FAQs

Renewable gas is an umbrella term for gases produced using resources that are continually replenished. There are two main types of renewable gas:

Biomethane: Made by upgrading biogas, which is produced from the decomposition of organic waste like food scraps, manure, and wastewater. Biomethane is almost identical to natural gas in its composition and can be used in the same way without the need to change gas appliances or infrastructure.

Renewable hydrogen: Created when renewable electricity, or certified renewable electricity, is used to split water into hydrogen and oxygen through a process called 'electrolysis'. The only outputs from hydrogen when used as energy are heat and water vapours.

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By blending (and ultimately replacing) natural gas with renewable gas, existing gas network infrastructure can be used to store and supply renewable gas for use in many commercial businesses, industries and hard-to-abate properties. A transition to renewable gas also means gas customers can retain their choice of energy supply for hot water, cooking and heating, and those industries relying heavily on gas can continue to access it in the same way, while helping to lower emissions in their operations.

Biomethane harnesses the energy potential from decomposing organic materials and is an example of waste recovery and reuse in the circular economy. It is created by capturing biogas from decomposing organic waste, and removing the carbon dioxide and other impurities ('upgrading'). The biomethane gas can then displace natural gas sourced from fossil fuels, and prevents 'waste methane' from reaching the atmosphere. The waste methane that would otherwise have been released into the atmosphere can then be used as an energy source instead. Production of biomethane has many circular economy benefits including diversion of waste to landfill, digestate and other nutrient recycling.

A circular economy is a model for production and consumption that aims to minimise waste and keep products and materials in use for as long as possible. In relation to the production of biomethane:

Sustainable: Wastewater, for example, is in continual supply. Production of biomethane from the biogas emitted by wastewater is sustainable and accessible.

Waste minimisation: Biomethane can be produced from organic waste, including food waste, creating opportunities for waste to be diverted from landfill and reused for energy production.

Regeneration: Biosolids and digestate are bi-products of biomethane production, creating natural nutrient rich fertiliser that can be used by farming and agriculture industries instead of artificial or chemical-based fertilisers.

‘Blending’ is the term used to describe gas supply that is part renewable gas and part natural gas. Blending new sources of renewable gas with the natural gas already being supplied to customers means emissions can be reduced within the energy system using our existing gas infrastructure and with no or minimal impact to customers. The Jemena gas network in NSW can currently take blends of up to 10% renewable hydrogen, and up to 100% biomethane.

Currently, hydrogen must be blended because it needs to be transported under higher pressure. In transitioning towards using hydrogen within gas networks, network operators are currently blending small amounts of hydrogen, as the current network and appliances are not hydrogen capable. Around the world, blends of up to 10 per cent hydrogen are being used without compromising or modifying existing gas networks and research continues in this area to increase our understanding of what is required to achieve higher blends.

Renewable gas, like biomethane, can be used not only as an energy source for many homes, businesses and manufacturing sectors, but can also be stored in existing gas pipelines (like energy stored in a battery) to complement and support other intermittent sources of renewable energy. For instance, when wind and solar power aren’t able to generate power - when the sun isn’t shining and the wind stops blowing – renewable gas can be used to generate electricity and back-up the grid.

There is also a range of industries which rely on gas for high-heat processes or use gas as a feedstock, and where electrification is not an affordable or convenient option. Renewable gas, like biomethane, provides a way for those industries to reduce their carbon emissions efficiently, without any operational changes.

Biomethane is uniquely placed as a source of sustainable and renewable energy. It is generated using something that is negatively impacting the environment – our waste – and when combusted, it is a carbon-neutral energy resource that is fully compatible with current gas infrastructure and appliances.

Modelling shows that the costs of energy in 2050 in a system using Australia’s existing gas networks and infrastructure for renewable gas (in partnership with electrification) will be significantly lower than full electrification of the energy system alone. The modelling by Frontier Economics (2020) on the potential for gas powered generation to support renewables found that this approach, when compared to the cost of full-electrification, would see energy consumers avoid between $5 billion - $7.5 billion per annum in systems costs.

