South Australia is at a turning point in our history where we can all benefit from our unique combination of natural resources.

The state’s shift in energy generation from hydrocarbons to renewables is not only delivering new infrastructure projects, it is also fuelling greater demand for the state’s critical minerals.

As a result, there are exciting investments, new jobs and opportunities to diversify farm incomes and local economies while also helping the world to decarbonise and minimise climate change impacts.

Resources are key contributors to the state economy

South Australia’s primary industries and agribusiness sector saw record-breaking growth last year, delivering $18.5 billion in revenue and accounting for 51 per cent of the state’s merchandise exports.

The mining sector contributed $6 billion to the Gross State Product – increasing its contribution by 13.9 per cent largely due to an increase in copper production. 

In the energy sector, the State has attracted over $6 billion in large scale renewable energy and storage projects- and there is another $20 billion in the investment pipeline.

The effects of the energy transition are being felt in our everyday lives with electric vehicles, more efficient buildings and renewable energy projects now dotting the landscape.

These changes are also driving demand for copper, steel and the critical minerals needed for solar panels, batteries, wind towers and transmission lines.

This also means increases in demand for land and water, which are important inputs for energy and minerals production.

Demand for land is increasing

The obvious part of total land use for energy production is a power plant – the area of gas plant or the land covered by rows of solar panels.

Land is also needed to extract the gas or mine the metals used for solar panels; for gas pipelines or transmission lines to get to homes, business or ports for export markets; and for decommissioning of plant and equipment at the end of its useful life.

The difference in land use requirements for different types of energy production can be significant.

Nuclear energy is the most land efficient energy source, while hydropower can require up to 100 times more land. Generally, renewable energy requires more land than traditional energy sources.

There are also differences within a single energy technology – expressed as the minimum and maximum land footprint – that are dependent upon the richness of an energy source, for example solar irradiation.

JLL’s Jamahl Waddington says renewables projects can help landowners to diversify their incomes while also leaving a lasting legacy for communities

South Australia’s changing landscape

Locally, the opportunities the transition offers the state – particularly in resource rich regional areas – is becoming more visible.

The State Government has threaded these opportunities together with the State Prosperity Project.

It pulls together the opportunities to develop renewable energy resources in places where the sun shines and the wind blows enough to produce energy for hydrogen, electricity generation and green steel, copper and other clean technology minerals.

Importantly, it also includes the Northern Water Project to develop a desalination plant to provide a reliable and sustainable new commercial water source to meet the growing needs of a broad range of mining, defence, hydrogen and pastoral industries.

Over a 30-year model, Deloitte has forecast the plant will generate over 5000 jobs and contribute $5 billion a year to the state’s economy.

BHP’s purchase of Oz Minerals last year is another vote in confidence for the state. The miner plans to develop Australia’s largest copper province in response to growing demand for minerals.

The International Energy Agency (IEA) has calculated that an electric vehicle uses about 5 times as many minerals as a conventional car, while renewable energy power generation uses 3 to 10 times as many minerals as coal and gas plants.

So, we can expect more activity in the mining space.

‘Win-win’ opportunities for landholders, communities and government

The shift in energy generation from hydrocarbons to renewables has a significant impact on land, which affects both the environment and communities.

While as a state we stand to prosper, it is the management of the sometimes substantial risks and impacts to landholders and communities that is key to the overall acceptance of a project.

Community expectations of energy and resource companies looking to develop projects in their backyard where they live and work have rightfully increased.

It is no longer acceptable to return landholders and communities to the position they enjoyed prior to a project, but to leave a positive legacy for them.

Their expectation for a positive impact is high, not only for South Australia but also for the communities.

Across Australia, we are seeing an increasing acceptance of renewable energy projects where not only a diversification of farm incomes is welcome, but where broader community benefits can provide a lasting legacy.

The landscape with respect to the acquisition of land and interests in land for renewable energy, mining developments and supporting infrastructure is rapidly evolving across Australia. 

JLL is at the forefront of the emerging trends in compensation, land access code requirements, engagement principles or regulation.

South Australia – and the Eyre Peninsula in particular – is in a unique position to learn from those who have trodden the land access path elsewhere and apply best practice principles to build trust and legacy.

Working together with communities

Trust is earned over time and lost in a heartbeat; it is built by consistent good behaviours and requires an acquired understanding of landholders’ land, their operations and communities.

It is only once that understanding is developed through listening and engaging that best practice strategies are developed and implemented in collaboration with those most important stakeholders.

If South Australia is to get the transition right then we must bring those communities most directly impacted along with us – through genuine, respectful and empathetic engagement – to build a share understanding of risks and impacts, develop acceptable measures to safeguard property operations and create a positive legacy for current and future generations.

Striving for better outcomes is something we are seeing with regulators, too.

The new Hydrogen and Renewable Energy Act provides certainty for project developers and safeguards landholder interests with provisions for agreement making, compensation and dispute resolution.

The Landowner Information Service provides independent advice to landholders on quarrying and mining activities. It is understood the service will also be extended to hydrogen and renewable energy projects too.

We view the service as a valuable source of independent information for landholders to understand the rights and responsibilities of all parties for mining and energy projects.

Leadership in land delivery

JLL is Australia’s leading provider of best practice land access and acquisition services.

We are a signatory to the Energy Charter to deliver better outcomes for communities and energy customers, and JLL participates in the Agriculture and Social Licence Roundtable to identify the key issues and improvement initiatives for agricultural landholders who are approached to host energy infrastructure on their land.

JLL is always looking at different ways to get better outcomes for our clients and landholders.

Getting the basics right of saying what we will do and then doing exactly that is a good start.

These projects will go for decades which provides greater security and more diversity in farm incomes, ongoing benefit sharing and creates a positive legacy for landholders, the community and the state.

JLL Perspectives Podcast

Find out how landowners are being compensated as solar and wind farms surge. Listen to Jamahl Waddington and JLL senior director of agribusiness valuations Will Gurry on the latest JLL Perspectives Podcast here.

For over 200 years, JLL has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY SM. Learn more at jll.com