East coast gas and electricity distributor Jemena is proposing a renewable gas target similar to the Renewable Energy Target to encourage the adoption of zero-emission gases in net-zero by 2050 efforts.
The company said in a statement that a subsidy of $3 to $15 per gigajoule could encourage entry of significant amounts of renewable gas such as biomethane and hydrogen into networks, and would compare favourably to the RET electricity sector subsidy, which was equivalent to $22 per gigajoule.
Managing director Frank Tudor said conservative estimates suggested savings from 2050 of between $12 to $14 billion per annum by using existing gas infrastructure to decarbonise.
“By decarbonising our existing gas infrastructure we can avoid unnecessarily building new alternative forms of energy infrastructure, which will have a significant impact on customer bills, he said.
“A Renewable Gas Target will also give confidence to those hard to abate sectors – such as the manufacturing sector – which rely on gas as a fuel stock, that they will be able to continue operating in Australia while decarbonising their supply chains.”
Jemena is currently involved in renewable projects including constructing a biomethane plant at Malabar, NSW expected to begin running early next year, and a hydrogen electrolyser trial announced in 2019.
Picture: Sydney Water
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