The Role of LPG in Australia’s Path to Net Zero Carbon Emissions
Amidst Victoria’s natural gas phaseouts, liquefied petroleum gas (LPG) emerges as a key player in Australia’s journey towards achieving net zero carbon emissions. LPG, often referred to as clean and green gas, is exempt from the ban on new gas connections that took effect on January 1. This exemption positions LPG as a promising fuel source for powering homes across the country.
Brett Heffernan, CEO of Gas Energy Australia, expresses optimism about LPG’s potential. He highlights that the Victorian government has not extensively publicized the exemption and emphasizes that LPG will play a crucial role in meeting energy needs even as natural gas is phased out. Gas Energy Australia’s website asserts that renewable and zero-emitting gases, including LPG, will revolutionize how families and businesses use gas until at least 2050.
LPG already contributes significantly to the Australian economy, generating over $121 billion in economic activity and fueling 7 million homes. What sets LPG apart from liquefied natural gas (LNG) is its composition and higher energy content, which makes it cheaper in many cases. As a fuel gas, LPG contains a flammable mixture of hydrocarbon gases such as propane, n-butane, and isobutane. It finds applications in heating appliances, cooking equipment, and vehicles.
One of the driving factors behind the phasing out of natural gas in residential and commercial settings is the Victorian government’s Gas Substitution Plan. Under this plan, new estates are prohibited from connecting to natural gas. However, critics argue that this restriction will exacerbate the national cost-of-living crisis. Shadow Minister for Energy David Davis criticizes Premier Jacinta Allan and Energy Minister Lily D’Ambrosio for their lack of consideration for the impact on Victorians already struggling with rising energy costs.
While LPG is touted as a clean energy source, it faces opposition from environmental advocates. Jono La Nauze, CEO of Environment Victoria, rejects all forms of gas usage in Australia’s net-zero journey. He argues that gas is not a climate solution and likens considering it as one to strategies from the pro-gas lobby. La Nauze highlights the health risks associated with burning gas at home, which is comparable to the effects of second-hand smoke and contributes to 12% of childhood asthma cases in Australia.
The Climate Council echoes these concerns, emphasizing that methane, a component of LPG, has a significantly higher global warming potential than carbon dioxide in the short term. Despite these criticisms, Brett Heffernan remains confident in the increasing demand for LPG in the coming years. Currently, over two million homes and 130,000 businesses in Australia rely on LPG for various activities, such as cooking, hot water, heating, and even animal rearing in agricultural settings.
Heffernan also highlights the potential cost barriers associated with electrification. Upgrading homes to accommodate electric appliances can cost between $20,000 to $30,000, depending on the size of the property. This poses a significant challenge for many households and businesses considering a transition away from gas.
Furthermore, concerns arise regarding Australia’s ability to reach its net zero targets. The ongoing mass energy transition is resulting in the risk of mass blackouts this winter. Heffernan suggests that LPG can play a crucial role in stabilizing Australia’s energy grid. He points out that renewable energy sites are struggling to meet their 2030 targets and governments are even seeking to extend the lifespan of coal-fired power stations. Coalition Senator for Queensland, Matt Canavan, criticizes the federal Labor government’s push for a 50% renewables electricity grid by 2030 for ideological reasons. He argues that this move could increase electricity prices and jeopardize power supply reliability.
In conclusion, LPG’s exemption from Victoria’s natural gas phaseouts positions it as a crucial energy source in Australia’s journey towards net zero carbon emissions. Despite criticisms, the demand for LPG is expected to grow, given its widespread usage across households, businesses, and agricultural settings. However, debates continue regarding the role of gas, including LPG, in the context of environmental concerns and the challenges associated with electrification. As Australia navigates its energy transition, careful consideration must be given to ensure a reliable, affordable, and sustainable energy future.
