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Biomethane’s building momentum

 

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Energy Global,

2025 has undoubtedly been a huge year for British biomethane – marking the (potential) turning point from it being a ‘puff of gas in the grid’ to an essential component of the country’s future energy network.

Politicians and CEOs alike have finally woken up to the great, cross-sectoral potential of biomethane. Geopolitical uncertainty, economic drivers, and looming net-zero targets have created a perfect storm, recognising the need for domestic, secure, cost-effective, and scalable green gas.

And while politicians may debate about the necessity of net zero, the potential of biomethane has endured. Who would oppose its ability to recycle wastes, restore soil health, build farming resilience, create rural jobs, minimise energy infrastructure costs, and strengthen energy security?

As interest was piqued, decision makers needed more detail. And thus, in April 2025, the Green Gas Taskforce (GGT) was launched, a collaboration of the UK’s largest biomethane producers, the entire gas network, and key industry associations, with the purpose of building that essential evidence base.

Midway through the decade, serious questions continue to be raised in UK and overseas governments about the future role of gas. Politicians have long been told that hydrogen will be the solution to gas decarbonisation yet still, in 2025, it is not produced at any meaningful scale. And what is being produced, is costing the Treasury millions.

Consequently, the UK government was left to question – do we need a gas grid? And is it compatible with our net-zero ambitions?

The answers – yes and yes.

The gas grid is the backbone to the UK’s energy system. Acting like a nationwide battery, storing energy until it is required, building energy system resilience, and fulfilling myriad end uses for the 20+ million homes and businesses connected into it. Decommissioning the gas grid would not only be exorbitantly expensive and disruptive, but leave countless industries which need gas unable to keep going.

The challenge is consequently how best to decarbonise the 800 TWh of fossil natural gas currently flowing through its pipes each year; a challenge that is now being fully embraced by all gas networks. Fundamentally, there are two solutions which must work together: (1) reduce total gas demand and (2) increase the production of green gas.

In July 2025, National Energy System Operator’s (NESO) published its Future Energy Scenarios shedding light on how these solutions can be delivered practically and economically.

First, gas demand can be reduced to 250 TWh by 2050. For many gas users, improved efficiencies and electrification (e.g. the installation of a domestic heat pumps) can drive down national demand. Yet, there will remain a residual demand from end users who either require gas or for whom electrification is not practically nor economic feasible (e.g. high temperature heat).

Second, green gas must be scaled up immediately. As a proven, ready to use technology and flexible technology, NESO recognised the value of biomethane within the energy transition. Today it could heat homes without any customer disruption, and tomorrow it could fuel a manufacturing industry or generate power at scale. Scaling up its production is no-regrets.

NESO’s central holistic transition scenario requires 64 TWh of biomethane – a more than ten-fold increase from today’s production – representing around 40% of that future unavoidable gas demand in the UK.

Far more biomethane could be produced from sustainably sourced, domestic feedstocks. Research from Alder Bioinsights published in September 2025, commissioned separately by NESO and Green Gas Taskforce, revealed that up to 120 TWh of sustainable biomethane could be generated in the UK by 2050. Biomethane therefore has the potential to become a significant component of the future energy system.

Capacity is already growing. In February 2025, Future Biogas launched Moor Bioenergy – the UK’s first unsubsidised biomethane plant which is now fulfilling AstraZeneca’s domestic demand for gas. Meanwhile the UK-wide rollout of numerous new bioenergy with carbon capture and storage (BECCS) plants is already under way.

Looking ahead to 2026, two key policy decisions will determine the pace of growth. First, the inclusion of biomethane in the UK Emissions Trading Scheme (UK ETS) – just as it is in Europe – and second, the inclusion of biomethane in the greenhouse gas protocol, an international emissions reporting framework. Favourable decisions for both are expected imminently; determining how companies can re-port and monetise carbon savings from biomethane use.

The ever-mounting pile of evidence tells a compelling story – one which embeds biomethane as a key component of the net-zero transition and a necessary lever for British decarbonisation.

 

 

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