The Energy Challenge
Australia’s energy system is ageing and still largely reliant on fossil fuels. Governments, industries, and customers are looking for cost-effective ways to lower carbon emissions and transition to sources of renewable energy. Renewable gas, including Green Hydrogen (made from renewable electricity) and Biomethane (made from organic waste), could help our economy to lower carbon emissions more efficiently.
Using existing gas networks to store and distribute renewable gas will help to lower emissions, enhance energy security and complement the continued growth in renewable electricity, while also helping to deliver more energy solutions for consumers and businesses.
To help decarbonise as soon as possible, Australia can establish a more diverse renewable energy mix, just like many advanced economies around the world including the UK, Germany, Italy, Japan and USA. Having more energy options on the table simply helps to provide homes, businesses, heavy industry and transport with practical and potentially cost-effective ways to reduce carbon emissions.
Just a few ways Australia is looking for sources of renewable gas to help meet our energy challenge:
The Australian Federal Government announced a $2 billion investment in the Hydrogen Headstart fund, in the 2023-24 Federal Budget, aiming to boost major hydrogen projects
The NSW government pledged $3 billion towards Green Hydrogen production, expecting to attract $80 billion of investment by 2050
ARENA's Bioenergy Roadmap reveals that by the start of the next decade, Australia’s bioenergy sector, including biomethane renewable gas, could contribute to around $10 billion in extra GDP per annum, create 26,200 new jobs, reduce emissions by about 9 per cent, divert an extra 6 per cent of waste from landfill, and enhance fuel security.
A Renewable Future for Gas
Natural gas is important to millions of Australian households and businesses now and in the future, as we transition to cleaner energy solutions and decarbonise our energy networks. Over 6.5 million Australian homes and businesses use gas every day, accounting for 44% of all household energy usage.
Natural gas emits up to 50% less carbon than coal powered electricity, and although more efficient and reliable than many other energy sources, it is sourced from fossil fuels. Jemena is committed to lowering emissions across both our electricity and gas networks.
It's time to embrace renewable gas as part of our energy mix, so Australians can choose to keep using the gas supply they love while reducing their environmental footprint, with the potential to increase the production and supply of renewable gas over the coming years with the right policy settings and investment.
Jemena is helping to pioneer the future of gas, with renewable gas demonstration projects to help show the way for NSW to halve emissions by 2030. You can read more about our renewable gas projects and net-zero ambitions in our Group Sustainability Report.
Our Energy Future
Renewable gas, including Green Hydrogen (made from renewable electricity) and Biomethane (made from organic waste), is well placed to help transform Australia’s energy landscape.
Retaining customer choice
Renewable gas could help millions of current gas customers to keep using existing appliances for cooking, heating and hot water. Transitioning to renewable gas will help to reduce carbon emissions while keeping gas available to homes and businesses as a reliable energy option, alongside other renewable energy solutions, like solar.
Reaching emissions targets sooner
To reach NSW emissions targets, energy solutions must be implemented quickly and ideally without too much disruption to homes and businesses. Renewable gas can help to quickly decarbonise a significant part of the energy landscape without expensive or unnecessary lifestyle and infrastructure changes. Meaning Australians could continue using the gas supply they love for heating, cooking and hot water, while helping to reduce emissions and saving money on appliance replacement. Renewable gas solutions are particularly important in sectors that are hard to decarbonise, such as heavy industry and manufacturing, which make up the majority of gas consumption in NSW alone. A Renewable Gas Target will help to accelerate the decarbonisation of our gas networks, in the same way a renewable energy target has worked for electricity supply. Many countries in the European Union have quickly established renewable gas industries, particularly in the biomethane sector with thousands of plants now operating and injecting into gas networks - all with the help of government / EU legislation and funding (2022 European Biomethane Benchmark Report by SIA Partners).
Using existing infrastructure to support renewables
Renewable gas could take advantage of existing network infrastructure. The gas pipeline networks across Australia could store renewable gas alongside existing natural gas, just like energy stored in a battery. This stored energy can be used to complement and support renewable electricity and the grid. Renewable gas can eventually displace natural gas in our gas networks as the country strives to reach net-zero targets.
Helping to develop a circular economy
The circular economy reduces environmental impact and waste. The reuse of waste products in the economy reduces the need to extract new resources from the environment. As Biomethane is produced from organic waste products like landfill and wastewater, it redirects methane emissions away from the atmosphere and displaces natural gas sourced from fossil fuels. A biomethane industry could also boost farming and related industries as well as regional job opportunities, as demonstrated in thriving bioenergy industries overseas, especially in Europe.
Helping to create and save jobs
As a renewable gas industry grows, it has the potential to become a major employer. The creation of more jobs and exposure to advanced technologies can help address many industry challenges, from agriculture and construction to transportation and manufacturing. The jobs would also likely be spread across Australia, especially in regional areas, creating widespread and much needed employment opportunities outside of the major cities. A renewable gas industry could also help the thousands of small businesses like plumbers, gas specialists and appliance manufacturers, to keep trading and boosting local economies.
Turning transport green
Green hydrogen is also sparking innovation in transport, powering hydrogen fuel-cell electric vehicles. These new vehicles have a zero carbon footprint and can travel further, with more power, without needing to refuel or recharge as often as standard battery EVs. This hydrogen technology will be particularly beneficial for long-haul transportation and large vehicle fleets, like council garbage trucks, freight fleets and buses.