Jemena steps up biomethane activity with new MOU

Australian energy infrastructure group Jemena has signed an MOU with Sojitz, a Japanese general trading and investment company.
Under the MOU, Jemena and Sojitz will work together to assess the feasibility of developing several new biomethane plants across regional New South Wales in Australia, which will turn agricultural and other organic waste into biomethane.
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’s 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,” said Gillespie.
“Together with our existing MOUs and partnerships we believe enough biomethane can be produced across New South Wales to meet the needs of all of 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 which 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 & CEO for Asia & Oceania Shigeya Kusano said the company would like to consider biomethane project opportunities with a sense of scale.
“We have extensive experience and long history in the energy sector, and we are currently focusing on businesses that align with the ongoing energy transition,” said Kusano.
Internationally, Sojitz is accelerating investment and development in innovative decarbonisation projects, such as working with Sembcorp and Kyushu Electric to supply green ammonia from India to Japan and investing in renewable projects all over the world.
Sojitz plans to assess and identify efficient biomethane production sites that utilise existing agricultural waste derived from grass, hay and animal feed, as well as other organic household and domestic waste.
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 over 26,000 new jobs, and reduce national emissions by about 9%.
Gillespie said 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.”