Gas Vision 2050 was developed by Australia's peak gas industry bodies, and concludes that technology can strengthen the role gas plays in providing homes and businesses with reliable and affordable energy in a low carbon energy future.

 

The vision was presented to the Energy Minister Josh Frydenberg and Resources Minister Matt Canavan in Canberra this morning.

 

Energy Networks Australia gas committee chairman Ben Wilson said Australia's gas supply and infrastructure should be a national advantage as the energy mix continues to evolve, and renewables take market share from coal.

 

"The gas supply chain is working constructively with the government to provide the energy security Australia needs today. We also recognise the need to plan for the longer-term," Wilson said.

 

"Three transformational technologies - biogas, hydrogen and carbon capture and storage - could provide new zero-emission and low emission fuels that can deliver power to Australian homes, businesses and vehicles using the existing distribution network."

 

The document found that half of gas used in Australia is for mining and manufacturing, contributing $196 billion to the economy, and it can continue to play a role, although eventually it may face the challenge that it is no longer the low carbon choice, and technology can help gas' own decarbonisation journey, particularly with zero-emission biogas and hydrogen

 

Biogas can make use of landfill to produce net-zero emission fuel for mainstream use, and in the future zero-carbon hydrogen from renewables can also be delivered in the gas network.

 

"This has the potential to further reduce the carbon footprint of gas and complement the vital support gas already provides to intermittent renewables for power generation," he said.

 

"Australia's gas infrastructure can store the same amount of energy as six billion Powerwall batteries."

 

The vision is a pathway for how the gas sector can work collaboratively with the electricity sector to provide Australian homes and businesses with reliable base load energy.

 

Over the next year the industry will conduct studies to provide a technical and economic roadmap to gas's decarbonisation pathway, which could see biogas and hydrogen blended into the gas stream over the next decade or so, reducing emissions further, with zero emission-gas likely around 2050.

 

The power sector is the largest gas-consuming sector, accounting for 40% of worldwide gas demand today. 

 

The International Energy Agency recognises that gas is less carbon intensive than coal or oil and notes that gas-fired technologies have a far lower capital cost to develop compared to coal generation, which come with much higher emissions.

 

The report found that modern gas power generation produces half the emissions of modern high efficiency, low-emission coal plants, what the coal sector calls "clean coal", and are much cheaper

to build. They are also more responsive to the peaks and troughs of renewables, as long as gas is available.

 

Wilson said new technology will drive the decarbonisation journey of gas. 

 

"We need a technology-neutral policy environment to allow industry to research, develop and demonstrate a diverse range of low emission technologies."

 

APPEA CEO Dr Malcolm Roberts said gas could help the world transition to a low carbon economy.

 

"Substituting gas for more emissions intensive fuels is essential to achieving climate change targets," Dr Roberts said.

 

"As a cleaner fuel, natural gas is also helping to reduce global greenhouse gas emissions.  Australia's liquefied natural gas exports are replacing fuels that have far higher emissions."

 

Australian Pipeline and Gas Association CEO Cheryl Cartwright said gas was a crucial part of Australia's energy system, with gas and electricity supplying similar amounts of energy to households, commerce and industry.

 

"We have no viable alternative for some of its industrial uses such as making glass, bricks and other building products," Cartwright said.

 

"Our existing natural gas transmission and distribution pipelines effectively make up a large energy storage system, and this can provide a way of storing renewable energy in the future."

 

Today, gas provides 44% of household energy for only 13% of household emissions.

 

Deloitte estimates that gas used by industry in Australia supports 949,000 jobs.

 

Gas Energy Australia CEO John Griffiths said gas also provides an affordable, lower emission transport fuel as well as a reliable, cleaner opportunity for distributed energy and off-grid generation.

 

"There are 380,000 gas powered vehicles in Australia today and there are commercially attractive opportunities for switching to gas in the transport and mining sectors," Griffiths said. 

 

"Gaseous fuels such as CNG, LNG and LPG enable regional and remote communities to enjoy the many benefits of gas and can also provide emergency energy supplies in response to natural disasters."

 

There are already 380,000 gas vehicles in Australia.

 

Gas Appliance Manufacturers Association Of Australia president Andrew Creek believed gas will be a critical part in the energy mix, but the industry must encourage innovation and efficiency within the energy sector to provide Australian households and businesses with the reliable and affordable power they expect," Mr Creek said.

 

"The Gas Vision 2050 reflects that ambition."

 

Australian Gas Networks, which owns about 23,500km of gas distribution networks and 1100km of transmission pipelines and has over 1.2 million consumers in South Australia, Victoria, Queensland, New South Wales and the Northern Territory - said Gas Vision 2050 outlined the essential role gas plays in society, not only today, but in the future.