History repeats itself – this time at scale never seen before.

Necessity is the mother of invention, and today, every organisation on the planet is coming together to find solutions to solve the greatest challenge in human history – the energy transition.

But, while the enormity of the task is unprecedented, some circumstances are historically circular.

Following the Yom Kippur War, the Organisation of Arab Petroleum Exporting Countries (OAPEC) made the decision to restrict oil supply to many western countries in 1973. Australia, like many others, was heavily reliant on oil imports and the embargo pushed up petrol prices by 25%. Additionally, it was a major factor in inflation hitting 17.7% in 1975. And again, following the Iranian Revolution in 1979, there were major declines in oil production prompting Australian petrol prices to surge by another 45%.

Inflation continued to persist at around 9% - significantly higher than today’s rates.

These external forces prompted Australian motorists and industry to search for cleaner and more affordable fuel substitutes. The 1970s oil shock represented the beginning of the LPG (or Autogas) boom.

Fast forward to today. The similarities between the oil shock and the energy transition are stark.

·????????External force prompting an urgent need to fuel switch? – Check

·????????Inflation surging due to supply constraints? – Check

·????????Pressing requirement to find cleaner, more sustainable alternatives? – Check

·????????Opportunities to develop new industries in a rapidly shifting environment? – Check

Australian motorists readily embraced LPG due to its affordability and availability, but also because it offered a cleaner alternative that reduced emissions and improved air quality.

The rise of LPG vehicles in Australia necessitated the development of infrastructure for storage, distribution, and refuelling stations which was supported through government incentives, while car manufacturers began producing LPG-compatible vehicles to give consumers more choice.

Fifty years ago, necessity prompted innovation – and the same is happening in renewable gases today.

Nearly every Australian knows about the potential of hydrogen as a clean and versatile fuel. It can be utilized for heating and cooking in households, serving as a replacement for natural gas and significantly reducing carbon emissions associated with traditional gas consumption. But it has many more functions. It will also be used as a feedstock in various industrial processes, including the production of chemicals and fertilizers as well as in long-duration storage and gas-powered generation that provides firm and fast electricity with significantly more capacity and at far lower cost than traditional grid-scale batteries. In fact, Australia’s gas networks have the same energy storage capacity as 20 million Tesla PowerWalls!

But we’re at the early stage of the production and adoption curve, and this green future will need policy support. Simply, to encourage upstream production, it’s necessary to facilitate downstream demand.

How do we do it? Through a Renewable Gas Target.

Just as Australia’s Renewable Energy Target (RET) helped kickstart the renewable electricity industry in the early 2000s, a RGT will help unlock the new pathways of emissions abatement with the added bonus of easing the strain faced by the National Electricity Market as coal-fired generation winds down.

The biggest early potential customer of renewable gases is Australia’s gas networks, which are not only beginning to deliver lower-emission gas blends today, but are ready to scale-up to 100% carbon-neutral energy to give households and industry the opportunity to do their bit in rapidly decarbonising.

Households can play a significant role in reducing pressure on Australia's electricity grid as well as reducing emissions by embracing renewable gases as an alternative to full electrification. By utilizing renewable gases like hydrogen and biomethane for heating, cooking, and other household needs, consumers can decrease reliance on electric appliances, thereby easing the burden on the grid.

By diversifying the energy sources used in households and leveraging the benefits of renewable gases, Australia can optimize energy consumption and minimize peak electricity demand. Simply, not put all our eggs in a single basket. This, in turn, alleviates grid strain during periods of high demand, improves grid stability, and reduces the need for costly network infrastructure upgrades. Moreover, the use of renewable gases in households promotes a distributed energy approach, empowering individual consumers to actively participate in the transition to a more sustainable energy future.

The dual-pathway approach to decarbonisation is here.

In the 1970s and 80s, Australian governments were courageous in facilitating the LPG boom through investment in refuelling stations, subsidies to encourage individuals and businesses to convert vehicles from petrol and allocating funds to improve its efficiency, performance, and safety of LPG cars.

Today, Australia has the opportunity to learn from its past to ensure we reach our sustainable future through real support for a Renewable Gas Target.