Other developed economies like the USA, UK, EU and Japan are approaching their energy challenges with a range of energy solutions, including sources of renewable gas, that work together to reduce emissions. In fact very few major economies have opted for a ‘one size fits all’ clean energy solution. According to the International Energy Agency (IEA), renewable gas plays an essential, long-term, clean energy role because it can be used to produce electricity sustainably, used to produce heat as well as for energy storage, and it can be used as a fuel source for the benefit of the whole energy system and the broader economy.

You can find out more about Jemena's renewable gas projects here or visit our corporate site for more news and information.

The government’s renewable energy agency, ARENA (Australian Renewable Energy Agency), is a good place to find information, news updates and announcements on renewable gas and other renewable energy initiatives that are receiving grants or funding from the government agency. 

Energy Networks Australia’s Gas Vision 2050 & Renewable Gas Innovation report (2023) outlines the industry’s pathway to decarbonising our gas networks and how it can deliver a lower emissions future: Energy Networks Australia Gas Vision 2050 & Renewable Gas Innovation Report

Bioenergy Australia work closely with all levels of government, business and industry to accelerate Australia's energy transformation to bio-based gas and other fuels. Find out more about the work being done by Bioenergy Australia.

Australian Gas Networks have a number of renewable gas projects and initiatives underway in South Australia, Western Australia, Victoria and Queensland.

Many Australian companies are at the forefront of renewable gas and bioenergy innovation with projects and initiatives both here in Australia and overseas, where renewable gas is more advanced and well supported by business and government: EDL Energy, LMS Energy, Valorify and Optimal Energy are just a few of the companies leading the way in renewable gas and bioenergy technologies.

Gas is not going anywhere any time soon. Last year alone, 20,000 new customers connected to the Jemena Gas Network in NSW, and over 1.5 million customers in NSW still demand safe and reliable natural gas supply for their homes and businesses.

Natural gas is being used to help many heavy industries to lower emissions as they move away from energy sources like coal, oil and diesel. Natural gas is also relied upon by thousands of businesses and manufacturing sectors for round-the-clock operations, that help to keep the country running, and keep thousands of people in jobs.

Distribution networks around the country, including Jemena’s NSW gas network, are working towards a transition to low emission forms of renewable gas, like biomethane and renewable hydrogen. Renewable gas can help the businesses and manufacturers that rely on gas for round-the-clock operations to efficiently lower their emissions and help decarbonise their operations. Renewable gas can also help to lower emissions in hard-to-electrify commercial and residential properties and communities, as well as those customers who simply want to keep enjoying their existing gas supply.

Jemena owns and operates some of Australia's most significant gas and electricity assets, supplying millions of households and businesses with essential energy services every day.

Jemena’s diverse portfolio of energy assets are located across eastern and northern Australia, and include the gas distribution network in NSW which supplies more than 1.5 million customers across metropolitan Sydney and parts of regional NSW.

More information about Jemena is available here.

Jemena is committed to lowering emissions across both its electricity network in Victoria, and gas network in NSW, as well as other group operations. Find out more about Jemena’s sustainability initiatives and goals on the Jemena Sustainability Hub.

The gas that Jemena supplies through the NSW network to our customers is evolving, as the state heads towards a net zero future. Jemena is investing in renewable gases, low emission sources of gas supply, by tapping into resources like every day organic waste. Jemena is proud of its investments in biomethane and renewable hydrogen, having built one of the first power-to-gas trials to inject hydrogen into the gas distribution network and Australia’s first facility that injects biomethane into the gas network. Jemena believes that renewable gas has a critical role to play in the energy transition, and can help thousands of businesses and manufacturers, as well as many hard-to-electrify properties and communities, to lower emissions efficiently.

Jemena isn’t a gas producer. Jemena owns and operates the infrastructure and network that supplies gas to homes and businesses, primarily in New South Wales. Jemena has a number of renewable gas initiatives and demonstration projects under way or currently in operation, to help understand and prepare for increased quantities of renewable gas in the gas network over the coming years.

