Australia’s oil and gas industry should diversify into solar energy investment, a leading research body says.
The call is made in a roadmap addressing long-term challenges facing the nation’s oil and gas industry.
Consequently, the sector should identify new business models and revenue streams including clean energy and solar-powered hydrogen fuel production.
The roadmap is created by the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
The need for diversification is also driven by factors like:
- Plummeting cost of grid-scale solar power.
- Rapid pace of technological change.
- India, France, Britain and China phasing out petrol and diesel vehicles.
Oil and gas producers therefore need to start planning for a low-carbon future, the roadmap claims.
Solar energy investment solution to industry challenges
The falling cost of renewable energy production is forcing the oil and gas industry to rethink its future, CSIRO says.
So far, the transition to a clean energy future has involved major global natural gas investments.
However, these may ‘fall flat’ because renewables are developing so swiftly, CSIRO claims.
The production of a grid-scale solar power system is rapidly becoming cheaper than fossil-fuelled electricity solutions.
With 40 per cent of petroleum exploration and production companies moving away from oil and gas in 2017, alternative avenues are being explored.
These include solar photovoltaics, commercial energy storage and home battery systems, according to CSIRO.
Hybrid solar and gas microgrids could help developing nations transition from poverty to cheap, clean-energy distribution for all.
AGL leading the way in renewable energy investment
Australia’s largest integrated energy company, AGL Energy, is transitioning away from fossil fuels and a coal-dominated national grid.
The company has also created the Powering Australian Renewables Fund (PARF) to develop, own and manage large-scale infrastructure and assets.
AGL Energy sold its Nyngan and Broken Hill solar plants into the fund in November 2016.
PARF allows investors to finance a portfolio of renewable assets, diversifying risk and reducing costs.
‘CSIRO’s Oil and Gas: A Roadmap for unlocking future growth opportunities for Australia’ is part of CSIRO’s Strategy 2020. This is designed to address Australian industry’s most critical challenges.
This is designed to address Australian industry’s most critical challenges.
