1.1 Project team

1 Introduction

This report provides the outcomes of desktop analysis of Australian industry to identify priority projects for RACE for 2030 to pursue. The analysis drew on, as well as extended, the concepts of energy productivity and value chains. Beginning with seven value chains identified as having potential for energy productivity improvements by RACE for 2030, priority opportunities were identified through desktop research and analysis.

Energy productivity captures the total economic value generated from each unit of energy, whereas energy efficiency focuses on the product output from a unit of energy input. Shifting the focus from energy efficiency and intensity to energy productivity is transforming the focus of energy conservation and emissions reductions. Improving energy productivity captures the additional economic benefits of energy use through considering the value outcomes of productions, rather than only focusing on saving energy. The social outcomes include enhanced employment, stronger government finances and improved infrastructure and trade (A2EP 2017; COAG Energy Council 2015).

Value chains, as applied to energy productivity, are an analytical framework for assessing systems of production and the relationships across industries and business units, based on the form of business analysis developed by Porter (2001). The application in this context draws out how energy use and value need to be considered as a result of systems, including consumption, rather than discrete steps from raw materials to final product. The focus on industry also raises questions of the adoption of technology into systems of production, as well as the displacement and disruption of incumbent industries.

This project investigates opportunities to reduce energy use in Australian industry, while at the same time transforming energy productivity through innovative technologies and business models, through value chain analysis.

1.1 Project team

The project has been a collaboration between RMIT University, University of South Australia (UniSA), Queensland University of Technology (QUT), Curtin University and University of Technology Sydney (UTS), with industry partners Australian Alliance for Energy Productivity (A2EP), Climate-KIC, Simble and Sydney Water. RMIT University and UniSA co-led the project, with RMIT University as administering institution. This report has been prepared by Todd Denham, Ke Xing, Jago Dodson and Alan Pears. Ming Liu and Linda Shi have contributed to the discussion on energy productivity in Section 2.1. Linda also provided editing and feedback during the preparation of the report.