“Australia with its access to low-cost renewable energy is at the forefront of Mars’ efforts to reduce its global carbon footprint,” Mars Petcare Australia and New Zealand general manager Craig Sargeant said.
Loading
Unilever’s Tatura factory near Shepparton has installed solar thermal technology to replace its use of gas to maintain temperature control in its mixing room for products including Cup A Soup. The company, which plans to eliminate fossil fuel use across its global operations by 2030, said the new system, comprising 800 solar thermal tubes on the factory’s roof, marked the first stage of a push to expand solar thermal technology across the entire factory.
Over the past decade, the wholesale price of gas in eastern Australia has more than doubled from $4 to $5 a gigajoule to $10 to $15, following the depletion of the cheapest domestic gas fields and the start-up of Queensland’s liquefied natural gas (LNG) export industry.
Rising prices have increased bills for millions of homes that still use gas for cooking, heating and hot water, and added to the price of electricity. The increases have also increased pressure on the viability of factories that need gas to fire their kilns and furnaces, or as a feedstock in plastics, chemicals and fertilisers.
Concerns are intensifying across the manufacturing sector that gas prices could rise even further soon, as the giant gas fields in Bass Strait, which have supplied the bulk of east coast demand for decades, continue rapidly drying up, with not enough new supplies available to replace them. Officials and experts warn that homes and businesses in Victoria and NSW could face gas shortfalls before the end of the decade unless more supply becomes available or gas demand reduces significantly.
State and federal governments are investing in a range of initiatives to cut gas use, encouraging people to switch from gas-fired heaters and stoves. However, the Australian Energy Market Operator has cautioned that gas demand is not falling fast enough to ease the looming crunch.
This year, the Albanese government has begun a sweeping review to ensure the rules requiring gas exporters to keep the local market well supplied are delivering “as intended”. Manufacturers and the Victorian government have revived calls for the government to set up an east coast reservation scheme for Queensland’s LNG sector, similar to what is in place in Western Australia, where gas exporters are required to hold back a prescribed volume for the local market only.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
