It’s been a big month in Australia’s biomethane sector with the Australian Gas Infrastructure Group (AGIG) signing an agreement to connect the first biomethane project into its South Australian gas networks.
Under the agreement with local bioenergy business Delorean Corporation, up to 210 terajoules of biomethane generated from commercial and industrial organic waste will be injected into the existing gas network each year. Delorean also plans to sell the biomethane to industrial users.
The latest agreement enables Delorean to connect and export biomethane to customers remote from its facility in the northern suburbs of Adelaide, via the gas infrastructure business AGN’s existing gas network.
Located at Edinburgh Park, which is about 20 minutes north of Adelaide CBD, Delorean’s SA1 project will use anaerobic digestion to process up to 70,000 tonnes a year of waste to produce biogas for renewable electricity and gas. Construction has commenced on the facility, with commissioning set to complete next year.
It follows Delorean receiving an A$6.1m grant from the Australian Renewable Energy Agency (ARENA) to upgrade its SA1 facility last month.
The plant will provide six revenue streams: mains-grade biomethane; biogenic liquid CO2; carbon credits; renewable gas certificates of origin; liquid fertilisers; and gate fees from suppliers delivering organic waste.
Biomethane is emerging as a significant opportunity to reduce emissions across Australia’s economy. It is interchangeable with natural gas, being mostly methane just as natural gas is, and can be blended into existing gas networks. It allows customers to continue using gas appliances in the same way they do today, but with the advantage of the source being renewable.
AGIG is supportive of Australian government targets to reach Net Zero and has a goal to deliver 100% renewable and carbon-neutral gas in its distribution networks by 2050.
AGIG CEO Craig de Laine said projects like Delorean’s were helping to demonstrate the pathway towards low-carbon gas networks.
“Renewable gases such as biomethane will play a critical role in delivering a secure, reliable and affordable low carbon energy transition for Australia. This will be essential for those customers that rely on gas today and want to continue to choose gas to meet their energy needs into the future.”
Joe Oliver, Delorean Managing Director, said it was a “watershed moment”, equivalent to the first agreement for clean electricity going into the grid.
“It is the first tangible outcome of the ongoing collaboration we have with AGIG,” he said.
Under the connection agreement, AGIG has agreed to undertake a comprehensive package of connection works. This includes the essential grid injection works that ensure the safe and efficient flow of gas into the network.
The Australian Renewable Energy Agency (ARENA) has projected that Australia could produce 371 petajoules of biogas annually, equivalent to 23% of current fossil methane consumption, and biomethane could contribute $10bn to its economy by 2030.
