Renewable gas will soon flow through South Australian gas pipelines under a milestone biomethane agreement between the Australian Gas Infrastructure Group (AGIG) and Delorean Corporation.
Under the agreement, up to 210TJ of biomethane generated from commercial and industrial organic waste will be injected into the existing gas network each year, with Delorean planning to sell the biomethane to industrial users.
The formal agreement enables Delorean to connect and export biomethane from its SA1 bioenergy project – currently in construction – to customers remote from its facility in Edinburgh Parks in the northern suburbs of Adelaide, via AGN’s existing gas network.
Delorean’s SA1 project will use anaerobic digestion to process up to 70,000t per annum of waste to produce biogas for renewable electricity and gas. Construction is underway on the facility and commissioning is expected to be complete in 2026.
AGIG said biomethane is emerging as a significant opportunity to reduce emissions across Australia’s economy. It is interchangeable with natural gas and can be seamlessly blended into existing gas networks, allowing customers to continue using gas appliances in the same way, but with the advantage of being renewable.
Under the connection agreement, AGIG has agreed to undertake a comprehensive package of connection works, including the essential grid injection works that ensure the safe and efficient flow of gas into the network for industrial and residential customers, maintaining system integrity and reliability.
AGIG is supportive of government targets to reach net zero and has a goal to deliver 100 per cent renewable and carbon-neutral gas in its distribution networks by 2050.
AGIG CEO, Craig de Laine, said projects like Delorean’s are helping to demonstrate the pathway towards low-carbon gas networks.
“Renewable gases such as biomethane will play a critical role in delivering a secure, reliable and affordable low carbon energy transition for Australia.”
Mr de Laine said it will be essential for customers that rely on gas today and want to continue to choose gas to meet their energy needs into the future.
“Our world-class network is capable of delivering biomethane now without further upgrades and is an economical, reliable, here-and-now way of delivering renewable energy.
“We are so pleased to be partnering with Delorean to deliver biomethane to customers on our existing gas network and look forward to continuing to work with industry to deliver this new low carbon industry across Australia.”
