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Inside the government’s energy crisis solution

Afarmer’s gnarled arms. Black, volcanic farming soil that’s so fertile it might probably produce two crops a yr. Cotton, wheat or sorghum, no matter you need. To some it’s dust however to Scott McCalman, on the Liverpool Plains south-west of Tamworth, it’s “unimaginable”.

He explains its water retention properties, scuffs the earth together with his boot and eulogises concerning the Nice Artesian Basin. Then there’s the shallower aquifers that the roots of his crops profit from. Even in a drought.

Farmer Scott McCalman on his Liverpool Plains property north-west of Gunnedah.

Farmer Scott McCalman on his Liverpool Plains property north-west of Gunnedah.Credit score:Nick Moir

A fifth era farmer of 1150 hectares, the previous Scots School scholar speaks with authority because the holder of two levels from Sydney College in rural science and enterprise administration.

One subject. His property close to Gunnedah, south of Narrabri, is roofed by a lately renewed Santos coal seam gasoline exploration licence.

He’s involved that drilling may trigger contaminated water to seep via pure faults and fissures into the aquifer he relies on.

“Each property has bore water and that’s the very last thing we wish to danger,” he says. “It’s simply absurd that the federal government would even contemplate it. We simply can’t consider that in 2022 they’d even be considering it.”

One hour north of Gunnedah is Narrabri and its gasoline reserves within the Pilliga Forest. There, a most of 850 new wells are seen as a mid-term resolution to the ability era fiasco that resulted in blackout warnings throughout NSW final week.

McCalman’s property near Gunnedah, south of Narrabri, is covered by a recently renewed Santos coal seam gas exploration licence.

McCalman’s property close to Gunnedah, south of Narrabri, is roofed by a lately renewed Santos coal seam gasoline exploration licence.Credit score:Nick Moir

So nice was final week’s power provide disaster that the Australian Vitality Market Operator suspended the east-coast electrical energy market to revive calm to the grid. A staged method to lifting the market suspension started on Thursday.

With greater than two months of winter forward and the Ukrainian warfare affecting Russian gasoline provide, NSW Premier Dominic Perrottet and federal Sources Minister Madeleine King each see the Narrabri gasoline challenge as key to the longer term safety of power era.

Perrottet mentioned: “We’re utterly dedicated to Narrabri and dealing with Santos to get that challenge off the bottom.”

King mentioned: “If Narrabri meets all of the environmental requirements, and by all accounts it does, then it is smart for it to go forward.”

However their plans have reignited what has been a long-running battle over the gasoline extraction proposals with protest from the extremely organised Lock the Gate organisation in addition to land house owners, farmers and First Nations peoples.

Georgina Woods, nationwide coordinator for Lock the Gate, mentioned Santos and different gasoline corporations “had been exploiting the excessive gasoline costs and tight market they engineered to exert political stress for extra damaging gasoline fields for years”.

In the meantime, authorized debate, together with a declare from the Gomeroi conventional house owners, rumbles on like Dickens’ fictional probate case Jarndyce and Jarndyce in Bleak Home.

4 “zombie” websites the place petroleum exploration licences (PEL) had expired have been revitalised since Easter. Santos final week marketed within the native press saying later this yr it plans to conduct “low influence, non-intrusive” exploration actions together with seismic surveys on public roads and street reserves to the south-west of Gunnedah. The corporate held an info session within the city on Thursday.

Santos, the second-biggest power firm on the ASX with a valuation of roughly $25 billion, has for greater than a decade been on the scene in Narrabri. It has a excessive road shopfront presence and final yr launched the Pageant of Rugby within the city and upgraded the Dangar Park sports activities floor with broadcast-quality stadium lighting and wi-fi connectivity into the clubrooms.

On a tour of Santos operations round Narrabri we cease at an experimental effectively known as Brigalow Park 1. Cereal, legume, sheep and cattle farmer Peter Gett has had three wells right here on his property for 10 years.

A coal seam gas well  on farmland owned by Peter Gett near Narrabri.

A coal seam gasoline effectively on farmland owned by Peter Gett close to Narrabri.Credit score:Nick Moir

“Not a drama in any respect,” he says. “They [Santos] have been excellent. They’ll’t put a foot flawed as a result of the federal government will make it very onerous for them and the media protection over something could be lined faster than the velocity of sunshine. I might be completely satisfied to have extra wells.”

