NUMBER 206 | APRIL 2018
WENDY CRAIK, LORRAINE STEVENSON LACHLAN BLACKHALL INTERVIEW: MICHELLE SIMMONS Climate change People-powered Australia’s policies grids tech future
WINDS OF CHANGE Australia’s energy future
AUSTRALIAN ACADEMY OF TECHNOLOGY AND ENGINEERING 2018 ATSE Innovation Dinner and Clunies Ross Awards ATSE cordially invites you, your staff, guests and partners to attend the ATSE Innovation Dinner where the Clunies Ross Awards will be presented at the Sofitel Hotel, Melbourne on 13 June 2018. The Dinner provides a valuable networking opportunity and a chance to be part of the nation’s premier annual awards for innovation commercialisation.
The Clunies Ross Awards are presented in three separate categories; DETAILS ■ Entrepreneur of the Year Wednesday 13 June 2018 Sofitel Hotel, Melbourne ■ Knowledge and Commercialisation The Grand Ballroom ■ Innovation 25 Collins Street, Melbourne
Now in its 28th year of being presented, the Clunies Ross Awards $160 per person or $1,440 for a table of 10 will again recognise the outstanding applications of science and technology that provide economic, social and/or environmental 6.15pm Pre-dinner drinks 7.00pm Official proceedings benefit to Australia. Black tie optional This year’s Keynote speaker is the 2018 Australian of the Year, Registrations now open at Professor Michelle Simmons FAA FTSE, UNSW Professor of Quantum www.atse.org.au/InnovationDinner Physics and Director of the Australian Research Council Centre Mr Darryn Smart, of Excellence for Quantum Computation and Communication Clunies Ross Knowledge Technology. Commercialisation Award 2017, Registrations now open. recipient, Email [email protected] with any enquiries. congratulated by Dr Leanna Read FTSE, Chief Scientist for South Australia.
SUSTAINING GOLD SPONSOR SUSTAINING SILVER SPONSOR BRONZE SPONSOR
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AUSTRALIAN ACADEMY OF TECHNOLOGY AND ENGINEERING
ATSE_CR_InnoDinn18_A4advert03.indd 1 9/4/18 2:18 pm APRIL 2018 | FOCUS Contents
10 Australian of the Year Michelle Simmons 5 News 4 From the President‘s desk 22 Is Australia serious 14 Australia can be a world about climate change? leader in energy storage 25 Is it a bird? Is it a plane? No, it‘s graphene BY BRUCE GODFREY 32 Risky bias in artificial intelligence
16 Value chains and 34 What does a future-ready PhD energy productivity graduate look like? BY JONATHAN JUTSEN 36 Women in technology
39 ATSE People
29 Reflections 45 Events on STELR 46 Book reviews By ALAN FINKEL
PUBLISHER Australian Academy of Technology and Engineering Address: Level 1, 1 Bowen Crescent, Melbourne ATSE Focus is produced to stimulate discussion and public policy initiatives on key topics of interest to Postal Address: the Academy and the nation. Many articles are contributed by ATSE Fellows with expertise in these areas. GPO Box 4055, Melbourne, Victoria 3001 Opinion articles will be considered for publication. Items between 800 and 1400 words are preferred. Telephone: 03 9864 0900 Please address comments, suggested topics and article for publication to [email protected]. Facsimile: 03 9864 0930 Email: [email protected] CEO: Dr Margaret Hartley FTSE Editor: Anthea Batsakis With thanks to: David Glanz and Inoka Amarasekara Print Post Publication No 341403/0025 ISSN 1326-8708 (print) 2207-8223 (electronic) Design and production: Coretext 03 9670 1168 www.coretext.com.au
Stay in touch with ATSE on Twitter COPYRIGHT bit.ly/ATSETwitter or @atse_au This publication contains copyright material. Some of the material is owned by Australian Academy of Technological Sciences and Engineering Ltd ACN 008 520 394 (ATSE) and LinkedIn bit.ly/ATSELinkedIn and some material is owned by others. All copyright and other intellectual property rights in the materials remain or just follow the links from our webpage with the owner. No material in this publication may be copied (except as legally allowed) or further disseminated Read Focus online or sign up for a free electronic subscription at bit.ly/ATSEFocus without the express and written permission of the holder of that copyright, with the exception of copying for educational purposes. Copyright © ATSE 2018
www.atse.org.au 3 FOCUS | APRIL 2018
From the President‘s desk Solving the energy trilemma
WINDS OF CHANGE Australia‘s energy future
e have three goals for our the ban by some state governments on secure supply – will become cheaper than energy supply, two of unconventional gas production, which traditional fossil-fuel-burning generation. which are uncontroversial: could possibly increase the supply of lower- The major issue is that there will be a deliver electricity at the cost gas (it is not clear that it will, but by period, probably of at least a couple of lowest cost to consumers removing inhibitions on its production it may decades, during which we shall need to and businesses,W and ensure that the supply encourage entrepreneurs to come up with replace our existing generating capacity is reliable and secure (the latter implies that different solutions). with these new solutions. enough electricity is available instantly when Similarly, it does not make any scientific The longer we delay the start of this required and the former that an event on the sense to prohibit the development of nuclear replacement cycle, the greater will be the
