The case for biomethane | Sustainability in Practice

In an open letter from Charlotte Morton, OBE, CEO of the Anaerobic Digestion and Bioresources Association to Ed Milliband, she calls for biomethane to be recognised as a net zero fuel, which can be used in perpetuity without causing global warming.

“The UK stands at a critical juncture in its journey towards net zero. As CEO of ADBA, I see first hand the immense, untapped potential of biomethane to drive this transition, and yet that potential is at risk if the incoming Emissions Trading Scheme (ETS) treats biomethane in the same way as its fossil-fuel derived equivalent.

The need for biomethane to be recognised as a net zero fuel within the UK ETS is not merely an industry plea – it is vital to safeguard net-zero targets and unlock more thank £8 bn in private sector investment.

That’s not a speculative figure; it’s based on intelligence from our members – the developers, investors and operators with shovel-ready projects and significant expansion plans awaiting the right policy signals. Failure to act swiftly risks stalling a sector that is ready to scale and deliver.

Biomethane is a renewable version of natural gas, produced from the biogas made by anaerobic digestion (AD) of organic waste, such as food, agricultural residues, and sewage. The process also yields a nutrient rich digestate fertiliser, which is invaluable for restoring sol health.

Despite these green credentials, the current UK ETS rules unfairly penalise biomethane, treating it in the same way as climate-changing fossil gas. This makes no logical sense.

The environmental and economic arguments for biomethane’s proper classification are overwhelming: it displaces fossil fuels and cuts methane emissions. The AD industry currently accounts for one percent of the UK’s annual greenhouse gas emissions savings and, by fully deploying biomethane by 2030, we could save 27 million tonnes of CO₂ _e per year in the UK alone. That’s comparable to taking one-third of all cars off the road. Government analysis also suggests that producing up to 30 TWh/year of biomethane by 2030 could lead to six megatonnes of CO₂ _e annual emissions cuts, with potential for a further four megatonnes of CO₂ _e per year in greenhouse gas removals. Critically, our industry digest 36 million tonnes of organic waste annually, stopping these materials from releasing greenhouse gasses, especially methane, from landfills.

When it comes to energy security and industrial decarbonisation, biomethane is a proven, homegrown, low-carbon solution. It can decarbonise hard-to-abate industrial sectors, such as chemicals, manufacturing, ceramics and glass – all vital for the UK’s national security and economic resilience. By 2030, biomethane could heat 6.8 million UK homes with eight billion cubic metres of gas generated. Biomethane also supports rural economies, protects hundreds of thousands of jobs and is a viable export industry. The sector currently employs around 4,800 people. With full deployment by 2030, this could become 30,000 direct and 30,000 indirect jobs.

Recognising the urgency for biomethane to be exempted from the ETS, the ADBA -along with more than 90 businesses and industry leaders – recently sent an open letter to the Secretary of State for Energy Security and Net Zero, Ed Miliband MP. The letter co-written by myself and our chair, former Secretary of State Chris Huhne, and calls for:

Confirmation that the biomethane injected into the UK’s gas grid will be classified as a net-zero fuel in the same way as sustainable aviation fuel
That UK ETS rules fully reflect biomethane’s value
A timeline for implication, to give the market the confidence it needs.

Currently, treating biomethane in the same way as fossil fuel gas forces firms to use valuable carbon allowances unnecessarily. If biomethane was classed as net zero, buyers could use these for other things, and could add around £10 / MWh to the value of biomethane. The adjustment would provide a critical financial signal, unlocking investment and accelerating deployment.

The time for action is now. We have a proven technology and private investment ready to deploy. What’s holding us back is policy uncertainty.

We urge the Secretary of State to act decisively and confirm that biomethane will be given the net zero status it rightfully deserves”.

Copied from Circular Magazine, CIWM, Autumn, 2025