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Australia Approves $19 Billion Solar Project for Power Export to Singapore

by Geraldine S.
08/21/2024
in Sustainability & Ethics

Australia has granted environmental approval for a $19 billion solar power initiative designed to export electricity to Singapore. The project, known as the Australia-Asia Power Link, is expected to generate 6GW of renewable energy, with one-third of this capacity to be transmitted to Singapore via an undersea cable. The initiative, led by SunCable, aims to supply up to 15 percent of Singapore’s energy needs upon completion in the early 2030s.

Australia’s Environment Minister Tanya Plibersek announced that the project will be located on a 12,000-hectare (29,650-acre) site in the Northern Territory. The development is anticipated to create approximately 14,300 jobs and establish Australia as a prominent player in renewable energy. The approval comes with stringent conditions to protect local wildlife, including measures to avoid the habitat of the greater bilby, a species considered vulnerable to extinction.

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SunCable Managing Director Cameron Garnsworthy expressed confidence in the project’s progress, noting that the government’s decision underscores the company’s commitment to environmental stewardship. The next phase of planning will focus on moving towards a Final Investment Decision by 2027.

While the project has secured environmental approval in Australia, it must still navigate additional regulatory requirements, including assessments by authorities in Singapore and Indonesia. The initiative faced uncertainty earlier last year when SunCable entered voluntary administration due to internal disagreements. However, it was revived in May following a successful bid by a consortium led by co-founder Mike Cannon-Brookes.

Energy policy in Australia remains a topic of debate. Although both the ruling Labor Party and the opposition Liberal Party have pledged to achieve net-zero emissions by 2050, there are differing views on the path forward. The Liberal Party has proposed nuclear power plants, a suggestion which has been dismissed by Labor Prime Minister Anthony Albanese as impractical.

Discover the latest in supply chain logistics news on The Supply Chain Report. Free international trade tools are available at ADAMftd.com.

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