Friday, 20 June 2025
While major policy shifts often avoid the Friday afternoon news cycle, the communique released by the Energy and Climate Change Ministerial Council on Friday, March 14, 2025, contained a particularly significant development. Buried within its four pages was a commitment by Council members to collaboratively explore national policy frameworks for the burgeoning renewable gas sector in Australia. This seemingly understated declaration holds immense potential to reshape our energy landscape and pave the way for a more sustainable industrial future.
In just three concise sentences, the communique illuminated the compelling advantages that renewable gases offer the Australian economy. It astutely identified renewable gas as "one of the most viable pathways to decarbonise parts of industry where electrification is not a viable option."
This statement cuts to the core of the opportunity: renewable gas presents a crucial pathway to sustain vital industries that rely on gas for their operations while simultaneously contributing meaningfully to Australia's ambitious carbon reduction targets.
The scale of this opportunity cannot be overstated. Australia's robust $100 billion manufacturing sector employs over 225,000 individuals and for many of these businesses the high-heat gas produces is used to make everyday items such as glass, bricks, steel, and even medicines. Ensuring the continued operation of these industries is not merely an economic imperative; it is fundamental to our daily lives. A transition to renewable gas offers a lifeline, allowing these essential sectors to lower emissions and continue to thrive in a decarbonising world.
While the communique succinctly articulated the potential of renewable gas in fewer than 20 words, realising this potential hinges on progress in four key interconnected areas.The first crucial element, certification, is already demonstrating encouraging momentum.
The GreenPower program, administered by the New South Wales Department of Climate Change, Energy, the Environment and Water, took a significant step forward by accrediting biomethane produced at the Malabar Biomethane Injection Plant in early 2024. This certification acts as a vital "green tick" for businesses utilising gas, enabling producers of biomethane and green hydrogen to generate and trade renewable gas certificates. This framework provides the kind of certainty that attracts investment, instilling confidence not only in industries producing renewable gas but also in the customers at the end of the pipeline who seek to purchase it.
Another important step is the inclusion of biomethane in the National Greenhouse and Energy Reporting (NGER) Scheme – something which was achieved in early June this year.
Inclusion in the scheme means people who purchase biomethane can now have it count as part of their carbon reduction efforts.
With GreenPower certification and recognition in the NGER scheme achieved we are making significant strides in establishing a functional renewable gas market, the implementation of a national renewable gas strategy then would act as a powerful catalyst, accelerating the sector’s further development.
We need only look at the remarkable success story of Australia's renewable electricity rollout to understand the transformative power of a national framework. The lessons learned from the Renewable Energy Target’s success are directly applicable to our burgeoning renewable gas market.
With these foundational elements in place – certification, emissions accounting, and a national strategy – the final piece of the renewable gas puzzle should naturally fall into place. A clear national direction will foster confidence among new upstream investors, encouraging them to enter this emerging market. Simultaneously, end-users of renewable gas will benefit directly through the reduction of their emissions, contributing to a cleaner operational footprint and aligning with broader sustainability goals.
Already, industry players are recognising this immense potential. Jemena, for instance, has signed several Memorandums of Understanding (MOUs) with prospective upstream proponents eager to produce biomethane utilising agricultural and other waste streams. This follows Jemena's successful demonstration at the Malabar Biomethane Injection Plant, which proved the feasibility of producing biomethane locally and seamlessly integrating it into existing gas infrastructure.
With GreenPower certification gaining traction, successful demonstration projects and new initiatives underway, as well as increasing capital interest, Australia's renewable gas sector is no longer a distant aspiration; it is actively taking shape. The immediate opportunity lies in harnessing this existing momentum by establishing a clear and ambitious national strategy. This decisive step will be instrumental in unlocking Australia's full renewable gas potential, ensuring the continued vitality of our crucial manufacturing industries while simultaneously driving down our national carbon footprint and paving the way for a more sustainable future.
Jemena owns and operates a diverse portfolio of energy assets across northern Australia and Australia's east coast.