British biogas could shield households from Gulf energy shock

British biogas could shield households from Gulf energy shock

Industry says taking the brakes off domestic biomethane production could cut imports and insulate consumers from supply and cost shocks.

Britain could reduce the impact of rising global gas prices and supply concerns caused by the conflict in the Gulf by rapidly increasing domestic green gas production, according to the UK’s anaerobic digestion industry.

The Anaerobic Digestion and Bioresources Association (ADBA) says existing biomethane plants could increase production by almost a third within months if government removes several regulatory barriers, boosting UK gas supply.

Biomethane – a purified form of biogas produced from domestic food waste, farm residues and other organic materials – is chemically identical to natural gas and can be injected directly into the UK gas grid. Additionally, biomethane is a net zero energy source – meaning our clean energy ambitions will not be sacrificed for the sake of energy security.

Currently the UK produces around 7 TWh of biomethane each year, enough to heat roughly two third of a million homes. Industry estimates suggest output could rise to around 9 TWh by next winter. The sector says that increase alone would be enough to replace the entire volume of gas Britain imported from Qatar in 2024.

Disruption in the Gulf has pushed up prices worldwide as shipments are redirected to the highest bidders.

That means British households and businesses ultimately pay the global price for gas.

ADBA Chair and Former Energy Secretary Chris Huhne said: “Britain cannot control global gas markets, but it can control how much of its energy it produces at home. Biomethane is ready to go today. With a handful of swift policy changes we could rapidly increase domestic gas production within months, cutting imports and helping protect households from the worst of global price and supply shocks.”

Gas demand will fall during spring and summer, but the industry says decisions taken now will determine how resilient the UK energy system is next winter.

The UK currently has far less gas storage than comparable European countries and remains heavily exposed to volatility in global markets.

During the 2022 energy crisis, following Russia’s invasion of Ukraine, the European Union made biogas and biomethane a central part of its energy security response.

Countries such as Denmark now meet around 40% of their gas demand from biomethane, while France has rapidly expanded production.

Industry leaders say the UK has the resources to go much further. Studies suggest biomethane could eventually produce around 120 TWh of gas annually, potentially supplying between 20 and 50% of long-term UK gas demand.

The sector says several targeted policy changes could unlock additional production quickly.

These include:

• removing production caps within the Green Gas Support Scheme,
• reforming gas grid injection limits so plants can operate at full capacity instead of being artificially constrained,
• prioritising injection and use of this local green gas production over foreign imports,
• investing in technology that allows gas to move more freely through the network, and
• removing outdated regulations requiring propane to be added to biomethane before it enters the grid.

Industry leaders say boosting domestic biomethane would keep energy spending inside the UK economy rather than flowing overseas through LNG imports.

With energy security again under pressure, the industry says expanding Britain’s green gas sector would provide one of the fastest ways to strengthen domestic supply before the next global shock hits.

There are currently over 750 biogas plants operating across the UK, processing around 36 million tonnes of organic waste each year.

Fully developed, the sector could produce enough renewable gas to heat nearly seven million homes while supporting tens of thousands of jobs across farming, waste management and energy infrastructure.

– ENDS –

For further information, contact:

Jocelyne Bia, Head of Corporate Communications, ADBA
e: jocelyne.bia@adbioresources.org; tel: 020 3176 0592

Notes to editors

About ADBA

The Anaerobic Digestion and Bioresources Association (ADBA) is the industry association for the UK anaerobic digestion (AD) and biogas industry. ADBA’s vision is to see the full potential of the UK green gas industry realised so it can help the UK achieve its emissions targets and other policy goals, creating a truly circular economy. www.adbioresources.org

About the AD industry

• There are currently over 750 AD plants operational across the UK

• The entire industry digests approximately 36 million tonnes of organic material each year – organic material that would otherwise emit greenhouse gases including highly potent methane, if left untreated in landfill.
• An estimated 21TWh of biogas is produced each year by the AD industry – this green gas is either used to generate electricity and heat via a combined heat and power (CHP) unit or upgraded to biomethane and injected directly into the national gas grid.
• The industry currently delivers savings of 1% off the UK’s greenhouse gas emissions every year.
• An estimated 4,800 people are currently employed in the AD and biogas industry in the UK.
• Overall, the industry grew by 5 per cent last year as the closure of older, smaller plants was outweighed by big-scale units feeding into the gas grid.
• Fully deployed, by 2050, the UK AD and biogas industry is expected to:
  • produce over 100TWh of biomethane
  • provide between 20% and 50% of UK gas demand
  • create 60,000 jobs (30,000 direct and 30,000 indirect).
  • save the UK 27 million tonnes of CO2 equivalent – equivalent to taking 1/3rd of all cars off the road
  • heat 6.8 million UK homes with the 8 billion m3 of biomethane generated

How AD works

Anaerobic digestion (AD) is the natural breakdown of organic matter in the absence of oxygen in a container called a digester. The process extracts the energy this material contains in the form of biogas leaving the remaining organic matter called digestate – a stable, nutrient-rich substance used as a biofertiliser which restores soil health. Organic wastes typically treated through AD include food waste, animal manures and slurries, other agri-wastes, food & drink processing wastes, sewage sludge.