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Feeling a bit gassy & bloated? Increase your energy efficiency, reduce costs and support the environment

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Let us prescribe you a way to reduce your Gas Emissions! 

The path to decarbonising the electrical grid is well underway. Now it’s time to think about gas. If you have high gas consumption, there are few things you need to be considering. 

  1. Make your current equipment as efficient as possible 
  1. Consider what equipment can be electrified 
  1. Look for biogas or green gas opportunities 
  1. Green hydrogen is getting massive investment 

The Victorian Industrial sector used over 110 PJ (30 TWh) of energy in 2017 and 65% of that came from gas. The predominant use of that gas is steam boilers. The story is the same in other states. The Industrial sector is primarily fueled by gas and the commercial sector also has substantial gas usage for hot water. 

The trends bring gas into the spotlight are as follows:
  1. Electricity is getting greener. In Australia, 25% of the electrical energy is now sourced from renewables. The grid emissions (the emissions factor) are dropping every year. 
  1. Many companies are setting goals to decarbonize, or their customers are demanding they do. 
  1. The gas is getting greener (less emissions), but it is hard and slow, however there are state and federal programs accelerating this. 
  1. Green hydrogen (electrolysis from renewable electricity) is forecast to explode 

The message for C&I (Commercial & Industrial) is clear if you want to decarbonize you’ve got to look at your gas emissions as well. 

Gas Efficiency: In NSW and VIC business there are lots of old steam boilers it’s a no brainer to add economizers and O2 trim, electronic air/fuel ration and blowdown controls or to upgrade the whole unit. The NSW Energy Saving Scheme and Victorian Energy Upgrades programs provide funding for both calculated and measured savings.  For economizers up to 50% of the full costs will be cover by the programs. 

Electrification:  For hot water, we’ve reached the cutover point. You’ll now generate hot water with lower emissions by using heat pump systems using grid electricity than a gas boiler. 

The NSW ESS (Energy Savings Scheme) and VIC VEU (Victorian Energy Upgrade) have recently released new methods for Commercial & Industrial heat pumps. Dairy farms and industrial processes using large volumes of hot water can substantially lower their emissions by using heat pumps and much more so if they have behind the Meter Solar PVSolar Photovoltaic. 

Biogas, Biomethane and Green Gas: For the process that really needs gas (e.g. steam boilers), there significant funding can be obtained from capturing or generating biogas. Biogas can come from anaerobic digestion (AD) and covered anaerobic lagoons (CALs), from abattoirs, landfills, and syngas from pyrolysis (eg burning agricultural waste in the absence of oxygen).  The VIC VEUVictorian Energy Upgrades is a Victorian government energy efficiency program that gives every Victorian household and business the opportunity to receive rebates or discounts on energy saving products. program provides funding for switching from natural gas to biogas.  The NSW ESSThe NSW Energy Savings Scheme (ESS) provides financial incentives to install, improve or replace energy savings equipment and appliances in NSW households and businesses. The ESS was established in 2009. Financial incentives are in the form of tradeable certificates, called energy savings certificates (ESCs). Generally, householders and businesses who fund energy savings activities transfer the right to create ESCs to Accredited Certificate Providers (ACPs) in return for a discount on the cost of the energy savings activity.  The MWh savings from the project determines the number of ESCs that can be created. The ESS works by allowing ACPs to create and register ESCs for energy savings that are supported with appropriate evidence. ESCs are then purchased each year by mainly electricity retailers operating in NSW to meet their share of a legislated annual energy savings target. supports heat recovery from burning biogas. By using scrubbers and other methods can be used to upgrade biogas to biomethane and the Carbon Farming Initiative (CFIThe Carbon Farming Initiative (CFI) is a voluntary carbon offsets scheme. It is an integral component of the Emissions Reduction Fund and allows land managers to earn carbon credits by changing land use or management practices to store carbon or reduce greenhouse gas emissions.) recently added biomethane to many of the methods to support injection into the natural gas grid. With these advancements, we are just starting to see the development of in front of the meter PPAs to supply green gas and the energy retailers would love to be able to offer it broadly. 

