Heating the nation’s homes with gas produced from farm waste would slash bills and reduce our reliance on imports, industry experts claim.
They are calling for biomethane to play a much larger role in the nation’s energy mix as we move towards Net Zero.
The biogas is chemically identical to natural gas but it is produced from organic waste streams, such as food waste or slurry.
Unlike North Sea gas, it doesn’t come from geological reserves. One of the biggest challenges of hitting Net Zero by 2050 is replacing the gas heating in 25 million UK homes.
The Government aims to phase out gas boilers in favour of heat pumps. But supporters of biogas say it can be ‘injected’ into the existing network, helping to keep the heating on without using traditional fossil fuels.
Future Energy Networks, the industry body that represents gas networks as they manage the green energy transition, says the UK already has capacity to produce enough biomethane to heat around one million homes.
But only 2.5 per cent of our organic farm waste is being utilised.
Were the industry scaled up, FEN says, biomethane could supply two thirds of the UK’s gas needs by 2050.
The Government aims to phase out gas boilers in favour of heat pumps
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It would also reduce our reliance on imported natural gas from around 60 per cent today to 23 per cent.
“At scale it strengthens the UK’s energy security and independence and could cut energy bills by £135 per year over the long term”, FEN says.
The EU is already scaling up its production, aiming to his 35 billion cubic metres by 2030.
Under EU laws, biomethane is viewed as carbon neutral.
A joint letter to Ed Miliband in March called on the energy secretary to ‘provide a credible pathway to unlock the full potential of this homegrown, low-carbon resource”
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This means that, under the EU’s Emissions Trading Scheme (ETS), businesses using it don’t have to pay carbon tax or buy pollution permits.
But although it is viewed as a ‘green gas’, the UK ETS treats it the same as fossil fuels, which biomethane supporters says is hiking up prices and holding back investment.
Energy bosses have called for this to change as part of a massive scaling up of the biomethane sector.
A joint letter to Ed Miliband in March urged the energy secretary to “provide a credible pathway to unlock the full potential of this homegrown, low-carbon resource”.
It read: “In a period of ongoing geopolitical uncertainty, technologies that strengthen domestic supply while advancing decarbonisation should be prioritised.
“Every molecule of biomethane produced in Britain directly displaces a molecule of imported gas, reducing the UK’s exposure to the volatility of international markets and shocks to supply.”
It adds: “Biomethane is not speculative. It is proven, scalable at pace and hassle-free for the consumer. With the right policy signals from Government, significant investment is ready to flow.”
One of the signatories is James Earl, FEN’s chief executive. He said: “Biomethane is produced from widely available domestic feedstocks and can be deployed rapidly where local demand exists.
“At scale it strengthens the UK’s energy security and independence and drives investment and jobs into our rural communities.”
FEN estimates that using available biomethane feedstock would reduce gas import dependency from 61 per cent in 2025 to 23 per cent by 2050.
“With the right policy framework, domestic production could reach around 30TWh by 2030 and exceed 120TWh by 2050 – supplying more than two-thirds of Britain’s gas demand by 2050,” it states.
Another signature of the letter is Chris Huhne, former energy secretary and now chair of the Anaerobic Digestion and Bioresources Association.
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He said using the gas would have a range of benefits, including cutting emissions and boosting rural communities.
He wrote: “Produced from organic wastes and injected into the existing gas grid, biomethane is fully domestic, low carbon, storable and dispatchable when needed.
“Unlike LNG, it does not depend on global shipping routes or international politics. Unlike new fossil extraction, it helps meet the UK’s climate commitments while strengthening energy, food and economic security.
“Backing biomethane would reduce import dependence, cut emissions and support rural economies, all while using infrastructure we already have.
“The UK does not lack options. It is lacking the political will to scale them.”
But Dr Matilda Dunn, policy analyst at think tank Green Alliance, said while biogas could reduce emissions if produced from waste, a growing proportion of feedstock came from purpose grown crops, increasing the pressure on land use.
Leakage was also possible during the production process, she said.
She said: “While biogas has a role to play in decarbonising the gas grid, it is no magic bullet.
“Without stronger safeguards, its expansion risks substituting one set of environmental problems for another.”
Research commissioned by the MCS Foundation, which wants to phase out fossil fuels in favour of technology like heat pumps, suggested biomethane would only meet 18 per cent of gas demand by 2050.
It found that the available sources, such as manure and sewage, can’t be scaled up enough without affecting the wider economy.
The Department for Energy Security and Net Zero said that biomethane producers could apply to the Green Gas Support Scheme, that “provides financial incentives for eligible anaerobic digestion biomethane installations to increase the proportion of green gas in the gas grid”.
A consultation is underway regarding its ETS classification.
A spokesperson for the Department for Energy Security and Net Zero said: “Biomethane can play an important role in reducing our reliance on imported gas, increasing our country’s energy security and helping to deliver net zero. “That is why we are supporting new biomethane production through the Green Gas Support Scheme.”