A major new biomethane plant utilising agricultural waste is set to be developed in regional New South Wales, marking a significant step forward for Australia’s renewable gas sector.
The project has the potential to produce up to 4 petajoules of biomethane annually — equivalent to over 6 per cent of the current industrial gas demand in the state.
Energy infrastructure company Jemena and Melbourne-based biogas developer Valorify have signed a Memorandum of Understanding (MOU) to assess the feasibility of injecting the biomethane produced by the plant into NSW’s gas distribution network.
This network currently serves over 1.5 million homes and businesses.
The proposed Riverina Bioenergy project aims to harness agricultural waste from the region to generate biomethane, a renewable gas that is fully compatible with existing natural gas infrastructure and appliances.
Jemena’s Managing Director, David Gillespie, highlighted the project’s potential to meet the energy needs of over 50,000 households or significantly contribute to industrial demand.
“Biomethane can assist in decarbonising large gas users in industries that require high-heat loads for processes which cannot be easily electrified,” Gillespie stated.
Dr Scott Grierson, CEO of Valorify, emphasised the economic benefits for regional communities: “Projects like the Riverina Biomethane project can transform regional Australia by harnessing agricultural waste while stimulating local economies and creating permanent jobs.”
The development aligns with findings from the Australian Renewable Energy Agency’s (ARENA) Bioenergy Roadmap, which projected that a robust biogas industry could reduce Australia’s carbon emissions by 9 per cent.
This reduction would significantly contribute to the country’s climate goals.
With the first 2PJ scale module expected to launch in 2027, the Riverina Biomethane project represents a crucial advancement in Australia’s transition towards renewable energy sources.
As the nation seeks to reduce its reliance on fossil fuels, biomethane production offers a promising pathway to decarbonise the gas sector while utilising existing infrastructure.
