Given the recent Eraring Power Station debacle, does the NSW Government have a plan for powering Tomago Aluminium Smelter when Bayswater closes in 2030?

Today in Budget Estimates, Abigail pressed the Minister for Energy on the future plans for the Tomago Aluminium Smelter, raising concerns over renewable energy readiness.

Ms ABIGAIL BOYD: I wanted to ask you questions around the Tomago Aluminium smelter. As you know, Tomago is the largest
electricity user in New South Wales.

The Hon. PENNY SHARPE (Minister for Energy, Climate Change, the Environment, Heritage): Yes.

Ms ABIGAIL BOYD: Approximately 850 is its annual, constant demand.

The Hon. PENNY SHARPE: Yes.

Ms ABIGAIL BOYD: What is the plan for powering Tomago once Bayswater closes in 2030?

The Hon. PENNY SHARPE: I know Tomago is obviously very focused on what their future looks like in relation to how they survive. I'm not in a position to tell you what their plan is.

But to speak specifically on the question you've asked, I'm not sure that it's tied to that particular—they don't get their energy just from that coal-fired power station. They are, again, part of the network. They have relationships, obviously, with Transgrid in terms of how that's done. I know that they're very focused on it, but it's really a question for them. I'm not able to provide you with any more information.

Ms ABIGAIL BOYD: Given what I would call a debacle that we've seen with the Eraring Power Station being kept open—

The Hon. PENNY SHARPE: You'd say that. I disagree.

Ms ABIGAIL BOYD: I would say that. What is your Government doing to ensure that we don't have the same situation come up when it comes to Bayswater because we're not able to power Tomago?

The Hon. PENNY SHARPE: Well, I wouldn't link it to Tomago. We're building as much renewable energy, and the transmission lines that we need to build, as quickly as possible to replace what we need as coal-fired power comes out.

Ms ABIGAIL BOYD: Is there any particular plan in relation to setting up some form of alternative energy source that would be sufficient to power Tomago?

The Hon. PENNY SHARPE: As I said to you, I'm not across Tomago's plans about where they would source their electricity, but they're part of the wider network. If we have enough renewable energy to be able to power them, they would be able to get that. There are obviously some issues around firming and storage and all of those technical matters. I just can't provide you with any more information. It's a matter for Tomago.

Ms ABIGAIL BOYD: Other aluminium smelters around the world have been trying to produce green aluminium, but obviously there's a certain heat that's required.

The Hon. PENNY SHARPE: That's why the hydrogen work is so important.

Ms ABIGAIL BOYD: And that's why I'm asking about Tomago, in particular, because its energy needs are quite different to everyone else's.

The Hon. PENNY SHARPE: It's a really important plant. This is really what we're trying to do in relation to the hydrogen work supporting hydrogen hubs, trying to support an industry growing and developing, particularly in hard-to-abate sectors like aluminium smelters. We're not there yet, but we envisage places like Tomago—I don't want to tie it specifically to Tomago—and hard-to-abate sectors, such as mining and others— that's where we hope that hydrogen can take us.

Ms ABIGAIL BOYD: Your diary disclosures are of a similar lack-of-information, I guess, quality as the rest of the Ministers, so I'm not going to pick on you in particular. You met with Tomago in relation to "energy" on 12 April.

The Hon. PENNY SHARPE: Yes.

Ms ABIGAIL BOYD: Did you discuss these issues?

The Hon. PENNY SHARPE: Not the post-2030. What we talked about was—I'd need to confirm this with my office, but this was a visit. I actually went onsite and they showed me around. I'd never been to an aluminium smelter before. They talked about the challenges they face in relation to how they're going to meet their targets. They are part of discussions around their decarbonisation plan. There are some limits to that. We did talk broadly, but any link to Bayswater or their post-2030 was not a specific part of the visit. They didn't talk to me about that.

29 August 2024

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Given the recent Eraring Power Station debacle, does the NSW Government have a plan for powering Tomago Aluminium Smelter when Bayswater closes in 2030?

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