Tuesday, 19 August 2025
As Australia inches toward net zero, Jemena Managing Director David Gillespie explains why renewable gas has a key part to play in the energy transition.
Australia’s complex energy system is undergoing a once-in-a-generation transformation as industry leaders work to meet mandated net zero targets. But the journey isn’t as straightforward as first envisioned.
A national transition could cost as much as $9 trillion by 2060, according to estimations from Net Zero Australia. Other factors slowing the transition include regulatory challenges and grid integration problems.
While no one is denying there’s still a long way to go, there are signs of progress. Australia’s commitment to reduce emissions by 43% by 2030 is an admirable target, but industry leaders have also had to step up and meet their own commitments on the pathway to net zero.
Energy giant Jemena is investing to support the development of biomethane – a renewable, low-emission gas produced from decomposing organic matter, like wastewater or agricultural waste, via a process called anaerobic digestion.
Jemena is a $12.9 billion company that owns and manages some of Australia’s most significant gas and electricity assets, supplying millions of households and businesses with essential services every day.
Biomethane is already widely used around the world, particularly in Europe.
In Denmark, for example, biomethane currently supplies almost 40% of gas network demand according to Energinet, the Danish energy network operator. It estimates this will increase to 100% by 2030-2034.
Jemena’s managing director David Gillespie says biomethane is compatible with existing pipelines and appliances.
This makes it a great emission reduction option for gas users, especially manufacturers who require high heat to operate, and cannot readily electrify.
Jemena’s first biomethane investment is the start of something big.
Research conducted by Enea Consulting for ARENA reveals that the development of a biomethane sector in Australia has the potential to produce 506PJ of biomethane a year, contribute around $10 billion in extra GDP a year, creating 26,200 new jobs and could reduce our national emissions by around 9%.
Gillespie says a transition must balance the needs of customers and communities today and into the future.
“A mature biomethane industry has the potential to unlock economic benefits by harnessing agricultural waste, supporting industry and creating jobs in regional communities,”
Jemena’s Malabar Biomethane Injection Plant is located at Sydney Water’s Wastewater Treatment Plant in south east Sydney, and has been injecting biomethane into the NSW gas network for two years, producing the equivalent annual gas usage of 6,300 NSW homes.
Gillespie says the Malabar facility was the first to receive GreenPower Renewable Gas Certification, meaning the biomethane produced has met strict criteria to be accredited as low-emission renewable gas.
“Approximately 70% of the gas used on the Jemena gas network is consumed by industrial and commercial users, with more than half of that demand coming from sectors that are difficult to electrify. In 2020–21, Australia’s manufacturing sector consumed 380 PJ of gas, or about 26% of our domestic gas supply,” Gillespie says
“Australia needs to start thinking about the big picture when it comes to energy by recognising that the energy system is composed of three separate systems: electricity, liquid fuels and gas.
“Currently, there’s simply not enough renewable electricity or supporting infrastructure to decarbonise our entire energy system at the same time. Therefore, we need to consider where we get the biggest ‘bang for buck’ from all our renewable energy sources.
“This means a focus on decarbonising our highest emitting industries while at the same time exploring new decarbonisation technologies and solutions like renewable gas.”
