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To make matters better, a large part of the energy used will be renewable.
Current consumption trends mean that 26% of Australia's energy supply will be renewable by 2020, higher than the 20% intended when the RET was introduced in 2001.
The contract will be renewable every five years for the next 15 years, with no competition guaranteed for at least two years.
By 2050, according to projections by the International Energy Agency in Paris, 26percentt of the world's transport fuel will be renewable.
This synthetic methane will be renewable if the H2 required for the reaction is generated via water electrolysis using solar and wind energy or hydroelectricity.
Another area of focus will be renewable energy, including more efficient photovoltaics made from earth-abundant materials and devices that harness artificial photosynthesis to produce fuels from sunlight.
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These R21 grants will not be renewable; continuation of projects developed under this program will be through the regular research grant (R01) program as new applications.
"We've said that by 2015, all our activity will be from renewable resources," says Mr. Hales.
It has also invested hugely in energy research: by 2020, 15% of its energy will be from renewable sources.
The navy intends that, by 2020, half the fuel it uses (over six billion litres a year, mainly diesel and jet fuel) will be from renewable sources.
In the decarbonised world in which we are heading, Australia will be a renewable energy superpower if it plays its investment cards right.
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