This is Allens

This year has been marked by significant developments in the energy sector, particularly in Western Australia, where we are seeing increasing interest in the decarbonisation market and renewable energy infrastructure. But some key challenges are inhibiting progress.

Globally, the energy sector is facing headwinds like supply chain difficulties and excessive costs, which have slowed the momentum of offshore wind projects. The initial hype around hydrogen has dampened due to its lack of commercial viability to date, and we are seeing a renewed focus on gas as a transition fuel, and carbon capture and storage (CCS) as a way to reduce emissions.

In WA, where I am based, these complexities are even more pronounced, with the current limitations of our energy infrastructure and our State Government's ambitious goal to phase out coal by 2030. Achieving this target brings several questions into sharp focus: how do we connect renewables into the grid, and how do we ensure we have reliable and affordable energy as we phase out coal?

With continued effort, we can unlock the full potential of WA's energy sector.

Our transmission infrastructure in WA is currently constrained, making it challenging for new projects to connect to the grid. Unlocking the renewable energy potential requires major government investment, and the involvement of private capital investors will only be achieved if those investors can have the commercial certainty needed to ensure a return. With state and federal elections approaching, we are in a waiting game, but I am optimistic about seeing progress in 2025.

As we prepare to roll out the necessary infrastructure for the transition, engaging from the outset with traditional owners and stakeholders is more critical than ever, to ensure meaningful participation and that a new project has a social licence to progress. The political will to drive renewable energy growth is strong, and with continued effort, we can unlock the full potential of WA's energy sector.

There's no doubt that gas will have a role to play as a transition fuel, and we have seen a significant effort to decarbonise those operations—which presents a huge opportunity for CCS. We have a federal offshore regulatory regime, and in some states (including WA), an onshore regulatory regime, which provides a framework for the CCS industry. Internationally, the technology is advancing, and we are seeing notable interest from clients across the region who are looking to export their CO₂ to Australia for offshore storage. It is very possible that CCS will become the next big thriving industry in WA.

I am optimistic about the future, and the role we can play in shaping a sustainable, and reliable, energy landscape for WA and beyond.