Victoria's Renewable Gas Consultation Paper

IEEFA sees two broad roles that hydrogen and biomethane could play in Victoria’s future energy economy:

1. As a substitute for fossil gas in appropriate end uses (for example decarbonising hightemperature heat); or

2. As a new energy source in future green industries (for example green iron or ammonia production).

IEEFA’s understanding based on the Issues Paper is that the Victorian government is focusing on the former role. However, we recommend that this is clarified, as the policies required to support either outcome could be very different.

For example, if a target is set based on an absolute quantity of hydrogen production per year, it may not be possible to guarantee that this displaces existing fossil gas consumption. It may, however, help to incentivise growth of new green industries.  

Read the full submission here.