Gas is here to stay

Why Gas will still be a dependable choice for heating in the future

Natural gas is vital for its role as a versatile energy source, driving economic growth, supporting jobs, serving as a cleaner-burning alternative, and providing a reliable backup to renewable energy in Australia’s energy mix.

In an ever-evolving energy landscape, the role of gas remains steadfast and crucial. As a dependable energy source, gas continues to power industries, households, and economies worldwide. 

Australians love gas

More than two million Victorian households and businesses use gas to heat their homes or for cooking and hot water. Victorians love the quality, consistency, and reliability of gas appliances. 

Across the nation, almost 50% of Australian homes are connected to the gas network, with 12 million household appliances used for cooking, heating and hot water1. And rest assured, it’s not going anywhere, anytime soon. 

Future of Gas, H2 graphic in the clouds with icons

Why Gas isn't going anywhere

Renewable Future

Gas has a future. The gas industry is committed to decarbonising, in line with its Gas Vision 2050, with gas network businesses that supply over two-thirds of Australian residential customers committing to net zero by 2050. To support the transition to more sustainable energy sources, there are efforts to develop greener natural gas alternatives including Hydrogen and Biomethane.

Lower Emissions

Natural gas provides energy to homes with an average 75% fewer greenhouse gas emissions than grid electricity. Given Victoria’s electricity generation is dominated by brown coal, emissions from electricity are 5x higher than direct use of gas in the home2.

Electricity Grid Instability

The Victorian electricity grid is already under significant strain. There is a need for billions of dollars and many years of investment in Australia’s electrical grids before they can possibly cope with full electrification. Half of the energy currently supplied to homes in Victoria is gas, and there’s no way the electricity grid can cope with double the current demand any time soon.

Switching Costs

Setting up your home for full electrification could include electrical upgrade expenses estimated to be in the tens of thousands of dollars. Depending on your home’s existing electrical infrastructure, it may be necessary to upgrade circuits, wiring or the electrical panel to accommodate the power requirements needed for new electrical appliances.

Industry Reliance

Heavy industry makes products that are essential for our modern lives like steel, cement and chemicals, and they often require extremely high heat levels which necessitate gas. These industries are likely to decarbonise using biomethane, carbon storage and hydrogen. It cannot be achieved through electrification.

Gas Affordability

The average cost to use gas in your home is less than half of what it costs to provide the same amount of energy when using electricity. In Victoria, the difference is dramatic: the average cost of gas is 65% lower than the cost of electricity supply2.

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A Renewable Future

While natural gas is often considered the cleanest-burning fossil fuel compared to coal and oil, it still has a notable environmental impact. To support the transition to more sustainable energy sources, there are efforts to develop greener alternatives to natural gas. A few examples are: 

Hydrogen: Hydrogen can be produced from renewable sources through electrolysis, and it can be blended with natural gas or used directly as a replacement. Hydrogen combustion produces only water vapour, making it a cleaner option compared to traditional natural gas. 

Renewable Natural Gas (RNG) or Biomethane: RNG is produced from organic waste sources such as landfills, wastewater treatment plants, and agricultural waste. It is considered a sustainable alternative to natural gas as it captures and utilises methane emissions that would otherwise be released into the atmosphere.

Synthetic Natural Gas (SNG): SNG is produced through a process called gasification, which converts biomass or other carbon-based feedstocks into a gas that closely resembles natural gas. The feedstocks used can be derived from sustainable sources, such as agricultural residues or purpose-grown energy crops.

Hydrogen

Hydrogen is considered a key component of Australia’s clean energy future and its efforts to contribute to global decarbonisation. Australian-made hydrogen can serve as a clean energy source for various sectors, both domestically and internationally. 

When used as a fuel, hydrogen’s only by-product is water. This flexible, safe and storable fuel can be used to blend with or replace natural gas to heat homes and for cooking.

What’s exciting is that hydrogen blended with natural gas is the first step to this zero emissions future in Australia and it is currently being trialed in selected communities across Australia by leading gas suppliers.

At Seeley International, we have been working with leading industry authorities to ensure our gas heating products are “hydrogen ready”, and deliver the same cosy warmth and whole of home comfort that millions of Australians expect.

So, when clean and green, renewable hydrogen gas blends are available in the near future, you can be assured that your Braemar gas heating system will perform at its best and is compliant with all Australian Safety Standards and regulations3.

H2 - Hydrogen Ready

 

Biomethane 

The production of biomethane involves breaking down organic materials in the absence of oxygen, leading to the release of methane gas. This methane can then be captured, purified, and used as a substitute for conventional natural gas.

Biomethane has similar properties to natural gas and can be used for heating, electricity generation, and as a fuel for vehicles. 

Biomethane has gained popularity due to its environmental benefits and has been trialed in New South Wales, Australia. 

Biomethane needs to be processed at a level that meets regulations before injecting into the network. Currently our gas heating products are “biomethane ready”, and will continue to give you the same comfort you expect3.

Renewable Gas around Australia

The Victorian Government have announced that from 1st January 2024, new dwellings, apartments and residential subdivisions requiring a planning permit will be prohibited from connecting to gas4.

The changes will not apply to:

  • Existing homes that have an existing gas connection.
  • New dwellings that do not require a planning permit.
  • Applications lodged before 1st January 2024.
  • Renovations, alterations or additions (including substantial) to existing dwellings or apartment buildings.
  • The use of LPG (bottled gas) for outdoor barbeques.
  • Commercial lots within new estates.

Other states have ruled out following suit, instead looking to pursue ways of decarbonisation through renewable options. 

Victoria

Although Victoria has implemented the ban on new gas connections, it has abundant renewable energy resources and has been exploring hydrogen production and utilisation in various sectors.

In June 2023, the Australian Government committed to build a A$51 million renewable hydrogen plant (Hydrogen Park Murray Valley) in Victoria. The 10 megawatts electrolyser, is being built in Wodonga and would be bigger than any current such unit in Australia, It will be used to blend green hydrogen into gas networks to supply around 40,000 homes. Production from the facility and delivery to customers is expected to commence in early 2025.

The Victorian government has also supported several hydrogen projects, including the Hydrogen Energy Supply Chain (HESC) pilot project, which produces hydrogen from brown coal in the Latrobe Valley and exports it to Japan. 

In July 2023, Australian Gas Infrastructure Group (AGIG) unveiled Australia’s first 100% hydrogen-powered home, providing a window into future low-carbon energy solutions for Australia. Located in Wollert, the HyHome shows that Australians can continue to enjoy the convenience and reliability of gas, while progressively moving towards lower and zero carbon energy sources. 

For more information on the Hydrogen Park Murray Valley project – CLICK HERE

For more information on the HESC project – CLICK HERE

For more information on the HyHome – CLICK HERE

South Australia

South Australia has been actively exploring and utilising hydrogen as a clean energy source for some time now