Latest news with #Kwinana
ABC News
a day ago
- Business
- ABC News
Are Australian motorists helping finance war in Ukraine?
In a move that could signal significant deterioration in relations between the US and India, Donald Trump says he'll impose 25 percent tariffs on its goods, along with an "unspecified penalty" on the country for purchasing Russian oil and weapons. The threat adds to pressure from European nations seeking to crack down on those flouting sanctions against Russia - and helping to fuel Russia's war in Ukraine. It also comes amid concerns here that Australia is itself aiding Russia's effort to evade international sanctions. An oil tanker berthed at Kwinana in Western Australia is currently unloading fuel from a refinery in India -- that's believed to contain Russian-sourced crude oil.
Daily Telegraph
6 days ago
- Business
- Daily Telegraph
Campaigners say tanker carrying Russian oil to dock in WA
Don't miss out on the headlines from Breaking News. Followed categories will be added to My News. A tanker purportedly full of Russian oil is set to dock in Western Australia within days, despite sanctions being in place against Moscow, Ukrainian and anti-Russian oil campaigners According to DFAT, the 'import, purchase or transport' of several goods is prohibited 'if they were exported from, or originated in, Russia'. That includes oil and petroleum products. The ship Seferis left Sika in India two weeks ago full of oil from the Jamnagar refinery, and it is due to arrive in the outer-Perth suburb of Kwinana by 4am Sunday. The Jamnagar refinery is notoriously fed by Russian crude oil, with as much as 55 per cent of their 2025 stock coming from the European pariah. This means the imported oil, which originated in Russia, could end up fuelling Australian vehicles on the road. Anti-Russian oil campaigners allege this ship is full of covertly imported Russian oil The alarm has been raised about a 'loophole' that allows Russian oil to be bought and sold in Australia, with local campaigners and parliamentarians calling for immediate action. Independent federal MP Andrew Wilkie raised the issue in Question Time on Thursday, asking the Defence Minister Richard Marles 'Why are the loopholes in our sanctions so big you can drive a tanker through them?' 'In July, two vessels reportedly docked in Botany Bay, with some 175,000 tonnes of petrol from the Jamnagar refinery in India, which uses up to 55 per cent Russian oil,' Mr Wilkie said. 'So these vessels effectively carry some 90,000 tonnes of Russian-sourced petrol, paid for by Australians, which will help fund Putin's war in Ukraine.' Independent MP Andrew Wilkie questioned the government about the 'loophole'. Picture: NewsWire / Martin Ollman Mr Marles largely avoided the question instead focusing on the sanctions that had been put in place. 'Sanctions, which is the topic of the question the member has asked, is an important part of what we are putting in place to stand with Ukraine,' Mr Marles said. 'And our government will stand with Ukraine. 'I know the Australian people will stand with the people of Ukraine for as long as it takes for Ukraine to resolve this conflict on its terms.' The loophole has recently been closed in the European Union, which has banned the importation of petroleum products refined form Russian crude oil in its 18th sanctions package against Russia. Defence Minister and Deputy Prime Minister Richard Marles defended Australia's sanctions. NewsWire / Simon Bullard. The Australian Federation of Ukrainian Organisations has urged Australia to take similar action. 'This decisive action closes a glaring and deeply exploited loophole that has allowed Russian crude to enter global markets through refineries in third-party countries – undermining sanctions and fuelling the Kremlin's war machine. 'We urge the Australian government to take similar action and close this loophole in Australia's own sanctions regime. 'Since February 2023, Australia has imported an estimated $3.7bn worth of Russian crude, as a component in refined petroleum products from Indian refineries – sending around $1.8bn in tax revenue to the Kremlin. 'This flow of profits directly helps fund Russia's brutal war against Ukraine.' Originally published as Tanker carrying Russian oil set to dock in WA despite sanctions, campaigners say
ABC News
17-06-2025
- Business
- ABC News
Claims WA's main power grid 'slowly collapsing' as its biggest gas plant teeters on edge
