Latest news with #TimAyres
Sky News AU
2 days ago
- Business
- Sky News AU
Labor's 'dead horse' green hydrogen gamble slammed by energy expert Jude Blik as the govt urges Fortescue to repay funds
Labor's 'attempt to appear fiscally prudent' by urging Fortescue to repay handouts for a failed green hydrogen plant has come under fire, as the Albanese government continues to 'bet our future' on the fuel which has been labelled a 'dead horse'. Industry and Innovation Minister Tim Ayres has urged the energy and mining giant to reimburse the government for the millions of dollars it gave Fortescue for the defunct Gladstone plant. The Queensland operation received about $60m in federal and state government support and was canned about 12 months after it opened. The recent shift is a blow to Labor's net-zero plans, which include a Hydrogen Production Tax Incentive as part of its Future Made in Australia Act. More than $6.5 billion will go toward the scheme, which provides $2 per kilogram of renewable hydrogen produced between 2027-28 and 2039-40. Centre for Independent Studies energy analyst Jude Blik said the latest failure was 'no surprise given green hydrogen was never feasible'. 'Green hydrogen is the panacea that Australia's Net Zero hopes and dreams have been pinned on,' Mr Bilk told 'Yet it has never been economic – even for the most basic use cases in chemical manufacturing, let alone for hare-brained green energy export schemes. 'Labor's attempt to appear fiscally prudent in recovering funds is odd given they are still throwing good money after bad with billions still committed to green hydrogen projects. 'Green hydrogen is a dead horse - yet the government continues to bet our future on it.' He said that Fortescue, in principle, should return the taxpayer funds as the funds 'should be used to deliver public benefit'. However, Mr Blik acknowledged that it was not clear whether Fortescue should repay the funds without knowing the terms of the grant. A Fortescue spokeswoman said the company has been 'upfront with the government and will return funds where required under the grant agreement". Creating green hydrogen has proved extremely difficult for local industry despite massive government subsidies. Mr Blik said analysis from the CIS showed a 'realistic price' of green hydrogen was $10/kg – well above the $2/kg price for hydrogen from natural gas. 'This means that for any project to be successful it will either need to find a buyer at $10/kg, or achieve subsidies of $8/kg – both of which are completely unrealistic,' he said. 'The notion that there is a 'technology curve' that we need to be ahead of is naively optimistic, which would be forgivable if we weren't betting our nation's future on it.' The failure of the Gladstone project, alongside another US plant in Arizona, will blow a US$150m ($227m) hole in Fortescue's financial results. On the US project's failure, Fortescue chief executive of growth and energy Gus Pichot told analysts the shift away from green energy under US President Donald Trump hurt the project's viability. 'A shift in policy priorities away from green energy has changed the situation in the US,' Mr Pichot said. 'The lack of certainty and a step back in green ambition has stopped the emerging green energy markets, making it hard for previously feasible projects to proceed. 'As a result, we cannot proceed with our investments as they stand, and will explore future opportunities for our site in Arizona.'
West Australian
5 days ago
- Business
- West Australian
‘Hand it back': Albanese Government tells Fortescue to repay hydrogen grant for dumped Gladstone project
The Albanese Government is sticking out its hand to take back taxpayer funds poured into Fortescue's fading clean energy ambitions. The Andrew Forrest-controlled miner on Thursday revealed it would dump green hydrogen projects in Australia and the US as it struggles to find a commercial pathway to full-scale production of the clean fuel, which is produced by the electrolysis of water via renewable energy sources. In its quarterly update, Fortescue said its Arizona hydrogen project in the US and the PEM50 project in Queensland's Gladstone had been canned and an assessment was under way to re-purpose the assets and the land. The news has raised eyebrows in Canberra, and the Labor Government has signalled its intention to reclaim any taxpayer money that went towards development of the Queensland project. A spokeswoman for Industry and Innovation Minister Tim Ayres told The Australian that the Government believed it would be appropriate for Fortescue to hand back funds it received under the Modern Manufacturing Initiative. 'The decision not to proceed the PEM50 Hydrogen plant in Gladstone is a commercial matter for Fortescue,' the spokeswoman told the newspaper. 'However, if Fortescue does not proceed with the delivery of the MMI-funded Gladstone Electrolyser facility project it would be reasonable for the government to seek reimbursement for where the grant agreement hasn't been fulfilled.' Fortescue said it was in talks with the Federal and Queensland governments over the future use of the land. 'As these are confidential discussions, it would be inappropriate to disclose details,' a spokesman told The Australian. Fortescue expects to book a $US150m ($227m) writedown after binning the two projects. The West Australian in May revealed the $US150m Gladstone electrolyser manufacturing plant was in serious doubt after 90 workers were laid off across the site and Fortescue's Perth headquarters. Mark Hutchinson quit as Fortescue's green energy boss less than two weeks later. These job cuts were the latest leg of a huge cull across the company's sprawling green hydrogen team that started in July last year. Fortescue in February said the re-election of Donald Trump jeopardised its $US550 million green hydrogen project in the western US state of Arizona. It was earmarked for generous grants under the Biden administration but President Trump's team appear to have poured cold water on those taxpayer funding hopes.
