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Another one bites the dust
11 years of climate change inaction sees Australia lose another major renewable energy investor
August 22, 2007
“Unless the Federal Government or ALP steps in, 136 manufacturing workers will lose their jobs and future Australian wind farms will be forced to import turbine blades from overseas,” Greenpeace energy campaigner Mark Wakeham said.
“This is the latest in a long line of companies deciding that when it comes to renewable energy, Australia is closed for business. Our pathetic 2% renewable energy target is dwarfed by countries like China who have a target of 16% renewable energy by 2020.
Mr Wakeham said Vestas is the largest wind turbine manufacturer in the world and just yesterday announced it had sold over $2 billion worth of wind turbines in the past quarter.
“Surely this is the sort of company Australia should be making every effort to keep.
“At every opportunity the Prime Minister has said that tackling climate change will cost us jobs. Here’s a very concrete example of how doing nothing about climate change is costing us jobs and investment.”
“Last year when Vestas shut their turbine factory in Wynyard in Tasmania the Federal Government watched and did nothing.
“In the past Prime Minister Howard has acted to keep companies like Mitsubishi and Ford factory operating in Australia. This loss of regional jobs should, but probably won’t, jolt him into action.
“Therefore Greenpeace is calling on Opposition Leader Kevin Rudd to act urgently to meet with Vestas to attempt to keep them in Australia. In order to keep companies like Vestas and to give other renewable energy investors the confidence to invest in Australia we need to raise our renewable energy target to at least 25% by 2020.
“Unlike the Coalition, who plan to scrap renewable energy targets under their Emissions Trading scheme, the ALP has consistently stated that it supports “substantially increasing” the Federal renewable energy target, but so far is yet to highlight its target. Its time for Mr Rudd to step up on this issue, to meet with Vestas to discuss possibilities for remaining in Australia, and to outline the ALP’s proposed renewable energy target,” Mr Wakeham said.
Notes to the editor:
Renewable energy companies that have left Australia for greener pastures include:
Solar
Solar Heat and Power Pty Ltd was set up in 2002 to commercialise solar thermal concentrator technology developed at the University of Sydney in 1995. A successful 25 MW pilot project is operating at the Liddell coal-fired power plant in NSW. In January this year the company relocated to the US after failing to get support for large scale stand alone generation in Australia and securing $41 million in US investment.
“Some of the largest investors and power companies in the USA have realised that solar thermal power is a probable replacement for coal, nuclear and oil. They believe this will be very big business and power companies are willing to provide the large amount of initial equity to get the industry moving."
David Mills, CEO, Solar Heat and Power Pty Ltd [i]
Pacific Solar was set up in 1995 as a joint venture between the University of NSW and the state electricity company, Pacific Power, to commercialise a cost-effective solar photovoltaic technology developed in Sydney, now known as Crystalline Silicon on Glass. In June 2004, Pacific Solar sold its assets and worldwide rights to the CSG technology to a German company, CSG Solar AG, which is now undertaking commercialisation in Germany with significant government investment support.
SunTech was set up in 2001 by Chinese-Australian Dr Zhengrong Shi. Dr Shi worked in the Australian solar industry for fifteen years, at the University of NSW and Pacific Solar, but opted to found a Chinese company due to the lack of market opportunities in Australia. He is now one of the richest men in the world, and Suntech looks set to dominate the world solar market.
There are other examples of overseas commercialisation of Australian solar technology. The evacuated tube solar water heaters which now dominate the rapidly growing Chinese market were developed at Sydney University, and the high efficiency photovoltaic panels, sold under the name ‘Saturn’ by BP Solar, are manufactured in Spain although the technology was developed at the University of NSW.
Bioenergy
Novera Energy was founded in 1998 in Australia with the intention of developing a renewable portfolio in Australia and Europe. Their main business focus is bioenergy. However over the last ten years, while the renewable energy market in Europe has blossomed, the market in Australia has stagnated.
‘Momentum in the UK renewable energy market accelerated during the year… By contrast, the Australian renewable energy market lost momentum, following unfavourable signals from the Federal Government... Given the uncertainty, several renewable energy developers, including Novera Energy, are re-evaluating their strategy in Australia.’
Novera 2003 Annual Report, page 7
By 2004, Novera’s UK revenue climbed to over $24 million, and only $0.4 million in Australia [ii]. The company relocated to the UK in 2005, and was de-listed from the Australian stock exchange in 2006.
Macquarie Bank purchased Energy Power Resources, a UK bioenergy company, in 2005. They own and operate three chicken litter and one straw fuelled bioenergy power stations in the UK with combined capacity of over 100 MW.
‘The activities of the company are strongly supported by [UK] Government policy.’
Energy Power Resources [iii]
Unfortunately Australian energy policy does not support local bioenergy investment.
Wind
Vestas
The Vestas turbine nacelle factory at Wynyard, Tasmania, opened in November 2003 employing 73 people. Closure was announced in August 2006 owing to the lack of local market for turbines following the decision not to lift the MRET. A further 40 jobs were lost at Aus-Tech Composites, which supplied components to the factory.
[i] Sheehan P (29 January 2007), Cloudy future for solar innovators, Sydney Morning Herald.