grid – such as a wind turbine shutting down power generation. While there is widespread unnecessary pumping of CO2 into the due to a lack of wind – does not cause the scepticism regarding its economic viability, atmosphere. At present, a lack of clear grid to become unstable). a new generation of small modular reactors policy direction is delaying the investment Everyone agrees on those two, but may change this equation and, if that turned that is required to bring in this new unfortunately the third consideration, namely out to be the case, Australia would lag behind generation capacity. to reduce – actually remove – greenhouse the rest of the world. On the demand side, a new set of gas emissions from our electricity generators, The influence of technology is already technologies can also be used to reduce turns the rational discussion on energy into being felt due to the distribution of electricity requirements and also to an emotional debate. generation in the form of the 1.8 million improve the overall efficiency of the ATSE believes policy-makers should Australian households that are generating system end-to-end. set rules that allow the market to pick the their own electricity using solar cells. Our Overall, while there is much to winners in terms of the technologies we use electricity distribution system needs to catch be done, there is plenty of reason for to solve the energy trilemma. However, the up with this development through the use optimism as you will see from the articles rules must ensure that the playing field is of so-called ‘smart grid‘ technologies that from ATSE Fellows addressing the above level for all technologies. ‘Clean‘ energy is coordinate the central generators with the topics in this issue of Focus. currently more expensive (and we emphasise increasing number of distributed generators. currently because within a decade this will Of course, suppliers of variable renewable no longer be a consideration) than ‘dirty‘ electricity generated from the sun and wind energy (the latter coming from burning oil, need to ensure 24-hour supply through the
coal or gas, all of which release CO2 into the use of energy storage. While there has been atmosphere, unless carbon capture and a lot of noise in the media about whether storage is added to the generation system). renewables can achieve continuous supply, This raises a predicament for policy- the answer is very clearly that they can. It will PROFESSOR HUGH BRADLOW FTSE makers as to whether they should set a price require storage but the massive investments on carbon emissions or subsidise renewables going into batteries and other grid storage to level the playing field. However, to achieve solutions (such as pumped hydro and super- technology neutrality governments also capacitors) give us confidence that we shall need to avoid emotional bans on certain be able to meet this need. technologies that are not based on evidence. On the current technology trajectory, For example, there is no evidence to support the cost of renewables – with reliable and
4 www.atse.org.au APRIL 2018 | FOCUS NEWS
South Australian election voter compass
The tech revolution shows no signs of SA Best, the Liberal Party, the Labor Party and reducing the need to import power from slowing, and South Australia runs the risk the SA Greens urging a number of policies the NEM at peak power prices; of lagging behind the rest of the world if that, if implemented, would help South ¢being the first mover for 5G infrastructure; the new government does not embrace Australia thrive. and ongoing innovation. “We put forward key technology policy ¢evidence-based analysis of the role of issues so that the public could judge the genetic technology in the food of the future. That was the message promoted by competing political parties against these in Other policies ranged across industry ATSE in the run-up to the state election in order to help them decide,” ATSE President and innovation, energy, health technology, March, encouraging parties and voters to Hugh Bradlow said. agriculture and water. make technology policy a priority in political “It’s a vote compass for technology Responses were received from Labor and debates. policy.” the Greens. In the weeks before the election, ATSE Policies and priorities included: submitted a document to the offices of ¢urgently ensuring power reliability, Visit atse.org.au for more information.
AI EMBRACED BY VICTORIAN PARLIAMENT obots visited the Parliament of Victoria last month for the launch of change and then work out how we, as a community and society, can Rthe Victorian All-Party Parliamentary Group on Artificial Intelligence. make sure people are not left behind,” Mr Dalidakis said. “Parliament The group, made up of parliamentarians from across the political will be at the forefront of being able to explain and take advantage of spectrum, aims to learn more about the transformative nature of this technology.” artificial intelligence (AI) and how it will affect the future of Victoria. Mr Southwick added that it was an important issue for Victoria’s ATSE’s Victorian Division co-hosted the seminar for MPs and future and would be the focus of a joint parliamentary team. “We hope their staff, which was addressed by 3A Institute Director Professor to work together to ensure Victoria’s future is well progressed with the Genevieve Bell. The event was launched by Innovation Minister Philip kinds of innovation that we are seeing here today,” he said. Dalidakis and Shadow Innovation Minister David Southwick, who are During the launch, robots from RMIT University handed the co- the group’s co-convenors. convenors a primer outlining basic information on some of the key “We should be learning to embrace that change, adopt that issues in AI and machine learning.
Victorian Minister for Innovation Philip Dalidakis is handed a primer on AI and machine learning at the launch. PHOTO: GLENN JEFFREY GLENN PHOTO:
www.atse.org.au 5 FOCUS | APRIL 2018 NEWS
Submissions from the Academy
ONE OF THE ACADEMY’S IMPORTANT FUNCTIONS IS TO HELP DEVELOP EFFECTIVE PUBLIC POLICY IN AREAS INVOLVING SCIENCE AND TECHNOLOGY. THIS IS OFTEN DONE WITH SUBMISSIONS, CALLING ON THE EXPERTISE OF OUR FELLOWS, TO GOVERNMENT AND PARLIAMENTARY INQUIRIES AND LEGISLATIVE INITIATIVES.
To read them in full, visit the ATSE website (atse.org.au).
