The operations of Wesfarmers Premier Coal are geared to the essential elements of sustainability; “meeting the needs of today without compromising the needs of future generations”. Besides economic and social requirements, sustainable energy depends on reliability, efficiency, resilience, adaptability and responsible environmental management. Premier’s coal production, based on reserves for more than 100 years, provides reliable economic energy, combined with an innovative and effective environmental management regime. Although renewable energy resources are a priority for the future, hydro, wind, solar, biomass, wave and tidal power are not yet viable enough to produce base load power in WA.

Sustainable Development is about providing for the present without compromising the needs and life of future generations. Premier Coal believes Collie coal not only satisfies Sustainable Development but adds value for future generations.

The key to a sustainable future, with the standard of living we have all grown accustomed to, is the supply of sustainable power. Sustainable power supplies must satisfy several important criteria including:

Reliability (continuity of supply - day in, day out, 24 hours per day);

Efficiency (minimum of waste);

Resilience (ability to recover from disturbance and resume normal delivery); and

Adaptability (taking advantages of improvements and new possibilities).

Not all energy sources provide this.

Premier Coal provides all four of these sustainability requirements whereas WA gas has a vulnerable, long-distance supply system with no stockpile capacity close to the users, and renewables are subject to the elements. For instance, wind farms in WA provide power less than 30% of the time. Reliability and Resilience are gained by having viable, alternative energy supply industries.

Without Reliability and Resilience, there will not be sustainable energy supplies in Western Australia.

The Californian experience of massive energy shortfalls and blackouts because of a reliance on natural gas, provides a stark example of what can go wrong, and what we in Western Australia can avoid by a balanced energy supply including coal. Already, WA has suffered electricity restrictions due to an over-reliance on natural gas.

There is a common perception that society can change to renewables overnight and this is politically, socially and economically damaging. Sustainable energy is not just about the transition from fossil fuels to renewable energy sources, particularly over the next 30-50 years. Renewables are undeniably priority energy resources for consideration, support and development but will need to be balanced with fossil fuels for sustainable energy delivery.

Proper resource management is fundamental to Sustainable Development. Western Australia needs to plan the most effective use of energy sources, particularly fossil fuels, such that these are not wasted but are protected and optimised to produce the best social, economic and environmental outcomes. Fossil fuels have differing uses, differing initial values and differing value-adding capacities. Western Australian natural gas, for instance, is a premium fossil fuel capable of numerous high-value export products and easy application to reduce emissions in transport vehicles. Thus it is a waste to use this natural resource unnecessarily in basic power generation.

The sustainable development of south-west regional areas is highly dependent upon proper resource management and the most effective use of coal in the State’s energy mix. (This approach is already recognised by Government in the promotion of secondary industries attached to the Burrup Peninsular LNG plant.)

Development of an industrial cluster in Collie, near the power source, will add to the Sustainability equation through greater energy efficiency and less energy losses.

Hydro-electricity currently produces 19% of the world’s electricity (700GW installed capacity) and is considered to be at around 32% of potential installed capability but there are significant environmental impacts with dams such as loss of flora and fauna and disruption to river systems. Contrary to popular belief, hydroelectric power systems can emit more greenhouse gases than coal-fired power stations due to rotting vegetation-producing methane. This occurs initially due to flooding with ongoing emissions caused by a continual influx of organic material from incoming streams.

Renewable technologies are attracting significant legislative support, research, funding and concessions. Around the world, there has been considerable growth in renewable energy installations – particularly wind generation with over 10,000MW installed capacity. Winds are caused by differential solar heating of the atmosphere. The location of wind farms is critical, as effective utilisation can be low – less than 30% in WA – necessitating backup systems.

Solar photovoltaic power is the fastest growing renewables sector but only makes a small contribution in total World capacity (800MW). Photovoltaic power is limited by low conversion efficiency (15-18%), the requirement for massive installations and the need for backup or overnight storage systems. Cost is also a major factor - $6,000/kW – ten times that of current coal-fired generation costs. In addition, the manufacture of high-grade silicon semiconductors is highly energy intensive making solar the least greenhouse effective renewable. Solar thermal electric generation using parabolic dishes has a higher conversion efficiency of 30-40% and lower greenhouse impact.

Although wave energy is attracting attention, Australia is not ideally placed to exploit current wave technology due to the Continental Shelf reducing wave energy.

Tidal power is basically an ocean assisted hydroelectricity scheme but the construction of dams has environmental impacts as with hydro dams.

The geothermal energy potential in the uppermost 10km of the Earth's crust amounts to 50,000 times the energy of all oil and gas resources in the world. Here, steam or hot water is used as the source of power for heating or turbine generation. The current production of geothermal energy for all uses places it third among ‘renewables’, following hydroelectricity and biomass, and ahead of solar and wind.

Although bathed in stigma, nuclear power accounts for 17% of the world’s electricity production and 23% of USA’s electricity. Nearly all of the uranium mined today is used in 430 large power stations, mainly for base load generation. Full-cycle greenhouse emissions are extremely low, up to 80% lower than a coal-based system.

The Hydrogen Economy

Hydrogen is currently mooted as the fuel of the future, to form the new economy base, because it is abundant, renewable, non toxic, environmentally sound and an intense energy source; an ideal energy “carrier” with only one by-product created by the process – water.

The technology is now available to begin converting from a petroleum-based economy to a hydrogen-based economy. All three energy sectors (transportation particularly in the short-term, industry, and heating and cooling buildings) stand to benefit.

Manufactured hydrogen can be used in fuel cells to produce low-voltage DC electricity. To meet common power needs, multiple fuel cells are arranged face-to-face in series. This modularity of fuel cells allows them to be manufactured in virtually any size. Fuel cells running on pure hydrogen are dramatically more efficient than traditional power stations. A fuel cell can convert 40–65% of hydrogen's energy into electricity whereas 30-50% of fossil fuel energy is converted. Co-generation systems bring fuel cell energy efficiency closer to 90%.

Conversion of internal combustion engines in automobiles to use hydrogen fuel can be easily done and is ready for commercialisation. Estimated cost for conversion to hydrogen is about $US2,000.

A major concern is safety as hydrogen is highly volatile and requires stringent safety controls, as do petroleum and natural gas products. Advantages include it is less flammable than petrol, burns upward, is quickly consumed, with vapours lighter than air that dissipate quickly, and is not toxic and non polluting.