1AustralianGovernment絮DepartmentofIndustry,Science,EnergyandResourcesSTATEMENT2021COPYRIGHT?CommonwealthofAustralia2021OwnershipofintellectualpropertyrightsUnlessotherwisenoted,copyright(andanyotherintellectualpropertyrights,ifany)inthispublicationisownedbytheCommonwealthofAustralia.CreativeCommonsAttribution40InternationalLicenceCCBY40AllmaterialinthispublicationislicensedunderaCreativeCommonsAttribution4.0InternationalLicence,withtheexceptionof:theCommonwealthCoatofArmscontentsuppliedbythirdpartieslogosanymaterialprotectedbytrademarkorotherwisenotedinthispublication.CreativeCommonsAttribution4.0InternationalLicenceisastandardformlicenceagreementthatallowsyoutocopy,distribute,transmitandadaptthispublicationprovidedyouattributethework.Asummaryofthelicencetermsisavailablefromhttps://creativecommons.Org/licenses/by/4.0/.Thefulllicencetermsareavailablefromhttps://creativecommons.Org/licenses/by/4.0/legalcode.Contentcontainedhereinshouldbeattributedas:LOWEMISSIONSTECHNOLOGYSTATEMENT2021AustralianGovernmentDepartmentofIndustry,Science,EnergyandResources.ThisnoticeexcludestheCommonwealthCoatofArms,anylogosandanymaterialprotectedbytrademarkorotherwisenotedinthepublication,fromtheapplicationoftheCreativeCommonslicence.TheseareallformsofpropertywhichtheCommonwealthcannotorusuallywouldnotlicenceotherstouse.ISBN:Print:978-1-922125-95-8Online:978-1-922125-94-1DISCLAIMERTheCommonwealthasrepresentedbytheDepartmentofIndustry,Science,EnergyandResourceshasexercisedduecareandskillinthepreparationandcompilationoftheinformationinthispublication.TheCommonwealthdoesnotguaranteetheaccuracy,reliabilityorcompletenessoftheinformationcontainedinthispublication.Interestedpartiesshouldmaketheirownindependentinquiresandobtaintheirownindependentprofessionaladvicepriortorelyingon,ormakinganydecisionsinrelationto,theinformationprovidedinthispublication.TheCommonwealthacceptsnoresponsibilityorliabilityforanydamage,lossorexpenseincurredasaresultoftherelianceoninformationcontainedinthispublication.LOWEMISSIONSTECHNOLOGYSTATEMENT2021ContentsTOC\o"1-5"\h\z\o"CurrentDocument"MessagefromtheMinister 5MessagefromtheChair 6Ataglance 11Introduction 15\o"CurrentDocument"AustralianGovernmentinvestment 24\o"CurrentDocument"Governmentactions 29\o"CurrentDocument"Prioritytechnologies 43\o"CurrentDocument"Enablinginfrastructure 47\o"CurrentDocument"Emergingtechnologies 53Acceleratingdeployment 61Australia'sresourcesopportunity 87\o"CurrentDocument"Impactevaluationframework 97MessagefromtheMinisterMessagefromtheMinisterLOWEMISSIONSTECHNOLOGYSTATEMENT2021 LOWEMISSIONSTECHNOLOGYSTATEMENT2021 5MessagefromtheMinisterMessagefromtheMinisterLOWEMISSIONSTECHNOLOGYSTATEMENT2021 LOWEMISSIONSTECHNOLOGYSTATEMENT2021 5TheTechnologyInvestmentRoadmapanditsLowEmissionsTechnologyStatementssetoutAustralia'stechnology-ledapproachtoacceleratingthedevelopmentoftechnologiesessentialtoachievingnetzeroemissions.Ourgoalistodrivedownthecostofaportfoliooflowemissionstechnologies,becausegettingthemtocommercialparitywithexistingapproacheswillmakethemmoreattractivetoconsumersathomeandabroad.Ourapproachistechnologynottaxes,becauseit'stheonlywaytoreduceemissionswithoutimposingnewcostsonhouseholdsorbusinesses,orraisingthepriceofexistingenergysources.Toachievethisgoal,weareinvestingmorethan$20billioninnewenergytechnologiesoverthecomingdecade,todrivebetween$80billionandupto$120billionofcombinedpublicandprivateinvestmentandcreating160,000jobs.Likethegovernment's10yearfundingmodelforinfrastructureinvestment,wehaveadoptedadecade-longfundingmodeltobringforwardprivatesectorinvestmentinlowemissionstechnologies.Thegovernmentwillcontinuetorefineitsinvestmentsovertime.Sincethereleaseofthefirststatement(LETS2020)inSeptember2020,wehavecommittedanadditional$1.7billioninnewfundingacrossarangeofareasincludingcleanhydrogen,carboncaptureandstorage,soilcarbonmeasurementandaseriesofinternationalpartnerships.ThereleaseofLETS2021,thesecondannualstatementundertheroadmap,isanimportantelementofAustralia'sLong-TermEmissionsReductionPlantoachievenetzeroemissionsby2050.AnnualreviewsofourtechnologyprioritiesandtheinvestmentswearemakingarepartofourcommitmenttobeingaccountableforprogressunderourPlan.LETS2021expandstheprioritiessetoutinLETS2020,addinganewprioritytechnologyandassociatedstretchgoal,aswellasidentifyingnewactionsthegovernmentwilltaketoestablishAustraliaasaleaderinlowemissionstechnologies.Gettingthecostofsolarenergydowntolessthan$15permegawatthour,aroundathirdoftoday'scost,willhelpusachievedramaticcostreductionsincleanhydrogenproducedfromelectrolysisandinlowemissionsmaterials.Clean,lowcost,bulkelectricitysupplywillalsohelpmaintainAustralia'straditionaladvantageinaffordableandreliableenergy.Ourcontinenthasthehighestlevelsofirradiationofanyintheworldandwehaveanincredibletrackrecordofdrivinginnovationinsolarphotovoltaics,withmorethan90%ofsolarpanelsmanufacturedaroundtheworldusingAustraliantechnology.LETS2021alsoaddsenablinginfrastructureasanewtechnologycategory,whichwillfocusoninfrastructuretohelpdeploypriorityandemerginglowemissionstechnologiesatacommercialscale,includingforelectricvehicles.IwouldliketothanktheChairoftheTechnologyInvestmentAdvisoryCouncil,DrAlanFinkel,andtheothercouncilmembers-DrewClarke,JoEvans,GrantKing,DavidParker,JustinPunch,StevenSkala,AlisonWatkins,ShemaraWikramanayakeandBenWilson-fortheirinvaluableexpertiseandadviceindevelopingthisyear'sstatement.TheHonAngusTaylorMPMinisterforIndustry,EnergyandEmissionsReduction6 6 LOWEMISSIONSTECHNOLOGYSTATEMENT20216 6 LOWEMISSIONSTECHNOLOGYSTATEMENT2021MessagefromtheChairThedecadeisstillyoung,adecadeduringwhichwemustaccelerateprogressinlowemissionstechnologiesintobroadandlastingbenefits.Thistechnologicaltransformationhasthepotentialtofuelourlong-termprosperity,pavethewayfornetzeroemissionsby2050andpreserveourplanet.ButitrestsonourabilitytopromoteAustralia'sunmatchedenterpriseandcreativityandexpandearlywinsinlowemissionstechnologiesintomainstreamsolutions.The2021LowEmissionsTechnologyStatement(LETS)representsthesecondimportantmilestoneinthedevelopmentofaroadmaptoguideourpathtowardthistarget.LETS2021istechnologyagnostic-selectingprioritiesthroughthefiltersofabatementpotential,economicbenefit,Australia'scomparativeadvantageandresponsivenesstogovernmentinvestment-whiletakingactiontolowertheadoptioncostsfornewandemerginglowemissionstechnologies.Itunderscorestheimportanceofresearchanddevelopment,regulations,communityengagement,voluntaryactionandefficientoperationofmarkets.Itintroducesnewpolicyinitiatives,addsultralow-costsolarasaprioritytechnologyinrecognitionofthecontributioncleanelectricitymakestothesuccessoftheotherprioritytechnologies,andprovidesanewfocusonenablinginfrastructuresthatareessentialtocurbingemissionsacrosstheelectricityandtransportsectors.Astheglobalchallengeofclimatechangehasbecomedramaticallyevidentinrecentyears,sotoohastheneedforgreaterinternationalcooperation.WehavefosteredpartnershipswithGermany,Japan,theRepublicofKorea,SingaporeandtheUnitedKingdom,toadvancethedevelopmentanddeploymentoflowemissionstechnologiesandembraceourcollectiveresponsibilitytoprotectourcommonhome.Itisaprivilegetobepartofsuchastrategic,rigorousandadaptiveapproachthatreflectsthevigourandvisionthischallengedemands.IthankMinisterAngusTaylorfortheopportunitytocontribute,andforhiswiseguidanceandengagementthroughout.Ialsoexpressmysincerethanksandappreciationtomyfellowcouncilmembers.Theyhavereflecteddeeplyonthetechnologychallenges,andopportunities,forAustralia.Theirastutecounselhasmadeitpossibletotakethenextstepinthisjourney.IacknowledgethestrongcapabilityandprofessionalismfromtheDepartmentofIndustry,Science,EnergyandResourcesandIoffermyspecificthankstothededicatedteamthathasimplementedthework.Finally,Ithankallourindustrypartnerswhohavesharedtheirexpertknowledgeoverthepastyear.DrAlanFinkelAOSpecialAdvisertotheAustralianGovernmentonLowEmissionsTechnologyChairoftheTechnologyInvestmentAdvisoryCouncilLOWEMISSIONSTECHNOLOGYSTATEMENT2021 