ENERGY WORKSHOP IDENTIFIES POLICIES FOR EMISSIONS REDUCTION or Australia to be a world leader in In November, ATSE held the ATSE Energy The participants also discussed cross- Femissions reduction and climate change Policy Workshop 2017, ’A Sustainable Energy sectoral challenges such as improving energy mitigation, policy measures must be rolled Future for Australia’, bringing together Fellows, productivity and the intersections between out across the entire economy. leaders in industry, academic experts and energy, food, water and the environment. But the highest priority is the energy sector, senior public servants to explore opportunities They identified policies and actions that which is responsible for nearly 80 per cent of and challenges arising from this transition. can not only boost Australia’s productivity Australia’s greenhouse gas emissions. It must The workshop, held in Adelaide, addressed and sustainability, but also our global embrace climate change policies to ensure some of the country’s biggest sources of competitiveness. Australia transitions to low-emission energy emissions, including the electricity sector, and systems that are affordable, secure and reliable. direct combustion in industry and transport. Visit atse.org.au
6 www.atse.org.au APRIL 2018 | FOCUS NEWS
HERE ARE A FEW OF OUR RECENT Priority must be given to preparing Australian industry and SUBMISSIONS, OUTLINING ATSE’S POSITION society leaders in applying and developing digital technologies. ON CURRENT TOPICS. It is imperative a national Digital Economy Strategy for Australia’s digital future is established. National Energy Guarantee (NEG) Recommendations from the Academy include devising Draft Design consultation paper strategies to harness and grow digital transformation expertise in all The Energy Security Board industry sectors (such as biotech, financial and energy industries), The National Energy Guarantee (NEG) emissions requirement risks boosting productivity and competitiveness, and maintaining the being costly and ineffective if it’s not part of a long-term national highest cybersecurity standards. The submission was drafted by decarbonisation strategy. The NEG is a two-part strategy to deliver Academy’s Digital Futures Working Group. reliable and lower-emission energy generation each year – and it has ATSE’s qualified support. While it’s not the Academy’s preferred Optimising STEM Industry–Schools policy to reduce emissions, in the current environment it may be Partnerships: Inspiring Australia’s Next Australia’s best chance to clear the muddled policies hampering Generation energy sector investment. Recommendations to the Energy Security Department of Education and Training Board include ensuring the NEG doesn’t entrench or boost market Schools must deliver 21st century skills of communication, power of the vertically integrated generator–retailers, and ensuring collaboration and creativity alongside a clear prioritisation of maths it enables different resources and technologies, such as generation and science. The future workforce will be fragmented – students and storage. and graduates from tertiary education entering the workforce will need a combination of both interpersonal skills and deep discipline Clean Energy Finance knowledge so they can adapt to emerging opportunities. Corporation (CEFC) Review Key points made in this submission include equipping teachers Department of the Environment and Energy with necessary skills to engage students with the evolving workforce, ATSE recommends expanding the Clean Energy Innovation Fund and deepening the partnership between industry and education (CEFC) and a technology neutral investment mandate for the CEFC, a with more work placement opportunities. specialist clean energy financier. The CEFC has been broadly successful increasing flows of finance Hydraulic Fracture Stimulation into the clean energy sector. But its investment mandate must allow in Western Australia it the flexibility to evolve and ensure the body’s ongoing impact. Independent Scientific Panel Inquiry into Hydraulic Fracture Important recommendations in the submission include allowing Stimulation in WA the CEFC to occupy a higher-risk niche for increased impact by The risks associated with shale gas are comparable to those associated expanding the Clean Energy Innovation Fund; and futureproofing the with other resource extraction activities. The body of scientific evidence, CEFC’s mandate with targeted technology and sector-neutral outcomes. while constantly evolving, makes it clear shale gas developments may broadly impact water, land, air, climate change, society and health. To Digital Economy Strategy responsibly and sustainably develop shale gas resources, governments Department of Industry, Innovation and Science and industry must commit to evidence-based, site-specific risk Understanding the role technology plays – and will continue to play assessment and mitigation, transparent and open communication with – in our economy will help determine how we prepare for changes communities, impact monitoring and robust independent research across industry, government, education and the community. addressing knowledge gaps.
ATSE MAY TAKE ON INNOVATION METRICS he Innovation and Science Australia (ISA) Innovation and Science (DIIS) to review metrics within 18 months, including new TBoard released its 2030 strategic plan business and research and development innovation metrics to track other areas of Australia 2030: Prosperity through Innovation. ATSE data collections to ensure they are fit for our innovation economy with a view to was mentioned in Recommendation 30, below: purpose and take full advantage of all promoting these for use by the broader Support the development of a suite of available data sources international community. innovation metrics and methodologies to fully ¢commission an independent body, such as The Academy has been in discussion with capture innovation and link it to economic, the Australian Academy of Technology the Office of the Chief Scientist about social and environmental benefits. In particular: and Engineering, in consultation with the participation in this project, which would be ¢request the Australian Bureau of Statistics ABS and DIIS, to review existing innovation led by a working group of the Industry and (ABS) and the Department of Industry, metrics and report on a set of recommended Innovation Forum.
www.atse.org.au 7 Clever resourCeful solutions
The minerals we help to mine shape the world We combine the progressive thinking of our Global we live in. R&D and Technical networks to find solutions for the challenges encountered at every stage of the mining An Australian company with a global footprint, value chain. Orica has operations in more than 50 countries and customers in more than 100. On average, we deliver To deliver for our customers, we rely on excellence in 1,500 blasts every day. Science, Technology, Engineering and Mathematics.
We’re focused on developing long-term We are therefore proud to be the principal Sponsor partnerships with our customers to reduce the total of ATSE’s STELR Project and to have helped more costs of mining, improve productivity and achieve than 400 schools in Australia and beyond become sustainable environmental outcomes. STELR schools.
Blasting Systems l Ground Support l Mining Chemicals orica.com
OR059_Stelr A4 Ad.indd 1 14/08/15 9:17 AM APRIL 2018 | FOCUS NEWS
Maftuchah Sari (right) and her colleague use a STELR solar panel to power a motor on the STELR test rig.
