Jemena has signed a memorandum of understanding (MoU) with Japanese general trading and investment company Sojitz to assess the viability of delivering biomethane into the New South Wales gas network.
Under the MoU, Jemena and Sojitz will work together to assess the feasibility of developing several new biomethane plants across regional New South Wales, which will turn agricultural and other organic waste into biomethane – a renewable gas produced by processing biogas generated from decomposing organic waste.
Jemena’s partnership with Sojitz, follows recent MoUs with Optimal Renewable Gas and Valorify to explore the development of a biomethane sector in New South Wales.
Jemena Managing Director, David Gillespie, said biomethane produced by the project will be directed to the domestic market, providing a meaningful way for businesses across New South Wales to decarbonise their operations.
“Today’s announcement is a fantastic next step in the development of Australia’s biomethane sector,” Mr Gillespie said.
“Together with our existing MoUs and partnerships we believe enough biomethane can be produced across New South Wales to meet the needs of all our residential customers, or around half of our industrial customers.
“We know many industries, particularly those which require high heat to operate, rely on gas for their operations. These industries that create everyday products like windows, bricks, fertiliser and medicine, cannot be easily electrified. Agreements like the one we’re announcing today will allow these businesses to decarbonise their operations while continuing to contribute to local communities and the Australian economy.”
Sojitz President and CEO for Asia and Oceania, Shigeya Kusano, said the company would like to consider biomethane project opportunities with a sense of scale.
“We have extensive experience and a long history in the energy sector, and we are currently focusing on businesses that align with the ongoing energy transition,” Mr Kusano said.
The Australian Renewable Energy Agency’s (ARENA) 2021 Bioenergy Roadmap predicts that by the beginning of the next decade, Australia’s bioenergy sector could boost GDP by approximately $10 billion annually, generate more than 26,000 new jobs, and reduce national emissions by about nine per cent.
Biomethane has the same chemical qualities as natural gas, which means it is compatible with all existing gas network infrastructure and industrial equipment, as well as gas appliances used in homes and businesses.
While biomethane production is still a developing industry in Australia, it is already showing the advantages of a circular economy on the global stage. Denmark aims to achieve 100 per cent biomethane injection by 2030 and Ireland plans to have 100 per cent renewable gas transported through its network by 2045.
Mr Gillespie said that now is the time for industry and governments to work together to develop a biomethane sector.
“Recently, we have seen some very positive steps with the New South Wales Government consulting on the development of a renewable gas sector and the Federal Government considering how its use should be counted in businesses’ emissions reporting. We are excited to see this policy momentum build as we develop a biomethane sector.”
The MoU follow the success of Jemena’s existing Malabar Biomethane Injection Plant, which has been awarded a bronze sustainability rating by the Infrastructure Sustainability Council.
Jemena’s commercial arm, Zinfra has been recognised for its sustainable practices during the plant’s construction.
Zinfra Managing Director, Peter Iancov, said the recognition highlights the capabilities of the Zinfra team, who are well-placed to develop new energy systems and infrastructure as part of the transition to a sustainable energy future.
“The Malabar Biomethane Injection Plant has set the benchmark for building and operating sustainable energy assets in Australia. Not only did we construct the plant, but we also upskilled our teams to operate and maintain this new asset to allow us to effectively support Jemena to fulfil its future energy transition ambitions safely and efficiently,” Mr Iancov said.
“This bronze rating from the Infrastructure Sustainability Council demonstrates Zinfra’s ability to deliver projects that are better for the environment while also serving the communities we operate in.”
The Malabar Biomethane Injection Plant was awarded the bronze rating based on four categories: Innovation, Energy, Materials and Knowledge Sharing.
- Innovation: the plant is the first wastewater treatment plant in Australia to refine gas from wastewater and inject it back into the gas distribution network
- Energy: the plant offsets its own energy consumption, running predominantly on renewable energy
- Materials: throughout its construction phase the use of filled materials, such as dirt, rocks and soil, were significantly reduced
- Knowledge Sharing: as part of the funding agreement with ARENA, Jemena works closely with other stakeholders in the industry to share its findings
Mr Gillespie said the Malabar Biomethane Injection Plant is demonstrating the application of biomethane in Jemena’s New South Wales gas network – which services more than 1.5 million homes and businesses across Sydney and regional New South Wales.
“While homes and businesses are already receiving small amounts of biomethane which is being injected into the gas network, biomethane has the potential to decarbonise our manufacturing and industrial sector,” Mr Gillespie said.
“We know not every industry can electrify due to the high-heat loads required for their operations or it’s simply too costly. Biomethane is offering an alternative that can help decarbonise our industrial sector.
The Malabar Biomethane Injection Plant is co-located at Sydney Water’s wastewater treatment site in Sydney’s south-eastern suburbs and takes the biogas generated by organic waste, upgrading it to biomethane through a process called anaerobic digestion.
The Malabar Biomethane Injection Plant commenced operation in June 2023. The plant can produce around 95Tj of gas per day, the equivalent amount of gas used by approximately 6300 homes per year.
Featured image: 360b/shutterstock.com.