Sky News AU
21-07-2025
- Business
- Sky News AU
Energy crisis forces Labor to mull 'band aid solutions' for failing metal smelters as energy crisis plagues manufacturers
The Albanese government has been accused of considering 'band aid solutions' for major manufacturers struggling to stay afloat amid soaring power prices under Labor's renewable energy transition. Industry Minister Tim Ayres said Labor could provide taxpayer funds and long-term loans to assist ailing smelters crippled by energy costs and China-instigated trade distortions. 'The truth is, if these facilities didn't exist, governments would be trying to build them,' Mr Ayres told The Australian Financial Review. It comes as many smelters and refineries struggle to stay afloat in Australia. Rio Tinto-owned Tomago, which is Australia's largest aluminium producer, is seeking billions of dollars from the federal and NSW governments amid high power prices and as cost-effective and consistent renewables remain largely unavailable. Two Australian smelters owned by international minerals and metals producer Nyrstar are also under threat and the local CEO has begged various state and federal governments for a handout as losses mount to "tens of millions a month". Meanwhile, Glencore's local smelters and refineries similarly struggle in a massive blow to the Albanese government's Future Made in Australia plans. Centre for Independent Studies policy analyst Zoe Hilton told this revelation from Mr Ayres showed how Labor's net zero plans were hurting local industries. 'The government has shot itself in the foot on energy policy,' Ms Hilton said. 'The consequences of its commitment to a wind- and solar-dominated grid are being acutely felt by smelters and the pain will continue until the root cause is addressed. 'Equity injections and long-term loans for smelters are merely band aid solutions that will force taxpayers to pay twice – first for underwriting renewable energy projects and second for propping up industries that can't afford electricity price hikes driven by renewables.' Labor has vowed to make the nation a 'renewable energy superpower' with an energy mix of 82 per cent renewables by 2030 and green energy driving local manufacturing. The Albanese government is looking to boost this through production tax credits for leading Australian aluminium smelters, including Tomago, and give $2 billion back to help with the energy transition. Concerns over Australia's long term manufacturing capabilities also arose from AI Group chief executive Innes Willox who warned that 'bailouts cannot be for business as usual'. 'Short-term relief measures must be complemented by a long-term perspective that addresses the energy, skills and technology challenges weighing on our metals sector,' Mr Willox told He said the upcoming productivity roundtable hosted by Treasurer Jim Chalmers, where the Albanese government's second term economic agenda will come under the microscope, is crucial for examining problems plaguing manufacturing in Australia. 'It is a seminal moment for industry and a legacy moment for the country as a whole,' the AI Group boss said. 'We just can't keep going as we have been because what's got us to this point isn't going to make us successful in the future.' Soaring energy prices have particularly hurt the metals industry in Australia since the pandemic. Mr Willox said manufacturer gas costs are up 48 per cent for the past five years and for trade exposed industries like metals, passing these customers onto consumers is not possible. Other concerns about metal smelting in Australia come from Nyrstar boss Matthew Howell, who recently asked the government for help upgrading the company's facilities to make it more competitive in the global market. Mr Howell said the Chinese government subsidises companies to purchase Australian materials at prices local smelters could not afford. China then subsidises the processing of these materials and enforces export controls on the finished metals, hurting Australian producers in the process. Meanwhile, Glencore's head of corporate affairs Cass McCarthy lamented the company's ability to compete while high energy and labour costs hurt its profitability. 'This is bigger than Glencore and goes to the heart of state and federal government critical minerals policies when you have a number of smelters and refineries across Australia clearly at breaking point,' Ms McCarthy said, per The Australian. The NSW government in June confirmed it was in talks to save Tomago, which uses about 10 per cent of the state's power supply and makes about 37 per cent of the nation's aluminium. Premier Chris Minns stressed Tomago was a 'big employer in NSW, it's a dynamic part of the state, the Hunter and manufacturing is a big part of its future'. 'It's difficult for me to speculate about what the next steps are,' Mr Minns told reporters. 'In order for us to have an effective intervention, we need to have commercial discussions with the owners and operators of (Tomago). That's what we're doing.' Rio Tinto's chief executive Jakob Stausholm earlier this year flagged concerns about the producer's electricity costs where he warned power price contracts beyond 2028 would render Tomago unviable.
