You might confuse it for a hot air balloon about to take off, but the green dome peaking above the trees at Malabar is actually helping to decarbonise the New South Wales gas distribution network.
Renewable gas. It seems to be the new word about town. It’s now a regular feature at industry conferences, with dedicated panel discussions, and is increasingly being recognised alongside solar and wind as a low-emission fuel source that can contribute to Australia’s energy mix and net-zero ambitions.
But what is renewable gas and is it… well… renewable?
Jemena’s Managing Director, David Gillespie, explains that renewable gas is basically an umbrella term for renewable gases like biomethane and green hydrogen.
“It’s considered renewable because it is produced using resources that are continuously replenished. It is also low-emission because its combustion does not produce any additional carbon emissions.
“Green hydrogen – or renewable hydrogen – is created using renewable electricity and water. Biomethane is created from biogas produced from decaying organic matter like agricultural waste or, in the case of the Malabar Biomethane Injection Plant, wastewater.”
It might sound strange, taking the gas from what Sydneysiders flush, upgrading it to biomethane and injecting it into Sydney’s gas distribution network, but that is exactly what’s already happening.
The Malabar Biomethane Injection Plant in Sydney’s south is co-located with Sydney Water’s wastewater treatment facility and has been producing and injecting biomethane into the New South Wales gas distribution network for just over a year now.
“We are currently putting enough biomethane through the gas distribution network to meet the equivalent annual gas usage of about 6,300 homes,” Mr Gillespie said.
“The beauty of biomethane is it is completely interchangeable with natural gas and is therefore compatible with all existing gas network infrastructure, gas appliances used in homes and businesses today, and in industrial manufacturing processes.
“Customers won’t notice a difference,” Mr Gillespie said.
While biogas has been used in Australia for decades, this is the first time it has been upgraded to biomethane and injected directly into a natural gas network.
“We wanted to demonstrate the technical and commercial viability of using biomethane as a renewable fuel source and how it can be done.
“We received funding from the Australian Renewable Energy Agency (ARENA) and as it’s an Australian first, there have been a lot of lessons that we have been able to share with the industry.”
And the big green dome?
Mr Gillespie said the green dome is definitely eye catching.
“The dome is a double-walled storage tank made from a very strong polyester. It not only stores the biogas, but helps regulate the flow of the biogas into the upgrader where it becomes biomethane.”
The future is here, it just needs a helping hand
While Australia’s biomethane industry is still in its infancy, it’s been a part of Europe and the UK’s energy mix for decades.
“Denmark aims to achieve 100 per cent biomethane injection by 2030 and Ireland plans to have 100 per cent renewable gas transported through its gas network by 2045,” Mr Gillespie said.
So why has Australia been slow to adopt this fuel source?
“As we head into the next quarter of this century, it’s safe to say Australia’s energy system has undergone some significant changes since the clock ticked over into 2000.
“At that time, household solar panels were yet to experience the uptake we have now, and Victoria’s first wind farm located in Port Fairy wouldn’t be commissioned for another year. Electric vehicles were the stuff of science fiction and batteries were small things you put in the back of your remote control.”
Mr Gillespie said nowadays, one in three homes in Australia has solar panels and in-home batteries are now powering everything from electric vehicles to pool pumps to hot water systems.
“Renewable gases, in particular biomethane, aren’t new technologies. The British were using biogas to light street lamps in Exeter in the late 1800s. But the success of renewable technologies like wind and solar have, in part, been due to the significant subsidies and supportive policy levers that have been pulled to ensure a strong renewable electricity market.
“Renewable electricity has certainly enjoyed its day in the sun – and if the last 25 years have been the years of renewable electricity, it’s time for the next 25 to be focused on the future of renewable gas and the role it can play in decarbonising our manufacturing and industrial sectors.”
Mr Gillespie highlighted some recent steps in this direction.
“The New South Wales Government has been consulting on the development of a Renewable Fuel Scheme and the Federal Government is considering how renewable gas use should be counted in businesses’ emissions reporting, specifically through the National Greenhouse and Energy Reporting Scheme (NGERS).”
Mr Gillespie said the change to NGERS is particularly important, so that industrial customers who are mandated to reduce emissions by the Safeguard Mechanism can do so with renewable gas transported through Australia’s gas infrastructure.
“Now is the time for all parts of the energy sector to work together to set a strong foundation for a renewable gas sector.
“It will send a strong signal that Australia’s renewable gas market is open for business and spur investment.”
Fully-fledged biomethane market
Jemena’s General Manager Renewable Gas, Suzie Jakobovits, has been tasked with working with industry to develop new opportunities for biomethane production in Australia.
“The most significant role biomethane can play is in the manufacturing and industrial sectors.
“Creating a thriving biomethane sector will mean large gas users who produce many of the items we rely on every day, such as fertiliser, glass, bricks, cement and other building materials, can begin to decarbonise their operations.”
Mr Jakobovits said these gas users require high-heat loads for processes which cannot readily be electrified.
“Jemena is committed to supporting the continued development of a biomethane market, particularly for our large customers in New South Wales,” he said.
“We have already signed several Memorandums of Understanding with these producers to assess the viability of injecting additional biomethane into the New South Wales gas network.”
Such collaborations could, in time, produce enough biomethane to meet the energy requirements of over half of Jemena’s current industrial customers, Mr Jakobovits said.
“Biomethane producers are able to use existing animal and agricultural waste sources to produce biomethane, and then have the potential to return a by-product of the process back to the farm as fertiliser – a true circular economy in action, where waste from one process is transformed into a valuable resource that can be used in another.
“This process provides a broader economic benefit. In addition to turning waste into a fuel source (and creating jobs in the process), it will also provide an additional revenue stream for farmers.”
Ms Jakobovits said most of the plants will be located in regional areas.
“We know that ARENA, in its Bioenergy Roadmap, anticipates that a fully developed bioenergy sector will create upwards of 26,000 new jobs. A lot of those will be jobs based in regional and rural communities.”
Is renewable gas here to stay?
As Australia sets its sights to the next quarter century and its 2050 net-zero targets, the future of gas will play an ever-increasing role.
Gas should no longer be thought of as a transition fuel that will bridge the gap between a reliance on coal to an energy system run entirely on solar and wind.
Renewable gas will have its own place in a future energy mix, and could play a significant role in decarbonising our economy.
For more information, visit jemena.com.au/future-energy/future-gas
