Government must bring in renewable gas targets, says Jemena’s boss

The federal government needs to establish a renewable gas target, says Jemena managing director David Gillespie.

The government should establish a renewable gas target to bring commercial investment into the sector, says Jemena’s boss. Picture: Max Mason-Hubers

The boss of one of Australia’s biggest gas ­operators has called on the federal government to establish a renewable gas target to drive commercial investment in the sector.

Speaking at an environmental, social and governance summit in Melbourne on Tuesday, David Gillespie, managing director of $12bn electricity and gas giant Jemena, said renewable gas would benefit from an aspirational goal like the renewable energy target that was put in place to encourage renewable electricity generation and reduce greenhouse gas emissions.

“If you think about what really sparked renewable electricity, it was a target. It was a renewable electricity target that really generated a commercial signal for investment and a market long-term, in terms of what component of the future state was going to be delivered through renewable electricity,” Mr Gillespie said.

“Renewable gas, I think, would benefit from the same sort of target. Working towards a target that gives a very strong commercial signal around the importance of the role of a low-carbon combustible fuel industry in this country is going to be incredibly important.”

A target would create a level of investment certainty not only for gas but also biomethane “as a bridge potentially to hydrogen”, he added.

Mr Gillespie said renewable electricity would be the “big engine room” for decarbonisation in Australia but it needed to be “complemented by something that can firm that engine room”.

“The focus on renewable electricity in recent times has (meant) that there hasn’t been a lot of public debate around this topic, there hasn’t been a lot of information, and that’s something we’re keen to push and work with our industry peers and government as well,” he said.

Mr Gillespie cited investment in Europe, including Denmark and Germany, in biomethane to power their gas systems.

“So it’s not new technology. And I think that’s where this is also advantageous for us to be able to accelerate the role it plays. We’re not trying to create new science here. This is science that exists already all over the globe.”

Gas power generation would play a critical role for both households and industry, he said.

“Wind and sun isn’t always there when you want it to be. You need to make sure that you’ve got the ability to be able to have an alternate supply of energy at those times and gas is not new technology. It’s cost-effective in terms of the build of the actual infrastructure … the federal government’s strategy is pointing to this as well. The role of gas power generation will grow as the baseload shifts more away from coal and more stable resources in the context of their availability, to more intermittent renewables.”

At a later session, Commonwealth Bank director Anne Templeman-Jones said SMEs had a “huge opportunity” to get on the front foot ahead of looming mandatory climate disclosure rules.

“For smaller businesses and even the medium size, there is a huge opportunity. As you’re wanting to grow your business, you’re wanting to engage with some of the larger and more sophisticated organisations because that’s where the growth opportunity is.

“The approach (to take), rather than being afraid of all this and thinking about ‘all this regulation and will I comply’, is thinking about the opportunity. Those suppliers that I want to be a part of their eco chain, what are they going to need from me that is going to make me attractive? Because there’ll be a plethora of suppliers that (big organisations) will be able to choose from.”