STELR now in more than 670 schools
STELR’s influence continues to reach further across the world and WESTERN STELR throughout Australia as the number of participating schools has Western STELR – the brainchild of Professor Barney Glover FTSE, a shot up to more than 670. STELR is ATSE’s initiative to bring hands- long-time supporter of STELR – launched in February in Parramatta. on, inquiry-based STEM education into schools. The program is a partnership between Western Sydney University (WSU), ATSE and the NSW Division Committee, and the OUR 21st CENTURY CLASSROOMS NSW Department of Education, and supported by the Institute of Some 60 local primary school teachers attended a workshop that used Education, University College London. STELR’s renewable energy equipment in south-west Jarkarta. WSU is supporting 10 secondary schools in western Sydney to The theme of the workshop was ’Community Building’, part of the participate in the STELR program. This takes the number of NSW program’s overarching theme ’Our 21st Century Classrooms’. schools using at least one STELR equipment pack and associated It was conducted by Maftuchah Sari, a physics and chemistry curriculum materials to more than 200. STELR runs in more than 660 teacher at the hosting school, Mutiara Harapan Islamic School. schools in all Australian states and territories and internationally. Last year Ms Sari attended a five-day STELR STEM teacher-training WSU will also use STELR kits and curriculum packages in workshop in Bandung, Indonesia. training its Master of Teaching (STEM) and Master of Teaching Long-time STELR sponsor Orica donated one STELR Electricity (Secondary Science) students. Special thanks to the ATSE NSW and Energy student and teacher kit to the school as part of its Global Division for its magnificent support helping make Western STELR Community program. happen.
IS AUSTRALIA TECH READY? TSE is assessing the ‘technological The project also involves developing and the Office of the Federal Minister for Areadiness‘ of key industry sectors to a 10-year plan for technology research, Urban Infrastructure and Cities. determine whether Australia can keep up with addressing industry problems that arise They identified areas where the research evolving technology – and the project is well when new technology is embraced. And will contribute to stakeholders’ work and underway. Technological readiness is defined transport is confirmed to be the first industry aligned timeframes for maximum impact. as the readiness to develop, adapt to or adopt sector analysed for its tech readiness. On 9 May, ATSE’s Annual National new technologies. Over the next three years, The Academy has begun discussing Technology Challenges Dialogue will be ATSE will develop a road map of what Australia the project with a range of stakeholders, held in Melbourne, with 50 expert workshop must do to fully integrate new technologies and including the Victorian Government, participants discussing the future of boost our economic advantage. Infrastructure Australia, Transport for NSW, transport as part of the project.
www.atse.org.au 9 FOCUS | APRIL 2018
Michelle Simmons on Australia’s tech future and her illustrious career
INTERVIEW The 2018 Australian of the Year overcame humble beginnings to become a world leader in her field.
hen her name was Australia to the forefront of quantum called in the Great Hall computing research globally. of Parliament House in Professor Simmons grew up in London Canberra, UNSW Scientia and moved to Australia in 1999, having already
Professor Michelle garnered an international reputation for her DINGO SALTY OF COURTESY IMAGE SimmonsW FAA FTSE said she not only felt work in two-dimensional gas hole systems. Michelle Simmons honoured, but also “charged with a great She graduated from some of the UK’s top sense of responsibility”. universities – her postdoctoral position was But as one of the greatest minds in in Cambridge. But, as she said in her Australia smallest transistor, made from a single atom. quantum physics in the world, Professor Day Address, she attended a “pretty rough” Every step of their eight-stage plan had been Simmons is no stranger to responsibility. school in south-east London. critiqued internationally, but they succeeded In 2017 she launched Australia’s first “Growing up in that part of England, I was nonetheless. quantum computing company, Silicon not raised within a culture that said it would And for Professor Simmons, there’s no Quantum Computing, uniting representatives be essential to go to university, let alone leave greater euphoria than overcoming a challenge. of governments, industry and universities Britain and set up a life at the other end of the As a child, Professor Simmons played in a UNSW-based consortium. She’s also Earth,” she said. competitive chess (in fact, she still has her the Director of the Australian Research “So, if someone had told me 30 or 40 certificate from the London Primary Schools Council Centre of Excellence for Quantum years ago that I would one day be asked to Chess Association). Back then, chess was Computation and Technology (CQC2T). deliver an Australia Day Address, you can an unusual game for girls. Now, she’s still Her research and drive to understand imagine I would never have believed them.” defying expectations – only five to seven per the world at the quantum scale has pushed In 2012, her team developed the world’s cent of her field is female.
10 www.atse.org.au APRIL 2018 | FOCUS
“Group think is everywhere, yet it is Here, Professor Simmons discusses the future of quantum computing, Australia’s the antithesis to scientific endeavour. tech readiness, and her impressive career.
