Europe’s biomethane growth accelerates as UK potential remains largely untapped

Europe’s biomethane industry is expanding at pace, even as the UK’s sector shows signs of stagnation, according to new analysis from consultancy Sia.
Its eighth European Biomethane Benchmark, published this week, finds that while deployment across the continent continues to rise, UK growth has stalled despite strong demand from energy suppliers and industry.
Europe has added hundreds of new biomethane plants over the past two years and now operates more than 1,500 facilities with a combined capacity of 60 TWh.
By contrast, UK deployment has levelled off, leaving significant scope for expansion.
The study warns that vast potential remains untapped both in Britain and across the EU.
Only 23% of available anaerobic digestion feedstock is currently used, and just 8% of biogas plants are upgraded to biomethane.
In most European countries, biomethane still accounts for less than 2% of total gas consumption.
The UK is highlighted as one of the markets with the lowest upgrading rates and a continued reliance on energy crops.
Sia’s findings also point to a shift towards more sustainable feedstocks.
Agricultural residues now make up around half of biomethane inputs, with organic waste contributing 21%, while dependence on energy crops continues to decline.
Ryan Shellard, Associate Partner for Energy, Utilities and Environment at Sia in London, said the sector’s barriers are no longer technical.
“Biomethane can deliver immediate decarbonisation by turning agricultural residues and organic waste into renewable gas for existing grids. The technology and feedstock exist. What’s missing is regulatory alignment and long-term investment certainty,” he said.
The report identifies regulatory fragmentation and high production costs as the main constraints on growth across Europe, including in the UK.
It recommends clearer national targets aligned with EU sustainability frameworks, harmonised certification and guarantee-of-origin systems, and formal recognition of biomethane’s decarbonisation value within carbon accounting to support long-term Biomethane Purchase Agreements.
These priorities mirror the agenda of the UK’s Green Gas Taskforce, a coalition of producers, shippers, traders, gas networks and industry bodies pressing for a coherent national strategy for green gas.
Sia also notes a policy shift underway across Europe, with governments moving away from production subsidies towards consumption-driven measures such as supplier obligations, blending quotas and inclusion of biomethane in the EU Emissions Trading System.