Green Hydrogen: There is a very substantial investment going into the hydrogen economy. The expectation is that electrolysis (using electricity to generate H2) will see the same economy of scale benefits that resulted in Solar PV dropping massively in cost. This space is a watch and see as to how the gas industry will evolve to replace natural gas (methane) with hydrogen. 

Northmore Gordon can support your business doing the activities above. Our consultants can help identify which of the opportunities above will have the highest PA payback and capture the greatest amount of funding under different programs.

More importantly, if you are feeling gassy and bloated, we’ll identify the fastest way to reduce your gas emissions. Who wouldn’t want that!!! 

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According to Northmore Gordon's article, what are the four main strategies businesses should consider to reduce gas emissions?

The article recommends: 1) making current equipment as efficient as possible, 2) considering what equipment can be electrified, 3) looking for biogas or green gas opportunities, and 4) watching green hydrogen, which is getting massive investment.

How much energy did the Victorian Industrial sector use in 2017 and what portion came from gas?

The Victorian Industrial sector used over 110 PJ (30 TWh) of energy in 2017, and 65% of that came from gas, predominantly used in steam boilers.

What funding is available in NSW and Victoria for improving old steam boiler efficiency?

The NSW Energy Saving Scheme and Victorian Energy Upgrades programs provide funding for both calculated and measured savings on upgrades like economizers, O2 trim, electronic air/fuel ratio controls, and blowdown controls. For economizers, up to 50% of the full costs can be covered by these programs.

Has electrification of hot water systems reached a tipping point compared to gas boilers, according to the article?

Yes, the article states that for hot water, the cutover point has been reached — using a heat pump system powered by grid electricity now produces lower emissions than a gas boiler.

What is the emissions comparison between a gas condensing boiler and an electric heat pump for producing 1GJ of hot water energy?

A 90% efficiency gas condensing boiler producing 1GJ of hot water energy generates about 61 kg CO2te. An electric heat pump with a COP of 5, using grid electricity with an emissions factor of 0.8 tonnes/MWh, produces about 44 kg CO2te for the same 1GJ — and this could fall to 27 kg CO2te when the grid emissions factor reaches 0.5 tonnes/MWh.

Which government programs support Commercial & Industrial heat pump adoption for hot water?

The NSW ESS (Energy Savings Scheme) and VIC VEU (Victorian Energy Upgrade) have recently released new methods for Commercial & Industrial heat pumps, which can substantially lower emissions, especially for dairy farms and industrial processes using large volumes of hot water, particularly when paired with behind-the-meter Solar PV.

What sources of biogas are mentioned as opportunities for processes that still require gas, like steam boilers?

Biogas can come from anaerobic digestion (AD) and covered anaerobic lagoons (CALs) at abattoirs and landfills, as well as syngas from pyrolysis, such as burning agricultural waste in the absence of oxygen.

What government programs support the switch to biogas or biomethane?

The VIC VEU (Victorian Energy Upgrades) program provides funding for switching from natural gas to biogas, and the NSW ESS supports heat recovery from burning biogas. Additionally, the Carbon Farming Initiative (CFI) has added biomethane to many of its methods to support injection into the natural gas grid.

What is the outlook for green hydrogen according to the article?

The article notes there is very substantial investment going into the hydrogen economy, with expectations that electrolysis (using electricity to generate H2) will see economy-of-scale cost reductions similar to those seen with Solar PV, though it remains a 'watch and see' area for how the gas industry will evolve to replace natural gas with hydrogen.

According to supporting guidance, what are the primary assessment areas for boiler and process heat system efficiency?

The primary assessment areas are metering, controls, insulation and maintenance, which work together to establish baseline consumption, ensure appropriate operation, reduce heat losses, and preserve equipment performance.

How can Northmore Gordon help businesses with gas emission reduction?

Northmore Gordon's consultants can help identify which of the opportunities—efficiency upgrades, electrification, biogas/green gas, or green hydrogen—will have the highest payback and capture the greatest amount of funding under different government programs, helping businesses find the fastest way to reduce gas emissions.

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