My prescription in this case is to remember – You are a role model for young scientists who are inspired to pursue STEM education no matter who you are – it is always or research. What advice, particularly to young women, can you offer them in important to question the world around developing their career? Work hard, believe in yourself and don’t be you and build your own understanding afraid to go for it. You should certainly avoid the easy options. There are great rewards based on your own efforts.” that come from embracing hard challenges
www.atse.org.au 11 HEAR Michelle Simmons SPEAK AT THE ATSE INNOVATION DINNER Wednesday 13 June 2018, Melbourne BOOK HERE: www.atse.org.au/InnovationDinner
AUSTRALIAN ACADEMY OF TECHNOLOGY AND ENGINEERING APRIL 2018 | FOCUS
and carving your own path. You might be “Getting our strong To what extent do you think Australia is surprised by what you can achieve! equipped to handle the pace of changing It also pays to be open-minded about research base and technology? your career. One great thing about a STEM To lead changes in technology you have to education is that the skills you learn – our receptive have a very strong research base. Through coding, maths, critical thinking, logic, data the Australian Research Council Centre’s of analysis, research, the ability to communicate commercial sector Excellence scheme and the various Fellowship complicated concepts etc – are all schemes, Australia has a phenomenally transferrable skills that can open many doors. to work together is strong research base in quantum science and Undertaking STEM subjects will open rather technology. than narrow your choices in life. what will determine We also have an adaptable and open-minded industrial sector. However, What are some of the challenges you’ve whether Australia sometimes our academic and industrial faced getting to this point in your career? priorities are not aligned. Getting our strong Two of the biggest challenges I have faced are is to make the most research base and our receptive commercial ‘group think‘ and the ever-increasing amount sector to work together is what will determine of bureaucracy. of its opportunities whether Australia is to make the most of its Group think is everywhere, yet it is opportunities in the quantum domain. the antithesis of scientific endeavour. My in the quantum prescription in this case is to remember, no Where do you see Australia placed in 2030 matter who you are, it is always important domain.” when it comes to technology? Keeping to question the world around you and build up with or lagging behind the rest of the your own understanding based on your own world? efforts. Our challenge is to translate our strong Bureaucracy seems to be inevitable as are some examples of these problems? research base to new industries here in research efforts grow in size. In this case, Over 40 per cent of Australian industry Australia, and this needs to happen quickly however, there is no remedy. You just have to is predicted to be impacted by quantum if we are to capture the benefits for Australia battle through it! technologies. Examples include more by 2030. This will require creative thinking accurate and predictive weather forecasting, and a sense of urgency to break down the What do you wish more people knew about more efficient drug design and discovery barriers between universities, industry and quantum technologies? processes, better risk modelling in banks government. There is a transformational change coming and financial organisations, improved The opportunities are enormous, but in information technology, as we learn to pattern recognition analysis (for example, the translation of quantum computing manipulate and control quantum states. for driverless cars) and enhanced database technologies into practice is a long-term This will impact nearly every industry that searching. project. We need to start now. is data-intensive via absolutely secure Effectively, any industry that needs to communications and ultra-fast computation. sort through large databases or optimise How will you use this platform as Australian It will also require a whole new skills problems involving lots of variables will be of the Year? Are there any messages you’d base: hardware and software engineers impacted. It’s a game changer. like to promote? to build the quantum chips and develop First and foremost, I would like to see us break quantum programming languages; What else is in store for the future of down the boundaries between universities, mathematicians and physicists to work on quantum computing? What do you imagine industry and government in order to help quantum algorithms; hardware engineers to the technology would look like in 2030? found unique high-technology industries make control systems; instrument scientists By then, I believe we will start to see a in Australia based on our international to develop the technologies for exquisitely proliferation of quantum servers, performing leadership and strong research base. precise measurements; and material scientists, complex calculations for remote users. The Second, I am passionate about chemists and physicists to design new devices. model will be reminiscent of that employed encouraging young girls and boys to enter It is an exciting time for Australia as for the first servers developed for classical STEM fields. To this end, I want to highlight we have an incredibly strong – indeed computing, where users submitted a job and the benefits gained from taking the hard disproportionately strong – research base in awaited the outcome. subjects in school: disciplines that build quantum technologies across all these fields. Significantly, Australia has the potential to strong quantitative skills and encourage the manufacture these servers itself and develop ‘creation‘ rather than just the ‘usage‘ of new You’re developing a computer that could associated communications technology for technologies. This will become increasingly “solve problems in minutes that would secure access. These activities could form the important no matter what career a person otherwise take thousands of years”. What foundation of completely new industries. aspires to. ¤
www.atse.org.au 13 FOCUS | APRIL 2018
BY BRUCE GODFREY
Australia can be a world leader in energy storage
AUSTRALIA‘S ENERGY FUTURE The future of renewable energy storage in Australia and how we can take advantage of our natural resources.
