Renewable gas opportunities are being supported as part of Victoria's transition to a sustainable, low-emissions future.
The Renewable Gas Directions Paper outlines how Victoria will decarbonise sectors that rely on gas, including high-heat industrial applications and gas-powered electricity generation.
Renewable gas has the potential to benefit critical sectors including:
- agriculture
- environment
- and water.
It will reduce emissions while supporting economic growth and resilience.
Industrial Renewable Gas Guarantee
The Renewable Gas Directions Paper proposes a market-based certificate scheme called the Industrial Renewable Gas Guarantee.
Expected to launch in 2027, this initiative will support renewable gas production in Victoria, with the goal of reaching 4.5 petajoules (PJ) of renewable gas per year by 2035. That is equivalent to approximately 6% of projected gas demand in Victorian industrial and gas-powered generation sectors.
Gas supply
The Victorian Government is working to ensure reliable and affordable energy as legacy gas supplies in Victoria decline. This will be done through:
- promoting electrification where feasible
- improving energy efficiency
- and developing renewable gas solutions for sectors requiring high-heat and large-scale gas usage.
In action
A strong example of the potential of renewable gas in action is Melbourne Water's successful integration of biogas into its facilities.
Last year, Melbourne Water produced more than 70 million cubic metres of biogas at the Western Treatment Plant. This generated more than 1.8 million gigajoules (GJ) of energy.
The majority of this biogas generates renewable electricity on-site, while a small amount is flared due to operational requirements.
What is biogas?
Biogas has the potential to be converted to bio-methane. Bio-methane is one of the renewable gases proposed to be supported as part of the Industrial Renewable Gas Guarantee.
The path
Victoria’s Renewable Gas Consultation Paper (September 2023) sought industry and community views on potential policies that could help to establish a renewable gas market in Victoria.
The Renewable Gas Directions Paper responds to stakeholder feedback and assesses the key policy options to establish a renewable gas market in Victoria.
Public consultation on the Renewable Gas Directions Paper is open for eight weeks on Engage Victoria. Stakeholder input is sought on details including cost recovery and initial production targets.
The feedback gathered will inform the next steps for the Industrial Renewable Gas Guarantee. A legislative framework is anticipated in 2025 to support scheme implementation in 2027.
Page last updated: 17/12/24