Energy Networks Australia (ENA) has unveiled three key recommendations aimed at advancing renewable gas as a vital component in decarbonising Australian industry by 2050.
The report, titled Renewable Gas for a Future Made in Australia, aligns with the Australian government’s Future Gas Strategy and emphasises the necessity of renewable gases, particularly hydrogen and biomethane, in achieving national decarbonisation targets.
Gas currently accounts for 18 per cent of Australia’s total emissions, and ENA General Manager Networks, Dominic Adams, stressed the importance of recognising that while electrification is crucial, it cannot address all emissions.
He noted: “70 per cent of our gas use is from industrial activities, so we need least-cost decarbonisation options to protect our Australian-made future. Currently, many industrial emissions are too difficult or expensive to electrify, making renewable gases essential.”
The ENA’s recommendations are designed to enhance the renewable gas market and facilitate a decarbonisation pathway for sectors that electricity alone cannot serve.
The three recommendations include:
- A Certification Scheme for Renewable Gases: This would allow emission reductions from renewable gas to be recognised under the National Greenhouse and Energy Reporting scheme (NGERS).
- Expansion of the Hydrogen Headstart Program: The existing $4 billion program should be broadened to include biomethane, providing additional funding to scale up its development.
- Establishment of a Renewable Gas Target (RGT): This would involve incorporating policy designs for an RGT in the Commonwealth sectoral plans, ensuring appropriate targets are set by 2030 as part of Australia’s Net Zero Plan.
Adams emphasised the urgency of these measures, stating: “We must act now to ensure progress by 2030, and our three recommendations provide a pathway to achieve that progress.”
The report highlights that renewable hydrogen and biomethane are essential for providing the high temperatures required in manufacturing and large-scale industrial applications, which cannot be replicated by electricity alone.
Adams remarked: “Gas will continue to play a significant role through 2050 and beyond, especially in manufacturing and large-scale industrial applications.”
By implementing these recommendations, ENA believes that Australia can drive innovation, reduce costs through economies of scale, and accelerate the development of renewable gas infrastructure and supply chains, ultimately securing jobs and ensuring a sustainable future for the industry.
