28 October 2022
Submission: Network Infrastructure Strategy for NSW
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. Offering a wide range of services to gas users, retailers and producers, APGA members ensure the safe and reliable delivery of 28 per cent of the end-use energy consumed in Australia and are at the forefront of Australia’s renewable gas industry, helping achieve net-zero as quickly and affordably as possible.
APGA welcomes the opportunity to contribute to the New South Wales Governments’ consultation on the draft Network Infrastructure Strategy for New South Wales (the Strategy). APGA commends the New South Wales Government for acknowledging the emerging hydrogen sector as a key component of energy sector transition.
APGA supports a net zero emission future for Australia by 2050[1]. Renewable gases represent a real, technically viable approach to lowest-cost energy decarbonisation in Australia. As set out in Gas Vision 2050[2], APGA sees renewable gases such as hydrogen and biomethane playing a critical role in decarbonising gas use for both wholesale and retail customers. APGA is the largest industry contributor to the Future Fuels CRC, which has over 80 research projects dedicated to leveraging the value of Australia’s gas infrastructure to deliver decarbonised energy to homes, businesses, and industry in NSW and nationally.
APGA appreciates that the Strategy recognises that there may be opportunities to co-optimise corridors for electricity transmission and hydrogen pipelines. To this point, APGA wishes to comment on the following:
Has the NIS appropriately assessed the impact of a potential domestic and export hydrogen economy on transmission infrastructure? If not, what additional factors should EnergyCo consider?
The Strategy notes that the New South Wales electricity transmission network is not currently fit for purpose to transmit electricity from renewable energy projects, and considerable investment into new transmission infrastructure is necessary to meet future needs. The Strategy also acknowledges that part of the renewable energy transition in Australia will necessarily include a domestic hydrogen sector, and indeed this is already being developed.
The Strategy acknowledges the scale of a future hydrogen industry, considering the potential for both a domestic and export hydrogen industries and their potential to impact the future renewable electricity network. APGA believes that the Strategy can go further in recognising the parallel role which the hydrogen sector can play in achieving least cost gas use decarbonisation in Australia.
Part of this opportunity can be supported by the state’s significant pipeline assets. Whether through repurposing existing pipelines or developing new pipelines, hydrogen transmission pipelines are a more cost-effective energy transmission pathway compared to high voltage transmission powerlines. Further, energy storage in hydrogen pipelines is significantly lower cost compared to pumped hydro and battery energy storage systems. Existing storage capacity in Australian gas pipelines is an enormous 2.3TWh, compared to the maximum 0.35TWh that will be supplied through the Snowy Hydro 2.0[3]. Determining how pipeline gas storage capacity can be used for renewable hydrogen storage is currently being assessed by the Future Fuels CRC.
APGA believes that renewable electricity infrastructure and renewable gas infrastructure together can combine to support the least cost energy decarbonisation pathway for NSW. APGA observes that gas use decarbonisation could cost less through 100% green hydrogen replacement compared to 100% electrification[4].
The cost-effectiveness of pipeline infrastructure has been considered in detail in the Pipelines vs Powerlines: A Technoeconomic Analysis in the Australian Context[5] report, produced by GPA Engineering and commissioned by APGA. This report and its summary are linked below and appended to this submission for consideration in further strategic development.
Pipelines vs Powerlines: a summary
Pipelines vs Powerlines: A Technoeconomic Analysis in the Australian Context
Pipelines vs Powerlines: Appendix 3A and 3B Results Summary Dataset
APGA commits to continuing to work with the NSW Government to help achieve a least cost net zero energy future for all energy customers and welcomes further engagement on the potential for hydrogen and other renewable gas pipelines to support this outcome.
To discuss any of the above feedback further, please contact me on +61 422 057 856 or jmccollum@apga.org.au.
Yours sincerely,
JORDAN MCCOLLUM
National Policy Manager
Australian Pipelines and Gas Association
[1] APGA Climate Statement, available at
https://www.apga.org.au/apga-climate-statement
[2] APGA, 2020, Gas Vision 2050: Delivering a clean energy future, available at
https://www.apga.org.au/sites/default/files/uploaded-content/website-content/gasinnovation_04.pdf
[3] GPA Engineering, 2022, Pipelines vs Powerlines: A Technoeconomic Analysis in the Australian Context. Available at
https://www.apga.org.au/sites/default/files/uploaded-content/field_f_content_file/pipelines_vs_powerlines_-_a_technoeconomic_analysis_in_the_australian_context.pdf
[4] APGA, 2020, Gas Vision 2050: Delivering a clean energy future
[5] GPA Engineering, 2022, Pipelines vs Powerlines: A Technoeconomic Analysis in the Australian Context
COMMENTS