Innovatia

to play a key role in ensuring adequate supply in the near-term. The connecting of the East- ern Gas Pipeline to the Port Kembla Energy Terminal (PKET) in December 2024, for exam- ple, is a critical part of this strategy. Making the Eastern Gas Pipeline bi-directional has enabled it to transport gas from PKET to both Victoria and New South Wales. Upgrade works are advancing, with plans to be able to deliver up to 200 Terajoules per day of additional gas to southern markets when the terminal com- mences operating. The full program could see 500 Terajoules per day of additional gas deliv- ered. Gas plays a crucial firming role to renew- able generation, particularly in the country’s south-east which is heavily dependent on gas to supply peaking energy as well as for use in domestic and commercial settings. The rever- sal project and Port Kembla Energy Terminal is the only realistic and viable option available

to the market to make additional gas availa- ble quickly. Maintaining a technology-agnostic stance and integrating multiple technologies and fuels is an effective way to achieve a net-zero future. While natural gas can continue to play a role in the energy transition, renewable gas can play this role for the longer term, as well as offering a promising decarbonisation solu- tion for hard-to-electrify industrial processes. Renewable gas has the potential to be a game-changer. It can provide a reliable fuel source for industries that can’t simply switch to electricity overnight or may never be able to switch to electricity. The Malabar Biomethane Injection Plant (MBIP) in Sydney’s south east, for example, has been producing and injecting biometh- ane into the NSW gas distribution network for almost two years. While biogas has been used

in Australia for some time, this is the first time it has been upgraded to biomethane and in- jected directly into a natural gas network. The MBIP, which is co-located with Sydney Water’s wastewater treatment facility, demonstrates the technical and commercial viability of us- ing biomethane as a renewable fuel source and how it can be done. The MBIP is currently producing and injecting enough biomethane into the New South Wales gas distribution net- work to meet the equivalent annual gas usage of about 6,300 customers. The beauty of biomethane is it is both a re- newable fuel source and completely inter- changeable with natural gas and is, therefore, compatible with all existing gas network infra- structure, gas appliances used in homes and businesses today, and in industrial manufac- turing processes. Continuing to utilise existing gas infrastruc- ture avoids unnecessary costs associated with new network builds. Research by ENEA Consulting (2022) estimated this untapped resource could produce 137 Petajoules of bi- omethane each year in NSW alone - exceeding current NSW gas consumption. The Australian Renewable Energy Agency’s Bioenergy Roadmap outlines the economic and environmental potential of biomethane, which could contribute by 2030 around $10 billion annually to the nation’s Gross Domestic Product, create over 26,000 new jobs, reduce national emissions by approximately 9%, and enhance Australia’s fuel security. Australia’s energy transition is an immense and complex challenge, requiring unprece- dented levels of investment and collabora- tion. The energy sector has a critical role in

ensuring this transition is technology-agnos- tic, integrated, and customer-led. By strength- ening electricity and gas infrastructure, and embracing renewable gas opportunities, Aus- tralia’s energy future can be secured while also driving the country towards its net-zero emissions target. We are seeing an energy future being built where customers have choice, reliability, and affordability. The road ahead is challenging, but with the right mix of investment, innova- tion, and collaboration, Australia can achieve its net-zero goals and create a sustainable en- ergy system for generations to come.

David Gillespie is Managing Director of Je- mena. He is a member of the ActewAGL Joint Venture Board, on The B Team’s Climate Lead- ers Coalition CEO group, and a member of the Champions of Change Energy Group

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