Our low carbon strategy
Gas is essential to our economy and modern lifestyles, providing nearly a quarter of Australia’s total energy supply. Overall in Australia natural gas is currently cleaner than electricity delivered by the grid, but there's more we can do to deliver emissions reductions, while also contributing to energy security and ensuring costs remain as low as possible.
Renewable and carbon neutral gases will help our customers and Australia achieve sustainability goals, whilst retaining access to the benefits of natural gas - reliable and affordable energy.
But it’s not just in future, renewable gas is here now. Hydrogen Park South Australia is already delivering a 5% renewable gas blend to more than 700 homes, while Hydrogen Park Gladstone is currently being developed. This is just the start.
On our distribution networks, AGIG is targeting 10% renewable (carbon-free) gas by volume by 2030, and offering 100% renewable gas to new home estates by no later than 2025. Our aim is to fully decarbonise our distribution networks by 2040 as a stretch target and by no later than 2050. This is consistent with Australian state and territory ambitions which collectively target being net zero carbon by 2050.
For our midstream and transmission assets we will continue to deliver for our customers. This means providing the infrastructure solutions required for their businesses, including by working with them to develop renewable gas solutions, such as blended and pure renewable gas products - enabling customers to transition towards net zero consistent with their preferred timing.
We will also work to reduce the direct scope one and two emissions from our transmission and midstream assets, including the Dampier to Bunbury Natural Gas Pipeline, targeting net zero by 2050 at the latest.
To achieve this, we are partnering with governments and industry and delivering renewable hydrogen projects across the country and across the value chain.
What is renewable gas?
Renewable and carbon-neutral gases such as hydrogen and biomethane can be used in the same way as natural gas is today, but do not result in additional carbon emissions to the atmosphere.
Hydrogen does not contain any carbon and can be produced using renewable electricity.
Biomethane is carbon neutral - it harnesses the energy potential from organic materials such as agricultural waste and sewage, supporting the circular economy.
By blending and ultimately replacing natural gas with renewable gas we can use our existing infrastructure to supply a carbon-free gas supply to our customers. It also means customers retain their choice of energy supply, and those industries relying on gas can continue to access it.
Our renewable gas projects
As a business we are responding, taking active steps to sustainable gas delivery today, and tomorrow. In 2017, we worked with Australia’s five peak gas bodies to develop Gas Vision 2050 – a pathway to achieve near zero emissions in our gas sector.
We are now delivering on this Vision, leading the way in renewable gas by delivering a range of innovative energy projects across Australia and across the gas value chain.
1. Hydrogen Park South Australia
Online in May 2021, HyP SA is an Australian-first facility to supply blended renewable gas via the existing gas network. Australia’s largest electrolyser, the 1.25MW unit produces renewable hydrogen which is blended up to volumes of 5% with natural gas and supplied to more than 700 existing homes in the adjacent suburb of Mitchell Park. It also supplies industry via tube trailer.
2. Australian Hydrogen Centre
Established in 2019, the AHC is a joint industry and Government research centre delivering feasibility studies focused on blending 10% hydrogen into existing gas distribution networks and converting networks to 100% hydrogen in South Australia and Victoria. Studies will be completed in 2022.
3. Hydrogen Park Gladstone
Located at Gladstone in central Queensland, HyP Gladstone is currently under development. From 2022, the facility will produce renewable hydrogen for blending at volumes of up to 10% and supply to around 800 residential, commercial and industrial customers.
4. Western Australian Feasibility Study
The Western Australian Feasibility Study determines the suitability of the Dampier to Bunbury Pipeline to introduce hydrogen into its mix. Completed in 2021, the study includes both technical assessment and development of a roadmap to support development of industry regulation.
5. Gladstone Hydrogen Ecosystem
In March 2017, a Memorandum of Understanding between AGN, Sumitomo Australia, Gladstone Ports Corporation, Gladstone Regional Council, and CQUniversity for a hydrogen ecosystem in Gladstone was executed. The first phase of this plan will be delivered in 2022.
6. Hydrogen Park Murray Valley
HyP Murray Valley was awarded funding by the Australian Renewable Energy Agency (ARENA) in May 2021. This 10MW facility would produce renewable hydrogen for blending at volumes of up to 10% and supply to around 40,000 residential, commercial and industrial customers in Wodonga and Albury. Along with our partners ENGIE, we are targeting Final Investment Decision in 2022 and first production in 2023.
7. Clean Energy Innovation Park
The CEIP was awarded funding by ARENA in May 2021. This 10MW facility would produce renewable hydrogen for supply to gas network, transport and industry customers in Western Australia. Along with our partners ATCO, we are targeting Final Investment Decision in 2022 and first production in 2023.
Each of these projects build and inform each and contribute to achieving our targets.
Our partnerships in renewable gas development
In addition to developing our own renewable gas projects across Australia, we are committed to working with governments, industry and research organisations to develop our Vision collaboratively. Our memberships and associations include:
- Australian Hydrogen Council –Australia's peak body for the hydrogen industry, with members from across the hydrogen value chain.
- Australian Industry Energy Transition Initiative– a partnership leaders from industry and business to develop pathways and take action towards net zero emissions across critical supply chains of the Australian economy.
- Bioenergy Australia – the peak body for the bioenergy industry in Australia, including federal and state government departments and energy organisations, universities, and industry bodies and associations.
- Clean Energy Council – Australia’s peak body for the clean energy industry.
- Future Fuels Cooperative Research Centre – an industry focussed Research, Development and Demonstration partnership enabling the decarbonisation of Australia’s energy networks.