Figure 2 : Selected Clean Energy Technology Equipment required for Net Zero by 2050 decarbonisation . The distributed nature of renewables provides opportunities for every region .
Knowing your region is critical so undertaking an audit will help you answer the following questions :
Source : International Energy Agency , World Energy Outlook , 2021
• who uses and / or produces energy and chemicals ?
• what is your region ’ s carbon footprint ?
• who provides products or services into the local or global energy and chemicals markets ?
• what other related assets and strengths do you have ?
• what can you do for the local or global market to assist in decarbonisation ?
These minerals will need to be processed and then used in manufacturing . All of the mining , processing and manufacturing will need to be powered by renewable energy to ensure that they don ’ t contribute to carbon emissions . Australia has worldleading renewable capacity . Australia also has the skills and capability , but not currently in sufficient quantities to support the required scale-up .
While operationally a lot of renewable energy and hydrogen facilities won ’ t be labour intensive , the scale expected will create a significant number of construction and operational jobs and there will be a need for regular maintenance , refurbishment and recycling . Local capability can be deployed globally , earning export revenue and contributing further to the Australian economy .
Across the value chain , there are economic and employment advantages to be realised . We can passively wait for the rest of the world to exploit Australia ’ s natural renewable resources , or we can actively contribute and drive local opportunities .
As this point , it is important to recognise that some economic development initiatives will need more effort and a more sophisticated approach .
LOCALLY DEPENDENT VS GLOBALLY CONTESTABLE In locally dependent economic development , investment and jobs are more easily attracted because of an existing and / or growing population base of the local region . The local population provides a captured market for products and services . The sectors that dominate this type of economic development include retail , construction , health , education and personal services . The existence of a local market attracts these sectors , increasing the flow of money around the region but generally doesn ’ t tend to keep drawing wealth beyond the initial capital investment . Despite this , these sectors provide significant local jobs , lifestyle and amenity .
In globally contestable economic development , the local advantages are more often based on supply-side advantages such as natural resources , infrastructure , a skilled workforce , education and research facilities , suitable land , and transport links . These sectors include manufacturing , energy generation , and advanced services . While more difficult to secure because of wider competition , and a lower inherent understanding of each region ’ s advantages , the benefits can be significant because growth is not limited by the size of a local customer base .
There are already a wide range of examples in Australia ’ s regions of this deeper and wider decarbonisation-based economic development occurring such as :
• Training and education
• Research and innovation
• Manufacturing
• Recycling and circular economy
• Agriculture
• Net zero precincts
• Community ownership and contributions
SO HOW DO YOU GET STARTED ? Every region generates and uses energy . Every region has existing capability and assets that can be harnessed for global
With this understanding , you can begin developing a plan or prospectus , building a cluster , and promoting your regional opportunities .
Australia has the ingredients for realising significant economic potential from the decarbonisation drive . We can choose locally to take an active approach , attracting globally contestable opportunities and reaping the benefits of the jobs , investment and revenue that will flow across global value chains .
ABOUT THE AUTHOR
PAUL HODGSON ACECD Paul Hodgson is an advisor in innovation , the energy transition and economic growth with diverse experience and insights gained over a 30 year career . Amongst his current roles , he is Interim CEO of the
Scaling Green Hydrogen Cooperative Research Centre Bid and a Non- Executive Director of the Queensland Manufacturing Institute . As an Australian Certified Economic Developer with a Bachelor of International Business and a Master of Sustainable Development , he is passionate about developing local talent and enterprise capability and connecting it into global market opportunities . As General Manager for the East Coast for the industry growth centre NERA , he led the development of the national hydrogen technology cluster network , which now has 18 regional clusters and over 500 members .
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