Energy Networks Australia (ENA) has released three priority recommendations for further development of renewable gas as a solution to decarbonise Australia by 2050.
ENA’s paper, Renewable Gas for a Future Made in Australia, outlines its support for the Australian Government’s Future Gas Strategy and provides three expanded recommendations to policy makers, aimed at further supporting a renewable gas market and outlining a decarbonisation pathway for industry and manufacturing.
With gas use currently comprising 18 per cent of Australia’s total emissions, the paper highlights that renewable gases still have a critical role to play – chiefly hydrogen and biomethane – in achieving the nation’s decarbonisation goals.
ENA General Manager Networks, Dominic Adams said, “To meet our net zero commitments, we must recognise that electrification will play a huge role, but cannot decarbonise our entire everything. It is vital that we determine a way for Australian industry to effectively decarbonise.”
“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.
“Gas will continue to play a significant role through 2050 and beyond, especially in manufacturing and large-scale industrial applications. Renewable hydrogen and biomethane are crucial for providing the necessary high temperatures in these sectors that cannot be replicated by electricity alone.
“We must act now to ensure progress by 2030, and our three recommendations provide a pathway to achieve that progress.”
ENA’s key recommendations are:
- A certification scheme for all renewable gases – emission reductions from a market-based approach for renewable gas to be recognised under the National Greenhouse and Energy Reporting scheme (NGERS).
- Expanding the $4 billion Hydrogen Headstart Program to include biomethane – include biomethane in the program, with additional funding, to boost its scale-up and development.
- Renewable Gas Target (RGT) for Australian industry by 2030 – incorporate policy designs for an RGT in the Commonwealth sectoral plans, as part of Australia’s Net Zero Plan, ensuring appropriate targets are set by 2030.
“Implementing these steps will drive innovation, reduce costs through economies of scale, and accelerate the development of renewable gas infrastructure and supply chains, securing Australian jobs and ensuring a sustainable future,” Mr Adams said.
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