Repurposing Victoria’s gas infrastructure for a net zero future

Abstract

As the world moves towards a net-zero future, different jurisdictions are considering various scenarios on how they can achieve their targets. Depending on the types of assets within each jurisdiction, it could mean the development of new projects, modifying existing infrastructure, or a combination of both. The Victorian Climate Change Act 2017 established a system of coordinated, whole-of-economy actions to achieve a net zero emissions target by 2050. This includes rolling 5-year plans and targets to reduce emissions and adapt to climate change impacts, obliging all government policies, plans and decisions to consider climate change, and requiring all sectors of the economy including the gas industry to develop and action emissions reduction pledges. Natural gas plays a major role in Victoria’s energy mix with extensive gas infrastructure supplying over 2 million customers in Victoria and a network asset value of approximately A$6 billion. In 2021, Infrastructure Victoria provided its advice to the Victorian Government on potential scenarios for repurposing Victoria’s gas transmission and distribution networks in a future where Victoria’s carbon emission reduction targets are achieved. This paper provides the results of assessment on the suitability of existing gas infrastructure across the value chain to be repurposed for hydrogen blending, 100% hydrogen, biomethane and carbon dioxide service. This work was performed for the purpose of informing the Victorian Government of the opportunities and risks to gas infrastructure associated with achieving its 2050 net zero emission target.