West Australian
18-07-2025
- Science
- West Australian
Broome Senior High School students supported to take part in STEM programs overseas
Broome Senior High School students will be supported to take part in STEM programs overseas after a $1.6m cash injection from the Federal Government. Some 134 STEM projects, including at Broome Senior High School, and Exmouth High School are sharing $1.6m in funding through the Sponsorship Grants for Student Engagement and International Competitions, a part of the Inspiring Australia — Science Engagement Program. The grant pool will support students to take part in programs such as Space Camp USA, Connecting Minds Project in Japan and the National Indigenous Astronomy Autumn School. Minister for Industry and Innovation and Minister for Science Tim Ayres said the program helps students meet the demand for STEM skills in the workforce. 'The demand for STEM skills in the workforce has never been higher,' he said. 'We need to ensure Australia can meet that demand and our goal of 1.2 million technology-related jobs by 2030. 'By supporting STEM skills development and enabling access to exciting STEM programs we can encourage students towards pursuing a STEM career. 'A diverse and strong STEM workforce will help us to take advantage of opportunities in emerging industries like renewable energy, critical minerals, artificial intelligence, cybersecurity, robotics and quantum.' Senator Glenn Sterle said inspiring students to study STEM subjects was essential for their future job prospects. 'I'm thrilled to see these schools across Durack receive funding to support local students in pursing their passion for science, technology, engineering and maths. 'Sparking an interest in STEM from an early age is critical in ensuring young Australians aspire to study and work in these fields.' More information about the Inspiring Australia — Science Engagement Program is on the Department of Industry, Science and Resources website.
West Australian
27-06-2025
- Business
- West Australian
Minister Tim Ayres says job fears shouldn't hold Australia back on Artificial Intelligence, productivity
Australia must embrace the opportunities of artificial intelligence in the job market or risk falling behind in the global race to adopt digital technology, says new Industry and Innovation Minister Tim Ayres. In an exclusive interview with The Nightly, Senator Ayres said that eschewing the advantages of cutting-edge AI in the workplace over job fears would be more detrimental to the employment market overall, urging the country to adapt with the times to boost productivity. Investing in technology was 'not a zero-sum game' for the labour market, he said, calling for a 'big national conversation' between institutions, trade unions, business groups and the research and development sector to set objectives in the country's best interests. In wide-ranging comments, he spruiked his ambition to make Australia a top-shelf destination for data centres and to invest in infrastructure that would shape the nation's digital future rather than leave it 'at the end of someone else's technological supply chain.' He also hinted at a lighter touch approach to regulating rapidly advancing technology while stressing the urgency of finding the right safeguards. Senator Ayres had just moved into his new ministerial office in Parliament House when The Nightly spoke with him, but Toby Walsh's The Shortest History of AI was already one of two books sitting prominently on his desk. It offers a glimpse into the daunting challenges he faces to maximise the benefits of artificial intelligence while protecting the country from its risks. This includes concerns about how to weigh up technological progress with the impact of AI on jobs in manufacturing and other sectors. Senator Ayres, who had a long career as a senior official in the Australian Manufacturing Workers' Union before entering parliament, acknowledged the hurdles but underscored the potential for more job creation. 'The only thing that would be more disruptive in terms of employment and job opportunities is stepping back, having economies that pass us by,' he said. 'I'm absolutely seized of the importance of investment and economic growth and good jobs and productivity in terms of leaning into the challenge. 'That's not without risks, and we need to work together in an Australian formulation, working collectively across the economy to make sure we get the best outcome for the country.' Every wave of technological change involved reshaping the labour market, Senator Ayres argued. 