Leading energy infrastructure companies AusNet Services, Australian Gas Infrastructure Group (AGIG), APA Group, and Jemena have made a submission regarding the importance of gas in achieving the most economical and efficient transition to a low-carbon future.
The submission was issued in response to the Victorian Government’s Gas Substitution Roadmap consultation paper – a consideration of the ways in which the gas sector can reach net zero emissions.
The companies – which together deliver gas to more than 4.15 million customers and transport half the country’s natural gas use – proposed existing gas infrastructure could enable connection to future energy solutions like hydrogen and biogas.
The companies reported that energy customers could save between $12 and $14 billion in ongoing maintenance and capex costs if natural gas is retained in Australia’s energy system.
Renewable gases such as hydrogen and biomethane could offer a pathway to fully decarbonise Victoria’s energy grid.
“Using our existing gas networks to deliver renewable gas, including renewable hydrogen and biomethane, provides a low cost, reliable and practical way of decarbonising natural gas use in Victoria,” said AGIG CEO Ben Wilson.
A renewable energy target was critical in driving down the cost of renewable electricity generation technologies, and Jemena Managing Director Frank Tudor suggested a renewable gas target would do the same to help make hydrogen energy a reality.
“As coal is retired, natural gas will continue to play a critical role in ensuring electricity grid stability and helping Victorians keep the heater running and the lights on in winter,” said APA CEO and Managing Director Rob Wheals.
AusNet Services, AGIG, APA, and Jemena are already collectively investing more than $130 million in projects designed for the application of renewable gases such as hydrogen and biomethane.
The submission proposes that continued use of gas infrastructure can reduce emissions at a much lower cost than electrifying the services provided by natural gas.
Upgrades to Victoria’s gas network are estimated to be completed around 2025.
For more information visit the AGIG website.
