Press conference, Queensland Alumina, Gladstone

CHRIS BOWEN: Thanks for coming, everyone. I'll just deal with QAL, with Trent, and then after that and taking questions on that, I'll deal with other matters off the day.

It's great to be back in Gladstone and QAL has been an important part of Gladstone's past and will be an important part, an even more important part of Gladstone's future, and that future will be decarbonised. And as the world's investors and consumers demand that their products are carbon neutral, it's important that Australia's great resources are able to comply with our international global consumer demand.

And so that's why the Albanese Government is partnering with QAL to assist in the important task of decarbonisation. That decarbonisation, in this case, involves the grant of more than $90 million, co-funded with QAL, to ensure that the emissions from this plant, this wonderful plant behind us, are reduced by 274,000 tonnes a year. That's a lot of emissions that we can get down here at QAL. And this, as I said, locks in the jobs for the future.

As consumers, boards, investors, insurers, ask companies what are your decarbonisation plans, QAL has a good answer. And it's important for QAL but it's also important for Australia. That's why we're partnering with QAL on this important grant and this co-investment.

Now, of course, Gladstone also stands to be a big winner from our broader budget initiatives, our Future Made in Australia initiative, and a lot of things around Australia have been made in Gladstone in the past, and as I said, even more into the future. Our hydrogen hub policy, our hydrogen head start extra round, our hydrogen production incentive for businesses right across Gladstone, will be key players in that future. Green hydrogen has a great future and Gladstone has a great future in green hydrogen.

It's great to be back in Gladstone. I'm going to ask Trent to add a few remarks from QAL's point of view. We can take questions on this particular project and then I'll deal with other matters of the day. Trent.

TRENT SCHERER: Yeah, thank you, Minister Bowen, for your time today. But also for the grant and thank the Federal Government for the grant as well. This allows QAL to get on with the important job of decarbonising our refinery and setting our business up to hand over to future generations. It also ensures the employment in manufacturing remains within the regions and specifically within Gladstone. So again, we thank the Federal Government for their support on this. We will be co-investing in this and we're looking to couple with the Government on initiatives like this. So thank you, Minister Bowen.

JOURNALIST: The coinvesting, how much is that?

TRENT SCHERER: The co-investment will be $94 million, and we'll match that dollar for dollar.

JOURNALIST: And how many - does it provide extra jobs?

TRENT SCHERER: So at the peak of construction, there will be an additional 150 people on this site.

JOURNALIST: And why is it important to be doing this project?

TRENT SCHERER: This is hugely important for us. It allows QAL to decarbonise, which we need to do to ensure that this asset is here for future generations. We are the key employer in Gladstone. Over 1,000 people work here, that's 1,000 manufacturing jobs in the regions and this ensures those thousand manufacturing jobs remains within the regions into the future.

JOURNALIST: So what sort of things does it allow QAL to do in terms of decarbonising? What does that involve?

TRENT SCHERER: Yeah, so certainly. So this specific grant allows us to implement a project called Double Digestion. Double Digestion is an energy reduction project, and this grant allows us to do that on the first one of our units. And it actually reduces our carbon emissions, as Chris said, by 274,000 tonne per annum.

JOURNALIST: And how much do you currently emit at the moment?

TRENT SCHERER: We currently emit approximately 3.5 million tonnes per annum, and this allows us to do that on 274,000 tonne reduction on one unit. But we can provide this across multiple units, to have all three units done and have over 600,000 tonne reduction in carbon emissions in the next decade.

JOURNALIST: How long have you been working towards this for?

TRENT SCHERER: We've been working towards this for a number of years, and it's a very complex project, as you can imagine. We're still working through the study phase of the project and our employees are very much looking forward to having this project implemented.

JOURNALIST: I think the grant was $93, $94 million?

TRENT SCHERER: $94 million.

JOURNALIST: $94 million. How much would you need for the other units as well?

TRENT SCHERER: Yeah, so the other units - we're not searching for a grant from the Government for the other units. This grant is foundational for us. It's the foundation for us to set up to do this project, we will learn from this project on digestion unit 3. That will allow us to implement it on digestion unit 2 and then digestion unit 1. We will invest in those projects.

