Ararat Council Champions $400M Renewable Gas Project

As part of its 2025 Advocacy Priorities, Ararat Rural City Council is stepping up its efforts for sustainable energy solutions, calling on the Victorian Government to provide clear policy direction and greater support for renewable gas production.

This initiative directly aligns with Council's strategic commitment to "Preserving Our Environment," as outlined in its Council Plan 2025-2029. Through this commitment, Council aims to take a regional lead in responsible environmental management and engagement with the circular economy.

While gas remains essential in a net-zero future for high-temperature industrial applications and as a chemical input for products like medicines and fertilisers, current renewable fuel alternatives can't fully replace it yet. This is where renewable gas, like biogas, plays a pivotal role. Biogas offers a carbon-neutral substitute for natural gas, significantly reducing reliance on fossil fuels and their associated greenhouse gas emissions.

Both Victorian's Gas Substitution Roadmap and Australian Energy Market Operator's (AEMO) 2025 Gas Statement of Opportunities acknowledge the need for new gas supply developments to prevent future shortfalls. Renewable gas presents a viable and sustainable solution to this challenge.

One such significant opportunity is bioenergy developer Valorify's proposed $400 million biomethane plant in Ararat. This innovative project will transform agricultural waste, which is typically burned on-farm and releasing substantial CO2 and other harmful gases, into enough renewable gas to supply the entire Carrisbrook to Horsham gas pipeline, servicing townships like Ararat, Horsham, Maryborough, and Stawell. This volume is equivalent to 6.5 per cent of Victoria's total gas usage in 2020.

"We're actively working to position Ararat Rural City as a prime mover in the circular economy to ensure a sustainable future for our region, and a key part of that is championing renewable energy solutions," said Ararat Rural City Council CEO, Dr Tim Harrison.

"Clear policy from the Victorian Government supporting renewable gas production is crucial to unlock significant investment in this sector. This will not only accelerate projects like Valorify's biogas plant and attract subsequent investors looking to co-locate and access "behind the meter" power, but it will also support regional development and ultimately secure Victoria's energy future."

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