'My experience in manufacturing, as automation stepped up, as adoption of digital technology stepped up, is that involved jobs changing, some jobs going and investment in new jobs and capability,' he said. Senator Ayres said he was seeking a 'pragmatic' path between 'artificial intelligence boosters' promoting a utopian approach and 'artificial intelligence doomsayers.' The Minister said he was determined to put the tech sector and investment in new industrial capabilities at the centre of the debate as the Government prepares to host a productivity roundtable on August 19 to 21. The meeting in the Cabinet room will draw together senior politicians with business, union and civil society representatives to find common ground on long-term economic reform. Australia's challenges in tackling sluggish productivity growth were not unique among Western nations, argued Senator Ayres. 'Australia can't afford to step backwards in technological terms, because that will be one of the key drivers of productivity growth over the coming decade,' he said. But beyond the roundtable and ongoing productivity debate, the Senator must also help set the direction for major Government decisions on a national strategy for safety standards for AI and the digital economy, whether through regulation or voluntary codes. Treasurer Jim Chalmers set the tone of the approach earlier this month at a speech at the National Press Club outlining his ministry's priorities for the new term. Dr Chalmers said he would work with Senator Ayres and Assistant Minister for Science, Technology and the Digital Economy Dr Andrew Charlton to 'capitalise on the huge gains on offer, not just set guardrails'. 'We want to get the best out of new technology and investment in data infrastructure in ways that leverage our strengths, work for our people and best manage impacts on our energy system and natural environment,' Dr Chalmers said. Landing on a risk-based model for regulating AI is unfinished business from Labor's first term, and an issue where the Government is coming under increasing pressure to act and to more clearly define its policy. Senator Ayres' predecessor Ed Husic last term launched a 'mandatory guardrails' consultation to moot an Australian AI Act that would impose minimum standards on high-risk AI models across the economy. Mr Husic backs the proposal of an AI Act to provide certainty about how to mitigate the risks in what he describes as the current 'Swiss cheese landscape' of regulation. But Senator Ayres indicated he was going to take a cautious path, and said he was not yet ready to commit to major policy decisions without further consultation. 'I'm going to work carefully through that set of issues and talk to colleagues before I reach a final view about the right approach on the regulatory front and the legislative front,' he said. As a new Minister, he wanted to evaluate work already underway 'before I shoot my mouth off about where we land on these precise sort of regulatory architecture questions,' he said. He insisted would reach the 'right outcome in short order' to give guidance to industry and the public. 'My instinctive response is leaning into the opportunity. That's the overall setting here, and that's my starting point,' he said. Senator Ayres stressed that no country on Earth believed there should be a completely unregulated approach to artificial intelligence development or adoption and signalled he was assessing the models and approaches of partner economies. But less than two months into the job, the Minister already faces rising calls from industry bodies, experts and civil society groups to better define policies to allow AI to boost innovation, living standards and productivity and also to mitigate the risks. A landmark report by the Business Council of Australia (BCA) released in early June outlined a blueprint to make the nation a global leader in AI by 2028, and called among multiple recommendations for 'clear, practical and risk-based AI regulations that encourage innovation'. The BCA report warned that without immediate action, Australia risked falling behind competitor nations racing ahead in AI capability and adoption. Senator Ayres said he was acting on the 'urgency' of the issues. 'I don't want to set a timeframe but I am absolutely seized of the urgency of it, absolutely engaged with the tech sector and the investment community where there is a very consistent message about the sense of urgency about these questions,' he said. 'I'm absolutely seized as well of aligning this line of effort with the other lines of effort that the Government has on the productivity and investment side.'
