Based on the announcement from the ACT government released on 4 August, residents will miss out on the possibility of renewable gas said APGA Chief Executive Officer, Steve Davies.
“The ACT Government thinks the only path to net zero is through electricity,” said Davies.
“Today in Australia there are more than 100 facilities using biogas to generate electricity, and green hydrogen is being blended with natural gas and delivered to hundreds of homes in Adelaide, Perth and Sydney.
Davies said renewable gases like hydrogen and biogas present a viable path to carbon free energy being delivered through existing gas networks. The ACT Government is the only government in Australia that does not have a hydrogen strategy.
“Yet more than 155,000 thousand ACT homes and businesses are connected to the gas distribution network. The network provides 23 per cent of the energy needs of ACT residents and businesses. In winter, this rises to around 50 per cent,” he said.
Frontier Economics has modelled that the annual operating costs of electrifying gas demand are double that of replacing natural gas with hydrogen and biogas. The savings largely come thanks to the ability to utilise existing gas networks rather than expanding electricity networks.
Furthermore, a recent report assessing Victorian homes estimated that the cost of replacing gas appliances with electric appliances is estimated to be between $21,500 and $42,000 for most households in the ACT.
“Gas is transported via pipeline infrastructure that is reliable and more environmentally friendly than electricity infrastructure. Pipelines also provide excellent storage facilities,” said Davies.
“A 2022 report found that transporting and storing energy in pipelines was significantly less expensive than storing it in hydro or batteries and transporting it by powerlines.”
The reports provide clear evidence that the cost of abandoning the gas network, replacing gas appliances and upgrading the electricity network to deliver the energy businesses and residents require to go about their daily lives unimpeded are much too high.
It’s evident that renewable gases have an increasingly promising future. Using hydrogen and biomethane, Europe is on target to deliver 22 per cent of Europe’s total gas demand by 2030.
“If the ACT Government chose differently, hydrogen and biogas blending in the ACT gas network could begin to deliver important emission reduction at no additional cost to households,” Davies said.
“It is widely acknowledged that the fastest and cheapest pathway to net zero emissions is most likely to include simultaneous decarbonisation of all energy types. Every energy source has strengths and weaknesses. The ACT Government’s insistence that electrification is the only option is likely to lead to a slower, more costly pathway for energy users in the ACT.”
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