NZ wakes up from deep sleep on gas
New Zealand was coming out of what has felt like a deep sleep on the role of gas in its energy transition, GasNZ’s chief executive Janet Carson told attendees at the 55th Australian Pipelines and Gas Convention in Perth this month.
“Ever since the oil and gas exploration ban, much of the thinking and focus in New Zealand has been on a 100 percent renewable electricity sector, together with a sidelining of the role gas can play in achieving that,” Carson said on the Energy Leaders panel at the opening day of conference yesterday.
“But in recent days major electricity providers like Mercury and Genesis have been talking about the absolute need for gas as a transition fuel to supplement renewable energy sources.
“And with the election over the weekend we are likely to see a focus on a broader range of solutions to reach the emissions goal we are all focused on, rather than chasing targets at any cost.
“Increasingly, there is the realistic recognition that gas in its many forms, will play a necessary role in New Zealand’s energy transition, and must become a more prominent part of future energy planning.”
Reflecting on the successful GasNZ renewable gas tour to Australia earlier in the year, Carson said it really opened the eyes of those who participated to the role of gas as a fuel in transition as well as a transition fuel.
“I really feel that the status of gas as a low emissions fuel that can help keep the lights on and showers warm, while contributing to a decarbonised future, is finally being re-evaluated in New Zealand.”
Recent research undertaken by Woodbeca shows the very real long-term potential for renewable biogas to be used as a substitute for fossil gas. [Woodbeca. Gas Transition Plan – Biogas Research Report, February 2023.]
The Woodbeca report estimates the total biogas potential from organic waste alone in New Zealand at 24 Pj/year, compared to the current total production level of natural gas of 140 Pj/year.
In the medium term, Woodbeca found that the total accessible and economic size of New Zealand biogas potential up to 2035 is around 7 Pj, which is equivalent to nearly all commercial (non-industrial) and residential natural gas use in New Zealand.
To realise this potential a market for renewable gas needed to be supported in New Zealand, Carson said.
Effective support for developing a viable market included a mandated renewable gas target, backed by tradeable renewable gas certificates where renewable gas use could be recognised and rewarded.
A certification scheme would improve the viability of biogas and facilitate investment in the sector, she said.
“Having your cake and eating it too is rare as we know. But in New Zealand, getting to a 100 percent renewable grid by 2050, with gas as a fuel in transition, and as an ongoing contributor to the energy mix via the various renewable gas options being released in Australia and next year in Aotearoa, means perhaps we can.
“We should stop thinking about gas generation as short-term assets.
“New Zealand can transition our gas infrastructure to low-carbon options like biogas and hydrogen blending, to become a useful and resilient part of our renewable energy future,” Carson said.
Comprising of industry leaders from Australia and New Zealand, alongside Janet on the APGA leaders panel were Adam Watson, Chief Executive and Managing Director APA Group, Cameron Dorse, Executive General Manager, Gas Markets, Jemena, and Steven Green, Executive General Manager, Sustainability and Government Relations, ATCO Australia.