A CSIRO report, Assessment of sub-surface faults as potential connectivity pathways in Narrabri, launched final month examined regional geological formations and constructions and their relationship with necessary groundwater sources.

It states: “Geophysics point out the presence of some faults and fractures which may act as potential pathways for motion of water and gasoline however no prima facie proof for this connectivity was noticed.” The Fuel Business Social and Environmental Analysis Alliance (GISERA) has already accepted additional analysis.

Assessing the financial advantages, CSIRO discovered the challenge may generate 170 direct jobs within the gasoline sector and will assist the institution of native manufacturing. Regionally accessible gasoline may additionally facilitate the institution of a fertiliser plant using round 100 individuals.

There are 26 administration plans protecting points like noise, mud, Indigenous points and heritage nonetheless to be signed off earlier than Santos decides to begin working as much as 850 wells. The corporate is optimistic that may occur by the top of the yr. Extra info on reserves can also be wanted to underpin the multibillion-dollar funding. There’s additionally the difficulty of annual compensation funds to land house owners for “floor disturbance and lack of quiet enjoyment” which the corporate says carried some Queensland farmers via the drought.

At Bibblewindi No.2, a 10-year-old effectively head, there’s a slight noise of gasoline flowing whenever you get shut. The entire effectively is contained inside a fenced-off space about half the dimensions of a basketball court docket. The gasoline – which is 90 per cent methane – rises to the floor below its personal stress. Santos says there isn’t a want for fracking in Narrabri.

There’s a photo voltaic panel that powers the electrics enabling management of the effectively remotely and permitting it to be shut down if there’s an issue. If a bushfire got here via the corporate says the effectively would default to close down.

Water goes to remedy ponds the place it’s transformed by a course of known as reverse osmosis into brine and clear water. The Rural Fireplace Service avails itself of free water. Santos has its personal cows that graze in paddocks irrigated by the water.

Water treatment dams for the brine removed from drill sites on the edge of the Pilliga.

Water remedy dams for the brine faraway from drill websites on the sting of the Pilliga.Credit score:Nick Moir

A really small amount of water can also be utilized by apiarists within the Pilliga (there are many them) who get a free provide for his or her bees. The brine is excessive in bicarbonates and discussions are ongoing with an organization to supply bicarbonate soda.

What of flaring? The flame you see burning on a regular basis with all types of emissions? That may be a function of oil rigs, however not coal seam gasoline, Santos says. We cross a flare vent, however there isn’t a flame. It solely ignites if a effectively needs to be shut down for upkeep in order that the gasoline will be purged reasonably than saved with the related fireplace danger. Santos estimates a flare would possibly burn gasoline as soon as a month for 15 to twenty minutes.

Scientists level out that flaring shouldn’t be the difficulty with coal seam gasoline. Reasonably it’s the invisible “fugitive” emissions leaking from the system that pose a severe menace to the local weather. A paper released last year by a world workforce of scientists funded by the United Nations Surroundings Program discovered that with coal seam gasoline manufacturing, for each unit of gasoline produced, 0.44 per cent of methane was launched into the ambiance. Flaring converts methane to carbon dioxide plus water, which reduces the worldwide warming potential of releasing methane.

We arrive at Wilga Park Energy Station, 5 minutes drive from Narrabri. You’ll be able to’t see or hear it from the street. Of the 16 wells within the Narrabri Fuel Mission space, eight are operating right this moment. They provide 5 terajoules of gasoline day by day to 6 V20 Jenbacher engines, which generate 22 megawatts of electrical energy on the Wilga station, despatched to the grid and supplying 23,000 households.

Gomeroi elder Aunty Polly Cutmore at Yarrie Lake, a culturally important local site in the Pilliga.

Gomeroi elder Aunty Polly Cutmore at Yarrie Lake, a culturally necessary native website within the Pilliga.Credit score:Nick Moir

Gomeroi conventional house owners have voted overwhelmingly to reject coal seam gasoline exploitation within the Pilliga Forest. Undeterred, Santos is searching for an settlement with the broader Gomeroi Nation to determine the challenge on the land tribunal in Brisbane and expects an consequence “inside months”.

