(Kitco News) - According to the data by the Department of Industry, Science, Energy and Resources of the Government of Australia (DISER), over the twelve months from the start of November 2021 to the end of October 2022, Australia’s resources and energy major projects pipeline increased year-on-year, underpinned by a mix of traditional and new energy projects.
DISER said that over the reporting period, the number of resources and energy major development projects in Australia rose to 423, compared to 367 in 2021.
Hydrogen projects accounted for an estimated A$266 billion worth of potential investment, lifting the estimated total value of projects in the investment pipeline to a range of A$572–705 billion, it added.
Importantly, the value of committed resources and energy projects — those where a final investment decision has been taken — increased by 53% over the past year to A$83 billion.
DISER noted that new or progressed projects in the publicly announced and feasibility stages are dominated by hydrogen and iron ore projects.
“The hydrogen project pipeline continues to expand, and they now comprise the largest single component (by value) in this year’s report. Hydrogen projects almost doubled from an estimated range of A$133–185 billion in 2021 to A$230–303 billion in 2022, though these values are still dominated by two megaprojects worth $150 billion,” the authors of the report found.
Furthermore, Australia’s critical minerals major project pipeline increased to 81 projects (from 71 last year), with an estimated value of A$30–42 billion.
“Over two-thirds of the projects on this year’s list will produce critical minerals that can support clean energy technologies — including graphite, rare earths, lithium (spodumene concentrate and lithium hydroxide), vanadium and manganese concentrates,” DISER said.
Rising global demand for electric vehicle batteries saw lithium demand surge as supply shortfalls lifted prices to record levels. Australian producers accelerated plans to bring additional production online, with substantial progress made on a number of projects over the past year.
DISER pointed out that expectations of higher demand for key battery metals are driving interest and investment in mine capacity and processing facilities, with interest growing in several major nickel, cobalt and graphite projects. Feasibility studies are also progressing for a number of rare earths projects.
According to the report, Australian exploration expenditure increased by 20% to A$5.0 billion in 2021–22, with mineral exploration increasing 22% to A$3.9 billion and petroleum exploration up 15% to A$1.1 billion. In 2021–22, gold expenditure increased to A$1.6 billion, accounting for over 40% of Australia’s mineral exploration expenditure.
In addition, DISER said that despite a sharp slowing in world economic growth during 2022, Australia’s resource and energy export earnings are forecast to reach A$459 billion in 2022–23, following high global energy prices and a lower Australian dollar.
Export earnings are then forecast to fall to A$391 billion in 2023–24 as prices for energy commodities moderate, amid easing supply disruptions and a weaker global economy.
