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Towards 2050: Gas infrastructure in a zero emissions economy  

Towards 2050: Gas infrastructure in a net zero emissions economy – final report is the first independent, state-wide analysis of the implications of the energy transition for Victoria’s extensive gas infrastructure assets. 

Infrastructure Victoria’s advice makes 11 recommendations to the Victorian Government, underpinned by extensive research, modelling and stakeholder input. It finds the gas sector we have today will need to look very different in 2050 if we are to achieve net zero emissions. 

The advice report informs the Victorian Government’s Gas substitution roadmap, and can guide broader government policy and investment decisions to achieve net zero emissions. 

Watch our short explainer video below on the future of gas infrastructure as we transition to a net zero emissions economy.

Our findings conclude: 

  • Immediate and sustained action by the Victorian Government to support proven, low carbon solutions including energy efficiency, targeted electrification, hydrogen and biogas is needed if Victoria’s gas sector is to reach net zero emissions by 2050.
  • Taking action this decade to transform the gas sector is necessary if we are to reduce the risks posed by climate change and seize the opportunities of a clean economy.
     
  • The challenge from now to 2030 is to reduce emissions as much as possible with proven methods such as energy efficiency and bioenergy, while also laying the foundations for accelerated emissions reduction in the 2030s, once we have determined whether new technologies such as hydrogen and carbon capture and storage are proven at scale and the electricity market has further decarbonised.
     
  • Substantial and ongoing investment in energy efficiency measures is needed across residential, commercial and industrial sectors, at least until 2040. This will reduce Victoria’s overall natural gas demand and maintain supplies for critical purposes, such as manufacturing and gas-fired electricity generation support.
     
  • Many of Victoria’s gas assets can be repurposed to accommodate low emissions technologies, but not without further assessment and resolving logistical challenges. Detailed planning and investment support now will position Victoria to maximise the job and export opportunities of decarbonisation.
     
  • By 2050, some of our existing gas infrastructure may be decommissioned while other parts of the network could be reconfigured to accommodate hydrogen, bioenergy and carbon capture and storage.

Community and stakeholder engagement are fundamental to our approach –  building our evidence, reflecting diversity, and enabling more Victorians to influence the development of our findings and recommendations to government.  

Thank you to all who contributed to this report by providing a submission, answering a survey or attending a workshop or meeting.  

Online webinar and Q and A session 

More than two million household, business and industry gas customers rely on natural gas in Victoria. As the most gas-reliant state in the country, much of this due to our use of gas to heat homes and businesses in winter, Victoria is in a unique position to manage this next phase of the transition to net zero.

Infrastructure Victoria has released its final advice to the Victorian Government on the future of gas infrastructure in a net zero emissions economy. It informs the government’s Gas substitution roadmap.

Towards 2050: Gas infrastructure in a zero emissions economy – final report makes 11 recommendations to the Victorian Government to support the natural gas sector to reduce emissions, manage risks, minimise costs and create new opportunities for jobs and industry.

In this webinar, Infrastructure Victoria CEO Jonathan Spear, Principal Policy Officer Nerys Webster and Principal Infrastructure Adviser Lorraine Conway discuss the findings, including Q&A. Watch a recording from the session below, held on Tuesday, July 12 and you can view the slide pack here.

Interim report

Infrastructure Victoria released its interim report Towards 2050: Gas infrastructure in a zero emissions economy for consultation which closed on Monday 16 August.

The interim report presented evidence and analysis that underpins Infrastructure Victoria’s final advice and outlines the key early findings. Additional technical reports underpinning this evidence base are available below:

You can watch a webinar on the key findings here or view the presentation here.

Submissions

We have published the submissions we received from organisations, groups and individuals in response to the interim report, which informed our advice to government on the future of gas infrastructure in a net zero economy. Only submissions with permission have been published.

Thank you to all who contributed to this important discussion.

You can view the public submissions here.

Overview

Infrastructure Victoria was asked to provide the Victorian Government with advice relating to Victoria’s gas transmission and distribution networks under a range of 2050 energy sector scenarios.

Under the Victorian Climate Change Act 2017, the Victorian Government has committed to a whole-of-economy, net zero emissions target by 2050.

The advice assessed the relative economic, social, and environmental impacts of each scenario and identified infrastructure decisions that need to be made, and when, to ensure opportunities for existing gas infrastructure can be optimised. This included exploring the extent to which gas infrastructure can be used for hydrogen, carbon capture and storage and/or biomethane.

The advice informs the Victorian Government’s Gas Substitution Roadmap and complements current work by the Department of Environment, Land, Water and Planning (DELWP) on energy sector and industry transition issues.

Written submissions were sought by DELWP on the gas substitution roadmap.

If you have any queries about the advice please contact us at enquiries@infrastructurevictoria.com.au.

Timeline

December 2020

Victorian Government issues request for advice

July 2021

Publication of interim report

Monday 19 July - Monday 16 August

Consultation on interim report

December 2021

Infrastructure Victoria submits final advice and recommendations to government

Towards 2050: Gas infrastructure in a zero emissions economy - interim report
Towards 2050 - Gas infrastructure in a net zero emissions economy - final report
Gas infrastructure international comparisons (Accenture Strategy)
Infrastructure Victoria literature review
Net zero emission scenario analysis – study report (Doris Engineering)
IV128 Net Zero Emissions Scenario Analysis Stage 2
Gas Infrastructure Community Sentiment
Asset Life And Adaptability Review
Advice on Gas Infrastructure - Terms of reference
Cost Benefit Analysis Of Energy Efficiency Activities In The Gas Sector
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