Queensland’s biggest coal export terminal goes 100 pct renewable, with certificates

One of Australia’s biggest coal export facilities, Queensland’s Dalrymple Bay Coal Terminal, is looking to green up its act, in a deal to offset 100% of its electricity consumption with the purchase of renewable energy generation certificates, starting in 2023.

The deal will see the coal port’s owners, Dalrymple Bay Infrastructure, buy large-scale generation certificates (LGCs) from renewable energy generator and retailer, CleanCo, which was established by the Labor Palaszczuk government to drive renewable energy development in the state.

CleanCo chair Jacqui Walters said the deal would supply the coal terminal’s operators with LGCs created from local renewable sources, including wind energy generated on Queensland’s Southern Downs and solar energy generated on Queensland’s Western Downs.

“Providing clean energy at a competitive price to our customers allows CleanCo to create growth and jobs in regional Queensland through new renewable generation,” Walters said in a statement on Wednesday.

“We are proud to be partnering with DBCT and DBIM in providing this renewables-backed solution over the eight year contract term.”

CleanCo has been instrumental in underwriting a number of major solar and wind projects in the state through energy offtake deals, including in August the 180MW Dulacca wind farm, developed by RES Australia north of Brisbane.

Under that deal, CleanCo committed take 70 per cent, or 126MW, of the power produced by Dulacca, helping it become one of the very few large scale wind or solar projects to land finance in Australia for the year to that date.

CleanCo has also signed up the 157MW Kaban wind farm south-east of Cairns, and has a contract to take most (320MW) of the output from the planned 400MW Western Downs solar farm, both owned by Neoen.

In the state’s south-west, CleanCo signed a deal to build a new 100MW Karara wind farm and take the output from a further 400MW of Acciona’s 1GW MacIntyre wind project that will adjoin it.

For the ASX-listed Dalrymple Bay Infrastructure, the CleanCo deal is a step towards its commitment to achieve net zero Scope 1 and Scope 2 emissions at the coal terminal by 2050, with scope 2 electricity emissions representing around 98% of the terminal’s greenhouse gas emissions each year.

Dalrymple Bay Coal Terminal, at the port of Hay Point in Queensland, is the state’s largest coal export terminal, with an annual export capacity of 85 million tonnes, supplied from Bowen Basin coalfields. According to Wiki Global Energy Monitor, it accounts for 21% of world metallurgical seaborne coal exports.

“As outlined in our 2021 Sustainability Report, we recognise that while the steel industry is carbon intensive, it has an important role to play in the transition to a low carbon economy,” said DBI CEO, Anthony Timbrell on Wednesday.

“Through our efforts to minimise the energy intensity of DBT, we can actively contribute to the decarbonisation of the steel supply chain,” he said.

“DBCT’s agreement with CleanCo for the purchase of 100% of its electricity with renewable benefits in the form of LGCs for the terminal represents a step-change on our sustainability journey,” said DBCT’s CEO, Steve Rae.

“DBCT and DBI have a shared commitment to address current and future social environmental and economic challenges facing our business via a robust, balanced and evidence-based sustainability strategy and action plan.”