National Gas Decarbonisation Plan: Decarbonising Australia's gas pipelines and networks

1. EXECUTIVE SUMMARY

This report provides a detailed national work plan for decarbonising Australia’s gas transmission pipelines and distribution networks, supporting national emissions reduction commitments and state and territory net zero targets.

Australia’s gas pipelines and networks deliver affordable and reliable energy to over 5 million household and business customers, with natural gas accounting for 26% of Australia’s overall energy mix. Transitioning the gas system to renewable and decarbonised gases will help to eliminate the 80 million tonnes of annual CO2 emissions from natural gas, for both energy and feedstock, which are almost 15% of Australia’s total.

1.1 The need for renewable and decarbonised gas

The need for an energy transition is so major and so urgent that all decarbonisation options need to be considered. Alongside the requirement for large-scale and rapid renewable electricity deployment, the decarbonisation of those sectors which are difficult to substantially electrify can be achieved in parallel through the large-scale and rapid deployment of renewable and decarbonised gases. Both approaches will be needed to achieve net zero in a timely and cost effective manner.

Through this detailed and practical plan, Australia’s gas pipelines and networks will help deliver the transition to green gases in practice.

1.2 Objectives

This plan is designed to deliver the three objectives that are needed to meet the overall net zero aim described in Gas Vision 20501:

• 1. Enable blending of up to 10% by volume of renewable and decarbonised gases by 2030.
• 2. Enable 100% renewable and decarbonised gas supply to new residential developments before 2030.
• 3. De-risk a full network conversion to 100% renewable and decarbonised gases by 2050.

Individual gas network and pipeline businesses may have targets that diverge from these objectives, including some which are more ambitious. A mix of renewable and decarbonised gases will be needed to deliver net zero, including, but not limited to, green hydrogen from renewable energy sources (e.g. electrolysis using renewable electricity), biomethane from sustainable sources, or renewable methane.