nergy storage has the potential There are also numerous other energy storage technology opportunities for to upend both physical and applications with niche requirements, such as Australia across global supply chains. economic industry structures that mining or off-grid applications. Australia has world-class resources of the have defined power markets for raw materials used in battery manufacturing, the past century. WHAT CAN WE EXPECT? most notably lithium. Our raw materials, InE a decentralised yet integrated Over the coming decade, there is unlikely to together with our world-class expertise – not 21st century energy future, electricity be only one favoured form of storage. Based only in energy storage, but also in off-grid networks must enable new opportunities for on expected-cost curves, the most likely energy supply and micro-grids – demonstrate managing the multiple, complex pathways forms of energy storage will include pumped that Australia has the potential to become a navigated by flows of electricity and hydro, batteries and molten salt (coupled world leader. payments. with concentrated solar thermal power Chemical storage – storing energy in a A recent Australian Council of Learned generation). chemical form, such as fuel – is also identified Academies (ACOLA) report clearly showed These different technologies have varying as a potential export opportunity as countries that energy storage is critical to successfully costs and performance characteristics. And such as Japan and Korea embrace hydrogen transforming our electricity systems. Storage determining which is the ‘best‘ form of energy energy. links electricity production and consumption, storage depends on where it is needed, for The typical process for producing enabling more grid-scale (or utility-scale) what purpose (in electricity reliability or hydrogen releases carbon dioxide. Water renewable generation and distributed energy security, or both, for instance), the nature of electrolysis, instead, avoids greenhouse gas generation into the market. the local electricity grid, and the current and emissions by using renewable electricity Energy storage is an emerging industry future types of electricity generation. to split water into hydrogen and oxygen, globally. But its application in high volumes Energy security is about ensuring the effectively storing the renewable electricity in for both the electricity and transport sectors ability to rapidly cope – within seconds or hydrogen. is still immature. less – with fluctuations in energy demand and Thanks to Australia’s abundance of sun, Storage comes in many forms and can be supply that would move system frequency this can enable growth of a new industry, applied in many scenarios: (50 cycles per second in Australia) outside particularly in northern Australia. ¢in-front-of-the-meter, large-scale grid allowable limits. Energy storage that can Recycling is also identified as an storage, or community-based or micro- provide electricity into a grid at a moment’s opportunity for Australia. We have a history grid storage; notice is an alternative to spinning turbines to of recycling more than 90 per cent of lead- ¢behind-the-meter individual consumer provide maintenance of system frequency. acid batteries. Opportunities to develop storage coupled to solar generation (there Energy reliability refers to the ability to technologies to recycle components of are more than 1.8 million buildings, mostly balance electricity supply and demand over lithium batteries (including cobalt, nickel and households, in Australia with roof-top solar longer periods. An adequate electricity supply lithium) could be further supported. power systems); is needed at all times but particularly to meet Importantly, Australia can encourage ¢electrified transport (buses, cars, peak demand at day‘s end, which may not product stewardship across the whole life motorcycles and heavy and light vehicles coincide with peak variable renewable supply cycle, including responsible sourcing of for delivery); and (middle of the day for solar and often night- materials, development of mining standards ¢new defence requirements (submarines, time for wind). and sustainability codes, and disposal. unmanned aerial vehicles etc). The ACOLA report identifies significant There is a legitimate role for governments APRIL 2018 | FOCUS
The most likely forms of energy storage will include pumped hydro. “Energy storage is an emerging industry globally. But its application in high volumes for both the electricity and transport sectors is still immature.”
to ensure the right policies are enacted to Australians’ knowledge of, and The career of Dr Bruce Godfrey FTSE has been drive growth in energy storage. attitudes towards, energy storage will built in business, innovation investment and Policy leadership will result in innovation, shape acceptance and adoption. General technology development. He has focused on the advancement and commercialisation investment, the establishment of new high- knowledge of energy storage options is of technologies (particularly new energy technology industries, the growth of existing limited and largely restricted to batteries technologies – renewable, enabling and low- high-technology industries, and increased or (the ‘Tesla effect‘). This is one of the factors emission fossil), investment readiness of products new energy exports. limiting uptake of storage, especially at the and companies, and innovation policy and programs. A Fellow of the Academy of Technology A proactive approach will provide the domestic scale. and Engineering (ATSE), he is a Director and opportunity for Australia to lead and facilitate Nonetheless, there is a demand for Vice-President Diversity of the Academy, as well re-skilling of workforces and the creation domestic-scale energy storage by households as Chair of ATSE’s Energy Forum. He has chaired Expert Working Groups for the Australian Council of jobs across all levels of the value chain, across Australia, to future-proof against of Learned Academies (ACOLA) on Delivering from mining and manufacturing through to soaring electricity prices and to take greater Sustainable Urban Mobility (2015) and Energy consumer spending. control of their energy supply. ¤ Storage (2017).
www.atse.org.au 15 FOCUS | APRIL 2018
BY JONATHAN JUTSEN
How to transform our energy productivity
AUSTRALIA‘S ENERGY FUTURE Tracking the value chain exposes just how inefficient our energy use is. Here is how we can boost our energy productivity.
nergy is a linchpin in our modern the trip was essential: it could have been health benefits, as long as the benefits can be lives – and this is fully appreciated combined with trips for other needs; or done quantified. when there are interruptions by bicycle or public transport. Nor whether Our objective is to double Australia’s to supply. But we use energy you may have got caught in traffic, which energy productivity by 2030. The Australian resources incredibly inefficiently. not only reduces energy efficiency, but also Government has set a far less ambitious ConsiderE the specific end services (the labour productivity. Virtual solutions are objective of increasing EP by 40 per cent final purpose for energy, such as for your beer rapidly reducing the need to travel to work by 2030, but more resources will need to to be cold, or food to be fresh) that require and entertainment in many cases. be invested in the task to even achieve that energy for their supply. If we track the value Another example is the use of an electric objective. chain for the delivery of those services and hot water system to fill your bath with warm The value chains we wish to explore are: the energy used, we find, overall, our society water. ¢food; only converts about 10 to 15 per cent of all Typically, less than 10 per cent of the energy ¢water; the fossil energy resources that are exploited in coal actually delivers the task of washing in ¢shelter; into the required service. warm water, taking into account losses in coal ¢comfort; Most people find it hard to believe this mining, power generation (which typically loses ¢connectivity - freight, people transport, figure until we look at some examples. more than 66 per cent of the coal energy input communications and infrastructure; Let’s look at the task of ‘connectivity‘, or as low-grade heat to the atmosphere and lakes), ¢health bringing people together with their work, transmission and distribution, as well as heat ¢community and entertainment; entertainment or goods. Many elect to connect losses in the tank and pipes. The warm water ¢education; and to their workplace using a two-tonne private car left in the bath when you are finished is then ¢security. driven by an internal combustion engine using expelled to the waste water system with only a In the past 18 months we have focused petrol (this fuel is sourced from crude oil, which fraction of the heat removed. on the ‘food‘ (nutrition) value chain and is transported and refined, using perhaps 10 per we have done an initial exploration of cent of the energy content in the crude). VALUE CHAIN ANALYSIS the ‘shelter‘ value chain as well (covering The engine typically converts 20 to 25 A2EP, the Australian Alliance for Energy embedded energy in construction materials). per cent of the fuel to move the car. But the Productivity, is leading the way in using this This has demonstrated that we need to connectivity task is actually moving you, not type of value chain analysis to define how we look at material and energy flows together the car. If passengers account for 10 per cent can improve our energy productivity (EP). in our analysis, closely linking our work with of the car mass, only about 2 per cent of the EP measures the value we gain through circular economy approaches. crude exploited is effectively used to connect using a unit of energy. This value can be The food chain project demonstrated you to your work. GDP at a national level or value added at a very large potential for EP improvement, And this does not consider whether company level. But it can also be comfort or not just by reducing energy use, but also by
“This would form the first institute in Australia focused on energy productivity and efficiency in business, home and transport – filling a major gap in Australia’s capacity.”
