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APGA CLIMATE STATEMENT

APGA Climate Statement

APGA supports a net zero emission future for Australia by 2050.

For the past 50 years, APGA has been supporting members of an industry who are dedicated to building pipelines and infrastructure that have allowed gas to be transported to industry, communities and households, providing the Australian people with an affordable and reliable energy supply.

Our vision as outlined in Gas Vision 2050 is no contradiction to this and we will advocate for a strong and vibrant industry supplying energy to the people and industry of Australia. We serve these same members as they are a key contributor to a net-zero emission outcome. As we transition from natural gas to other gaseous fuels such as hydrogen and biogas, our members will continue to build and operate safe and efficient infrastructure to achieve Australia’s net-zero target.

APGA commits to approaching its climate ambition with the full energy trilemma in mind, reducing emissions while ensuring reliable and affordable energy. Our members include the make-up of the full value chain that has designed, constructed, supplied and owns the extensive pipeline network that already exists today and will deliver the infrastructure of the future. Members are advancing this future through their own studies and that of the leading-edge research and development undertaken by the Future Fuels Cooperative Research Centre.

Australia’s gas infrastructure delivers more energy than the electricity industry in Australia. A total of 1012 petajoules (PJ) of gas was delivered in FY2019-20 compared to 858 PJ of electricity, 21 per cent of which was generated via gas powered generation [1]. Leveraging Australia’s gas infrastructure assets and high-skilled expertise to deliver decarbonised gas is a great opportunity.

The role of gas today

Natural gas is what moves the economy today. On average, natural gas has a lower emissions intensity than electricity in most jurisdictions in Australia. This further improves when ‘time of day’ energy use is taken into account as significant gas use occurs for heating during cold periods, usually aligned with lower solar electricity output.

APGA considers it consistent with a strong climate ambition that the use of natural gas as it is today, continues in direct heat and power generation applications, including providing critical firming for variable renewable energy [2] into the future. Studies show that natural gas-powered generation with emission offset enables the achievement of a net-zero electricity system sooner and cheaper than other approaches, enabling increased reliable entry of low-cost wind and solar as our energy transition proceeds. This provides our focus on emission reduction efforts to prioritise focus on other, more emission-intense activities.

While these efforts are under way, the gas industry is, right now, dedicated to reducing its own emissions through improved operations, better supply chains and developing renewable gases.

Renewable gases represent a real, technically viable approach to lowest-cost energy decarbonisation in Australia

The direct substitution of natural gas with renewable gases provides a pathway to net-zero emissions for gas infrastructure. Renewable gas technologies such as hydrogen and biogas are currently at, or in development to be in, commercial scale trials in Australia with significant parallel international trials for hydrogen and biogas already a mature technology in Europe. Renewable gas development is heavily supported by the International Energy Agency which forecasts renewable gases will contribute 13 per cent of total global energy consumption in a net-zero 2050, demonstrating the huge potential of the new industry accelerating today [3].

Renewable gas represents a lower-cost transition to net zero emission energy across the whole economy [4] as it leverages our existing gas infrastructure, avoiding expensive upgrades to the electricity system. Gas Vision 2050 outlines how gas can be decarbonised for half the additional cost of replacing it with electricity – delivering more than $10 billion in annual savings from 2050. Delivering lowest cost, highest reliability energy decarbonisation should be a priority to ensure every Australian can access low cost, reliable, decarbonised energy.

A renewable gas future tomorrow is founded in a strong gas industry today

The development of a renewable gas industry in Australia that will best support Australia’s climate and energy ambitions grows from a foundation in a strong gas industry.

APGA members play a major role in Australia’s energy supply and are actively committed to ensuring gaseous energy will continue to pull its weight – across all three branches of the energy trilemma – into the future. APGA supports a net zero emissions future by 2050. Through the development of a thriving renewable and decarbonised gas industry. It enables a net-zero emissions Australia sooner and less expensively than an electrification-only approach.

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