[ii] Novera Energy (2004, p. 46), Annual Report, Novera Energy, London, UK.
[iii] Energy Power Resources profile, retrieved April 2007 from http://www.eprl.co.uk/profile/index.html
“This is the latest in a long line of companies deciding that when it comes to renewable energy, Australia is closed for business. Our pathetic 2% renewable energy target is dwarfed by countries like China who have a target of 16% renewable energy by 2020.
Mr Wakeham said Vestas is the largest wind turbine manufacturer in the world and just yesterday announced it had sold over $2 billion worth of wind turbines in the past quarter.
“Surely this is the sort of company Australia should be making every effort to keep.
“At every opportunity the Prime Minister has said that tackling climate change will cost us jobs. Here’s a very concrete example of how doing nothing about climate change is costing us jobs and investment.”
“Last year when Vestas shut their turbine factory in Wynyard in Tasmania the Federal Government watched and did nothing.
“In the past Prime Minister Howard has acted to keep companies like Mitsubishi and Ford factory operating in Australia. This loss of regional jobs should, but probably won’t, jolt him into action.
“Therefore Greenpeace is calling on Opposition Leader Kevin Rudd to act urgently to meet with Vestas to attempt to keep them in Australia. In order to keep companies like Vestas and to give other renewable energy investors the confidence to invest in Australia we need to raise our renewable energy target to at least 25% by 2020.
“Unlike the Coalition, who plan to scrap renewable energy targets under their Emissions Trading scheme, the ALP has consistently stated that it supports “substantially increasing” the Federal renewable energy target, but so far is yet to highlight its target. Its time for Mr Rudd to step up on this issue, to meet with Vestas to discuss possibilities for remaining in Australia, and to outline the ALP’s proposed renewable energy target,” Mr Wakeham said.
Notes to the editor:
Renewable energy companies that have left Australia for greener pastures include:
Solar
Solar Heat and Power Pty Ltd was set up in 2002 to commercialise solar thermal concentrator technology developed at the University of Sydney in 1995. A successful 25 MW pilot project is operating at the Liddell coal-fired power plant in NSW. In January this year the company relocated to the US after failing to get support for large scale stand alone generation in Australia and securing $41 million in US investment.
“Some of the largest investors and power companies in the USA have realised that solar thermal power is a probable replacement for coal, nuclear and oil. They believe this will be very big business and power companies are willing to provide the large amount of initial equity to get the industry moving."
David Mills, CEO, Solar Heat and Power Pty Ltd [i]
Pacific Solar was set up in 1995 as a joint venture between the University of NSW and the state electricity company, Pacific Power, to commercialise a cost-effective solar photovoltaic technology developed in Sydney, now known as Crystalline Silicon on Glass. In June 2004, Pacific Solar sold its assets and worldwide rights to the CSG technology to a German company, CSG Solar AG, which is now undertaking commercialisation in Germany with significant government investment support.
SunTech was set up in 2001 by Chinese-Australian Dr Zhengrong Shi. Dr Shi worked in the Australian solar industry for fifteen years, at the University of NSW and Pacific Solar, but opted to found a Chinese company due to the lack of market opportunities in Australia. He is now one of the richest men in the world, and Suntech looks set to dominate the world solar market.
There are other examples of overseas commercialisation of Australian solar technology. The evacuated tube solar water heaters which now dominate the rapidly growing Chinese market were developed at Sydney University, and the high efficiency photovoltaic panels, sold under the name ‘Saturn’ by BP Solar, are manufactured in Spain although the technology was developed at the University of NSW.
Bioenergy
Novera Energy was founded in 1998 in Australia with the intention of developing a renewable portfolio in Australia and Europe. Their main business focus is bioenergy. However over the last ten years, while the renewable energy market in Europe has blossomed, the market in Australia has stagnated.
‘Momentum in the UK renewable energy market accelerated during the year… By contrast, the Australian renewable energy market lost momentum, following unfavourable signals from the Federal Government... Given the uncertainty, several renewable energy developers, including Novera Energy, are re-evaluating their strategy in Australia.’
Novera 2003 Annual Report, page 7
By 2004, Novera’s UK revenue climbed to over $24 million, and only $0.4 million in Australia [ii]. The company relocated to the UK in 2005, and was de-listed from the Australian stock exchange in 2006.
Macquarie Bank purchased Energy Power Resources, a UK bioenergy company, in 2005. They own and operate three chicken litter and one straw fuelled bioenergy power stations in the UK with combined capacity of over 100 MW.
‘The activities of the company are strongly supported by [UK] Government policy.’
Energy Power Resources [iii]
Unfortunately Australian energy policy does not support local bioenergy investment.
Wind
Vestas
The Vestas turbine nacelle factory at Wynyard, Tasmania, opened in November 2003 employing 73 people. Closure was announced in August 2006 owing to the lack of local market for turbines following the decision not to lift the MRET. A further 40 jobs were lost at Aus-Tech Composites, which supplied components to the factory.
[i] Sheehan P (29 January 2007), Cloudy future for solar innovators, Sydney Morning Herald.
[ii] Novera Energy (2004, p. 46), Annual Report, Novera Energy, London, UK.
[iii] Energy Power Resources profile, retrieved April 2007 from http://www.eprl.co.uk/profile/index.html
