Jemena and Sojitz sign agreement to advance NSW biomethane development
A new partnership between Jemena and Sojitz aims to expand biomethane production across New South Wales, supporting renewable gas integration into the existing gas network.
Energy infrastructure company Jemena has partnered with Japanese firm Sojitz to explore the potential of biomethane production in New South Wales, aiming to supply renewable gas to Jemena’s network and support local decarbonisation efforts.
A new Memorandum of Understanding (MOU) between the pair will assess the feasibility of building biomethane plants in regional NSW, where agricultural and organic waste could be processed into biomethane. This collaboration follows Jemena’s recent MOUs with other companies, Optimal Renewable Gas and Valorify, to develop a broader biomethane sector in the state.
This partnership comes amid positive policy discussions around renewable gas. The NSW Government is consulting on renewable gas sector development, and the Federal Government is considering how biomethane’s use could be integrated into emissions reporting. Jemena is optimistic about the policy momentum, with Gillespie calling for coordinated efforts between industry and government to make biomethane a practical solution in Australia.
Biomethane, which has the same chemical composition as natural gas, can be directly injected into existing gas networks, and used by standard gas appliances. The Australian Renewable Energy Agency’s (ARENA) 2021 Bioenergy Roadmap indicates that the bioenergy sector could contribute about $10 billion to the national GDP annually by the early 2030s, create over 26,000 jobs, and lower national emissions by 9 percent.
According to Jemena Managing Director David Gillespie, biomethane could meet the gas needs of half of Jemena’s industrial customers or all residential customers, helping hard-to-electrify industries like glass, brick, and fertilizer manufacturing reduce emissions while supporting operations.
With a $7.7 billion portfolio in energy and infrastructure investments, Sojitz’s recent investments in Australia include projects in solar power generation and energy-efficient air conditioning design.
“We have extensive experience and long history in the energy sector, and we are currently focusing on businesses that support the ongoing energy transition," Sojitz President & CEO for Asia & Oceania, Shigeya Kusano, explained.
