21 March 2025
How can biomethane power rural economies and a greener gas grid?
With production increasing four-fold over the last 25 years, largely driven by government incentives, this renewable gas presents a unique opportunity not only to decarbonise the gas grid but also to drive economic growth in rural communities.
As the UK continues to move away from fossil fuels, biomethane’s role in energy security, job creation and sustainable agriculture is becoming more evident. But to fully realise its potential, greater strategic focus, investment and collaboration are needed. In this blog, we’ll explore how biomethane can strengthen the national gas grid, boost local economies and support the future of sustainable farming.
Energising rural economies with biomethane
The UK’s network of approximately 730 operational anaerobic digestion (AD) plants generate over 2,800 MW of biogas, which is used as renewable heat, electricity and biomethane. Initiatives such as the Green Gas Support Scheme incentivises biomethane production by providing financial support to plants injecting gas into the grid, making it more economically viable. But beyond energy, these developments are revitalising rural economies by creating a diverse range of job opportunities and new revenue streams for local businesses.
Each stage of biomethane production has a role to play.
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Strengthening agricultural supply chains
The foundation of biomethane production lies in the efficient management of feedstocks, a process that creates a ripple effect of activity across rural areas. This involves the careful collection and transportation of organic materials, from crop residues and energy crops to livestock manures.
As the Official Information Portal on AD reports, the UK has a powerful resource at its disposal: over 100 million tonnes of organic material that’s perfect for AD. This includes 90-100 million tonnes of agricultural by-products, 16-18 million tonnes of food waste and 1.7 million tonnes of dry sewage sludge – all capable of being transformed into renewable biomethane.
Farmers and agricultural workers play a key role in this respect, using machinery, experience and their expertise to gather and prepare these resources. This network of activity supports local employment, with opportunities for machinery operators, drivers and logistical planners, while ensuring a steady supply of feedstocks that can power the UK’s green gas production.
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Operations and maintenance
The effective operation and maintenance of the UK's AD plants are crucial for consistent biomethane production. This involves a range of skilled tasks performed by a dedicated workforce, including technicians, engineers and plant operators.
From making sure the plant adheres to stringent environmental regulations, to prioritising the safe operation of machinery at all times, the ongoing operation of these plants creates a consistent demand for local services and supplies, strengthening local economies. This provides stable, skilled employment for rural communities.
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Sustainable farming practices
Biomethane production isn't just an energy solution; it's also a powerful catalyst for sustainable agriculture. Farmers can diversify their income by providing feedstocks to AD plants, using both energy crops - which have been grown for this very reason - and agricultural waste. This creates a new market for their products, and helps manage waste effectively.
But the benefits don’t stop there. AD delivers a potent, nutrient-rich digestate, effectively closing the loop on sustainable farming practices. This offers the chance to replace synthetic fertilisers, with the digestate from AD dramatically reducing environmental pollution and revitalising soil quality.
A green gas for a cleaner grid
Rural-based biomethane production acts as a direct driver of decarbonisation within the natural gas grid. By replacing fossil-derived natural gas with renewable biomethane, we can reduce greenhouse gas emissions and transition towards a cleaner energy system. According to the Imperial College London, using biomethane instead of natural gas in our network could cut greenhouse gas emissions by up to 70%.
Every cubic meter of biomethane injected into the grid displaces an equivalent amount of natural gas, contributing to the UK's net zero ambitions. This localised production model also minimises the transmission losses associated with long-distance transportation, further enhancing the environmental benefits.
Biomethane presents an undeniably strong case. As a key player in the transition towards a more sustainable energy future, its ability to seamlessly integrate with the existing gas grid, while offering a renewable alternative to fossil fuels, makes it a vital resource for decarbonising the energy sector.
It isn’t just a promising green gas, it’s a practical, ready-to-go decarbonisation solution. Unlike some emerging technologies that require years of development and costly infrastructure changes, biomethane is already making an impact today. Here’s why:
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A reliable drop-in replacement
Chemically identical to natural gas, biomethane can be directly injected into the existing gas grid without requiring costly infrastructure upgrades. -
Decarbonising Hard to Electrify sectors
While electrification plays a key role in the UK’s net zero strategy, certain industries such as heavy transport and industrial manufacturing are difficult to electrify cost-effectively. Biomethane offers a viable alternative, enabling these sectors to decarbonise without extensive infrastructure changes. -
Enhancing Grid Stability and Energy Security
Biomethane provides a predictable, storable renewable energy source that can complement intermittent renewables such as wind and solar. This flexibility makes it a valuable asset for balancing supply and demand, improving energy security and reducing reliance on imported fossil fuels.
Unlocking Biomethane’s Full Potential
To accelerate the growth of biomethane, a coordinated effort is needed across industry, government and local communities. So, what can be done to encourage faster uptake of biomethane? Speaking to Politics Home, Tony Green, SGN’s Future of Energy Director, said: “Strategic support is required from the NESO and local authorities to encourage production and optimise the ability to inject biomethane into the gas grid. Increasing strategic focus on optimal locations will unlock greater biomethane capacity for all, as well as helping to overcome potential constraints or blockers such as planning permission or feedstock availability.”
Key priorities for industry and policymakers:
- Infrastructure investment: Expanding biomethane production facilities and optimising grid injection points to integrate more renewable gas.
- Regulatory and policy support: Ensuring long-term financial mechanisms to maintain investor confidence in biomethane projects.
- Stakeholder collaboration: Strengthening partnerships between gas networks, agricultural businesses, and energy providers to streamline supply chains.
- Public awareness and adoption: Educating businesses and consumers on biomethane’s role in the energy transition and its broader environmental benefits.
A renewable future powered by biomethane
Biomethane presents a compelling solution for decarbonising the gas grid, while driving economic growth in rural areas. Its potential to create jobs, support sustainable agriculture and enhance energy security underscores its significance in the UK's energy transition.
By promoting innovation, investment and collaboration between the agricultural waste sector, energy providers and policymakers, we can unlock the full potential of biomethane and accelerate the journey towards a cleaner, more resilient energy future.
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