Climate Transition Plan Sets Pathway to Net-Zero

Major energy infrastructure and energy services business, SGSP (Australia) Assets Pty Ltd, comprising energy asset owner and manager Jemena and engineering and construction services provider Zinfra, has today released its Climate Transition Plan 2025, setting out its interim plans for the energy transition.

Managing Director David Gillespie said the business has an important role to play in the future of Australia’s energy sector by helping address the challenges of the energy transition, while working to ensure energy security and equity for customers.

“Australia’s future energy system needs to be reliable, affordable, and low-emissions. Our Climate Transition Plan 2025 provides a roadmap that sets out our risks and challenges, our targets, and our planned actions to evolve and change our business to contribute to that,” Mr Gillespie said.

“We believe both our electricity and gas assets, as well as the services we provide the energy sector, will play an important role in supporting an orderly and just energy transition.”

Through this Plan, Jemena and Zinfra are:

• Targeting a 30 per cent Scope 1 and Scope 2 greenhouse gas emissions reduction by 2030 (compared to a 2021-22 baseline)
  • Total Scope 1 and Scope 2 greenhouse gas emissions in 2021-22 were about 940,000 tCO₂e, meaning the Group’s emissions target for 2030 is about 658,000 tCO₂
  • Fugitive emissions from the Group’s gas distribution network in New South Wales are the largest contributor to the Group’s baseline greenhouse gas emissions (37 per cent), followed by system use gas across the Group’s gas transmission assets (34 per cent).
• Aiming to invest $185 million in energy and climate transition initiatives to 2030, including:
  • Addressing pipeline operation improvements (such as optimising compressor operations and electrifying compressors and water bath heaters where economically feasible).
  • Improving detection of fugitive emissions and updating methane measurement techniques through the use of Picarro Advanced Leakage Detection vehicles, helping to address the largest contributor to our greenhouse gas emissions.
  • Reducing line losses in our electricity distribution network in north-west Melbourne.
• Planning to rebalance our asset portfolio to achieve a 50-50 gas-electricity mix by 2030, including:
  • Readying our electricity distribution network in north-west Melbourne for increasing customer demand.
  • Considering investment in contracted electricity assets like energy storage systems, standalone power systems, and transmission assets.
• Fully integrating climate considerations into business processes and systems including continuing to consider the impact of greenhouse gas emissions as one of the decision criteria for projects and assets.

“Our Plan focuses not only on active interventions we can make on our existing assets to reduce greenhouse gas emissions – particularly in emissions reduction from our NSW gas distribution network – but also on what we can do to support the broader Australian economy to decarbonise, even if that may lead to an increase in our own emissions,” Mr Gillespie said.

“This includes working with industry to transition from higher emissions fuels like coking coal for manufacturing to natural gas, as well as initiatives like supporting the establishment of a biomethane industry, increasing the supply of this low-emission renewable gas through our networks.

“Our Plan also recognises the journey we are embarking on to rebalance our asset portfolio from about a 70-30 gas-electricity mix to closer to 50-50. This acknowledges that while there will be stable demand for gas for the next few decades, the pace of electrification will continue to increase and there will be significantly more demand both in our network area in north-west Melbourne, and across the Australian economy.”

Our full Climate Transition Plan 2025 is available at www.sustainability.jemena.com.au and www.sustainability.zinfra.com.au.

We will review, update, and report on our progress against this Plan by the second quarter of 2026.

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