Turning Waste into Renewable Gas: Biomethane Opportunities are One Step Closer
Oct 24, 2024- Leading energy infrastructure company Jemena and Japanese general trading and investment company Sojitz sign Memorandum of Understanding to assess the viability of delivering biomethane into the New South Wales gas network
- Research shows enough biomethane can be produced in New South Wales to meet the energy needs of half of Jemena’s current industrial gas customers
- ARENA’s Bioenergy Roadmap found a biogas industry could reduce Australia’s emissions by 9 per cent
More homes and businesses across NSW could soon be adding renewable gas to fuel their heating, hot water, and to power industrial processes, thanks to a new Memorandum of Understanding (MOU) between leading energy infrastructure group Jemena, and Japanese general trading and investment company Sojitz.
Under the MOU, Jemena and Sojitz will work together to assess the feasibility of developing several new biomethane plants across regional New South Wales which will turn agricultural and other organic waste into biomethane – a renewable gas produced by processing biogas generated from decomposing organic waste.
Jemena’s partnership with Sojitz, an AU$7.7 billion investment and general trading company with over 23,000 employees worldwide, follows recent MOUs with Optimal Renewable Gas and Valorify to explore the development of a biomethane sector in New South Wales.
Jemena’s Managing Director David Gillespie said biomethane produced by the project will be directed to the domestic market, providing a meaningful way for businesses across New South Wales to decarbonise their operations.
“Today’s announcement is a fantastic next step in the development of Australia’s biomethane sector,” said Mr Gillespie.
“Together with our existing MOUs and partnerships we believe enough biomethane can be produced across New South Wales to meet the needs of all of our residential customers, or around half of our industrial customers.
“We know many industries, particularly those which require high heat to operate, rely on gas for their operations. These industries which create everyday products like windows, bricks, fertilizer and medicine, cannot be easily electrified. Agreements like the one we’re announcing today will allow these businesses to decarbonise their operations while continuing to contribute to local communities and the Australian economy.”
Sojitz President & CEO for Asia & Oceania Shigeya Kusano said the company would like to consider biomethane project opportunities with a sense of scale.
“We have extensive experience and long history in the energy sector, and we are currently focusing on businesses that align with the ongoing energy transition,” said Mr Kusano.
Internationally, Sojitz is accelerating investment and development in innovative decarbonisation projects, such as working with Sembcorp and Kyushu Electric to supply green ammonia from India to Japan and investing in renewable projects all over the world. In Australia, Sojitz is investing in Edenvale Solar Park, a solar power generation project in Queensland, and Sojitz has acquired Ellis Air Group Pty Ltd., an energy-saving air conditioning design and construction company in Victoria.
Sojitz plans to assess and identify efficient biomethane production sites that utilise existing agricultural waste derived from grass, hay, and animal feed, as well as other organic household and domestic waste.
The Australian Renewable Energy Agency’s (ARENA) 2021 Bioenergy Roadmap predicts that by the beginning of the next decade, Australia’s bioenergy sector could boost GDP by approximately $10 billion annually, generate over 26,000 new jobs, and reduce national emissions by about 9 per cent.
Biomethane has the same chemical qualities as natural gas which means it is compatible with all existing gas network infrastructure and industrial equipment, as well as gas appliances used in homes and businesses.
While biomethane production is still a developing industry in Australia, it is already showing the advantages of a circular economy on the global stage. Denmark aims to achieve 100 per cent biomethane injection by 2030 and Ireland plans to have 100 per cent renewable gas transported through its gas network by 2045.
Mr Gillespie said now is the time for industry and governments to work together to develop a biomethane sector.
“Recently, we have seen some very positive steps with the New South Wales Government consulting on the development of a renewable gas sector and the Federal Government considering how its use should be counted in businesses’ emissions reporting. We are excited to see this policy momentum build as we develop a biomethane sector.”
For more information about Jemena’s renewable gas projects visit: www.jemena.com.au
For more information about Sojitz visit https://www.sojitz.com/en/