JOURNALIST: I think it's said in the release it's an Australian first, can you expand on that?

TRENT SCHERER: This technology in a refinery like ours where we're going from high temperature-high pressure to low temperature-low pressure is a first.

JOURNALIST: And is it your hope, perhaps, Minister, this is a question for you, but is it your hope that learnings from here are shared with industry?

CHRIS BOWEN: Sure, inevitably and I know this is an industry wide ambition and other companies will be watching QAL and hoping to emulate them, not only in Australia, but elsewhere as well. So this is important technology, it's an important investment. I congratulate QAL for putting it together and we are pleased to partner with them.

JOURNALIST: Do you think the Government would be looking to fund similar projects?

CHRIS BOWEN: Trent's made it clear they're not looking for more funding, which is good.

JOURNALIST: I mean is other industries -

CHRIS BOWEN: We always have - we have programs, you know. We require companies to reduce their emissions and safeguard reforms, if you're one of the country's biggest 215 emitters, which these guys are. But we recognise that that's a partnership and while we require that emissions reduction as a matter of law, we also co-invest, not on every project, but where companies can put together good plans under an existing stream, our Powering the Regions stream, that I announced $300 million roughly of funding out of which this $90 million comes from. That supports decarbonisation from alumina to cement making, to other initiatives and there will be, I've already announced other grants for steel making already, and there will be other grants inevitably as well.

JOURNALIST: How good is it that we've been able to do something like this in regional Australia?

CHRIS BOWEN: Well, I mean, the regions that have powered for Australia for so long, as Gladstone has with its power-generation, and the regions that have made things in Australia for so long, will be the regions that power us into the future and none more important than Gladstone. None more important than Gladstone. But it's an increasingly decarbonised future. So for those people who call for decarbonisation to stop, that's an anti-regional message. It is threatening the liability of Australia's regions and we're not going to let that happen. Any other questions on this?

JOURNALIST: No. I've got other questions.

CHRIS BOWEN: We'll move to matters of the day.

JOURNALIST: I've just got a -

CHRIS BOWEN: Just before you do, I'll say a few things and then I'll take questions. Well today is the release of GenCost, which is the CSIRO-AEMO's report on the cost of energy generation in our country. If we needed another example of why the country needs to continue with renewable energy and not go down the risky diversion of nuclear energy, then here it is.

Here you have the CSIRO and AEMO, two respected organisations, calling it out yet again. Renewables, the cheapest form of energy; nuclear, the most expensive form of energy.

Now, the Opposition has quite inappropriately and quite improperly attacked the CSIRO and AEMO in the past. They've said that transmission wasn't included, for example. This report makes it clear. Transmission's included, storage is included, the cost of integration are included and still, renewables comes out the cheapest and nuclear the most expensive. Including large-scale nuclear which is included for the first time.

Now, I've seen Mr Littleproud and Mr Dutton calling for more detail. How dare they. How dare they call for more detail from the CSIRO and AEMO when they haven't released their own detailed policy themselves. More than 600 days ago, they said they would go down the nuclear path and they have not released one detail. They said they would do it before budget, they said they would do in two weeks' time 10 weeks ago. And they have the hide to say the CSIRO should issue more detail. The CSIRO has issued a very detailed report today with AEMO and for Mr Dutton and Mr Littleproud to call for more detail is an insult to the CSIRO and AEMO.

Now Mr Taylor is up at the National Press Club today. He can explain why he, as Shadow Treasurer, supports the introduction of the most expensive form of energy. A form of energy he opposed when he was energy minister and he said it was of no use to reduce energy bills in Australia.

So time's up for Peter Dutton. Release your policy. Show us the details of your policy. If you think you can do better than the CSIRO and AEMO on costings, release your costings. The time for talk is over. We've been talking about it for years. The Australian people deserve better. They deserve to know where the nuclear reactors will be located. Will there be one in Gladstone? Will there be one in the Hunter? Will there be one in Anglesea? Will there be one in Gippsland? Come on, Mr Dutton, front up the Australian people, give us your plans, stop talking, start delivering a policy. If you want to be taken seriously as the alternative prime minister of Australia, you've got to have policy and it's got to a costed policy and if you really think you know better than CSIRO, show us your numbers. Happy to take questions.

