Australia's Renewable Gas Revolution: NGERS Amendments Embrace Biomethane and Hydrogen
Key Ideas
  • Amendments to the National Greenhouse and Energy Reporting Scheme (NGERS) in Australia now formally recognize the decarbonisation benefits of renewable gases like biomethane and hydrogen, positioning them as key players in the country's net zero journey by 2025.
  • The updated legislation introduces market-based reporting for emissions from the consumption of biomethane and hydrogen, paving the way for businesses to reduce their Scope 1 emissions and decarbonize operations using renewable gases.
  • Jemena, a key player in Australia's biomethane sector, has welcomed these changes and is already making strides in the renewable gas market by producing biomethane and collaborating with businesses to inject it into the gas distribution network, potentially meeting the energy needs of hard-to-abate industrial customers.
  • The Australian Renewable Energy Agency (ARENA) projects that Australia's biomethane industry could contribute significantly to the economy, reduce carbon emissions, and create thousands of jobs by 2030, showcasing the potential of renewable gases in driving sustainability and economic growth.
The National Greenhouse and Energy Reporting Scheme (NGERS) in Australia has undergone crucial amendments aimed at recognizing the role of renewable gases, particularly biomethane and hydrogen, in the country's journey towards achieving net zero emissions. These amendments, effective from July 1, 2025, will enable market-based reporting for emissions from the consumption of biomethane and hydrogen, encouraging businesses to embrace renewable gases to decarbonize their operations. Federal Minister for Climate Change and Energy, Chris Bowen, introduced the National Greenhouse and Energy Reporting (Measurement) Amendment (2025 Update) Determination to Federal Parliament after a public consultation process. The amended legislation encompasses various updates related to renewable fuels, scope 2 emissions from electricity consumption, fugitive emissions from oil and natural gas operations, and waste management, among others. These changes aim to enhance the clarity and operation of the NGERS scheme. One of the key industry responses to these amendments came from Jemena, a major player in Australia's biomethane sector. Suzie Jakobovits, Jemena's General Manager of Renewable Gas, highlighted the significance of these changes in fostering a fully-fledged renewable gas market in Australia. Jemena, with its existing biomethane network injection project in Sydney and collaborations with businesses for biomethane production, is at the forefront of driving Australia's biomethane industry. Alongside the legislative changes, the article also mentions the positive outlook for Australia's biomethane sector as highlighted in the Australia Bioenergy Roadmap by the Australian Renewable Energy Agency (ARENA). The roadmap forecasts substantial contributions from the biomethane industry to the economy, job market, and carbon emissions reduction by 2030. Overall, the amendments to the NGERS legislation in Australia mark a significant step towards embracing renewable gases like biomethane and hydrogen, providing businesses with opportunities to reduce emissions, drive sustainability, and contribute to the country's net zero goals.
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