A new report finds the federal government's $1.5 billion Middle Arm subsidy would be better spent on renationalising the Port of Darwin, reducing emissions and cutting the cost of living for Territorians.
New analysis backs calls for the Albanese government to redirect its $1.5 billion commitment for a gas and petrochemical hub on Darwin Harbour to re-nationalising the Port of Darwin and delivering a clean energy future for the Northern Territory.
Environment Centre NT and the Australian Conservation Foundation (ACF) will today launch an update of the landmark 2024 Recharging the Territory report.
The report outlines a three-step plan to exceed 50% renewable energy by 2030, tackle the cost-of-living crisis and create thousands of skilled jobs.
The report sets out a landmark opportunity for federal investment in sustainable industries in the Northern Territory despite the Finocchiaro government's decision to scrap the Territory's renewable energy and 2030 emissions reduction targets earlier this year, and builds on the bipartisan commitment to re-nationalise the Port of Darwin.
It questions the value of the $1.5 billion commitment to dredge Darwin harbour and the Elizabeth River, clear woodlands and mangroves, deliver one of the world's largest carbon pollution import terminals and construct wharves to export fossil gas, methanol and petroleum.
The report explains why the Middle Arm gas hub proposal doesn't stack up, with the project business case rejected by Infrastructure Australia and described by energy economist Professor Bruce Mountain as a 'white elephant' that could result in severe budgetary pressure for the Northern Territory.
Recharging the Territory highlights
The report calls on the Albanese government to redirect its $1.5 billion commitment to the beleaguered Middle Arm gas hub to:
- Re-nationalise the Port of Darwin: Invest $490 million to renationalise the Port of Darwin to restore public ownership of this key northern asset and deliver genuine, sustainable industrial growth at East Arm.
- Build a big battery and solar farm to hit 50% renewables and beyond by 2030: Invest $254 million to construct 150 MW/600 MWh of new big battery capacity in the Darwin-Katherine Interconnected System.
- Invest in skills and households: Train Territorians at four new renewable energy campuses at a cost of $25 million. Invest $225 million into a Climate Smart Housing Upgrade program for every low-income household in the NT. Invest $119 million to install solar, insulation and a modern air conditioning system in every single public housing dwelling in the NT.
Why East Arm makes sense
The report states that after a decade of private operations, lack of demonstrated investment, and recent questions about the solvency of the operation, it is clear the private sector does not have the interest or capability to upgrade the Port of Darwin in the absence of public investment. The East Arm Port of Darwin Expansion project has been rated as 'Investment Ready' by Infrastructure Australia since 2011. The Albanese government can get on with the job of renationalising the Port of Darwin by redirecting the Middle Arm subsidy.
Australian Conservation Foundation Climate Change and Clean Energy Program Manager Gavan McFadzean said:
"Recharging the Territory means real cost-of-living relief, a sustainable economy, long-term jobs, and a step towards energy security.
"The Albanese government has an opportunity to deliver thousands of skilled jobs for tradies and lower bills for households across the Territory.
"Everyone wants to see the Port of Darwin back in Australian hands and no-one wants to see the Harbour destroyed to line the pockets of fossil fuel executives.
"This week's Climate Risk Assessment shows the Territory could be unliveable within two generations, so we can't afford climate bombs like Middle Arm.
"It's time to recognise that the Middle Arm gas hub is a dud. The Albanese government needs to redirect its funding commitment now so Territorians don't miss out on much-needed investment."
Environment Centre NT Executive Director Dr Kirsty Howey said:
"The federal government has an incredible opportunity to create thousands of skilled jobs and change lives. It's time for the Northern Territory to move away from boom-and-bust cycles towards a sustainable economic future along with real action on climate change.
"Everyone wants to see the Port of Darwin back in Australian hands so let's use the Middle Arm subsidy to get on with the job.
"East Arm offers enormous potential for clean energy industries that will drive sustainable economic growth without destroying Darwin's beautiful harbour."
Darwin Harbour sunset pic by Geoff Whalan
