PERTH (miningweekly.com) – A new plan by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) has revealed that Australia could become a global superpower in solar photovoltaic (PV) energy generation and export, but would have to develop its own fully integrated domestic supply chain, including mining.
The Australian Silicon Action Plan sets out the actions Australia needs to take to participate in a fully-fledged supply chain for silicon and solar cells, which will support economic growth and jobs across Australia.
The report is authored by PwC Australia, commissioned by the CSIRO, and finds that while Australia has great potential when it comes to the leading role it can play in the energy transition, its reliance on overseas supply chains risks holding it back.
The Australian government has identified silicon as a critical mineral, given its current supply chain risks and its importance to new economy technologies such as solar cells, semiconductors (chips), optical fibres, aluminium alloys, and its potential use in energy storage batteries. Silicon is abundant in Australia in the form of quartz, but it is the process of smelting quartz to silicon, then to high purity silicon that requires attention.
“Australia already has the highest per capita deployment of rooftop solar in the world, and there are several megaprojects in the solar development pipeline,” said CSIRO senior principal research scientist Dr Chris Vernon.
“But one of the greatest risks to Australia’s solar ambitions and energy future is our reliance on overseas supply chains for solar cell technology.”
According to the report, increasing production of silicon in Australia is the first step for Australia to develop its own capability and capacity in the solar cell supply chain.
"Energy independence should be a top priority for Australia. The increasing pace of the energy transition and ever-increasing international demand for solar PV, combined with an ever-present focus on ESG issues, highlights the fragility of our current supply chains, and makes the pursuit of energy independence all the more important,” said Vernon.
The CSIRO pointed out that between 2021 and 2050, solar PV’s contribution to the energy mix in Australia is expected to increase from 12% to approximately 50%, while according to the International Renewable Energy Agency, estimated yearly global solar power generation capacity must increase more than five-fold by 2030, and 14-fold by 2050 to stay on track for net-zero targets.
To keep pace with these solar capacity forecasts, yearly global production of silicon and its purified form, polysilicon, will have to materially increase.
Despite Australia’s reliance on solar generation set to grow, current supply chain dynamics pose an energy security risk for the region, the CSIRO said. Geopolitical tensions, natural disasters, climate change, energy market issues and Covid-19 have highlighted the fragility of the current supply chains.
Around 70% of silicon is produced in China, while China also dominates the production of polysilicon. The conversion of polysilicon to solar cells is even more concentrated, with China accounting for between 75% and 97% of these stages of production.
According to the Australian Silicon Action Plan, Australia can develop a fully integrated silicon and solar cell supply chain, from quartz mining through to manufacturing, end-of-life processes, and recycling to support and de-risk the overall solar supply chain.
“Australia has enormous potential when it comes to supplying solar power for its own and also the region’s energy needs, but our current reliance on concentrated silicon and solar cell supply chains poses risks to Australia’s energy independence,” Vernon said.
“The Australian Silicon Action Plan suggests a pathway for the creation of an industry that has the potential to provide employment and reskilling opportunities, the delivery of significant economic benefits that come from adding value to Australia’s mineral endowment, development of new industries in regional Australia with the world’s best ESG standards, all while improving Australia’s energy security and independence
“This vision will not be achieved without a high level of collaboration between all stakeholders, from miners and refiners to state and federal governments, to R&D providers, to the manufacturing industry.”
Minister for Industry and Science Ed Husic said the Australian Silicon Action Plan was a welcome contribution to discussions about how best to establish new manufacturing capabilities in Australia.
“The report highlights the part silicon plays in new technologies such as solar cells, semiconductor chips, optical fibres, aluminium alloys and its potential for use in batteries,” Husic said.
“As I’ve said previously, if we mine it here, we should make it here. There is potential alignment with our priorities for the National Reconstruction Fund (NRF), including value-adding in resources and for renewables and low-emissions technologies.
“The NRF will help to support new industries and advanced manufacturing in Australia.”
The NRF will invest across seven priority areas of the economy, including value-add in resources. Investments in this priority area will help to expand Australia’s mining science technology, and ensure a greater share of raw materials extracted are processed domestically.
The government has identified A$1-billion of the NRF to specifically support this priority area.