Shelby Bioenergy · October 2026 · Australia

Protecting physical domestic gas supply

The premium should link long-term purchasing, new investment and verified domestic delivery. Shelby recommends separate physical-gas and bonus-credit accounts, access for smaller producers, and supply modelling to protect the domestic supply purpose of the obligation.

Shelby’s position, not adopted government policy or confirmation of lodgement. Historical evidence and policy-modelling assumptions are distinguished in the response.

Biogas plant connected by pipeline to an industrial customer
Conceptual illustration · not a project photograph or engineering design

The official consultation question

Q07 · §2.6(b) · paper page 17

How could a renewable gas premium be designed to support investment in renewable gas production while maintaining the domestic gas supply objectives of the DSO?

Shelby’s response

The premium should connect long-term purchasing, new investment and verified domestic delivery. Publish eligibility and support terms early enough for developers to assess project economics with the premium included.

eligibility for new production and demonstrable expansions supported by exporter commitments;

separate accounting for physical delivery and bonus compliance credits;

a minimum physical supply requirement, supported by market and seasonal supply modelling;

access for smaller producers through direct contracts or aggregators;

purchasing terms that specify price, volume, duration and delivery responsibilities.

A 15-year purchasing or equivalent revenue arrangement should be the starting point for assessment. If bonus credits would undermine required physical supply, a separate production incentive would be more appropriate.

Frequently asked questions

What is Shelby’s position on protecting physical domestic gas supply?

The premium should link long-term purchasing, new investment and verified domestic delivery. Shelby recommends separate physical-gas and bonus-credit accounts, access for smaller producers, and supply modelling to protect the domestic supply purpose of the obligation.

What should a project team read alongside this answer?

Read the linked commercial guides and original question. Separate the response’s recommendations and illustrative assumptions from source-reported operating evidence.

Sources & References

  • Department of Climate Change, Energy, the Environment and Water, National Renewable Gas Policy consultation

    Publication: Date not verified

    Observation period: Not recorded

    Relevant page / section: Claim-level locator not yet verified

    Last link / title verification: 2026-10-11

    Publisher link checked; individual claims, costs and regulatory applicability still require review.

    Check scope and current applicability before relying on this reference.

  • Department of Climate Change, Energy, the Environment and Water, National Renewable Gas Policy consultation paper

    Publication: 2026-08

    Observation period: Australia; 2026 consultation

    Relevant page / section: Consultation questions; use answer-specific paper page and question reference

    Last link / title verification: 2026-10-11

    Publisher link checked; individual claims, costs and regulatory applicability still require review.

    Source for questions/context, not proof of an implemented support mechanism. Question text attribution: Commonwealth, CC BY 4.0, as noted in Shelby’s supplied consultation response.

  • Creative Commons, Attribution 4.0 International

    Publication: Date not verified

    Observation period: Not recorded

    Relevant page / section: Claim-level locator not yet verified

    Last link / title verification: 2026-10-11

    Publisher link checked; individual claims, costs and regulatory applicability still require review.

    Check scope and current applicability before relying on this reference.