RP2.2-04 Understanding the implications of a Renewable Gas Target for Australia’s gas networks

Executive Summary

This project was conducted to allow stakeholders to better understand and assess the implications of policy options for a national Renewable Gas Target (RGT) and their broader implications for the adoption of future fuels.  It considered alternative approaches to the design and implementation of a national RGT, their implications for Australia’s future fuels mix, and their implications for economic outcomes in the Australian States and Territories.

Through a review of related policy experiences and technology maturation processes, consideration of stakeholder views, and exploration of some of the main dimensions to the design of an RGT, the project sought to identify and review policy options for consideration by governments and industry. Additionally, through stakeholder interviews and workshops the research also assisted with clarifying the perceived pros and cons and potential consequences of alternative policy approaches.

Project Summary (Click on green text to access)

More information:

Report on Design Options for a Renewable Gas Target (RGT)

This Design Options report considers the design of a renewable gas target (RGT) to develop Australia’s renewable gas sector. It also sets out a number of design configurations for a possible RGT which are modelled on Australia’s Renewable Energy Target. (Click on green text to access the report)

Review of learning processes and cost curve shifts

This project report on Learning and Cost Curves reviews published evidence for scale and learning effects as new technologies are deployed at larger scale and mature (with a core focus on solar PV and wind power). Secondly, the report draws out lessons for the future of renewable gas in Australia and related government policies. (Click on green text to access the report)

Deep Dive report on a possible Renewable Gas Target (RGT)

The Future Fuels CRC has released its Deep Dive Report presenting learnings and conclusions from a “deep dive” on evidence and experience with RGT-type mechanisms and a detailed discussion of how a RGT might be effectively designed and implemented to support the adoption of renewable gases. The report also presents a review of current developments in the policy environment in Australia and overseas and the results of stakeholder consultations. It synthesises key issues around the design of a RGT from an economic perspective. Finally, the report sets out a ‘prototype’ RGT mechanism – loosely based on the design of Australia’s Renewable Energy Target – and describes key dimensions of the policy choice. (Click on green text to access the report)

Project Webinar: a Renewable Gas Target for Australia

On May 19, 2023 Future Fuels CRC held a lively discussion exploring our latest research on Renewable Gas Targets. Jim Hancock, University of Adelaide shared the research’s insights on the potential design of a Renewable Gas Target and perspectives on both the roles the target could play and the potential implementation of a target in Australia.

Panellists were: Linda Cardillo GM Renewable Gas, Jemena, Russell James GM Hydrogen and Future Fuels, ATCO, Tim Bray, Strategic and Consumer Policy, Government of Western Australia, Nicola McFarlane, Director, Hydrogen and New Energies, Government of Western Australia and Benjy Lee Benjy Lee Consulting (Moderator)

Project launch webinar:

When the project started, Future Fuels CRC held a public webinar on 5 April 2022 with presentations from University of Adelaide and the NSW government. The presentations and recording are publicly available here:

University of Adelaide presentation – Jim Hancock
NSW Government presentation – Michael Probert

Login Full project details are available to participants of the CRC, please login or contact us to create your account.
Commencement / End Date April 2022 to July 2023
Outcomes / Impact

The study will improve understanding across key stakeholders including industry and government of the consequences of an RGT for the deployment of future fuels, especially in relation to natural gas infrastructure. The research outcomes will assist industry to engage in the policy debate with governments and stakeholders by clarifying the consequences and pros and cons of alternative policy approaches, assembling a stronger evidence base and synthesising it for engagement with governments around potential policy interventions. Industry will play a key role in steering the research from the outset thus focusing the research on policy options of particular interest to industry.

Partners University of Adelaide, APGA, Energy Networks Association, Jemena, AGIG, AusNet Services, ATCO, NSW Department of Planning and Environment, Department of Environment, Land, Water and Planing - Victoria
Research Contact

Dr Stephen McGrail

Research and Education Program Coordinator