Mills: Fracking is viable, but not forever

Territory Alliance’s Terry Mills says fracking isn’t the “silver bullet” to save the NT’s economy, but it’s viable “for now”.

Terry Mills on fracking, renewables and Territory Alliance’s plant for the NT’s energy.

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The Northern Territory’s economic future is inextricably linked to energy.

We have relied on fossil fuels in the past but that won’t be the case in the future.

Most recognise the environmental benefits of solar-generated electricity today and in a few years the economic benefits of solar will become obvious to all.

Hydrogen could be just around the corner.

The Territory is resource rich and therefore has a range of options even as energy markets change from carbon to renewables.

One option we do not have is to ignore the change or spend our energy on endless ideological arguments because the fact is both energy and investment markets are changing.

The role of government is to provide pragmatic, visionary leadership and navigate well in times of change.

New regulatory models, policy and planning will be required to maximise benefit for the Territorians in the short and long term.

Right now, and for the medium-term gas is still economically viable.

Gas, of course, is a much cleaner energy source than coal or petroleum.

The economic and environmental benefits of gas are why a Territory Alliance government will permit the onshore gas industry (‘fracking’) to continue for now, but only under the strictest environmental standards and only with the gas industry paying for all compliance.

If onshore gas is a viable industry in every way, then we should welcome it as a part of our economy.

To do otherwise would send a message of uncertainty and governmental incompetence to all businesses right at the time when the NT is most in need of additional business investment.

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According to the Pepper Report (the Scientific Inquiry into Hydraulic Fracturing) the NT onshore gas industry is likely to contribute about 1 per cent of NTG revenue and 250 jobs. Even if it is a bit more it is obvious that onshore gas is not the ‘silver bullet’ to save the NT economy. Keeping in mind that gas is not renewable — you can only sell it once — we should not be in a mad rush to sell our gas at any cost. If no-one in the gas industry wants to do it properly then let the gas stay in the ground for a future generation. To ensure the onshore gas industry has a multiplying effect on jobs and the economy, Territory Alliance will ensure enough gas is available at the right price and under the right conditions to supply a downstream gas-based manufacturing sector.

The potential exists to create a significant number of local jobs in diverse industries such as fertilisers, plastics and hydrogen. The potential for increasing horticultural productivity to supply southern and northern markets by linking water, fertiliser and energy is one obvious opportunity.

Territory Alliance has set a sensible target of at least 30 per cent of the Territory’s electricity to come from renewable energy sources by 2030 and up to 90 per cent by 2050.

It simply isn’t possible or sensible to switch to 100 per cent renewables overnight. But if we plan now for the future, we can achieve it.

Few know that the NT government has signed up to pay for a continued gas supply from current ENI production near Wadeye (Port Keats) until 2034. T

hat means the NTG must pay for the gas for the next 14 years even if we don’t use it.

A Territory Alliance government will be sensible and make use of that gas first, then rely more heavily on renewables.

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Territory Alliance will take a pragmatic approach to government whilst maintaining a long-term vision in favour of renewables.

Territory Alliance will also establish a Sovereign Wealth Fund from gas royalties to be managed by an independent Board to invest in businesses to further grow the NT economy. The Sovereign Wealth Fund could be a game changer for the NT’s future prosperity.

We need to understand the global context of the energy industry.

It is an industry in transition. We will continue to use fossil fuels in the short term but with our goal clearly focused on increasingly more renewable energy sources.

This is the common-sense approach to the economy and energy that a Territory Alliance government will take.

Terry Mills MLA is the Parliamentary Leader of Territory Alliance