Media Release - Vic Gas Substitution Roadmap

AGIG supports Victoria's transition to a renewable gas future

Australian Gas Networks (AGN) and Multinet Gas (MGN), part of the Australian Gas Infrastructure Group (AGIG), welcome the opportunity to provide feedback to the Victorian Government Gas Substitution Roadmap Consultation Paper. AGIG commends the Victorian Government for its proactive approach to considering ways for the gas sector to reach net zero emissions.

Developing a framework that provides similar support for the renewable gas sector as that provided to the renewable electricity sector is key to efficiently and effectively decarbonising energy supply, retaining customer choice and improving energy security and reliability for Victorians.

AGIG, as a leader in the energy infrastructure sector, including in the renewable hydrogen sector, has a clear low carbon strategy to decarbonise gas supply in Victoria by 2040 as a stretch target, and by no later than 2050 in line with the Victorian Government's targets.

AGIG CEO Ben Wilson stated: "Using our existing gas networks to deliver renewable gas, including renewable hydrogen and biomethane, provides a low cost, reliable and practical way of decarbonising natural gas use in Victoria.

"Victorians love natural gas today. Importantly, renewable gas will allow our customers to continue to enjoy the benefits of gas into the future while meeting their sustainability goals.

"Blending renewable hydrogen into gas networks is a crucial early step to ramp up supply growth, thereby bringing costs down. This is exactly the same pathway taken for the renewable electricity sector.

"By getting the foundations right, Victoria can build a thriving hydrogen industry that provides carbon-free gas to residential through to large industrial customers in the state, along with other complementary markets such as transport.

Building the scale and capability now by blending renewable hydrogen into gas networks to supply homes and businesses will also position Victoria to benefit from a substantial new export opportunity. We are talking exporting our sunshine from our rooftop solar systems to the world through hydrogen. This means thousands of new jobs in Victoria in this emerging carbon-free industry, including in regional areas."

AGIG is already delivering a 5% renewable hydrogen blend to some of its South Australian customers and has big plans for Victoria. Recently, ARENA provided its support for AGN to deliver Hydrogen Park Murray Valley located in Wodonga, which will provide a 10 per cent renewable hydrogen blend to over 40,000 homes and businesses in the region.

Hydrogen Park Murray Valley is consistent with our plans to deliver a 10 per cent renewable hydrogen blend across all of Victoria by no later than 2030, reaching 100% hydrogen by 2040.

The right support for renewable hydrogen blending projects now is crucial to position the state to benefit from this new industry.
Ben Wilson notes: "AGN believes introducing a firm Renewable Gas Target, similar to what is in place for renewable electricity, is required to start us on this carbon-free pathway for the gas supply sector and access substantial new jobs for Victoria".

Victoria has demonstrated success in deploying and scaling up these types of policies before in encouraging wind and solar electricity. AGIG encourages leveraging these learnings in building a Victorian hydrogen economy - creating new jobs, reskilling existing workforce and supporting gas appliance manufacturing in Victoria.

In the meantime, gas continues to be a good low carbon option for customers today, because gas is used mainly in the mornings and evenings when rooftop solar is not generating, and so the alternative for the vast majority of customers is coal-intensive mains electricity. Gas connections also provide customers with the option for a future hydrogen connection.

Click here to download the AGIG's full submission to the Victorian Government. 

 

About AGIG

Australian Gas Networks and Multinet Gas Networks along with the Dampier to Bunbury Pipeline in Western Australian, form part of the Australian Gas Infrastructure Group (AGIG) which owns and operates one of Australia’s largest gas infrastructure businesses with operations across every mainland state and the Northern Territory supplying approximately 2 million customers. Operations include 40,000km of distribution and transmission gas pipelines, 60 petajoules of gas storage capacity, gas processing facilities and remote power generation.

AGIG’s vision is to be the leading gas infrastructure business in Australia - by delivering for customers, being a good employer, and being sustainably cost efficient.

AGIG officially opened its $14.5 million hydrogen production facility, Hydrogen Park South Australia (HyP SA), the largest in Australia at the Tonsley Innovation District south of Adelaide in May and commenced blending renewable hydrogen into its natural gas distribution network supplying renewable gas to over 700 residents to parts of the Adelaide suburb of Mitchell Park. AGIG is also developing a hydrogen plant in Gladstone, Queensland.

Additionally, the Australian Renewable Energy Agency awarded funding to AGIG as part of the Renewable Hydrogen Deployment Funding Round. Hydrogen Park Murray Valley (HyP Murray Valley) – partnering with ENGIE - in Wodonga, Victoria and the Clean Energy Innovation Park – partnering with ATCO Australia - in Warradarge, Western Australia.

 

HyP Murray Valley will be located at North East Water’s West Wodonga Wastewater Treatment Plant and will comprise a 10MW electrolyser using renewable electricity to produce hydrogen from late 2023, subject to a number of regulatory and financial approvals. The installation will enable blending 10% renewable hydrogen into the existing natural gas network to supply more than 40,000 existing residential, commercial and industrial customers in Wodonga, Victoria and nearby Albury, New South Wales. This project will be a stepping stone for future projects in Victoria.

 

For further information contact

Craig de Laine, Executive General Manager, Customer and Strategy - AGIG, T (08) 8418 1129 M (0403) 309 940 

Peter Kermode, Cannings Purple, T +61 411 209 459 

AGIG
(08) 8227 1500
Mon-Fri, 9am-5pm (ACST)
agig.com.au
DBP
(08) 9223 4300
Mon-Fri, 9am-5pm (AWST)
dbp.net.au
MGN
(03) 8846 9900
Mon-Fri, 9am-5pm (AEST)
multinetgas.com.au
AGN
(08) 8227 1500
Mon-Fri, 9am-5pm (ACST)
australiangasnetworks.com.au