Gas distributor says NZ 'a decade behind' making use of biogas

Friday, 28 July 2023

Biogas is in the pipeline.

Gas companies have renewed their call for the Government to impose binding targets on the industry to start replacing natural gas with renewable sources of gas, such as biogas made from organic waste.

The Government is expected to soon release a consultation document that will set out options for transitioning away from natural gas, because of its carbon emissions and limited future supply.

Energy Minister Megan Woods previously rejected a recommendation from the Climate Change Commission that it ban new connections to the piped gas network from homes and commercial buildings from 2025.

However, it is understood the gas industry remains concerned that a connection ban could get back on the table.

* Biogas from kerbside waste collections to be mixed into natural gas network next year

Making more use of biogas from organic waste may be one of the ‘low-hanging fruits’ transitioning away from fossil fuels.

* First Gas invests millions to use biogas, but delays green hydrogen trial

Industry body GasNZ suggested in April that the Government should require that by 2030 5% of all gas comes from renewable sources, such as biogas and “green hydrogen” made from the electrolysis of water.

It estimates that would be enough to meet more than a third of the gas demand from homes and other non-industrial customers, such as cafes and restaurants.

Officials are believed to see drawbacks in that proposal.

But the Government is expected to canvas other ways to encourage the development of biogas and to ensure that companies and municipal authorities that produce it could be assured they could sell biogas into the gas network even if it had a premium price.

Paul Goodeve, chief executive of gas distributor FirstGas, estimated New Zealand was about 10 years behind other countries in making use of biogas derived from facilities such as landfills, sewage works, and diverted animal and food waste.

That is despite a partnership between Ecogas, Auckland Council and Firstgas that should produce enough biogas from Auckland waste collections and food waste to the meet the gas demand of 7200 homes from March next year.

The country should be “making the change towards biogas now”, Goodeve said.

Reviewing and raising landfill fees could encourage the development of the biogas industry by making it more economic to process waste rather than dump it, he said.

He also suggested the Government should “get in behind” partnerships between businesses and councils to develop 12 anaerobic digestion facilities in the North Island.

These harness bacteria to convert waste into methane.

“Councils need these facilities for waste management purposes, but lack capital and aren’t in the business of selling the renewable carbon dioxide, heat, biomethane and biofertiliser that these facilities produce,” he said.