Green Energy: AGIG and Delorean team up in plan to deliver biomethane to Aussie gas networks
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We’ve all heard of hydrogen blending as big gas networks look to prepare themselves for clean fuels, now we’re hearing about … biomethane blending?
That’s what ASX-listed biomass to energy company Delorean Corporation (ASX:DEL) are looking to do in a MoU with pipeline operator Australian Gas Infrastructure Group.
Delorean said in a statement to the ASX today the companies would “work towards establishing a mutually acceptable business model to develop, construct, own and operate anaerobic digestion plants to supply biomethane into AGIG networks.”
AGIG, which owns and operates around 40,000km across numerous Australian States and Territories, has already opened the Hydrogen Park in South Australia, where it is blending up to 5% renewable hydrogen into its gas supply for about 700 homes in Mitchell Park.
Delorean and AGIG are already looking to connect the DESAO project in Adelaide, which Delorean says will be Australia’s first waste to biomethane facility, into AGIG’s gas network.
Its executive general manager of customer and strategy Craig de Laine said biomethane could be used to blend with and eventually replace natural gas.
“Renewable biomethane can be used in the same way as natural gas is today, but does not result in additional carbon emissions to the atmosphere,” he said.
“By blending and ultimately replacing natural gas with renewable gas such as biomethane and green hydrogen, we can use our existing gas infrastructure to supply a renewable gas blend to our customers, as we are currently already doing with renewable hydrogen.”
“This landmark agreement with Delorean Corporation, a company pioneering bioenergy and biomethane projects in Australia, is a key step in the progressive decarbonisation of our gas networks.”
Delorean managing director Joe Oliver said the company expects to see its biomethane gas injected into AGIG’s networks in the future.
“DEL is uniquely positioned to service Australia’s immediate and rapidly growing demand for renewable gas,” he said.
“This agreement with AGIG extends our existing relationship into a collaboration which we expect will see DEL’s biomethane injected into AGIG’s gas networks across Australia.”
Global Energy Ventures (ASX:GEV) enjoyed a 12.5% bump as investors digested the news that the WA State Government would tip $300,000 into feasibility work into using its compressed hydrogen shipping option at Province Minerals (ASX:PRL) HyEnergy project.
The grant is part of a $61.5 million injection from Mark McGowan’s cashed up Labor Government, which will include the establishment of a $50 million fund designed to kickstart a domestic market for green hydrogen.
“One of the strategic focus areas for the WA Government’s hydrogen strategy is export,” GEV managing director Martin Carolan said.
“GEV, together with the HyEnergy Project partners, aims to harness WA’s world class renewable energy resources and proud history of exporting energy to international markets, to develop the first green hydrogen export project using our compressed shipping supply chain.”
PRL was also up slightly on the news.