Optimal Group and BOC sign MoU to build Australia’s first bioLNG facility

Capstone microturbine distributor Optimal Group and gas specialist BOC are exploring the development of Australia’s first bioLNG facility in Tasmania.

BioLNG is a renewable and non-fossil variant of liquefied natural gas (LNG) derived from processing organic waste flows.

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The Memorandum of Understanding agreement between Optimal Group and BOC will allow Optimal Renewable Gas (ORG), Optimal Group’s subsidiary to build a $55 million biogas plant processing 2.4 terajoules per day waste, the company says.

Optimal says that its plant will provide biomethane to BOC’s adjacent micro-LNG plant, in order to distribute bioLNG to agricultural and food processing customers.

According to Craig Dugan, CEO of Optimal Group, “BioLNG provides a clear path for existing BOC and Elgas customers in Tasmania to reach net zero across their Tasmanian operations. This partnership will demonstrate the potential for biogas and bring forward companies’ transition to net zero.”

Optimal Renewable Gas is looking to expand its biogas portfolio with additional projects in Victoria, NSW and Queensland in the pipeline. Dugan says the company is looking to build 10 biogras projects within 10 years.

“The secret to success in this field will be through speed and scale. Our customers are urgently seeking a solution to their thermal energy requirements and biogas offers them a commercially and technically proven alternative whilst solving Australia’s need to divert putrescible general solid waste from landfill,” says Dugan.

According to Vesna Olles, BOC South Pacific Director of Strategy and Clean Energy, “We are committed to working with government, industry and customers to accelerate the transition to net zero emissions and address the key themes outlined in the Australian Renewable Energy Agency’s (ARENA) Bioenergy Roadmap. We believe biogases will be a key part of Australia’s future energy mix particularly for hard-to-abate sectors.”

The agreement follows BOC’s commitment to provide low carbon pathways for customers who are decarbonising thermal energy processes.

“BOC and Elgas are investing in new technologies, partnerships and research to progress the development of green hydrogen, green ammonia and biogases across Australia,” says Olles.

Optimal Group Australia has a number of current bioLNG projects underway including a renewable energy project for McCain’s Foods, installing a 1.2 MW Biogas Power Generation System for the business.

“The McCain’s Project is a clear example of how biogas can assist to significantly reduce a customer’s carbon emissions. In fact, if we had additional waste available at McCain’s we could generate enough biogas on site to meet all of the gas requirements of their boiler,” Dugan says.