Major energy infrastructure company Jemena and renewable natural gas (RNG) producer Optimal Renewable Gas (ORG) have signed a three-year Memorandum of Understanding (MoU) for the development of three biomethane facilities in Australia.
ORG will identify suitable sites in regional New South Wales in proximity to agricultural and other waste sources that could produce up to 1.5 petajoules of biomethane, in preparation for building the facilities.
Jemena will undertake feasibility and preparatory work so biomethane can be injected into the NSW gas distribution network.
ORG's managing director, Mike Davis, said: “We have started assessing projects in NSW to produce biomethane to inject into the gas network. Based on our work to date, we could potentially be looking at somewhere closer to 2-4 petajoules per annum.
“Our near-term aim is to have ten grid-scale plants in production or under development nationally by 2030.”
ORG's chairman, Dr John Hewson, added: “This is a no-brainer for NSW, establishing a circular economy to optimise the management of organic waste, accelerating the energy transition, improving regional energy security and decarbonising difficult-to-electrify gas demand whilst returning nutrients back to agriculture.”
Jemena’s acting managing director, David Gillespie, commented: “We’re pleased to bring to the table our long-standing energy infrastructure expertise, together with the experience we’ve developed through the Australian-first Malabar Biomethane Injection Plant which – since June this year – has been producing biomethane from organic waste in wastewater and injecting it into the New South Wales gas distribution network.
“It’s our view that biomethane offers a here-and-now way to help Australia reduce emissions.
“Transitioning the energy system so it meets Australia’s net-zero emission targets is a massive undertaking, and we need to be looking at all available options.
“Continuing to use Australia’s extensive, existing gas networks to transport increasing volumes of renewable gases like biomethane can complement renewable electricity, both in firming the network, and in continuing to power industries and heat homes and hot water systems.”
The potential for biomethane and other bioenergy sources to become part of Australia’s future energy system has been outlined in the Australian Renewable Energy Agency’s (ARENA) 2021 Bioenergy Roadmap.
It projects that by the start of the next decade, Australia’s bioenergy sector could contribute around $10 billion (€6 billion) in extra GDP per annum, create over 26,000 new jobs, reduce Australia’s emissions by about 9%, divert an extra 6% of waste from landfill and enhance fuel security.
Jemena and Optimal to develop three new biomethane plants in New South Wales
