The state government will act to ensure gas sector investments and stability of supply continue during the energy transition, but it will not "prolong the use of natural gas and LPG beyond the time it is needed".
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That was one of the key points found in the draft Tasmanian Future Gas Strategy released by Minister for Energy and Renewables, Guy Barnett, on Friday.
According to the report, the government's approach will balance "the need to minimise greenhouse gas emissions in the energy sector with the need to ensure a stable energy supply".
"In the meantime, the government will continue to support the development and take-up of alternative renewable gases, such as hydrogen, biogas and renewable methane," the report read.
Natural gas is currently supplied to the state via the Tasmanian Gas Pipeline, and sold by Tas Gas and other retailers.
According to the draft report, the gas industry will remain an important supplier to some industries whose industrial processes have no alternative to natural gas, but only until alternative fuel sources become available and economically feasible.
The report also pointed out the vulnerabilities of the gas sector in the state, including its "lack of economies of scale" and its 100 per cent dependence on imports from the mainland at a time of surging gas prices in the south-east of the country.
Mr Barnett said while getting to net zero was important, it was also important that the government did "not put in place policies and regulations that might undermine the investment needed [in the gas industry] during this transition".
"Natural gas should remain available to Tasmanian users while renewable alternatives mature, as a premature departure from natural gas could undermine economic growth and force users back to dirtier fuels," Mr Barnett said.
"Nonetheless, there are opportunities to decarbonise Tasmania's gas network and at the same time improve our energy security by reducing reliance on imports from the mainland."
These included local alternatives included green hydrogen and bioenergy, which could be produced in the state from wind, hydro and forestry resources.
Phaedra Deckart, CEO of Tas Gas, said the draft report was "an important policy step" in providing clarity to the industry and gas users about the role the government wants the industry to play in the future.
"Whether it is natural gas, hydrogen, or bio-gas, for many businesses there is no alternative currently on the market other than 'gas' to provide their heating needs," she said.
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"As we transition to Net Zero we must ensure that we consider the needs of Tasmania's industry for affordable, secure energy to deliver future economic prosperity."
"We are acting now to explore the integration of lower carbon gas into our network," she said.
Community members have until January 12 to submit a public comment on the draft strategy, and the final report will be released soon after.
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