Strategic Insights Update

The International Energy Agency’s (IEA) Renewables 2024 Report forecasts a 2.7 times increase in global renewable capacity by 2030. While growth is expected to exceed current targets by up to 25%, installed capacity is still expected to fall short of the tripling in capacity agreed at COP28. Meeting this target remains possible with progress in developing countries and regions including Southeast Asia, potentially presenting opportunities for Queensland’s renewables sector.

Consultancy ITK says that data centres, particularly those tied to Artificial Intelligence, are set to significantly add to electricity demand in the National Electricity Market (NEM), but that their impact may be less than previously forecast. ITK’s forecasts suggests 20 fewer terawatt hours by 2035, compared to AEMO’s central estimates. The analysis suggests that significant electrification is set to occur in Queensland, highlighting the opportunity for renewable investment in the state. 

Demis Hassabis and John M. Jumper from Google DeepMind, have been awarded the 2024 Nobel Prize in Chemistry for their groundbreaking work in AI-driven protein folding and design. Their technologies promise to revolutionise drug discovery and materials science and could lead to more efficient vaccines and treatments for diseases. The use of AI in vaccine and medical treatment presents opportunities for Queensland’s world-renowned medical researchers.

The Department of Agriculture, Fisheries and Forestry’s (DAFF) Agricultural Commodities Report forecasts a 4% production increase ($86B) in 2024-25 with favourable seasonal conditions across much of Australia. Queensland beef producers are set to benefit from rising prices driven by rising global beef demand driven by the United States, and lower production in the United States and Brazil. During 2023-24, Queensland exported $6.6B of bovine meat.

Indonesian President-elect Prabowo Subianto has promised to enact the free meal program across Indonesian schools to ensure all students reach their nutritional needs. As a result, Indonesia plans to import at least 1.3 million cattle for the program and to meet overall domestic demand, as available cattle supply is insufficient, and farmland/cattle feed remains too costly. Based on the DAFF Report (increased production) and Queensland’s proximity, this could present opportunities for Queensland producers.

SpaceX have built and flown the world’s largest and most powerful rocket, using technology to make the vehicle completely reusable, by building the launching tower with two mechanical arms to catch the rocket and booster. In the early hours of the morning SpaceX made history by returning the booster and have set out to return the rocket the same way. As SpaceX continues to make massive leaps in the industry, this could increase both competition and opportunity for Queensland’s space industry.