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Effectively only two per cent of the enercy contained in crude oil is used to connect you to your work when you drive there.
different times. This is achieved through the optimal integration of photovoltaics, demand management and energy efficiency, particularly by using energy storage capacity. This is not in the form of batteries, but in thermal or material storage inherent in most business, and which can be enhanced at a fraction of the cost of installing batteries at sites or at grid level. We are excited by the immense benefits emerging from this value chain approach, and applying innovation to deliver the potential benefits identified. using energy more effectively to improve with discrete electricity technologies with This also points to cost-effective food quality and reduce food waste. These far higher energy productivity that are approaches to reduce our greenhouse gas ‘top line‘ benefits are likely to be an order distributed through the plant. They would, in emissions and manage energy demand of magnitude greater than the ‘bottom line‘ some cases, be thermal (like heat pumps), but profiles, in concert with the decarbonisation energy savings gained. in other cases steam loads can be replaced of energy supply. Value chain insights show that by using by non-thermal plant (like high pressure To accelerate this work, and provide innovation – new technologies and business processing). Alternatively, membranes to long term continuity, A2EP is teaming with models – we can deliver transformative dewater to displace drying would be used. UTS to form the nucleus for a Cooperative change to the energy productivity of the chain. The potential is to replace a boiler and Research Centre (CRC) bid we aim to submit An example is the work we are doing steam system that is perhaps 35 to 50 per this year on energy productivity. to optimise the cold chain – refrigeration cent efficiency with heat pumps that may This would form the first institute in used to preserve perishable food from farm have a COP (coefficient of performance) of Australia focused on energy productivity and to plate. We conducted a pre-feasibility 4 (in other words, 400 per cent efficiency). efficiency in business, home and transport – analysis that indicated that it would soon be There is also opportunities to recover waste filling a major gap in Australia’s capacity. economical to conduct real-time tracking of heat and provide free cooling as a by-product, This work is critical to address the the location and temperature of every pallet providing up to an order of magnitude Australian Prime Minister’s trilemma of of perishable food from farm to supermarket potential EP benefit. having affordable, reliable and low-carbon shelf using the Internet of Things (IOT). Electrifying industry aligns with a low- energy. It is also critical to redress the This work led to a pilot trial with a carbon future, as electricity will come from competitive disadvantage our businesses supermarket chain to track a specific renewable sources. are facing through the combination of horticultural crop from farm to shelf. The We are also starting a project to examine traditionally low energy productivity (due results have already clearly demonstrated how Industry 4.0 technologies can best to low energy prices in the past), poor rates that there are large potential food quality deliver transformation in EP in manufacturing. of energy EP improvement compared to improvements and reductions in food There are many efforts to demonstrate competitors, and very rapid energy price waste by using this IOT/cloud computing the value of digitisation and technologies escalation in the past decade. ability to track product conditions along for overall business productivity, such as IOT, We can see the solutions to these the chain. cloud computing and artificial intelligence. problems through transforming energy Energy productivity improvements have But there has been little focus on energy productivity and we welcome organisations many forms. Reduced loss of product value benefits until now. We aim to rectify this that wish to join us in our CRC bid and to and waste management costs flow through by defining the range of key opportunities work with A2EP in its quest to double our to energy and input savings, avoiding the and then working with our partners to EP. ¤ purchase, processing and transport of food demonstrate their application in processes at Mr Jonathan Jutsen FTSE is the Chairman of the that will be wasted. Energy is saved by manufacturing sites. Australian Alliance for Energy Productivity and is on introducing smarter, more flexible, more Another important project we are the board of ARENA. Currently, he is also an interim efficient technologies and improved business conducting (with the Institute of Sustainable CEO of a CRC bid that will be submitted in the next and food-handling practices. Futures, University of Technology Sydney) round called RACE for 203 on energy productivity. With degrees in chemical engineering and applied Another transformative change we are is demonstrating the large amount of science, Mr Jutsen has 35 years of experience in his pursuing is the potential to replace boilers flexibility that most businesses have to field: in the private sector, government and in non- and steam systems at manufacturing sites vary their electricity consumption at government organisations.
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The heat is on Climate change is arguably the most pressing issue of our time. To keep a grip on our future, we need to rethink the way we use energy.