One of Western Australia's biggest gas-fired power plants has been teetering on the edge of bankruptcy, fuelling worries its failure could spark a wider crisis in the state's electricity system. It is understood former WA energy minister Reece Whitby last year sought a bailout of more than $30 million for the Newgen power station in Kwinana, south of Perth, as the generator battled to keep its head above water. With a capacity of more than 310 megawatts, Newgen is one of the most important units in WA's main power grid and supplies a significant share of the energy contracted by state-owned utility Synergy. Ian Porter, a 50-year veteran of the energy industry who now runs his own consultancy, said the importance of a plant such as Newgen should not be underestimated. He said it represented anything up to 15 per cent of the production in the state's main grid, which covers the south-western corner of the continent. The Newgen plant is owned by Japanese conglomerate Sumitomo and UK infrastructure group Foresight. Sumitomo is also the owner and operator of another troubled WA plant — the coal-fired Bluewaters near Collie, 180 kilometres south of Perth. Amid the pleas for a bailout, it is believed Mr Whitby argued that a failure by Newgen would directly expose Synergy to the wholesale electricity market, where prices have been soaring in recent times. Such an exposure would come as a further blow to Synergy, which sought its own billion-dollar bailout last year as its financial position continued to deteriorate. But the government is believed to have rebuffed the request, instead saying Synergy should fund any lifeline out of its own pocket. Mr Porter backed the government's decision to reject the bailout proposal, saying it should not be up to taxpayers to rescue privately owned companies. What's more, he said even if the plant became insolvent, that did not necessarily mean it would stop operating. "The company may go, but the assets remain," he said. Central to Newgen's troubles was a big shake-up in late 2023 of WA's biggest electricity market. The revamp was aimed at helping the grid cope with the transition towards renewable energy, which now accounts for about 40 per cent of WA's power. Mr Porter said the rise and rise of renewable energy in the west had been successful in many ways but he noted it had not been without its challenges. Chief among them, he said, was the way in which renewable energy could force out virtually all other generators when the sun was shining and the wind was blowing. Mr Porter said this presented a major problem for thermal generators such as coal and gas plants, which still provided most of the so-called essential system services that kept the grid stable and reliable. To maintain those services, he said the market had been redesigned to ensure market players were better paid for providing them. The problem was, he said, payments only benefited some generators and not others such as Newgen, even though the costs were spread across all market players. "I'm surprised that this would affect a gas generator," he said. "It would certainly affect renewables generators and how they're affected by that. I'm rather puzzled." On top of these problems, it is understood Newgen has also been affected by hurried moves to buttress the grid through back-up services such as large-scale batteries. Financial disclosures by Newgen show the plant has been losing money for some time. According to filings with the Australian Securities and Investments Commission, the generator was underwater to the tune of $1.67 million in the 12 months to June 30 last year. This followed on the heels of a $2.9 million reverse the previous financial year. Its financial health for the current period — the year in which Mr Whitby made his pitch for a bailout — will not be revealed for months yet. Summit Kwinana Power, the operating company behind Newgen, declined to comment. WA Energy Minister Amber-Jade Sanderson also declined a request to be interviewed about Newgen's predicament. Instead, the new minister provided a statement in which she said Newgen's finances were a matter between it and Synergy. "Synergy's contractual arrangements are commercial in confidence," Ms Sanderson said. Shadow Energy Minister Steve Thomas was more forthcoming, saying the problems at Newgen were just the latest sign of distress in the state's main electricity market. Dr Thomas said Newgen was a vital cog in what was arguably the state's most important machine — the grid — and letting the generator fail was a dangerous option. "I'm worried about Newgen, but I'm worried about the entire energy system," Dr Thomas said. "I'm worried about all of the generators who seem to be struggling. "I'm worried that the lights will not stay on in the fullness of time. "And I'm worried that the price for consumers, business and families will be beyond their capacity to pay." Critically, Dr Thomas said the government was facing a reckoning over its plans to get out of coal by 2029. He noted the government was already falling way behind in its efforts to build the new capacity needed to replace its giant Muja and Collie coal plants. If critical gas plants such as Newgen started falling over, too, he said, the state's plans and the broader energy system would end up in tatters. "We're going to see more of this," he said. "As the pressure comes on the government to provide the energy that's required at a cost that business and families can afford, the government is going to be under enormous pressure. "And this may well be just the first step. "The result will be prices through the roof as the system slowly collapses."
