Jemena managing director David Gillespie discussed Australia’s nascent biomethane sector at a recent Australian Pipelines and Gas Association (APGA) dinner event.
Speaking at the Windsor Hotel in Melbourne, Gillespie said that while hydrogen and carbon capture and storage were some way off being commercially available, biomethane represents a ‘here and now’ solution to decarbonising the gas industry.
“As you may be aware, biomethane – which is produced as a biproduct of anerobic digestion – is completely compatible with our existing gas networks and infrastructure,” he said.
“It’s use here and overseas in places like Europe – where they are currently producing around 200 petajoules (PJ) of biomethane a year, with a target of over 100,260PJ by 20230 – is also an exciting example of the circular economy in action.”
Based on Jemena’s research in NSW, Gillespie said there is enough feedstock for biogas available to meet over half of NSW’s current industrial demand or all of its residential demand for gas.
“Despite this promise, the development of a biogas sector is still in its formative stage, with only one project – Jemena’s Malabar biomethane injection plant – currently producing and injecting biomethane into the gas grid,” Gillespie said.
A budding industry
Jemena has been working hard to drive NSW’s biogas sector, securing a memorandum of understanding (MOU) with Valorify for the development of up to four PJ of biomethane per annum from sites across the state. The company also has a MOU in place with Optimal Renewable Gas, which commits Optimal to identifying up to three sites across regional NSW, possibly contributing another 1.5PJ of biomethane per annum.
“These MOUs are a crucial next step in the development of Australia’s renewable gas sector, with biomethane acting as both a stepping stone and complement to the goal of developing a hydrogen sector at scale,” Gillespie said.
“We are seeing positive signs from the Commonwealth Government, which has established a working group to explore how renewable gases can be considered in the National Greenhouse and Energy Reporting Scheme.
“But the task of establishing a biomethane sector is far from over, and it is incumbent on all of us here today to continue making the case for biomethane.”
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