As two of these demonstration projects are currently producing renewable gas, Jemena is injecting renewable gas into parts of the NSW gas network.

Jemena, along with other gas distribution businesses around the country, is demonstrating the production, use and viability of renewable gas through several projects and initiatives, with more on the way in the coming years.

• The Western Sydney Hydrogen Hub has been producing renewable hydrogen and injecting it into the NSW gas network since 2021. The hub has also been trialling on-site power generation.

• The Malabar Biomethane Injection Plant has been injecting biomethane (made from wastewater) into the NSW gas network since early 2023.

These projects, which are co-funded by ARENA (Australian Renewable Energy Agency), aim to demonstrate, actively promote and encourage the future production of renewable gas. The projects are demonstrating the ease-of-use and viability of renewable gas, so it can be scaled-up by production companies in the near future and distributed through the gas networks or direct to industrial users.

Jemena has also recently entered into a Memorandum of Understanding with Optimal Renewable Gas to develop three new biomethane production facilities in regional NSW over the next few years.

You don’t need to do anything now – you can continue to enjoy the existing gas supply used by millions of customers for hot water, cooking and heating. Natural gas supply will not be changing any time soon in Jemena’s NSW network. Jemena is working with other gas distributors, industry experts and stakeholders, regulators and governments across Australia to deliver a clear pathway to getting more renewable gas produced and injected into gas networks.

You will not have to buy new appliances any time soon.

Renewable gas demonstration projects around the country show that renewable gas can be produced, blended with natural gas, and supplied safely and reliably through the existing gas network.

Biomethane won’t change how your appliances work no matter how much of it you are using. As demonstrated on MasterChef Australia, 100% biomethane supply works perfectly on existing gas appliances.

Most existing gas appliances are tested and will work safely and efficiently on blends of up to 10% hydrogen by volume. In NSW Jemena will only blend up to 10% renewable hydrogen into its network in the short term.

When receiving 100% renewable hydrogen gas, new appliances or burner parts will be required.

100% hydrogen appliances are in development and being tested and demonstrated around Australia by gas network operators and appliance manufacturers. Overseas, countries like the UK & Japan are already supplying 100% hydrogen to dedicated parts of their gas network, but at the moment in Australia they are a niche product whilst the market establishes itself. Appliance manufacturers are already working on hydrogen ready appliances that can transition from natural gas to hydrogen gas, including Seeley International, Rinnai and Dux Hot Water Systems.

You can still connect to the gas network in NSW if you’re building or renovating, and your planning permit allows or you don’t need a planning permit. Find out more about connections here.

On average there are approximately 100,000 new gas connections across Australia every year, and over 20,000 new gas connections last year in NSW alone. Connecting to the gas network today provides homes and businesses with the benefits of natural gas – safe, reliable, controllable energy – and, for many, a pathway to renewable gas in the future.

We understand that price is very important to customers. For customers in the Jemena network area, gas supply and prices won’t change any time soon as a result of renewable gas projects and initiatives.

Development and production of renewable gas is a new industry in Australia so costs can expected to be higher initially. Just like solar, wind and battery power, in order to drive down costs the industry needs to develop more projects, stimulate investment, and increase the scale of production. This is being done through collaboration with industry, government, other energy and utility companies, and co-funding projects in order to ensure customers do not have any added cost burden.

For commercial and industrial customers you can be confident that your connection to the gas network will continue to provide you with the safe and reliable energy supply you require, for the foreseeable future. A transition to renewable gas, like biomethane, will help businesses and manufacturers that rely on gas to lower emissions more efficiently, without the need for costly operational and equipment changes.

Large industrial, commercial and business customers can contact us for more information on renewable gas and how it could benefit your business.

Yes. GreenPower has developed a new renewable gas certification scheme specifically aimed at larger gas users in business, commercial and industrial sectors. Read more about GreenPower certification here.