Elder Aunty Polly Cutmore, representing the Gomeroi Nation, mentioned mediation with Santos had provided monetary and employment insentives. In a two-minute video she says: “Santos, I’ve visited my communities round within the Gomeroi Nation and I’ve not met one among my individuals that desires you in our nation. We want our water, our artesian water. That very particular water is a present to us. We’ve got to guard it. And we don’t want a mining firm coming in and desirous to destroy. We want them to yaanay, go away. Yaanay out of Gomeroi now.”

Sally Hunter farms 80 acres at Harparary close to Narrabri with 300 head of cattle, predominately black Angus. “We’re one kilometre from a PEL however the cattle nation that we lease is inside the exploration licence space,” she says.

“The gasoline corporations are holding us to ransom to carry on-line their power sources. It’s throwing good cash after unhealthy as a result of we’re giving two or three corporations a degree of management and the place they solely carry on-line the gasoline powered energy stations when the market hits a sure worth.

“My mother and father have been situated close to Roma [almost 500 kilometres west of Brisbane] and had been on the property 35 years and the gasoline trade was being developed there within the final 15 years. That they had an natural beef licensed property, they usually took the view that having gasoline fields on their place would just about nullify their natural standing, they usually didn’t need it, they only wished to say no, and also you simply don’t have that proper as a land holder and that’s such a disempowering place to place you in. Of their case it was the straw that broke the camel’s again.

“My mum ended up with extreme psychological well being points out of it and eight years later she remains to be placing her life again collectively. They ended up splitting up and the farm was bought and lives have been damaged aside actually.”

Ron Campbell is serving his second time period as mayor for Narrabri Shire Council and runs a waste enterprise within the city. He says he doesn’t belong to a political celebration.

“The neighborhood has been ready for one thing to occur for eight years,” he mentioned. “We nonetheless have individuals towards it, however I’m for it as a result of the alternatives we get listed below are restricted.

A coal seam gas extraction site in Pilliga State Forest.

A coal seam gasoline extraction website in Pilliga State Forest.Credit score:Nick Moir

“The alternatives are immense for us, to develop our neighborhood and to set ourselves up off the again of gasoline and renewables for the remainder of our lives and for generations to return.”

Mark Coulton, federal Nationals MP for Parkes, says with the event of inland rail and for native development and power wants sooner or later the gasoline is necessary. “I’m assured it isn’t going to influence on farmers’ water. Plenty of misinformation has gone round concerning the impacts of the [extracted] water, however I’ve obtained to belief the science and I believe the influence notably at Narrabri within the Pilliga is minimal at finest.”

Santos chief govt and managing director Kevin Gallagher mentioned the corporate has spent greater than $1.5 billion attempting to get the gasoline challenge developed – a challenge that’s 100 per cent dedicated to the home gasoline market.

Anti-CSG graffiti on a sign near the Wilga Park Power Station near Narrabri. Santos says there will be no fracking occurring in the Narrabri region.

Anti-CSG graffiti on an indication close to the Wilga Park Energy Station close to Narrabri. Santos says there will probably be no fracking occurring within the Narrabri area.Credit score:Nick Moir

He dismissed solutions the gasoline challenge was a foot within the door forward of wider improvement and mentioned the upcoming seismic testing round Gunnedah was merely a compliance subject. He mentioned: “We’ve got no present plans in any way to drill on any of these permits.”

“If there was much less gasoline than we anticipate being there, then we could have a loss-making challenge. There’s a whole lot of gasoline in Narrabri, I can guarantee you of that, sufficient gasoline to supply 150 terajoules per day into the home marketplace for years. We will produce that gasoline in Narrabri for round $6 a gigajoule, perhaps barely much less, with expertise advances.”

Dismissing issues round contamination and emissions, he added: “If there was pure seepage via pure faults and fractures wherever else it could possible be lowered by us taking the gasoline out. In Narrabri we have now by no means had fracking as a part of our plan regardless of all of the anti-fracking protests. There isn’t a have to frack these wells. Coal has twice the emissions of pure gasoline and Santos is creating carbon seize options for lots of our initiatives to cut back these emissions anyway.”


On solutions the gasoline might be delivered by 2025, he added: “I might adore it to, however what I want there’s for the NSW authorities to provide me a pipeline licence. In the event that they wish to assist us fast-track that course of, we will construct it as quickly as I’ve the licence. I’m unlikely to wish to spend an excessive amount of cash given the historical past of NSW approvals till I do know that I can get the pipeline to evacuate the gasoline to our clients.”

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