Fuel for the future
How Australia’s homes, businesses, and industries are powered will change in the next few decades. International examples and local ingenuity are paving the way for a new renewable gas sector.
A Bill enshrining in law emissions reduction targets of 43 per cent from 2005 levels by 2030 – less than a decade away – was passed by the Australian Senate in September, adding further impetus to finding the right mix of energy solutions for the future.
Jemena’s Assets and Operations General Manager Peter Harcus says gas still plays a critical role in Australia’s current energy system, and with the advent of green hydrogen – produced using renewable or carbon neutral electricity – and biomethane, our gas networks can be decarbonised as part of the future low-carbon energy mix.
“Natural gas is used in almost half of all Australian homes for heating, cooking, and hot water, and generates about 20 per cent of our electricity,” Peter says.
“It’s critical for the manufacturing sector, and is key to producing many of the items we use every day like glass, building materials, medicines and foods.
“Currently a lot of work globally is examining how we could transition from natural gas to renewable gases like biomethane and green hydrogen.
Multiple demonstration projects across Australia are testing the production and injection of renewable gases into the gas networks, with energy companies examining how hydrogen and biomethane interact with existing infrastructure. Australia can learn from other global economies which are also grappling with similar issues.
Parts of Europe, the UK, and the USA are all producing renewable gases such as green hydrogen and biomethane, made from organic waste, which can be used in gas networks and appliances the same way as natural gas, as part of reducing emissions.
Blending biomethane into gas networks is already widely practiced in Europe, turning waste into power. The European Union has announced support for scaling up biomethane and biogas, as well as hydrogen, in its REPowerEU plan.
The UK is also moving forward with policies supporting a low-carbon hydrogen sector, aiming to use wind and solar in the production of green hydrogen, together with other hydrogen production methods alongside carbon capture and storage to reduce emissions.
New 100% low carbon hydrogen villages will be built by 2025, in areas like Whitby, Ellesmere Port and Teeside.
“In Australia, renewable gas is still in its infancy, but if we recognise and support its potential as other countries have, we have the opportunity to reduce emissions, while providing customers choice around how they power their lives, and industry with the feedstock they need,” Peter says.