- A new biomethane plant that utilises agricultural waste is slated for regional New South Wales
- Up to 4 petajoules of biomethane could be produced – equivalent to over 6 per cent of current industrial gas demand
- ARENA’s Bioenergy Roadmap found a biogas industry could reduce Australia’s carbon emissions by 9 per cent
Australia’s burgeoning biogas sector has today taken a significant step forward with leading energy infrastructure company Jemena and Melbourne-based utility-scale biogas developer, Valorify, proudly announcing a Memorandum of Understanding (MOU). As part of the MOU Jemena will assess the feasibility of injecting biomethane produced by Valorify into the New South Wales gas distribution network – which is currently connected to over 1.5 million homes and businesses.
Biomethane is a renewable gas created by processing biogas which is generated from decomposing organic waste. It is completely interchangeable with natural gas and is, therefore, compatible with all existing gas network infrastructure, gas appliances used in homes and businesses today, and in industrial manufacturing processes.
Jemena’s Managing Director, David Gillespie, said Valorify’s proposed Riverina Bioenergy project could produce enough biomethane to meet the equivalent energy needs of over 50,000 household customers or over 6 per cent of current industrial demand.
“Valorify’s Riverina Bioenergy project will assist the decarbonisation of large gas users who produce many of the items we rely on everyday such as glass, medicines, and building materials. These gas users require high-heat loads for processes which cannot be electrified,” said Mr Gillespie.
“Biomethane is identical to natural gas, which means we can avoid the need to upgrade infrastructure, reskill the workforce, retool industrial processes, or replace end-use appliances.”
CEO of Valorify, Dr Scott Grierson said businesses like Valorify are also helping local communities utilise their agricultural waste to unlock further economic potential.
“Projects like the Riverina Biomethane project can transform regional Australia by harnessing agricultural waste while stimulating local economies and creating permanent jobs in regional communities,” said Dr Grierson.
“We have seen the practical demonstration of biomethane injection in countries like Denmark, the US and the UK for a number of years. It’s an exciting time to be involved in bringing this innovation to Australia.”
The Riverina Bioenergy project will be located in regional NSW and will look to leverage Jemena’s distribution assets to deliver biomethane to the market. The project will upgrade biogas captured from agricultural waste to biomethane, and is expected to produce approximately four petajoules of biomethane a year.
Although an emerging industry in Australia, internationally biomethane production is demonstrating the benefits of a circular economy where organic waste can be diverted from landfill reducing emissions and creating a low-emission, renewable fuel which can displace natural gas. Denmark has a target to reach 100 per cent biomethane injection by 2030 and the United Kingdom has over 80 biogas plants connected to its gas grid.
The Riverina Biomethane project is expected to launch its first 2PJ scale module in 2027.
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About the Jemena Gas Network
The Jemena Gas Network distributes natural gas to 1.4 million residential and business customer sites in Sydney, Newcastle, the Central Coast and Wollongong as well as over 20 country centres, including those in the Central West, Central Tablelands, South Western, Southern Tablelands, Riverina and Southern Highlands regions.