Yahoo
17-06-2025
- Business
- Yahoo
NeoSmelt receives $12.9m in federal support for low-emission steel production pilot plant
NeoSmelt has received A$19.8m from the Australian Renewable Energy Agency (ARENA) to support the front-end engineering design (FEED) study for its pilot plant in Western Australia (WA). The project aims to develop Australia's largest ironmaking electric smelting furnace to demonstrate a method for producing molten iron with reduced carbon emissions. NeoSmelt is a joint venture (JV) dedicated to producing lower-emission steel from Pilbara iron ore. Managed by BlueScope, it comprises founders BlueScope, BHP and Rio Tinto, and two new equity participants: Woodside Energy and Mitsui Iron Ore Development. All five participants holding equal equity stakes. The JV announced Kwinana Industrial Area as the location for the project in December last year. BlueScope Australia CEO Tania Archibald, on behalf of the JV, said: 'Today marks a significant step forward in developing a technology for lower-carbon emissions steelmaking using Pilbara ore, and we are delighted by ARENA's A$19.8m commitment to support the feasibility phase of this groundbreaking R&D [research and development] pilot plant. 'With this backing from government and industry leaders, we now have the opportunity to develop world-leading technology that will have potential application across the global steel industry and provides the foundation for a future Australian lower-carbon emissions iron export industry.' The ARENA funding complements a A$75m contribution from the WA Government announced last year. The feasibility study for the project is currently ongoing and will inform a final investment decision expected in 2026. The pilot plant, expected to begin operations in 2028, is projected to produce between 30,000 and 40,000 tonnes of molten iron annually. Initially, the plant will use natural gas supplied by Woodside Energy to reduce iron ore to direct reduced iron. The long-term goal is to utilise lower-carbon emissions hydrogen for this process. If successful, the NeoSmelt project could offer a sustainable alternative to traditional blast furnace steelmaking, potentially ensuring the longevity of Australia's iron ore industry. "NeoSmelt receives $12.9m in federal support for low-emission steel production pilot plant" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
NeoSmelt welcomes Federal Government support and signs two new participants for groundbreaking steel decarbonisation project
PERTH, Australia, June 17, 2025--(BUSINESS WIRE)--NeoSmelt, a consortium of leading resources, energy and manufacturing companies working together on ways to produce lower-emissions steel1 from Pilbara iron ore, welcomes Australian Renewable Energy Agency (ARENA) support for its planned Western Australian pilot plant. The consortium, founded by BlueScope, BHP and Rio Tinto also welcomes two new equity participants – Woodside Energy and Mitsui Iron Ore Development – to the NeoSmelt joint venture, with the five participants taking equal equity stakes in the joint venture. NeoSmelt, which is managed by BlueScope, plans to develop Australia's largest ironmaking electric smelting furnace2 (ESF) pilot plant at the Kwinana Industrial Area, south of Perth, to demonstrate a method to produce lower-carbon emissions molten iron from Western Australian iron ore. ARENA has committed A$19.8 million to support a Front-End Engineering Design (FEED) study for the NeoSmelt project, which aims to prove Pilbara iron ore can be used to produce lower-carbon3 iron using a direct reduced iron - electric smelting furnace (DRI-ESF) pathway. If successful, this has the potential to unlock longer term alternatives to the traditional blast furnace steelmaking route and help ensure the longevity of Australia's iron ore industry. The project has now entered the feasibility phase. The feasibility study will help inform a final investment decision, expected in 2026. BlueScope Chief Executive Australia, Tania Archibald, on behalf of the Joint Venture said: "Today marks a significant step forward in developing a technology for lower-carbon emissions steelmaking using Pilbara ore, and we're delighted by ARENA's $19.8 million commitment to support the feasibility phase of this