Energy and Mining Strategy South Australia Building on our strengths “Our accountability to South Australians as their government is to ensure our policies encourage and enable our State to grow and become much stronger than it has been for a long time.” PREMIER STEVEN MARSHALL FOREWORD FROM THE MINISTER The State Government’s strong plan to mitigate and suppress the spread of COVID-19 has allowed businesses large and small to transition safely and confidently towards the restoration of full productivity. The fundamentals remain strong across the energy and mining industries. Continued cooperation with both industries will provide a solid foundation to achieve a sustained recovery. The Marshall Liberal Unarguably, South demand management South Australia is in Government is focused Australia is amongst technologies will better a strong position to on responding to the global frontrunners support our transition to a emerge from both the industry’s suggestions leading the transition modern energy system. statewide bushfires of on what steps should be to a modern energy last summer and the Our renewable assets taken to underpin the system complemented COVID-19 emergency in a not only provide us growth of the sector. The by greater grid safe and responsible way with affordable clean success of this response integration through the and realise the economic, energy, but also with will elevate South Project EnergyConnect environmental and social new opportunities to Australia’s international interconnector. benefits that the energy expand our trade markets profile and drive and mining sector brings We boast a remarkable and stimulate economic continued investment to our state. portfolio of renewable growth. The state is and jobs growth. generation assets that making exciting strides This Energy and Mining Growth State: Our Plan deliver affordable, reliable, in renewable hydrogen Strategy comes at a for Prosperity emboldens and secure energy technology that could critical time for South the energy and mining through the transition decarbonise heavy Australia, and will sector to continue to play of Australia’s energy industry and power zero provide a roadmap to a key role in the state’s network. emission heavy vehicles. recover from the greatest economic activity. economic challenge of These assets include Moreover, the State our time. This Energy and Mining large-scale renewable Government is resolute Strategy gives the sector energy generation and that in the not-too-distant the tools, support and storage, such as wind, future South Australia confidence to grow solar, bioenergy, battery will be one of the jobs and exports, and and thermal storage. world-leading hydrogen demonstrate South A range of innovative producers, consumers Australia’s attractiveness trials designed to and exporters. Hon Dan van Holst Pellekaan MP as a world-leading enhance the benefits of Minister for Energy destination for energy rooftop solar, bioenergy, and Mining and mining investment. distributed storage, Government of energy efficiency and South Australia Energy and Mining Strategy | 1 FOREWORD FROM THE CHIEF EXECUTIVE South Australia and the world have collectively experienced an unprecedented global health emergency. Throughout the across the state last the long-term prosperity sets out an action list to coronavirus response, the summer, we suddenly aspired to in Growth overcome them. Department for Energy faced an even greater State. The department’s aim and Mining (DEM) has challenge. Our combined Importantly, the is to assist industry kept open the channels resilience will ensure we economic fundamentals to contribute to a of communication with emerge from both of remain strong in the reinvigorated economy the state’s peak mining these shocks. energy and mining in the near term and into and energy bodies. This Energy and mining industries. This Energy the post-pandemic future. exchange of ideas has industries were and Mining Strategy been critical on the road designated as essential identifies the issues and to recovery. during the COVID-19 roadblocks along this Just as South Australia response and they remain path to recovery that Dr Paul Heithersay began planning for so. Undoubtedly, their impact on the sector’s PSM a recovery from the contributions will be capacity to contribute to Chief Executive bushfires that swept fundamental to achieving our state’s prosperity and Department for Energy and Mining FROM THE MEAC CHAIR The energy and mining industries in South Australia have a history of being agile, flexible and quickly able to respond and adapt to changing conditions. Their responses to COVID-19 and the oil price shock has been no different. Our sector’s swift COVID-19 outbreaks at would best facilitate an by the Minerals and cooperation with federal any industrial or regional acceleration in economic Energy Advisory Council and state governments, sites in South Australia. activity in our sector. (MEAC), I am confident and our designation policymakers will have The Marshall Liberal The government correctly as an essential service, the information and Government reached out identified Energy and meant early steps were support they need to to industry and asked us Mining as one of nine taken to ensure energy address any impediments to help shape its Energy priority sectors that and mining personnel to achieving our sector’s and Mining Strategy. would most likely and the communities long-term success. We have taken this contribute to the pickup in which they live and opportunity to highlight in activity. By maintaining work were protected. This to the government the open channels of collaboration has been Pauline Carr areas within Growth communication, such so successful that there Chair State’s four enablers that as the role played have been no reported Minerals and Energy Advisory Council 2 | Energy and Mining Strategy CONTENTS Executive Summary 4 An Economic Snapshot 6 Our Strategic Targets 7 Growth State Our Plan for Prosperity 8 Our Resilience Challenged 9 Shifting the Dial on Growth 10 Energy Secure, Reliable & Affordable 12 Minerals Uncovering New Discoveries 14 Extractive Industries 18 Oil and Gas Exports, Innovation & Affordability 20 ETS Equipment, Technology and Services 22 Growth State Further Opportunities 24 Trade and Investment 24 Infrastructure 26 Land, Water and Environment 28 Skills and Innovation 29 Effective Regulation 31 Working with the Commonwealth 31 How to get involved 32 Energy and Mining Strategy | 3 EXECUTIVE SUMMARY South Australia’s Energy and Mining Strategy is a confident statement of the potential for this key sector to build on their enduring strengths, world leadership and capacity for innovation to power a speedy recovery from the unprecedented setbacks of the past year. The combination of last summer’s bushfires, the Recent policy and program developments such as COVID-19 pandemic response and the recent South Australia’s Energy Solution, the Accelerated collapse in oil and gas prices has challenged the Discovery Initiative, Battery and Emerging Minerals resilience of our community, economy and energy Strategy and the Electric Vehicle Action Plan and mining industries. foreshadowed in the 2019-2020 State Budget are included in this strategy. Existing industry initiatives Yet their resilience in the face of these combined include the Copper Strategy, Magnetite Strategy, South challenges has reaffirmed their capacity to support Australian Hydrogen Action Plan and the Roundtable the state through extraordinary times and offer for Oil and Gas. a pathway to recovery and prosperity. The rapid and significant sector adjustments in response to Energy and mining is one of nine sectors identified as the COVID-19 pandemic has ensured safe worker key contributors to the Growth State ambitions. The operating environments, contributed to containing Marshall Liberal government will respond to sector the virus spread, and resulted in maintained essential strategies developed to support Growth State with energy supplies and mineral production. carefully considered commitments under the growth enablers of trade and investment, skills and innovation, Attention is turning to economic recovery and our infrastructure, and land, water and environment. longer-term economic growth. Industry began providing its suggestions for improving the productive The core strategic aims are to improve the productive capacity of the energy and mining sector in 2019 in capacity of our resource exporting companies and the response to the Growth State: Our Plan for Prosperity supply chain businesses they support, while creating a and its ambition to accelerate economic activity modern energy system that lowers costs, encourages towards a sustainable three per cent annual growth efficiency and assists in delivering Australia’s targets for rate. DEM has distilled that response, captured reducing greenhouse gas emissions. initially in the feedback received on the Energy and Mining Consultation Paper then further refined in the aftermath of the COVID-19 pandemic into South Australia’s Energy and Mining Strategy. The work of Infrastructure SA in developing a 20-year Infrastructure Skills and Energy Strategy and the ongoing market reforms of the training Energy Council and the Energy Security Board have also informed this strategy. The strategy identifies the areas that industry believes the government needs to strengthen to achieve Oil Energy the increase in economic activity that will put South and and ETS* Australia firmly on a growth trajectory.