Nine Territory companies captured under Labor-Greens emissions safeguard scheme
Australia’s second-largest emitter of greenhouse gas is among NT companies captured under new changes to the commonwealth’s emissions safeguard scheme.
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Nine companies with direct links to the Northern Territory – including the nation’s second-largest emitter of greenhouse gas – are captured under new changes to the commonwealth’s safeguard scheme.
The safeguard mechanism requires Australia’s largest greenhouse gas emitters to keep their net emissions below a baseline limit.
And with a number of unconventional and conventional gas projects in the Territory looming, the NT’s entries on the safeguard mechanism list is likely to grow in coming years.
The latest data, contained in the 2020-21 Safeguard facilities report, details the most recent published emissions from the private sector.
It shows Woodside’s North West Shelf Project in WA is Australia's largest emitter with 6,784,581 million tonnes of carbon dioxide equivalent (CO2-e) with Japanese gas producer’s NT Inpex project not far behind with 6,351,245 million tonnes.
Santos’ Darwin LNG plant is the Territory’s second largest emitter with almost 1.6 million tonnes.
The remaining NT-based companies and their emissions are Jadestone Energy’s Montara Operations 247,895 tonnes); Groote Eylandt Mining Company (197,582 tonnes); Newmont’s Tanami mine (187,685 tonnes); McArthur River Power Station (168,784 tonnes); McArthur River Mine (114,423 tonnes); RTA Gove (113,073 tonnes) and Ranger Mine (107,382 tonnes).
The Jemena Northern Gas Pipeline, a joint NT and Queensland operation, produces 99,288 tonnes.
The safeguard mechanism was initially introduced by former Coalition Environment Minister Greg Hunt after that government scrapped the carbon tax in 2013.
It was designed to put a cap on the country’s largest 212 private sector greenhouse gas emitters but targets were set too high to impact emissions.
Since winning government in May last year, federal Labor’s Energy Minister Chris Bowen has been negotiating with The Greens to introduce a declining baseline for emitters that would involve net zero emissions by 2050.
The Greens held out to secure a commitment from federal Labor that no new gas and coal projects would be approved but on Monday backed down and reluctantly signed to Labor’s scheme.
Tamboran and Empire Energy, two companies looking to develop the potentially lucrative Beetaloo project near Katherine and who could eventually be impacted by the mechanism, welcomed Monday’s move.
Empire Energy chief executive Alex Underwood said the Labor-Greens agreement provided “additional clarity”.
“We are committed to fully offsetting our Scope 1 emissions as required under legislation,” Mr Underwood said.
“We will design our operations to minimise the emissions footprint, using the most modern equipment to develop some of the lowest-carbon gas resources in the world.
“With less than one per cent CO2 contained in our Beetaloo gas resource, the challenge of offsetting the emissions of our development is significantly lower than other gas sources.
“There is a great opportunity to enhance our energy and economic security from the development of the NT’s onshore gas resources.
“Empire is committed to doing this in an environmentally sustainable manner, with the support of Traditional Owners and to the benefit of the broader community.”
Tamboran Resources, which are the largest potential developer at Beetaloo, also welcomed the Labor-Greens settlement.
Chief executive Joel Riddle said it provided “certainty”.
“The amendments legislate the existing Net Zero vision Tamboran has for the Beetaloo Basin and is a vindication of our industry-leading plan for sustainable development,” Mr Riddle said.
“Tamboran is already leveraging the low carbon gas we have the Beetaloo Basin to be Net Zero in our Company’s Scope 1 and 2 emissions from first commercial production.”
Environment Centre NT said the safeguard mechanism deal was a death-knell for the Beetaloo project as well as Santos’ Barossa offshore gas project.
Chief executive Kirsty Howey said both projects are now “dead and buried”.
“The emissions associated with these projects are so huge that requiring extraction and processing emissions to be fully offset will make them financially unviable,” Ms Howey said.
“Investors are on notice – the Barossa and Beetaloo projects are dead and buried.
“It leaves the Northern Territory government’s Morrison-era plans for a gas-fired recovery out on a limb.
“It’s completely irresponsible for the Northern Territory government to be pursuing these projects.
“They’ll leave Northern Territory taxpayers with nothing but more debts, stranded assets and climate disaster.”
The Australian Petroleum Production and Exploration Association (APPEA) said the sector was committed to achieving net zero by 2050.
APPEA chief executive Samantha McCulloch said the safeguard mechanism would make it more difficult and costly to drive down emissions.
“New gas supply investment needs policy and regulatory certainty but instead, the Labor-Greens deal creates additional barriers to investment, further diminishing the investment environment and adding to the growing list of regulatory challenges facing the sector,” Ms McCulloch said.
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