**Published name**
What product/product specific methodology should the Government prioritise for incorporation into the GO scheme?
Renewable natural gas, or biomethane should be included in the GO scheme as a renewable gas.
What is the emissions reduction potential of this product (immediate-term and future), and how would incorporation into the GO scheme support decarbonisation?
RNG or Biomethane is a renewable and carbon-neutral replacement for natural gas that can aid in the decarbonisation of Australia’s gas network and our hard-to-abate industrial processes.
Biomethane is a drop-in natural gas substitute which can be injected into existing gas grids and transmission infrastructure assets, utilising existing infrastructure and appliances, without the need for significant infrastructure investments. Thus, gas users can quickly and cost-effectively achieve net zero emissions now.
For Australian manufacturing industries, gas will remain an integral part of the energy mix, with biomethane presenting as the only genuine solution in the immediate and long term to decarbonise their heating, refining and reforming processes. Thus, for these hard to abate sectors that cannot fully transition to electrification, biomethane presents as the only genuine decarbonisation solution.
Biomethane also supports a circular economy — where waste and pollution are eliminated, resources are circulated, and nature is regenerated. By utilising locally produced feedstock and waste, biomethane enhances waste management and disposal practices and supports Australia’s wider decarbonisation strategy.
Biomethane is proven technology to reduce emissions.
Biogenic CO2 can be combined with renewable hydrogen to produce e-methane, further abating CO2 emissions.
Biomethane can also be used as the feedstock to methane pyrolysis plants producing a hydrogen product that has a negative carbon footprint of up to -10.9 kg CO2e / kg H2.
How does this product promote Australia’s economic prosperity (immediate-term and future) (eg potential as an export product, investment, employment creation, industrial development etc)?
Adoption of this technology not only significantly reduces emissions but could provide over 18,000 full-time jobs, mostly in regional areas, and contribute $50 billion to Australia’s GDP. Refer: "RACE for 2030 report into the opportunity of anaerobic digestion for electricity, transport and gas."
Valuable by-products of biomethane such as digestate, fertiliser, CO2, heat, and electricity can also create additional income streams, that provide an additional economic boost for regional Australia.
Biogenic CO2, when combined with renewable hydrogen, can produce e-methane which is an exciting fuel being contemplated by major industrial players in Japan and beyond for which Australia can play a major part.
What is the product’s level of technology, production and market readiness?
RNG or biomethane is widely adopted already across the United States and Europe. For example, 20% of Denmark's gas consumption is from biomethane and planned for 100% by 2030. Our company, UGS are involved in the supply of several biomethane upgrading projects each year to the US market.
Are there applicable international or industry-led led methodologies that could be amended or adopted?
Yes, refer;
• United Kingdom: Green Gas Certification Scheme / Renewable Gas Guarantees of Origin (RGGOs) (https://www.greengas.org.uk/certificates)
• Austria: Biomethane Register Austria (www.agcs.at)
• Denmark: Energinet.dk (www.energinet.dk)
Is this product likely to be an input into another product that could be certified under the GO scheme?
Yes. Biomethane can produce carbon negative hydrogen. The biogenic CO2 can be used to produce e-methane that further reduces CO2 emissions.
Biomethane can be used to produce ammonia and fertilizers, as a feedstock to an existing SMR plant.
How will incorporating the product into the GO scheme deliver beneficial outcomes under existing Australian domestic and international policies?
Emission reduction commitment: Biomethane can reduce emission, particularly in the hard to abate industrial and manufacturing sectors, better ensuring Australia’s can meet its commitment to cut carbon emissions by 43% by 2030 and to achieve net zero by 2050.
