Federal Labor, Libs push for gas as temporary fix as future energy debate heats up

Federal Labor and Liberal parties have backed gas as a critical stopgap fuel for the country’s clean energy transition, while the Allan government aims for a phase-out of gas appliances in homes.

Federal Labor and Liberal parties are locking in behind gas as a critical stopgap fuel for the country’s clean energy transition as the debate over the country’s future energy mix heats up.

The Allan government has also signalled it is backing gas in the medium term, despite pushing for a phase-out of appliances in homes as local supply constraints loom.

It has also pledged to trial a new biomethane and renewable hydrogen scheme for industry and manufacturers, paid for by all gas users, in order to create different markets for renewable gas.

On Wednesday, Victorian Energy Minister Lily D’Ambrosio said having a range of gases for industries that would not be able to electrify was important for the economy.

She also said that while the government wanted to phase out “fossil gas” over time, and electrify buildings as much as possible, this would “occur over a longer period of time”.

Lily D’Ambrosio says having a range of gases for industries that would not be able to electrify was important for the economy. Picture: Valeriu Campan

Ms D’Ambrosio told an energy forum that the state’s “industrial renewable gas guarantee” would be a certificate-style scheme that would support lower cost renewable gases.

The amount of gas created is hoped to be 6 per cent of what industry currently uses.

Debate has raged over the future of gas, which is running out in Victoria, with a bombshell poll commissioned by the industry showing bans on appliances in existing homes would be a vote killer.

Meanwhile, federal Resources Minister Madeleine King has written an opinion piece in the Herald Sun on the fact that under “all credible net zero scenarios, natural gas is needed through to 2050 and beyond”.

That comes after Opposition Leader Peter Dutton wanted to “condense timelines” on gas exploration and extraction to try to get more projects up and running in the decade before his nuclear plan could get off the ground.