The Australian Gas Infrastructure Group (AGIG) has inked a formal agreement with Delorean Corporation to connect the first biomethane project into the South Australian gas network.
Under the agreement, up to 210TJ of biomethane generated from commercial and industrial organic waste will be injected into the existing gas network each year. Delorean plans to sell the biomethane to industrial users.
The agreement enables Delorean to connect and export biomethane from its SA1 bioenergy project, currently in construction, to customers remote from its facility in Edinburgh Parks in the northern suburbs of Adelaide, via AGN’s existing gas network.
Biomethane is emerging as a significant opportunity to reduce emissions across Australia’s economy. It is interchangeable with natural gas and can be seamlessly blended into existing gas networks, allowing customers to continue using gas appliances in the same way they do today, but with the advantage of being renewable.
AGIG is supportive of government targets to reach net zero and has a goal to deliver 100 per cent renewable and carbon-neutral gas in its distribution networks by 2050.
Craig de Laine, AGIG CEO, said projects like Delorean’s are 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.
“Our world-class network is capable of delivering biomethane now without further upgrades and is an economical, reliable, here-and-now way of delivering renewable energy,” he said.
“We are so pleased to be partnering with Delorean to deliver biomethane to customers on our existing gas network and look forward to continuing to work with industry to deliver this new low carbon industry across Australia.”
Subscribe to Energy Today for the latest project and industry news.