Wendy Craik explains how Australia has endured years of shifting policy when it comes to the energy sector. To transition to renewable energy, policies must be stable, certain and climate-change-aware. As chair of the Climate Change Authority, she outlines ways Australia can reduce emissions.
Lorraine Stephenson explains how reducing our emissions relies on a willingness to adopt and develop new technologies, particularly if Australia – one of the top greenhouse gas emitters globally – is to adhere to the Paris Agreement.
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BY WENDY CRAIK
Change policies, not the climate
AUSTRALIA‘S ENERGY FUTURE Australia has endured years of shifting policy when it comes to the energy sector. To transition into renewable energy, policies must be stable, certain and climate-change aware.
limate change policy, like This brings us to the final horn of the task posed for Australia by its Paris target is politics, can be aptly described trilemma – energy affordability. uncertain. Australia’s emissions are influenced as the art of the possible. In From 2007 to 2017, electricity prices by economic conditions, weather, drought, the case of the nexus between increased by 63 per cent, according to the electricity demand and, in the land sector, energy and climate, finding the Australian Competition and Consumer rates of land clearing, which is in turn possible C quickly is important. Commission. Gas prices also rose sharply strongly influenced by demand in commodity We need to find a way to keep electricity from about 2015 as Australia’s LNG exports markets. Of course, these change over time. prices as low as possible and to decarbonise expanded. This significant price rise for gas In the latest emissions projections the energy sector while also fortifying power was accompanied by shortfalls in supply as prepared by the Australian Government, security. a number of the states and territories placed projected emissions in 2030 were more than Uncertainty in policy is a key barrier to further restrictions on the exploitation of gas. 200 million tonnes less than projected five our national energy market’s ability to solve Usually markets respond to higher prices years ago. And the projected emissions have this energy trilemma – and the reasons for with new investment. One might expect that been reduced significantly every year since this apparent market failure are multifaceted. higher energy prices and supply shortfalls 2013. Australia’s energy sector is undergoing a would have resulted in significant new In the Figure 1, projected emissions are significant transformation. investment in Australian power-generation expressed in million tonnes of carbon dioxide
The rise of intermittent generation (wind assets. Instead, the Australian energy equivalent (Mt CO2-e), a term used to describe and solar) and the exit of some coal and gas market was stymied for a few years by what different greenhouse gases in a common unit. has led to concerns that Australia’s energy some commentators have described as an These projection updates have resulted supply may not be reliable enough to meet “investment freeze”. in a significantly lower emissions-reductions the needs of households and industry. In my view, there were two main reasons task than expected. While businesses and households for the energy investment hiatus. The first To meet Australia’s 2030 target, however, need secure and reliable energy, Australia was the ongoing and significant uncertainty the emissions-reduction task remains also needs to reduce its emissions and about domestic emissions-reduction policy, challenging. Cumulative emissions reductions decarbonise its energy generation sector. and the second relates to the nature of the of 868 Mt CO2-e are required between 2021 In 2015, the Australian Government emissions-reduction task itself. and 2030 to meet Australia’s 2030 target. committed to reducing Australia’s emissions To put this in context, Australia currently by 26 to 28 per cent below 2005 levels by CHALLENGES TO REDUCING emits about 525 Mt CO2-e each year. Making 2030 under its target for the Paris Climate AUSTRALIA’S EMISSIONS judgements about the nature, timing and Change Agreement. And Australia, along with The actual size of the emissions-reduction size of Australia’s emissions-abatement task is other countries, is expected to review and progressively increase its emissions-reduction commitments to help reach the global goal “We need to find a way to keep electricity of net zero emissions in the latter part of the century. prices as low as possible and to decarbonise As electricity generation accounts for around one-third of Australia’s emissions, the the energy sector while also fortifying energy sector will clearly need to play its role in reducing Australia’s emissions. power security.”
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Australia’s emissions are influenced by various factors, such as drought.
important for investors in energy generation Modelling for the expanded Renewable UNCERTAINTY HAS A PRICE assets. It will inform the competitiveness Energy Target in 2009 projected high The Centre for International Economics of a given investment (and the return on uptake of geothermal generation by (CIE) found wholesale electricity prices were investment) in the market when pitted 2020 – more than half the amount of wind above long-run costs by around $27 to $40 against other generation assets. generation. However, there is currently per megawatt hour in May 2017, leading to Energy technologies and costs are also no commercial generation of electricity in increases in household electricity costs of uncertain. Australia using geothermal technology. between $46 and $68 per quarter. The renewable energy sector is The energy generation sector has also Since the CIE analysis, wholesale electricity characterised by rapid technological change been grappling with a highly dynamic prices have moderated, so it is likely that and declining cost trajectories. Costs of wind- policy environment with respect to the cost of uncertainty is now a bit lower. generated energy declined by about 30 per emissions reductions. Nonetheless, the point remains that electricity cent in Australia between 2012 and 2015. On In the view of the Climate Change prices could be lower than they would be the other hand, the East Coast wholesale gas Authority – which I chair – this policy otherwise, if credible and durable policy is put price rose from $7.60 per gigajoule in 2015 uncertainty has delayed investment in in place to address the energy trilemma. to $9.78/GJ in 2016, before declining to low-emissions technologies, and has The Climate Change Authority found $9.19/GJ in 2017. contributed to rising household electricity many different policies or policy sets can In a further complication, expectations bills. help address the energy trilemma – although about the market readiness of some Policy uncertainty has also created risk their impacts on emissions, reliability and technologies have been overestimated. for the reliability of the power system. affordability will vary.
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“The Climate Change F E Pro e te e ss o s 20 0 o er t e