Fuel and fortunes

In this Weekly Dispatch:

1. Energy ministers moved closer to requiring large datacentres to back new renewable energy and storage projects as AI-driven demand growth accelerates across the NEM. Queensland was the only state not to support the proposal.
2. Political debate over Australia’s generation mix sharpened following Opposition Leader Angus Taylor’s commitment to run coal-fired generation “long and hard” while rolling back EV concessions and net zero policies.
3. The Australia Institute released a new proposal to overhaul the National Electricity Market this week, calling for structural reform to improve reliability, reduce price volatility and accelerate the clean energy transition as renewable penetration continues to rise.
4. South Australia moved to bolster fuel security this week, announcing a strategic diesel reserve of up to 20 million litres to be stored at Port Bonython amid escalating concerns over global fuel supply disruptions linked to conflict in the Middle East.
5. A proposed expansion of the Marulan gas project in NSW reignited debate around the role of firming generation, with proponents citing surging electricity demand from AI and datacentres as a key driver behind the development.
6. ARENA shortlisted a new wave of large-scale renewable hydrogen projects this week, signalling continued federal support for domestic hydrogen industry development despite challenging global market conditions and slower-than-expected project execution timelines.
7. Federal Budget measures released this week will see $97.2 million allocated to implementing a National Consumer Energy Resources Roadmap, and $15.9 million directed to a range of energy reforms, such as implementing the ‘Nelson Review’ for the National Electricity Market (NEM).
8. Japan’s Long-Term Decarbonisation Auction (“LTDA”) FY2025 (Round 3) results were announced, most notably including a new nuclear build (Oma plant in Tohoku, which began construction in 2008 but has been paused since 2011) and two 100% hydrogen projects, all of which are the first to win bids under the LTDA scheme.
9. Idemitsu, one of Japan’s oil majors, announced its mid-term business plan through 2030, withdrawing their previous plan to reduce their refinery footprint in Japan and instead opting to maintain the entire fleet of 6 refineries due to the ongoing Middle East crisis.
10. NSW Roadmap Tender 7 for Firming Infrastructure is complete. Two projects, representing 532 MW / 2,128 MWh have been awarded.
11. Podcast of the week: The Catalyst talk about fertiliser and energy markets.