Australia’s 10 highest greenhouse gas emitters and how they’re cutting back

These are our 10 biggest greenhouse gas emitters. See the list and what they are doing to change their ways and save the planet.

Avoiding power price hikes with a smooth transition from fossil fuels to renewable energy is the central goal of the nation’s electricity producers and biggest emitters.

Energy production accounts for about a third of Australia’s emissions, with the top seven electricity generators responsible for 128.9 million tonnes of greenhouse gases in 2019-20.

The country’s biggest private power generators, AGL, EnergyAustralia and Origin, are investing heavily in renewables and accelerating the retirement of ageing coal-fired power stations where possible in order to reach net zero by 2050.

AGL Chief Operating Officer Markus Brokhof. Picture: Supplied

However recalibrating their plans to ensure global temperatures do not rise more than 1.5C above pre-industrial levels – an adjustment from the initial target of no more than 2C – has presented a significant challenge.

Recent falls in emissions from the energy sector have mostly been due to an increase in renewable power generation, according a recent report by research and advisory non-profit ClimateWorks Australia.

“But they can and must set a faster transition pace,” ClimateWorks said

While well-known high emitters are committed to speeding up, they say this acceleration must not cause extra blackouts or skyrocketing bills.

AGL last year conceded that for it to meet a “1.5-degree scenario” would require earlier closure of its two Loy Yang stations, which together are the biggest brown coal-fired power generators in Australia.

As Australia’s largest single source of emissions, AGL chief operating officer Markus Brokhof said the company recognised it “must challenge ourselves to see what more can be done” to improve upon its net zero commitment.

“A key step in our emissions reduction will be the closure of the Liddell Power Station, due to begin next year and resulting in a 23 per cent reduction in emissions by 2024,” he said.

But Mr Brokhof said it wasn’t as simple as shutting coal-fired power stations.

“It is all too easy to simplify the challenges facing Australia’s energy industry and demand the closure of coal generation – but this ignores the essential role thermal assets play in delivering reliable and affordable energy when renewables aren’t available,” he said.

“This will change but we aren’t there yet.”

Energy Australia is the country’s second largest emitter and managing director Mark Collette said it supported “an orderly, respectful, and responsible transition to cleaner energy in a way that ensures no customer is left behind”.

The company has committed to bring forward the closure of the nation’s third-largest brown coal power station, Yallourn in Victoria, from 2032 to 2028.

That would reduce EnergyAustralia’s direct emissions by 60 per cent, which ClimateWorks has said will make the company “more aligned with Australia’s required decarbonisation trajectory”.

Origin Energy chief executive Frank Calabria said the decarbonisation of the electricity sector was playing out “more quickly” than expected even only a few years ago.

“When I think about net zero by 2050 I feel very confident,” he said.

Origin Energy CEO Frank Calabria. Picture: AAP

“The most economic new build form of generation today is renewables.”

Mr Calabria said the transition was about making sure coal left the market in an “orderly way” to ensure there was always secure and reliable power available with “no spike prices”.

Origin, the fourth largest emitter in Australia, is in the process of upgrading its carbon reduction targets to align with a warming limit of 1.5C instead of closer to 2C.

“We would need to be reducing emissions more than we are (to achieve 1.5C),” Mr Calabria said.

The company’s Eraring black coal-fired power plant in NSW is the biggest in Australia, and currently due to retire by 2032, however Origin has not ruled out accelerating this timetable.

With a target of achieving 1500MW of renewable power by 2025, Alinta Energy is one of several companies vying to compete with Australia’s three major electricity providers.

Alinta Energy chief executive Jeff Dimery said he was “very confident” the company would get to net zero by 2050 “or earlier”.

“We’re investing massive amounts in technologies like pumped hydro, solar, wind and batteries … (combined) with the retirement of our older generation over time,” he said.

Mr Dimery said for those who asked “what about gas and coal” he had a simple answer.

“We’re transitioning so fast at the moment that economics is doing a lot of the heavy lifting for us,” he said.

Alinta CEO Jeff Dimery. Picture: Stuart McEvoy for The Australian.

“By far the cheapest new generation to build is renewable, so it’s unlikely that we’ll see many new fossil fuel power stations built from now on.”

Mr Dimery said the sector needed governments to “help” ensure a smooth transition to net zero to avoid “dramatic price spikes” or “collapses”.

Resource companies have also outlined pathways to net zero, including investing in decarbonising the manufacture of energy-intensive products in their value chains like steel and aluminium.

Rio Tinto has committed to a 45 per cent reduction in absolute emissions on 2010 levels by 2050, which the company said was consistent with the 1.5C maximum global temperature rise pathway.

The company is building a $98 million new solar plant and lithium-ion battery storage system in the Pilbara, and is working with Caterpillar and Komatsu to fast-track the development of zero-emission haul trucks and other mining haulage equipment.

Rio Tinto has also partnered to research the use of hydrogen in alumina refining, and has joined with POSCO – the largest steel producer in South Korea – to develop low-carbon emission steel production.

In September mining giant BHP released its Climate Transition Plan, outlining how the company will decarbonise to reach net zero by 2050.

“We are committed to playing our part through meaningful action in our value chain, continued support for low-carbon technology solutions and advocating for policy outcomes that enhance the global response to climate change,” BHP chief executive Mike Henry said.

BHP’s Queensland coalmines and Kwinana nickel refinery in Western Australia will move to up to 50 per cent renewable or low-emissions energy.

The company will also partner to build two new solar farms and a battery storage system at nickel mines in WA.

BHP has also committed $65 million in partnerships to decarbonise emissions-intensive global steel production.

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Originally published as Australia’s 10 highest greenhouse gas emitters and how they’re cutting back