A key battle over the future of fossil fuels and climate change will soon be decided in a sleepy corner of Australia. After a decade-long struggle pitting a mix of farmers, grandmothers and activists against oil producers and local and federal governments, a panel will decide by early next month whether to greenlight a A$3.6 billion ($2.6 billion) natural gas project.
The resolution will arrive amid growing global opposition to all fossil fuels over their contribution to climate change, and as traditional producers such as BP Plc pivot toward green power. As both a major exporter of energy and a victim of the devastation of a warming planet, Australia’s path forward may illustrate how communities weigh the economic benefits of gas against environmental damage.
Santos Ltd. says its Narrabri project, about 500 kilometers (311 miles) northwest of Sydney, is essential for the country to move from coal-fired power toward a cleaner network based on wind and solar. Opponents say the transition should happen without major new gas projects.
“It’s wrong to suggest that projects such as Narrabri are some sort of short-term bridge,” said Simon Corbell, chief executive officer at renewables-focused consulting firm Energy Estate. “It’s not a short-term bridge, it’s a long-lived investment that exposes us to significant environment and climate risk.”