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APGAFeb 20, 2023 8:46:00 PM3 min read

Landmark report recommends blending hydrogen into gas networks

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The Australian Pipeline and Gas Association (APGA) welcomes today’s landmark Australian Industry Energy Transitions Initiative report which sets out how industry can rapidly reduce emissions across critical supply chains in line with efforts to limit global warming to 1.5C.

The ‘Pathways to industrial decarbonisation’ report, prepared by Climateworks and CSIRO in consultation with industry and research partners, outlines how through coordinated action between governments and industry, overall emissions could be reduced by up to 92 per cent by 2050, with the remaining eight per cent offset by high-quality carbon credits.

As part of the report, Australian Industry ETI recommends the scale-up and use of green hydrogen in gas networks, with an initial target of 10 per cent hydrogen blending. Additionally, it endorses repurposing existing infrastructure with the goal of launching scaled supply chains that deliver renewable gases such as hydrogen and ammonia.

A recent independent report found emissions across gas infrastructure can be reduced between 16 per cent to 50 per cent by 2030 by using renewable gases in gas networks and pipelines, combined with higher appliance efficiency standards.

APGA chief executive Steve Davies says today’s Australian Industry ETI report, with contributions across the gas supply chain, reveals how Australian companies are working to achieve net zero and support the energy transition at the lowest cost to consumers.

 

“Industry and government are working to decarbonise, and it is imperative the Safeguard Mechanism is implemented as matter of urgency. If we are to overcome the massive challenges associated with the energy transition, every second matters,” Mr Davies said.

 

“The report also illustrates the opportunity for blending hydrogen into gas networks to provide a decarbonised solution for households. By doing so, it has the potential to accelerate emissions reduction across the entire supply chain by encouraging more green hydrogen production.”

“By electing to use renewable gases, consumers can continue cooking and heating their homes with ease while also lowering their carbon footprint and spurring Australia’s energy transition without the major upfront costs of buying and installing electric appliances.”

“In South Australia, NSW, Victoria, Queensland and WA, there are tens of thousands of households beginning to transition to renewable gas blends – which offer an affordable, safe and reliable way for Australians to keep cooking and heating their homes without interruption.”

“The next step is to formalise this freedom of choice through a Renewable Gas Target."

Last year, Federal and State Energy Ministers agreed to amend the National Gas Law and the National Energy Retail Law to include hydrogen and other renewable gases.

The HyP SA facility has begun delivering a 5% renewable gas blend to more than 3700 gas customers in South Australia, including households, businesses and schools with plans to transition the entire SA gas network to zero emissions green hydrogen by 2050.

In NSW, Jemena’s Malabar facility will turn the biowaste from Sydney’s wastewater sewers into renewable gas that will heat the showers and homes, and fire up the BBQs of 6,000 households from early 2023 with the potential to expand to more than 15,000 connections. In Western Australia, ATCO has begun blending renewable hydrogen into the WA gas distribution network to help the WA Government achieve the longer-term goal of blending up to 10 per cent network-wide by 2030 to dramatically reduce emissions.

To learn more about renewable gases and how the APGA and the broader gas infrastructure industry are helping to deliver the least-cost pathway to net zero, click here.

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About

The Australian Pipelines and Gas Association (APGA) represents the owners, operators, designers, constructors, and service providers of Australia’s pipeline infrastructure, connecting natural and renewable gas production to demand centres in cities and other locations across Australia. Our members offer a wide range of services to gas users, retailers and producers and ensure the safe and reliable delivery of 28 per cent of the end-use energy consumed in Australia.

Contact

For further information or the opportunity to engage with Mr Steve Davies please contact:
Paul Purcell
Government Relations Manager
0422 247 750
ppurcell@apga.org.au

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