A fresh push for renewable gas investment is underway in the Hunter as global fuel shortages expose the fragility of energy supply.
Business Hunter says NSW must act quickly to diversify power sources and avoid future shocks.
The call follows ongoing supply disruptions linked to conflict in the Middle East, which have driven up fuel prices and raised concerns about long-term energy security.
A new report from Business NSW, Running on Empty 2.0 – The Evolving Role of Gas in NSW, warns the state is facing a potential gas shortfall that could impact households, businesses and jobs.
As a key solution, the document points to biomethane which is a renewable gas created from organic waste such as food scraps, agricultural by-products, wastewater and landfill.
Business Hunter CEO Bob Hawes said biomethane was the best practical option.
“It’s one of the quickest ways to boost supply and cut emissions,” he stated.
“Building a biomethane industry would also deliver major economic benefits for regional NSW, turning agricultural and organic waste into renewable energy while creating local jobs.”
Mr Hawes said the current fuel crisis was a clear reminder of how vulnerable energy markets could be, reinforcing the need for NSW to diversify its fuel sources.
He added biomethane had the potential to supply up to one-third of Australia’s gas needs by 2050, while allowing businesses to reduce emissions without costly infrastructure changes.
“It can be injected directly into the existing gas network, meaning restaurants, manufacturers and food processors don’t need to rip out boilers, burners or commercial appliances or invest millions in electrification upgrades,” Mr Hawes explained.
Gas continues to play a major role in the NSW economy, supplying energy to more than 1.5 million households and 50,000 small businesses and supporting around 250,000 jobs.
Nearly 20% of businesses rely solely on gas, including a significant portion of the hospitality sector.
Mr Hawes pointed to projects already underway as proof the technology was viable, including Jemena’s Malabar Biomethane Injection Plant.
The facility has demonstrated renewable gas can be safely integrated into existing networks.
Regionally, MidCoast Council is working with NALG Envirotech to develop a plant that will convert organic waste into biogas.
While welcoming the NSW Government’s plan to include biomethane in its Renewable Fuel Scheme from 2028, alongside a $170 million funding commitment, Mr Hawes said stronger policy support would be needed to accelerate growth in the sector.
“NSW has a target of 15% of gas used by industry coming from renewable sources by 2035,” he stated.
“The NSW Government should work with industry, suppliers and retailers to increase the ambition of this target to 25%.
“Biomethane is a jobs engine, a regional economic boost and a practical way to stabilise energy supply while cutting emissions.”
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