Natural gas and sustainability

Natural gas provides an affordable, clean energy solution that will assist Australia in the transition to a carbon-constrained environment.

APA is committed to the principles of sustainable development and high standards of environmental performance as a responsible way to protect the environment.   As Australia’s leading pipeline owner and operator, APA minimises environmental impacts, adheres to environmental regulations and protects and regenerates the environment in which we operate. 

Since 1 July 2008, APA has been required to record its greenhouse emissions in line with the National Greenhouse and Energy Reporting Act 2007.    APA’s direct emissions arise from compressor fuel usage on transmission pipelines and unaccounted for gas in distribution networks.   APA undertakes capital works on its compressor stations and distribution networks to reduce these emissions, where possible.  

 

Delivering cleaner energy

Climate change is one of the greatest economic, social, and environmental challenges of our time.   APA recognises its broader role in facilitating the delivery of clean energy to those industries and individuals endeavouring to reduce their carbon footprint, as well as taking an active role in reducing its own carbon footprint.

Natural gas is a clean energy fuel with a much lower carbon impact than coal.  Renewable energy sources are increasingly being developed but are unlikely to become base-load competitive for a very long time.   Achieving Australia’s emissions targets at least cost is vital to a sustainable economy. 

Natural gas provides an affordable, clean energy solution that will assist Australia in the transition to a carbon-constrained environment while maintaining economic growth.   The table below demonstrates the competitiveness of natural gas as a clean power generation source:

 Power Generation Source 
Cost per MWh 
New Technologies*
Clean Coal (with geosequestration)
Geothermal
Wind

$104
$40 - $70
$55 - $80
Conventional Technologies (with indicative carbon cost of $20 per tonne) 
Coal 
Natural Gas

$50
$40 - $50

 


*Source:  Business Council for Sustainable Energy


A participant in the Carbon Pollution Reduction Scheme

APA supports the introduction of a carbon pollution reduction scheme as a recognition that Australia needs to transition to a lower-emissions future in order to combat climate change.  

The scheme, which is scheduled to commence in 2010/11, will fundamentally affect the investment and operating decisions of Australia's electricity industry.   The use of low and zero emissions electricity generation alternatives will be required to meet Australia’s emissions targets. 

Any long-term emissions reduction program will, by necessity, include the use of natural gas for future base-load power generation.  APA, as Australia’s largest transporter of natural gas, should benefit in this environment as the cost of carbon is factored into coal-fired power generation.

Delivering sustainable solutions

APA believes that the following initiatives could play a substantial role in achieving Australia’s greenhouse gas reductions and we are participating in Government programs to actively promote the role of natural gas:

Residential: Converting existing homes from electric hot water to natural gas resulting in 70 – 80 % lower carbon emissions per household from hot water systems, resulting in potential savings of an estimated 246,000 tonnes CO2-e pa;

Industrial:  Transitioning current industrial coal fired facilities to gas fired alternative resulting in potential savings of an estimated 80,000 tonnes CO2-e pa;

Commercial: Actively promoting “Green Buildings” with an emphasis on replacing electric powered chillers (air conditioning) and heating, with gas fired alternatives;

Transport: Facilitating growth in “back to base” natural gas vehicle fleets;

Gas Fired Electricity Generation: Facilitating the transition to increase gas fired
energy generation, including gas fired embedded generation applications. As a guide, a 30 megawatt generator reduces emissions by 15,000 tonnes of CO2-e.

Delivering Australia's Energy

© 2009 APA Group