Turning people’s business into power

by James Sherbon

Australian Financial Review

Australia’s first biomethane demonstration project at Sydney Water’s Malabar treatment plant is using wastewater to produce the renewable gas, and is expected to initially produce around 95TJs of biomethane per year - equivalent to the average amount of gas used by approximately 6300 homes each year.

Gas produced from what Sydneysiders flush down the toilet is now being injected into the NSW gas network, thanks to the Australian-first project in Sydney’s south-east.

Jemena’s managing director Frank Tudor said the project is a potential game-changer for Australian energy users because biomethane is “completely compatible with existing gas appliances and can be used in those manufacturing processes which currently rely on gas for high heat”.

Jemena’s research has found that in NSW alone there are enough potential sources of biomethane – wastewater plants, landfill and food, agricultural and crop waste – to generate about 30 petajoules of biomethane each year.

This is approximately enough of the renewable gas to meet the average annual consumption needs of all of Jemena’s current residential customers in the state.

Moreover, Tudor said by developing biomethane production and other renewable gases such as green hydrogen (produced using renewable electricity) gas networks around the country, including Jemena, AGIG (in VIC, SA and QLD) and ATCO (in WA), are taking steps towards lowering emissions in pursuit of net-zero emissions targets.

More pertinently, in the current environment where electrification is touted as the best way forward, modelling by Frontier Economics on the potential for gas powered generation to support renewables found that this approach, when compared to the cost of full-electrification, would see consumers avoid between $5 billion - $7.5 billion per annum in systems costs.

The Malabar project is co-funded by Jemena and the Australian Renewable Energy Agency (ARENA), is creating biomethane by upgrading biogas produced from organic waste. The project is a partnership with Sydney Water.

“We know when biomethane is used, displacing natural gas, for cooking and heating it is helping to lower Australia’s overall carbon emissions,” Tudor said.

Sydney Water managing director, Roch Cheroux said the pilot is an example of how the utility is responding to meet the changing needs of its communities now and into the future.

“Sydney Water identified an opportunity to maximise the value of waste we produce, and by partnering with Jemena, we are now able to play a significant role in helping thousands of Sydney homes and businesses increase their efficiency and sustainability. For the first time, it will be possible to use a mix of biomethane and natural gas for cooking, heating, and hot water,” Cheroux said.

“From this moment, gas will be directed back into the supply network, allowing the facility to turn waste material into a new renewable energy source. It will also mean in the future, biomethane could power those NSW businesses that rely on gas to carry out their day-to-day activities while also looking to decarbonise their supply chains.”