By Zembl Energy Experts for small to commercial sized businesses
They’re the juggernauts of energy consumption in Australia and in today’s environmentally conscious and eco-obliged world, we’re all facing increasing pressure to demonstrate a forward-focused stance when it comes to energy efficiency and sustainable practices.
It’s also not surprising that these giants of energy consumption are the businesses that are the backbone of Australia’s economy, so it’s in everyone’s best interest that they meet the challenges ahead in a way that doesn’t compromise their business success.
Here at Zembl, the team have taken a look at the Top 9 in terms of energy consumption, why they consume so much energy and where their opportunities for energy efficiency lie:
1. Mining
Ironically, while they’re playing a key role in making the energy, mining businesses are also using a truckload of it. With a high demand for heavy machinery and energy-intensive extraction processes, the industry has long been associated with substantial energy usage.
The green news:
In 2024, mining has sustained its power profile but is also redefining it through the integration of renewable energy sources. For example, one Australian ferronickel business is looking at powering their furnaces with 100% renewable energy by investing in the building of a solar farm. The proposal is for a 1000MW solar farm over approximately 1000 hectares, supported by a large network of continuous battery storage (2400MWh) for powering the plant at night. The proposal found that, not only would the plant be 100% powered by its own renewable energy sources within 20 years, there would be surplus energy generated, offering benefits for the community and business alike.
2. Manufacturing
In second place is manufacturing, with mills, steel plants, and automotive factories being voracious energy guzzlers, and requiring huge amounts of electricity and fuel to keep them churning out goods.
The green news:
This year, the sector is investing in sustainable technologies that promise to reduce its carbon footprint. For example, in a 2023 Climate Council report, Green Metals were cited as an area of enormous opportunity and potential positive environmental impact for Australia. For example, if Australia made green steel on shore by refining our own iron ore, rather than exporting more than 90% of it, we could avoid 1.5 billion tonnes of greenhouse gas emissions annually and generate 10 times the profits our iron ore industry does today.
3. Transportation
The wheels of Australia's transportation sector never stop turning. From sea vessels lapping at the country's coastline to the outback trains that seem to stretch to infinity, the sector's appetite for energy is endless.
The green news:
2024 heralds a shift towards electrification and biofuels, nudging this sector onto a more sustainable future. Nickel for electric vehicle batteries and algae for sustainable aviation fuels are just the beginning of the energy revolution for
the transportation industry. South Australia, for example, has been a leader in Electric Vehicle (EV) development and the infrastructure needed to support it, with a goal to have a statewide charging network operational by the end of 2025.
4. Agriculture and farming
Australians' appetite for fresh produce and processed food is insatiable, and the industry behind it is a hearty consumer of energy too. They’ve also endured a bad rap in the media for everything from antiquated processing to gas-emitting cows!
The green news:
The industry is taking a forward-thinking approach to the future with innovations in smart farming, vertical agriculture, and energy recovery systems. Once again, a hot topic is the potential for agricultural businesses to generate their own energy through investing in solar farms, micro-grids, small scale hydro electric generators and other sustainable options for their energy consumption needs.
5. Construction and infrastructure
Our fifth most energy-thirsty industry is construction and infrastructure, with the sprawl of Australia's skylines telling the story of constant activity and growth. From building projects to address housing shortages at crisis points, to massive road & tunnel projects, the industry is literally in heavy lifting mode and it’s not surprising that shifting concrete, metal & steel uses copious amounts of energy.
The green news.
Thankfully, in 2024 the construction sector is showing steps to move toward more sustainable practices to offset its carbon footprint. Techniques like passive heating and cooling, energy-efficient retrofits, and the use of renewable materials are rising stars in the construction play.
6. Retail & commercial
Coming in at number 6 is the retail & commercial sector. Beneath the surface of shopping centers and corporate offices, the energy meter never stops ticking. From lighting up store signs to powering vast air conditioning systems, the sector’s reliance on energy is multifaceted and constant.
The green news:
Australian retail & commercial businesses are now championing energy management strategies, with solar panels adorning their rooftops and LED lighting casting a green glow on consumer aisles. This shift, though subtle, is laying the foundations for a more energy-conscious commerce landscape.
7. Healthcare
Hospitals & healthcare facilities are the pulse of the country and their energy usage is as critical as the care they provide. For example, in NSW alone there are 228 hospitals that provide healthcare 24 hours a day, with energy needed to power medical equipment, lighting, heating, cooling, laundry and kitchen services.
The green news:
With the healthcare sector being closely aligned to government, it’s not surprising their sustainability practices are well established. For example, solar energy has reduced NSW Health’s electricity bill by $4.2 million a year, with a projected savings of $15 million a year by 2030. The program has already reduced carbon emissions by around 33,000 tonnes — the equivalent of removing about 18,000 cars from the road.
Other carbon-neutral initiatives on their roadmap to net-zero include replacing old lighting, water sustainability measure in line with the Water Efficiency Labelling Scheme, reducing waste, replacing old equipment and the use of Electric Vehicles for patient transportation and other healthcare transport.
8. Information Technology (IT) and data
At number 8 sits IT and Data Centres, the all-important core of Australia’s technological advancement and innovation – and a powerhouse of energy demand.
The rise of cloud computing and the AI boom have led to an unquenchable thirst for data which has seen energy consumption soar, with electricity consumption by Australian data centres tipped to hit 1,000 terawatts by 2026, which, for context roughly mirrors the entire country of Japan’s energy consumption!
The green news:
With technology booming, Data Centres have the potential to become the silent assassins of energy consumption, and so technology has another role in the future – to innovate so that data storage can be scaled to meet future needs whilst still prioritising sustainability.
Green initiatives for data storage include The Circular Drive initiative, a
co-operation of global digital storage industry leaders, that promotes refurbishment, repair, reuse, and recycling of data drives, amongst a myriad of other sustainable practices for data storage and use.
9. Education
Universities, schools, and the education sector with their sprawling campuses, energy-intensive equipment, lighting, and technological infrastructures to support learning environments are hives of both energy consumption and thought leadership in sustainability. Their students are, after all the future – so it goes to follow they’d want to lead the way in terms of making it one to look forward to.
The green news.
For some time, Australian educational institutions have been proving themselves to be not just institutions of learning but leaders in sustainable energy consumption. In every state, large-scale Government investment in renewable energy for schools and universities has been made over the last decade. Perhaps the most impressive example is The University of Queensland which invested in its own $125M, 64MW solar farm with an objective of generating its own renewable energy and becoming the first 100% carbon-neutral educational institution on the planet.