Beetaloo Energy Alex Underwood on proposed Data centre

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Episode Transcript

Speaker 1 (00:00):
Let's take a real change of pace, because we know
that a debate is brewing over the future of data
centers in the Northern Territory. After the Federal Energy Minister
Chris Bowen flagged new national rules for projects relying solely
on gas, Beteloo Energy Australia says it's proposed Woodell Center
isn't gas only. And we just heard from the Chief

(00:21):
Minister Leofanocchiaro. She said she's prepared to fight back on
the federal government's plans. But Alex Underwood from Bedeloo Energy
joins me on the line. Good morning to you, Alex.

Speaker 2 (00:33):
Goody Katie, here you going.

Speaker 1 (00:34):
They're really good. Good to have you on the show.

Speaker 2 (00:36):
Alex.

Speaker 1 (00:36):
Tellers, how would you describe the proposal at Wodell and
can you explain exactly how the data center's going to
be powered? Is it going to be a hybrid or
is it just gas?

Speaker 2 (00:48):
Yeah? Absolutely so. This is a major development opportunity for
the Northern Territory. And if you look at the Northern Territory,
we're blessed with two major sources of energy being gas
and solar, and it's absolutely our intention to have a
combination of both because that's the most economic outcome we
can achieve.

Speaker 1 (01:08):
So in terms of the national I mean, if there
is national rules or emissions requirements, how would you meet
those or what would you need to do, how might
you need to modify things?

Speaker 2 (01:20):
Well, we don't really know what the rules are going
to be yet, that's under consultation at the moment, but
we understand that, you know, there's an expectation that there
needs to be a combination of renewables and firming, as
the Energy Minister said in his speech last week, and
that could include gas.

Speaker 1 (01:37):
And so do you believe that the project will still
stack up for you here in the Northern Territory?

Speaker 2 (01:45):
Yeah? Absolutely. I mean, I think it's important to note
that solar is a very cheap form of energy during
the day. But the thing about these data centers is
that they need a continuous load at extremely high reliable
and batteries can play some role in that, but ultimately
to get the power generating reliably through the night, in particular,

(02:08):
you are going to need that gas furning. And you know,
we believe that the economics can be very strong on
that basis.

Speaker 1 (02:13):
So do you think it's a bit ridiculous for anybody
to suggest that a data center could be run wholly
and solely.

Speaker 2 (02:19):
On solar, Well, I'm not sure I'd to use the
word ridiculous, but what I would say is that, you know,
when you look at the economics of projects like this,
having batteries that would get you all through the night
really would make it challenging from an economic perspective, and
hence the need for that reliable firming.

Speaker 1 (02:40):
Now tell me what would a project like this mean
for the territory in terms of jobs, investment and making
use of gas from the Beterloo base. And I guess
I'm probably most interested though in what it could mean
jobs wise.

Speaker 2 (02:55):
Absolutely, this is a huge opportunity for the Northern Territory,
both in Darwin and surrounds, but also in the regions.
I was just about a week and a half ago
I was out in a project called Stargate in West Texas.
That was an incredible sight to see. There was installing
eight gigawatts of generation for a massive data center there.

(03:16):
There were around four thousand people working on site at
any given time. A huge opportunity for that regional part
of Texas. And we see that opportunity really being available
to us here in the Northern Territory. So lots and
lots of jobs in the construction phase, particularly skilled jobs
like electricians and so on. But then you also need

(03:39):
people to run these projects going forward, and that could
be a few hundred jobs. But the other big opportunity
for the Northern Territory is that this would be powered
in significant part by gas from the Bee Lou Basin,
and that means royalties to the Northern Territory from day one,
more jobs in the regions like we've been doing over
the years, you know, really really helping to move the

(04:02):
territory economy to the next level.

Speaker 1 (04:04):
Alex. Since you were out with the government a couple
of weeks ago and you know, spoke about spoke about
this project, what kind of interest have you received.

Speaker 2 (04:15):
It's been a pretty incredible response, to be honest. Just
a week and a half ago, we signed an MIU
with Hallie Burton. They are one of the world's largest
oil field services companies and they have access to both
the ability to help us develop our gas fields in
the Bloo, but also the generation equipment that would be
required for that gas power into the data center. And

(04:38):
it was amazing to see some of the work they're
doing there. We are also in advanced conversations with people
around more pipeline development up to Darwin. And also, you know,
the response we received from data center operators has been
pretty amazing as well. And obviously I can't go into
any names there, but what I would say is that
people are looking for what's called behind the meta generation.

(05:01):
So the grids on Australia's East Coast and the US
are running out of capacity and so these types of
projects where you generate your own energy are very attractive.

Speaker 1 (05:11):
So what exactly does that mean? Like, if you're generating
your own energy, there's obviously obviously you're powering up the
data center, but are you saying that you could sort
of also it could power other things or what do
you mean?

Speaker 2 (05:23):
Absolutely, we've said from the outset that we want to
oversize the power generation for this project so that we
can help contribute to the grid in Darwin. And interestingly,
you get a project like this up and running and
it actually really helps unlock other energy opportunities. So, as
an example, the rooftop solar in Darwin's getting curtailed every

(05:44):
afternoon because the grid's getting overwhelmed. Projects like this can
actually help build the grid for a bigger economic future
for Darwin and casern Well.

Speaker 1 (05:54):
Alex Underwood from be Toloo Energy always appreciate your time.
We appreciate you joining us on the show after, you know,
the federal minister came out and made those comments. We
were keen to see whether it was still going to
stack up. Thanks Katie, Thank you appreciate your time.