BOC and Optimal Group sign agreement to focus on development of Australia’s first bioLNG facility

Sydney, Australia, 30 November 2021: Leading gases and engineering company BOC, a subsidiary of Linde plc, has today announced a new memorandum of understanding (MoU) agreement with Optimal Group to explore the development of Australia’s first bioLNG facility. 

The companies will investigate the potential for Optimal’s subsidiary, Optimal Renewable Gas to build a $55 million, 2.4 TJ/day waste to biogas plant adjacent to BOC’s micro-LNG plant in Westbury, Tasmania. 

BOC and its subsidiary Elgas supply LNG to industrial customers in Tasmania. The biogas plant would provide biomethane to BOC’s micro-LNG plant, which would then be processed into bioLNG and distributed to BOC and Elgas customers in agriculture, food processing and other industries. 

BioLNG provides an opportunity for industrial and commercial customers to achieve net zero emissions, while retaining existing plant and equipment. LNG is typically used for thermal processes and off-grid power generation at sites without access to a natural gas pipeline network. 

Vesna Olles, BOC South Pacific Director of Strategy and Clean Energy, said the new agreement was part of BOC and Elgas’s commitment to develop low carbon gas alternatives and provide pathways for customers to decarbonise 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. 

“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. 

“We look forward to working with Optimal Group to explore the opportunity for transitioning BOC’s Westbury micro-LNG plant to bioLNG and working together nationally to develop further opportunities to produce biogases.” 

Optimal Group has a strong track record delivering biogas projects across Australia with a pipeline of additional projects underway in Victoria, New South Wales and Queensland. 

Craig Dugan, Optimal Group’s CEO said a bioLNG plant in Tasmania would benefit industrial customers with many relying on natural gas or LNG for 70% of their overall energy requirements.

“We are delighted to have reached agreement on this MoU with BOC and Elgas. Our aim is to build 10 grid scale biogas projects with a mix of biogas to grid and biogas to LNG over the next decade. The secret to success in this field will be 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 while solving Australia’s need to divert putrescible waste from landfill.” 

Dr John Hewson, Optimal Group’s Chair said biogas can help governments address Australia’s growing waste disposal problems while producing a valuable renewable fuel. 

“Biogas technology is well proven in Europe and North America. Putrescible waste is diverted from landfill, sorted and processed through an Anaerobic Digester to produce biomethane. The by-products include fertiliser, biomethane and bio carbon dioxide. 

“The recent release of ARENA’s Bioenergy Roadmap recognises that biogas will play a significant role in decarbonising our gas grids. Optimal and its partners believe these biogases will create economic growth in the construction and operation of the plants. It is a win-win solution.”

-ENDS-

About BOC: 

BOC, a subsidiary of Linde plc, supplies compressed and bulk gases, chemicals and equipment across the South Pacific region. 

Linde is a leading global industrial gases and engineering company with 2020 sales of $27 billion (€24 billion). We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain and protect our planet. 

The company serves a variety of end markets including chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases are used in countless applications, from life-saving oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and much more. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions. 

Information about BOC can be found here: https://www.boc-limited.com.au 

About Elgas:

Elgas is Australia’s largest supplier of liquefied petroleum gas. Elgas provides convenient and safe LPG products for home, businesses, autos and BBQ customers and LNG for large thermal energy users. Elgas operates the only underground LPG storage facility in the Southern Hemisphere with a capacity of 65,000 metric tonnes, guaranteeing long term supply. Elgas supplies LNG across Australia for applications including power generation and industrial applications. Elgas is wholly owned by BOC Limited, a subsidiary of Linde plc. More information https://www.elgas.com.au/