Nuclear could bring benefits, but the main game must be gas

The NT could benefit from a nuclear industry, believes the Chamber of Commerce’s Greg Ireland, but it should not be our first priority.

No doubt we are going to hear much more from the rapidly polarising parties in the nuclear versus renewables debate.

But the nuclear stoush in Canberra seems to have little relevance to the Northern Territory, except for two things. I’ll come back to them.

Current technology nuclear generators are way too big for our little, isolated electricity systems, while designs for “small” modular reactors are still too large. Plus, we have no idea about cost.

Territorians therefore should not be distracted and must focus on the here and now energy opportunities that greet us.

Energy company Tamboran Resources and the NT government have signed a 15-year binding gas sales agreement to supply almost two-thirds of the Territory's current gas needs from the Beetaloo Sub-Basin. Picture: Pema Tamang Pakhrin

If Territorians want economic growth, benefits available to all and more people to call the Territory home, then it’s gas that will drive our energy future, supported by large-scale renewables.

The Territory faces a once in a lifetime opportunity to cement its place as a strategically important energy hub for the nation and countries to our north.

Energy-based industries will produce for decades, and if we get the settings right, deliver strong and sustained benefits to the Territory, its businesses and its people.

While investment is being secured for new energy production and new gas- and electricity-consuming industries, we must also ensure that the Territory captures sustained economic and social benefits.

That means local business activity, jobs, training, population growth, government revenue, infrastructure and community facilities and services.

What’s often forgotten is that gas is not simply a key energy source for electricity generation and is underpinning the transition to renewables around the world.

It’s also a vital feedstock and source of process heat for production of fertilisers, processing of minerals and manufacture of machinery and everyday products.

There is no substitute.

The recent Australian Government gas strategy says that gas will be required for electricity generation out to 2050 and longer for industrial uses.

The strategy says that NT gas will be increasingly vital for the nation.

And if the Territory is to become a future major producer of green hydrogen and other products using renewable energy, a vital lead-in is blue hydrogen using gas and similar technologies to LNG.

Of course, the big issue for fossil fuels is the carbon emissions from production, processing and end-use. These must be minimised.

Landscapes, biodiversity and water must also be protected as new energy facilities are established.

Part of the Territory’s future advantage in energy production are the opportunities for carbon capture and storage deep underground.

Traditional landowners can also extend their current on-country carbon offset industries.

Territory gas in any case helps others reduce their emissions.

A US government study found that LNG shipped from Darwin to Shanghai for electricity generation has up to half the carbon emissions of using local coal.

So, what is the relevance of nuclear for the Territory?

For starters, the Territory is rich in uranium, the fuel for nuclear energy, and has supplied the world for more than 60 years.

The big global increase in nuclear power plants offers a great market opening for new mines.

Second, wherever the nuclear debate goes in Australia, the Territory’s gas will be needed for many decades.

Originally published as Nuclear could bring benefits, but the main game must be gas