Victoria
New South Wales
South Australia
QueenslandIn the pursuit of bolstering local circular economies and working towards sustainable and greener futures, countries worldwide have been turning to renewable energy sources to meet their needs. A well proven resource is biogas or its higher quality and more refined form of: Biomethane. Biogas is yet to catch on in a large capacity in Australia in comparison to developed markets like Europe or the United States. At its core, biogas is a renewable energy source derived from organic waste that has been diverted from open air emissions to an effective fuel source. Biogas is only now being recognised in Australia as the viable solution for sustainable energy production that it is, with numerous benefits for the environment, agriculture, and energy security.
What is biogas?
Biogas is produced through the anaerobic digestion of organic waste such as agricultural, food, and sewage sludge. It presents a valuable opportunity for generating renewable energy in a controlled on demand solution, independent of external weather conditions. By employing combined heat and power (CHP) systems, biogas can produce electricity and heat simultaneously. This helps reduce reliance on fossil fuels, mitigating greenhouse gas emissions and supporting Australia’s commitment to combating climate change.
The production of biogas addresses a significant environmental concern: organic waste when left unmanaged, releases several greenhouse gases including methane. By harnessing and refining these gases and then using them as a fuel source, emissions are able to be lessened by 20-30 times what they would have been. By diverting organic waste from paddocks and landfills and harnessing it for biogas production, these emissions can be mitigated whilst also providing other key benefits. By minimising odours from waste piles and lessening water pollution associated with Nitrogen runoff caused by poor disposal of organic waste, it enhances the overall environmental sustainability of waste management practices.
Role in Sustainability.
In Australia, the potential for agricultural waste to be converted to biogas holds particular promise. It offers farmers or food processing facilities an additional revenue stream and reduces disposal costs associated with organic waste. Moreover, by converting animal manure and other agricultural byproducts into biogas and digestate—a nutrient-rich fertiliser—biogas systems provide a sustainable solution for managing waste from livestock operations. This synergy between agriculture and energy production contributes to a more circular and efficient use of resources.
Biogas serves as a crucial step towards energy independence for Australia. By reducing reliance on imported fossil fuels, the country can bolster its energy security and reduce vulnerability to global energy price fluctuations. Biogas projects can be developed in diverse locations, utilising locally available organic waste resources, thereby decentralising energy production and enhancing regional self-sufficiency.
Requirements of Developing the Biogas Industry.
To fully harness the future potential of biogas in sustainable energy production in Australia, several steps need to be taken. Europe and the United States can be looked at as positive examples of the effects of well placed government policies and incentives, financial support, and community education to encourage the understanding and adoption of biogas technologies. Continued research and development efforts are also necessary to improve biogas production processes, increase efficiency, ensure gases are not accidentally leaked to the atmosphere and to explore new feedstock and associated farming options.
Further, infrastructure development, including the establishment of anaerobic digestion facilities and gas distribution networks will also be crucial for scaling up biogas production. Collaboration among government entities, private sector stakeholders, and research institutions holds the potential to help drive infrastructure development and a blending of private and government resources.
Raising awareness about the benefits of biogas and providing technical knowledge to potential stakeholders within Australia remains of great importance. Farmers, waste management operators, and energy investors need to be informed about the advantages of biogas and its potential applications. Additionally, the development of a supportive regulatory framework, encompassing streamlined permitting processes, pipeline connection procedures, and quality standards, can further aid the needed investment and facilitate the growth of the biogas sector in Australia.
A key area of misunderstanding within Australia is the available supporting policies, certificate programs or research and development initiatives. Whilst many programs have a limited recognition of biogas, few are written in a way to clearly support organic fuel production activities. We often find that biogas developers and operators are misinformed or have been unable to benefit from the certificate programs relating to biogas in their state.
Biogas and its Role in Certificate Generation.
Unfortunately there are no new certificate programs for Biogas or Biomethane. However, we do find that for on site usage, be it as a natural gas fuel switch or as an electrical generation source there are several strong certificate programs that utilise IPMVP and provide strong revenue streams to asset owners or developers.
New South Wales
The NSW energy savings program is energy based not emissions based & unfortunately does not acknowledge the emissions difference between biomethane and biogas. However when a site is replacing an existing fuel source with biogas it is rewarded quite generously under the program in the form of ESC revenue.
Victoria
The Victorian energy efficiency program uses a white label carbon certificate method of recognising fuel switching to biogas and like NSW does not make a distinction between biogas or biomethane. The certificates created are worth significantly more than a NSW ESC however are created in lower volumes due to the emissions factor of natural gas or the declining emission factor of grid energy (the two main fuel sources used as a baseline in these fuel swaps).
South Australia
The South Australian REPS program largely references its methods from NSW however it creates a certificate for every Gj of energy recognised as saved or created via clean fuel switches. This program has some caps in place that favour the smaller end of the CnI market but it is often an overlooked and valuable revenue stream for facility budget planning.
Fortunately, at Ecovantage we are one of the few businesses as motivated and committed to supporting the uptake of these projects as their owners.
