Proprietor of the Gouge cleaning business, and former political candidate, Rob Priestly has pointed to the massive task facing a transition to renewable energy and the prospect of sky-rocketing gas costs, which would hurt regional industry.
At a Committee for Greater Shepparton breakfast on Tuesday morning, he made out an argument for developing methane gas production from agricultural waste that was readily available in the region.
“One of the factors underpinning our prosperity in this region has been 50 years’ supply of cheap, natural gas to our manufacturers and food processors in the region,” Mr Priestly said.
“Even though gas has gone through the roof, if you convert to electricity it is even more expensive.“
And for electricity, transmission is a huge cost.
“Biogas can be cheaper than gas, capturing methane off agricultural or food waste,” he said.
He said the electricity grid was miles away from being able to handle the capacity for conversion from gas to electricity.
Also speaking at the energy forum was Wengfu Australia chief executive Damian Heath, who explained the connection between gas and rising fertiliser prices.
His company produces about 15 to 20 per cent of fertilisers used in the Australian market, and Mr Heath said Australia was a “price taker” in the market.
“Ammonia is the precursor for all nitrogen fertiliser and a large part of all fertiliser products,” he said.
Victoria is a major consumer of fertiliser and northern Victoria comprises a large share of the state’s market.
He said imports made up a large percentage of the consumption and so import prices dictated the ultimate price.
Commonwealth Bank economist Vivek Dhar outlined the impact of the Ukraine war and the effect of sanctions on European oil and gas consumption.
At the start of the war, Russian oil supply dropped off, but in more recent months other economies have been buying more Russian energy, particularly India and China.
More about the energy forum in next week’s Country News.
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