LOWEMISSIONSTECHNOLOGYSTATEMENT2021 # LOWEMISSIONSTECHNOLOGYSTATEMENT2021LOWEMISSIONSTECHNOLOGYSTATEMENT2021 LOWEMISSIONSTECHNOLOGYSTATEMENT2021 5ImpactevaluationframeworkLETS2020committedtodevelopinganimpactevaluationframeworkfortheTechnologyInvestmentRoadmap.Theimpactevaluationframeworkwill:provideaclearandtransparentwayoftrackingandreportingontheroadmap'sprogressinformgovernmentdecisionstomaximisetheimpactofpoliciesandinvestmentsinlowemissionstechnologies.Figure21showsthepathwayfromthegovernment'spoliciesandinvestmentstotheirintendedimpacts.Thepathwayhasthreestages,whichalignwiththegoalsandtargetsinLETS2020:Enablingpoliciesandinvestments.Thesearegovernmentpoliciesandinvestmentsthatsupportlowemissionstechnologydevelopmentanddeployment.Co-investmentandemploymentoutcomes.Theseincludeco-investmentingovernment-fundedprojectsfromtheprivatesectorandotherjurisdictions,aswellasjobssupported.Othertechnology,economicandabatementimpacts.Impactsthegovernmentaimstoinfluence,butwhicharealsoinfluencedbyexternalfactors.Theseinclude:-technologydeploymentandcosts-exportssupportedbyprioritytechnologies-reducedemissions.Themainlong-termimpactwewilltrackisprogresstowardstheeconomicstretchgoalsforprioritytechnologies.Technologycostswilltakeseveralyearstoreduce,soprivatesectorco-investmentisanimportantleadingmetricforprogressinthemeantime.Weaimtoattractanaverageofover$3ofco-investmentforevery$1ofAustralianGovernmentinvestmentoverthedecadeto2030,whichisexpectedtobeatleast$20billion.Lowercoinvestmentmaymeantheprivatesectorhaslessconfidenceinthetechnologyorthatpolicysettingsneedreview.Significantlyhighercoinvestmentcouldmeantechnologieshavebecomecommerciallymature.Thiswouldmeangovernmentinvestmentcouldbeprioritisedelsewhere.Wewillreportourprogresseveryyearinannualstatements,withindividualmetricstobecoveredtotheextentthatdataisavailable.Tosupportthisreporting,wewillcollectdatafromallrelevantAustralianGovernmentagenciesandalsoestablishdatasupplyagreementswithcoreinvestmentandregulatoryagencies,includingARENA,CEFCandCER.TheAustralianGovernmentinvestment'sectionoftheintroductionchapterincludesprogressupdatesonsomemetricsforthe12monthsending30June2021.Theimpactevaluationframeworkwillbecontinuallyreviewedandrefinedinlinewiththeroadmap'sadaptiveapproach.

Figure21:ImpactevaluationframeworkENABLINGPOLICIESANDINVESTMENTSGovernmentfundingallocatedtolowemissionstechnologiesMetric:$committedorexpendedGovernmentfundingallocatedtolowemissionstechnologiesMetric:$committedorexpendedEnablingpoliciesdeliveredNarrative:ProgressonpoliciestosupportprioritylowemissionstechnologiesInternationalpartnershipsestablishedNarrative:ProgressoninternationalpartnershipsforprioritylowemissionstechnologiesCO-INVESTMENTANDEMPLOYMENTOUTCOMES2.1Co-investmentleveragedTarget:2.1Co-investmentleveragedTarget:Over$3leveragedper$1ofAustralianGovernmentfundingMetric:$co-investmentcommittedtolowemissionstechnologiesNarrative:Outcomesachievedforselectedinvestmentprojectsineachprioritytechnologyarea(casestudies)Metric:JobssupportedbygovernmentinvestmentinlowemissiontechnologiesOTHERTECHNOLOGY,ECONOMICANDABATEMENTIMPACTSDecreasedcostsforprioritytechnologiesinAustraliaMetrics:Hydrogen-Costofproducingcleanhydrogen(target:$2perkg)Ultralow-costsolar-Levelisedcostofelectricityfromsolar(target:$15perMWh)Storage-Costofelectricityfromstorageforfirming(target:$100perMWh)Steel&aluminium-Averagecostsforlowemissionssteelandaluminium(targets:$700pertonneforsteel,$2,200pertonneforaluminium)Carboncaptureandstorage-AveragecostforCO2compression,transportandstorage(target:$20pertonne)Soilcarbonmeasurement-Averagecostofmeasuringsoilcarbon(target:$3perhectareperyear)IncreaseddeploymentofprioritytechnologiesinAustraliaMetrics:Hydrogen:Totalcleanhydrogenproductioncapacity(tonnesperyear)andannualproduction(tonnes)Ultralow-costsolar:Installedcapacity(MW)forlarge-scalesolarStorage:NEMandWEMinstalledcapacity(GW)andaverageduration(hours)for