Knowledge Base
Why do governments subsidise biogas and biomethane?
Governments subsidise biogas and biomethane to meet renewable energy and climate targets while managing organic waste. Biomethane replaces fossil natural gas in the existing grid, which strengthens energy security and lowers greenhouse gas emissions. Anaerobic digestion also captures methane from manure and organic waste that would otherwise reach the atmosphere, and returns nutrients to the soil as biofertiliser. Because these public benefits are wider than the direct return to the operator, support schemes close the gap between the cost of production and the market price of energy, which makes projects financeable.