groundbreaking R&D pilot plant. "We also officially welcome Woodside Energy and Mitsui Iron Ore Development to the NeoSmelt joint venture, joining founding participants BlueScope, BHP and Rio Tinto. With this backing from government and industry leaders, we now have the opportunity to develop world leading technology that will have potential application across the global steel industry and provides the foundation for a future Australian lower-carbon emissions iron export industry." Federal Resources Minister and Member for Brand, Madeleine King said: "The fuels, metals, fertiliser, chemicals and grain shipped from Kwinana have powered Western Australia and the region since the 1950s. "Now Kwinana is playing a central role in the world's energy transition and a big part in global efforts to decarbonise. If we can decarbonise steel making, we will create far fewer emissions when building the cities of the world." The ARENA funding adds to the A$75 million contribution from the Western Australian Government announced last year. Western Australian Premier Roger Cook said: "Local manufacturing is crucial to my Government's plan for a future that is Made in WA - which is why we are working closely with the Commonwealth Government and NeoSmelt to diversify Western Australia's economy. That way, we can maintain WA's nation-leading economy by supporting continued investment in new industries and creating more jobs for the future. "As a Kwinana local, I'm proud to see this NeoSmelt facility play a part in our State's decarbonisation. This cutting-edge facility is an example of how governments and businesses are coming together to put WA at the forefront of the global push to slash emissions from steel production." If approved, operations at the NeoSmelt pilot plant, which is expected to produce 30,000 to 40,000 tonnes of molten iron a year, are planned to begin in 2028. With Woodside as the preferred energy supplier, the pilot plant would initially use natural gas to reduce iron ore to DRI. Once operational, the project aims to use lower-carbon emissions hydrogen to reduce iron ore. Additional information Pilot Electric Smelting Facility The NeoSmelt pilot plant is intended to test and optimise production of iron from the electric smelting furnace (ESF), a type of furnace being developed by leading steel producers and technology companies targeting lower-carbon emission-intensity steel. The ESF is capable of producing iron suitable for the basic oxygen furnace steelmaking process. Iron ore is first converted to direct reduced iron (DRI) before being charged into the ESF. Together, the DRI-ESF equipment can replace the traditional blast furnace. Estimates show reductions of up to 80^ per cent in CO2 emission intensity are potentially achievable processing Pilbara iron ore through a DRI-ESF pathway, compared with the current industry average for the conventional blast furnace steel route. Other lower CO2 emission-intensity production routes, such as electric arc furnaces, require scrap steel and DRI produced from high grade iron ore. The ESF potentially allows for greater flexibility in input raw materials, addressing one of the key barriers to wider adoption of lower-carbon emissions technology. The ESF also has the potential to be integrated into a steel plant's existing downstream production units. Footnotes 1 Compared to the conventional blast furnace – basic oxygen furnace (BF-BOF) process 2 Also known in the industry as an "electric melter". 3 Lower-carbon has the characteristic of having lower levels of associated potential greenhouse gas emissions when compared to historical and/or current conventions or analogues, for example relating to an otherwise similar resource, process, production facility, product or service, or activity. ^ Assumes utilisation of renewable energy to power the DRI-ESF facility and zero emissions hydrogen in the DRI plant. The remaining CO2 emissions are from carbon required in the process of making liquid iron suitable for the basic oxygen furnace steelmaking process. View source version on Contacts BlueScope Michael ReayM +61 437 862 472E Minister King Nick ButterlyM + 61 499 947 024E Premier Cook Jordan MurrayM +61 419 102 823E Category: General Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
