Role of renewable gas in the energy transition

The official consultation question

Q01 · §2(a) · paper page 10

Given that some sectors are expected to maintain reliance on gaseous fuels until alternatives are developed and deployed, should certain sectors (e.g. hard-to-abate industries) be given a higher priority or focus of a national renewable gas policy? If so, which sectors and why?

Shelby’s response

Priority should be given to sectors where gaseous fuels provide process characteristics that are difficult or costly to replace, and where credible long-term demand can support investment in new renewable-gas production. This includes high-temperature industrial heat and steam, selected food and beverage processes, chemicals and minerals processing, and other industrial users for whom electrification is not yet technically or economically practical. Priority should be guided by the cost and emissions benefit of the delivered solution rather than by sector labels alone.

Australia also needs policy that expands supply rather than simply reallocating scarce renewable gas between preferred users. France's biomethane framework illustrates the value of creating a dependable route to market for producers while allowing demand and infrastructure to develop progressively. The relevant lesson for Australia is not to copy the French model, but to provide sufficient revenue visibility for investable projects while retaining flexibility over how gas reaches customers.

Which sectors and why?

The strongest early opportunities are likely to be projects that combine reliable feedstock, proven conversion technology and identifiable customers. Existing anaerobic-digestion and biogas facilities deserve particular attention because upgrading can build on operating assets and established feedstock supply.

New regional plants should develop alongside them where local resource and demand justify investment. Modular equipment and shared logistics can reduce execution risk and allow capacity to grow with the market.

Where technically and commercially viable, recovery of biogenic CO2 and other co-products can add saleable output from the same feedstock and improve project economics.

The immediate objective should therefore be commercially reliable production, not capacity targets in isolation.

Buyers, delivery arrangements, certification and co-product routes to market should be developed alongside the plant. As operating volumes grow, regional hubs and shared storage, transport, laboratory and maintenance services can be added where aggregation demonstrably lowers delivered cost. Priorities should evolve with actual demand, delivered economics and verified emissions performance.

Frequently asked questions

What is Shelby’s position on role of renewable gas in the energy transition?

Renewable gas should prioritise difficult-to-electrify industrial processes where reliable demand supports new production. Shelby recommends expanding supply rather than reallocating scarce gas, with practical feedstock, customer, delivery and co-product arrangements developed together.

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.