Jemena and Valorify partner to brew biomethane production in NSW
A new biomethane plant planned for the Riverina in regional NSW will produce renewable gas from agricultural waste, meeting industrial and household demand.
Energy infrastructure company Jemena has joined forces with biogas developer Valorify to explore the potential of injecting biomethane into New South Wales’ gas network, aiming to reduce emissions and boost renewable energy.
The collaboration, formalised through a Memorandum of Understanding (MOU), centres on Valorify’s Riverina Bioenergy project, which will convert agricultural waste into biomethane. This renewable gas is chemically identical to natural gas, allowing it to be distributed through Jemena’s existing network of over 1.5 million homes and businesses across the state.
The Riverina Bioenergy project is expected to produce up to 4 petajoules (PJ) of biomethane annually, which could meet the energy needs of over 50,000 households or more than 6% of the state’s current industrial gas demand. The project will help decarbonise industries that rely on high-heat processes, such as those manufacturing glass, medicines, and building materials.
Jemena’s Managing Director, David Gillespie, noted the compatibility of biomethane with the existing gas infrastructure. "Biomethane is identical to natural gas, which means we can avoid the need to upgrade infrastructure, reskill the workforce, retool industrial processes, or replace end-use appliances."
Biomethane is produced by refining biogas, a by-product of organic waste decomposition, into a renewable gas that can be seamlessly integrated into current gas networks and appliances. This process has already been successfully demonstrated in countries such as Denmark, the United Kingdom, and the United States, where biogas injection into gas grids is common practice.
Valorify CEO, Dr Scott Grierson, emphasised the project’s potential benefits for local economies and sustainability. “Projects like the Riverina Biomethane project can transform regional Australia by harnessing agricultural waste while stimulating local economies and creating permanent jobs in regional communities.” The Riverina project aims to launch its first 2 PJ module by 2027, with a long-term goal of producing 4 PJ of biomethane per year.
As the biomethane industry grows in Australia, projects of this kind highlight the potential role of renewable gas in reducing emissions, diverting organic waste from landfills, and providing a low-carbon alternative to natural gas.
