Unlocking the potential of biomethane

Biomethane is a renewable gas produced by breaking down organic matter such as agricultural and food waste, or sewage sludge. It's a cleaner alternative gas, with a carbon intensity that's significantly lower at just 16% of methane. What's more, it's chemically identical to methane, meaning it can be mixed into our gas network, in any ratio, without requiring any pipeline modifications. Ultimately, it can be used to significantly lower the overall carbon intensity of the gas we use to heat our homes and businesses as we transition towards net zero. 

Recognising its value in reducing carbon emissions, many European countries have set ambitious targets for biomethane production, particularly in Germany, France, Spain and Italy. By 2027, the bloc aims to produce 35bcm (372TWh) of biomethane. Denmark, for instance, already has over 20% biomethane in its gas network and aims to reach 100% by 2040. 

In the UK , biomethane is already contributing to emissions reductions. At Cadent, as the UK ’s largest gas network, we are already facilitating the injection of biomethane into our network today, working with producers across 47 connected sites, providing the capacity for 4TWh/year of biomethane. This represents around 50% of the UK ’s total biomethane production and is enough to heat around 350,000 homes. 

To meet the potential set out by the Renewable Energy Association – around 30TWh by 2030, we are working with farms and industrial partners to provide connections to our gas network. Achieving this target would be equivalent to providing 14% of the gas UK homes, businesses and industry use today. 

To further scale biomethane supply and reduce the overall carbon emissions of the gas network, we are advocating for the agricultural industry and government to adopt a best practice playbook for growth, drawing on the lessons learned from our European counterparts. Our research identifies three primary factors driving biomethane growth in Europe: clear national biomethane targets, production and demand-side incentives, and the adoption of new ways of working for gas networks. 

Adopting clear national biomethane targets

Europe’s ambition has been translated into national biomethane targets and strategies that bolster investor confidence. To reflect this in the UK , we need a clear statement of ambition from the government, backed by legislative targets that will indicate the role biomethane will play in the future net zero energy system – providing confidence to farms and other potential suppliers. 

We've seen in other sectors how combining ambitious production targets with stable policy frameworks has signalled investors to enter the market. The government should therefore set a target of at least 100TWh of biomethane production by 2050 and introduce interim targets aligned with the agreed carbon budgets. 

Implementing supply and demand-side incentives

In Europe, production incentives are being supplemented with demand-side incentives and obligations, which support the creation of a growing market for biomethane. 

The current Green Gas Support Scheme in the UK provides tariff-based support to producers for 15 years following a successful application. However, this scheme expires in 2028, and there's no clear indication of what will replace it. We're pressing for an early announcement on either an extension or replacement to this scheme that also includes and expansion of the definition of suitable biomethane feedstocks. 

Moreover, in Europe we have seen how effective demand-side incentives can be, such as the requirement on gas suppliers to source an increasing proportion of gas demand from renewable sources. Given the importance such incentives could have in creating a market for biomethane, we need better use of certification in the UK to pave the way for similar incentives for gas users. 

Establishing new ways of working

Lastly, we need to establish new ways of working. To keep up with our European peers, we need to become more customer-centric and increase the pace of delivery – something that we are focusing on at Cadent with help from the biomethane community. For example, we are investigating the use of reverse compression to facilitate greater capacity for green gas in constrained gas network areas. 

Biomethane has an important long-term role in the future net zero economy. Drawing on lessons from other European countries, we can harness the potential of biomethane to reduce carbon emissions while stimulating market growth. It is imperative that clear national targets are set, demand and supply incentives are put in place, and new, customer-centric ways of working are adopted. 

We’re ready to work with peers and the wider supply chain to realise this and we strongly urge government to take the necessary steps and commit to a future where biomethane plays a central role in our transition to a net zero economy.