Biogas and biomethane

Manufacturing and electricity generation rely heavily on natural gas. Gas usage accounts for a quarter of total energy supply in Australia and approximately one-sixth of electricity generation. Gas-powered electricity generation supports grid reliability providing peak and firming capacity. It is also a critical energy source for high-temperature industrial processes, such as production of aluminium and chemicals

Biogas can be used to generate electricity, steam and heat for industrial production processes, or upgraded to biomethane. Biomethane, also known as renewable natural gas, is interchangeable with natural gas, does not require upgrades to existing gas infrastructure and can also be used as fuel by the medium to heavy vehicle sector.

Biogas and biomethane production are of increasing interest in Australia and Queensland. Opportunities range from lower energy costs for individual businesses running their own anaerobic digestion facility to providing energy to a precinct or into the grid.

There is currently no large-scale biogas or biomethane production in Queensland, although its production is widespread in Europe and the United States.

Biogas can be produced through anaerobic digestion, processing of waste and wastewater, or captured from landfill. Feedstock for anaerobic digestion is largely through primary industries, both residues as well as crops grown specifically for this use. This is well-established technology which, at scale, could support a small number of jobs.

At commercial scale, biomethane could support a range of sectors including high energy use industries such as aluminium smelters. At individual business level, such as on farm, biogas production can reduce energy costs.

Production of biogas and biomethane could support fuel security as well as providing an alternative path for waste management.