JOURNALIST: Does this put a nail in the coffin -

CHRIS BOWEN: I will take this and then you.

JOURNALIST: Should this put a nail in the coffin of the Opposition's ambitious nuclear plan?

CHRIS BOWEN: Well, it's not ambitious. It's not an ambitious nuclear plan. It's a ridiculous nuclear plan, but yes. I mean, if they needed any more evidence then they have it today. They should drop this silly policy. They won't drop it, they should release it so the Australian people can drop it on their behalf.

JOURNALIST: Is your opposition to nuclear energy based solely on the cost of technology or are you opposed to its use in principle?

CHRIS BOWEN: I'm opposed to it in Australia because it's risky for Australia's energy reliability. It would mean keeping or coal-fired power stations in the grid for longer. They are ageing, and increasingly unreliable. I'm opposed to it because it's the most expensive form of energy when we have an abundant form of the cheapest form of energy, which is renewables. It's the wrong plan for Australia. It's risky for Australians.

JOURNALIST: The Opposition says it's got polling from communities where they say they're going to put nuclear reactors. Do you believe that?

CHRIS BOWEN: That's very interesting, isn't it? That means they know where they're going to put them. That means they know the six or seven locations. They know them but they won't tell those communities where they are. If they were really so confident in this alleged polling, they'd release the sites. I mean, some of this would have been taxpayer funded through their communications allowance. Release the polling. But more importantly, release the sites.

I note that there was a poll out this week that showed renewables are the most popular form of energy, nuclear came in at 5% support. They want to have this argument, release your policy, bring on the debate, bring on the argument and we'll have that argument right up to election day, right up to election day. We are happy for this debate. The Government is happy to have this debate. The Opposition's running away from it because they won't release their policy.

JOURNALIST: So that new report has found large-scale nuclear projects could be built in Australia for significantly less than the Snowy 2.0 project. Is the technology becoming more cost competitive?

CHRIS BOWEN: No, the report actually shows the cost of nuclear has gone up and the cost of renewable has come down. Now, in Snowy's case, there was poor due diligence, poor project planning by previous management of Snowy Hydro. The new chief executive of Snowy Hydro has put the project back on track, 57% complete. Yes, there's been a cost increase, but the cost of nuclear is going up at a dramatic rate, as evidenced by report after report. It's the most expensive form of energy available.

JOURNALIST: I do have some questions on Snowy but more just on GenCost. The report also found offshore winds to be twice the price of onshore wind. Does that place any doubt on the future of the industry in Australia?

CHRIS BOWEN: No, I don't believe so. It's no surprise, I've known for a long time that offshore wind is a relatively new technology. It is more expensive than onshore wind, but it has other advantages, as well. It is constant, it is a constant source of energy, it is jobs rich because it needs a lot of maintenance, and it needs port workers and maritime workers. It's regarded by the IEA as variable base load which means it's much more constant. It's an important buttress to onshore wind and solar as well.

JOURNALIST: On Snowy, Snowy Hydro has been considering whether to purchase a fourth tunnel boring machine to help make up time on the Snowy 2.0 project. Has a decision been made on whether to go ahead with that purchase?

CHRIS BOWEN: There should have been a fourth boring machine to start with, but that's been and gone. We would have had a lot less problems with this project if that had been - that decision had been made at the outset. Snowy is working through the issues with Florence, the boring machine which has, it's no secret, encountered difficulties over recent years. The project remains on track for the previously announced completion date. It's 57% complete. It's not part of the current plans to get a fourth boring machine, but we, in the budget, have made appropriate allocations to Snowy 2.0, the Snowy Hydro, to ensure the project can be completed.

JOURNALIST: So you haven't made - there hasn't been a decision?

CHRIS BOWEN: There's no plan for a fourth boring machine at this point.

JOURNALIST: And so like you said, it's on track to meet its revised deadline of 2028. Is it still on track to produce its first power by late 2027?

CHRIS BOWEN: Yes. The previously announced timeline is still the timeline.