Energy, resources and environment update - January 2022

In November 2021, DMAW was pleased to be recognised by SACOME (the South Australian Chamber of Mines & Energy) for 15 years of membership and support of the sector. DMAW Lawyers are proud of our association with SACOME. We have provided legal advice on various areas, including (but not limited to) environmental, social and corporate governance strategies, listing requirements, capital raisings, mergers and acquisitions and IPOs. We continue to build our team and promote this sector as a critical sector for Australia, and work with the industry to acknowledge and develop in line with the changing social and community expectations.

On 10 January 2022, ARENA announced a $40 million fund to support research and development into the Government's ultra low-cost solar goal. Applications are sought over two streams; stream 1: cells and modules; stream 2: balance of system, operations and maintenance. These grants align with ARENA's ambitious solar target of "Solar 30, 30, 30", indicating it seeks to improve module efficiency by 30% and reduce the cost of utility scale solar farms to 30 cents per watt by 2030.

Further details can be found here.

On 24 December 2021, ARENA announced a $100 million fund for new battery energy storage projects of 70 MW or larger. The storage projects will operate in the National Electricity Market or Western Australia's Wholesale Electricity Market. In addition, funding will also be available for existing grid-scale batteries seeking to retrofit advanced inverter capability.

Further details can be found here.

On 24 September 2021, a new $50 million fund was announced to support the development of microgrids and renewable energy across Australia. The new program will provide grants to projects that have been found to be viable through feasibility studies, with successful applicants expected to receive between $1 million and $5 million in funding.

Further details can be found here.

On 26 November 2021, the South Australian Government announced $11.5 million in additional funding for the extension of the Accelerated Discovery Initiative (ADI) until 2025. The ADI provides co-financing to mineral exploration activities to attract greater exploration investment, bringing forward new mineral resource discoveries, jobs, Aboriginal employment opportunities and royalties.

Further details can be found here.

ARENA is supporting a Queensland coal and gas operator to scope the feasibility of a plan to export renewable hydrogen to support Japan's energy transition. Stanwell Corporation is proposing to produce 36,500 tonnes of renewable hydrogen for export by 2026, growing to 328,500 tonnes per year by 2030. It is proposed that the hydrogen will be shipped in liquid form to Japan on purpose-built carriers developed by Kawasaki Heavy Industries, similar to Australia's current liquified natural gas exports.

Further details can be found here.

On 17 December 2021, Santos announced that the merger of Santos and Oil Search by scheme of arrangement was implemented. Santos has acquired 100 per cent of the issued capital in Oil Search, and Oil Search shareholders have been issued with new Santos shares.

Further details can be found here.

On 16 December 2021, the ACCC announced they would not oppose Woodside Petroleum Limited (ASX: WPL) proposed acquisition of BHP Petroleum Limited Pty Ltd, a wholly-owned subsidiary of BHP (ASX: BHP). The ACCC found that the proposed consolidation is not likely to have any additional impacts on competition beyond that suggested by the aggregation of their market shares.

Further details can be found here.

On 13 December 2021, Senex (ASX: SXY) announced it entered into a binding scheme implementation agreement with POSCO International Corporation (PIC). PIC is proposing to acquire 100% of Senex for a cash offer price of AU$4.60 per share. The Senex Board unanimously recommended that shareholders vote in favour of the Scheme.

Further details can be found here.

This article provides general commentary only. It is not legal advice. Before acting on the basis of any material contained in this article, seek professional advice.


Co-authors

Name: Mario Pegoli,

Position: Associate and corporate adviser

Practice: Corporate

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