Energy Profile - Australia

(Pop.: 27.2 mi; GDP: US$ 1.82 tri; debt: 50% of GDP; tax burden: 29%; prim. energy use: 128 Mtoe; electricity use: 245 TWh; inst. capacity: 92 GW; self-sufficiency: 290%)

  

With abundant energy resources, Australia is a leading producer & exporter of coal (top exporter), liquefied natural gas (LNG) (top exporter), and uranium (largest reserve [INN, 2023], 4th largest producer [INN, 2023]).

  

In 2020, fossil fuels accounted for roughly 90% of Australia’s total energy consumption.  Figure 1 shows the total primary consumption in Australia by fuel type in 2020.  Australia’s energy exports, excluding uranium, accounted for approximately 81% of its total energy production in 2020 [EIA, 2023].  Figure 2 shoes Australia´s installed generation capacity in 2024.  Figure 3 shows Australia’s resources & major export ports.

  

Coal

  

Australia is the world’s largest coal exporter based on energy content and the 2nd-largest exporter based on weight, behind Indonesia [EIA, 2023].  Russia and the U.S. come third and fourth, respectively.  Australia's coal is high quality as a result of its low moisture and ash content, and high carbon content [AAP, 2023].  Australian coal (thermal, for electricity & metallurgic, for steel making) is shipped mainly to Japan, China (exports to China fell in 2021 due to Beijing's ban on Australian coal) India, and South Korea.

    

LNG

  

In 2020, Australia passed Qatar to become the top LNG exporter, reaching 3.7 Tcf (an increase of 0.1 Tcf from 2019).  The country exports LNG almost exclusively to major Asian markets, primarily Japan, China, and South Korea, where long-term supply contracts underpin regional energy security. This dominant export position is supported by massive offshore production basins and major liquefaction hubs in Western Australia and Queensland, making Australian LNG a critical fuel source for power generation and industrial decarbonization across the Asia-Pacific region.  Figure 4 shows Australia LNG exports by destination (2020).

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Uranium  

  

Australia holds the world’s largest uranium reserves, accounting for approximately one-third (28%–33%) of global identified resources.  Despite possessing the largest reserve base on the planet, Australia is currently the 4th largest producer globally, behind Kazakhstan, Canada, and Namibia [INN, 2023].

  

Looking ahead, Australia’s uranium production is projected to increase by approximately 30%, driven by the restart and expansion of key operations such as Boss Energy’s Honeymoon mine, optimized recovery at BHP’s Olympic Dam, and surging global demand for nuclear fuel to support baseload clean energy transition targets.

    

Mining

  

Australia is the leading global producer of iron ore, accounting for 35% of total production with 900 Mt in 2021, followed by Brazil and China with 380 million tons each [NRC, 2023].  dditionally, Australia is the world’s largest producer of spodumene (the raw material for lithium hydroxide and carbonate) and holds the second-largest lithium reserves globally, after Chile [MCY, 2023].

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Shift to renewables

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In 2021, renewables production increased 10%, largely due to the rapid expansion of solar & wind [GA, 2022; that same year, renewables accounted for 29% of Australia’s total electricity generation, marking the highest share on record.  Figure 2 provides an updated breakdown of renewable energy participation in installed capacity for 2024, where the key REN sources were solar (33%), wind (13%), and hydro (8%).  

  

The Australian Government has committed a record of almost AUD 25 billion budget to reaching emissions targets through its Powering Australia plan, including funding for projects that unlock opportunities for investors in clean energy and other low-carbon technologies.

  

Australia became the first country in the world to export LNG (liquefied hydrogen), when it shipped LH2 to Japan in 2022 [GA, 2022].  At the end of 2022, Danish company "European Energy" announced that it has acquired a majority stake in Austrom, a company located in Queensland, w/ the intention of accelerating the 3,600 MW Pacific Solar Hydrogen Project in the Gladstone region and producing more than 100 000 tpy of green hydrogen [EG, 2022].