbonising industry and establishing a reliable clean energy grid. So as the world transitions to a clean energy economy, green hydrogen may not only be a way for Australia to decarbonise… it could also be the nation’s next big export opportunity.

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