All pathways lead to renewable gas for Australian industry
The development of a renewable gas industry will be vital to support Australian businesses and industry to achieve net zero, according to a new independent report.
The ACIL Allen analysis, commissioned by Australian Pipelines and Gas Association (APGA) and Energy Networks Australia (ENA), modelled various pathways to meet net zero emissions in the gas sector.
All scenarios revealed that decarbonisation of Australian gas use will require development of significant quantities of renewable gases such as biomethane and green hydrogen.
Even with the prioritisation of electrification across all sectors (residential, commercial, and industrial), industrial gas users will be unable to achieve net zero emissions without carbon offsets or renewable gas.
Further sensitivity analyses confirmed the vital role of renewable gas in decarbonising industry, indicating a bedrock of renewable gas demand for industrial feedstock and high-temperature manufacturing processes that cannot be electrified. The report finds that, in the absence of a carbon price, a well-designed renewable gas target or equivalent policy would underpin a least cost decarbonisation pathway for Australian Industry.
Getting the policy settings right for renewable gas will complement the Australian renewable energy mix and support Australia’s journey towards a sustainable and economically resilient energy future.
Energy Networks Australia CEO Dom van den Berg said: “We must ensure a decarbonisation pathway for these harder-to-abate activities, where the technology to electrify doesn’t exist or is prohibitively expensive.”
“Further development of renewable gases could provide a solution for the industrial sector to reduce emissions and operate in a way that continues to support the Australian economy and keeps jobs in these industries, here at home.”
“ACIL Allen found in this work that, hundreds of petajoules of renewable gas is needed for feedstock use and for very high temperature industrial processes. It makes sense to look for policy solutions to further develop renewable gases and ensure they are available for hard-to-electrify sectors to achieve net zero by 2050.”
Australia Pipelines and Gas Association CEO Steve Davies said: “Gas, natural today and renewable tomorrow, is paramount to achieving the lowest-cost, fastest pathway of reaching net zero.”
“We must support the long-term future of industry made in Australia, which generates hundreds of billions of dollars of economic activity each year, by providing every tool in the decarbonisation toolbox.”
ENDS
Media Contact: Claire Ginn, cginn@energynetworks.com.au 0409246966
Energy Networks Australia is the national industry body representing Australia’s electricity transmission and distribution and gas distribution networks. Our members provide more than 16 million electricity and gas connections to almost every home and business across Australia.
The Australian Pipelines and Gas Association (APGA) represents the owners, operators, designers, constructors, and service providers of Australia’s natural and renewable pipeline infrastructure, delivering 28 per cent of the end-use energy consumed to demand centres in cities and other locations across Australia.