The UK's biomethane sector stands at a turning point. According to new analysis from the Green Gas Taskforce, supported by gas network operators Cadent and SGN, the technology that has spent years on the margins of the renewables conversation could deliver 57,000 jobs and £70 billion of cumulative gross value added (GVA) to the UK economy by 2050.
Within that figure, Scotland alone could account for 8,000 jobs and £10 billion of GVA, a disproportionately large share for a country that makes up a relatively small portion of the UK's overall population and gas demand.
The numbers come from two related but distinct pieces of research. The UK-wide figures were commissioned from consultancy Baringa and released at the Green Gas Taskforce's One Year On event, drawing on operational data from existing biomethane plants to model future potential.
The Scotland-specific findings sit within a separate report, Scotland's Green Gas Opportunity, published jointly with SGN, Scotland's gas distribution network.
Together, they build the most detailed picture yet of what a scaled-up biomethane sector could mean for the UK economy, for energy security, and for the rural communities the Taskforce argues stand to benefit most.
A sector already running, but far from its potential
Biomethane is produced through the anaerobic digestion of agricultural waste and other organic residues, in a process that does not depend on weather or daylight, setting it apart from most other forms of renewable generation. There are currently 131 biomethane plants operating across Great Britain, of which 25 are located in Scotland. SGN says it now provides the entry point for more of Great Britain's green gas than any other network operator, with over half of all biomethane production sites connected to the GB grid located on its Scottish network, and a further nine plants already in the pipeline.
Collectively, existing UK biomethane generation capacity is enough to heat the equivalent of one million homes. But the Taskforce's research suggests this represents only a fraction of what is achievable. Independent analysis commissioned by the group concluded that sufficient sustainable feedstock exists across the UK to support 120 TWh of biomethane production by 2050, more than ten times today's output. In Scotland specifically, the equivalent figures are 8 TWh by 2030 and 19 TWh by 2050, a volume that would cover around 50% of the country's entire 2025 economy-wide gas demand and would be sufficient to heat and decarbonise 76% of Scottish homes, even before accounting for any reduction in consumption from improved energy efficiency.
The strategic case for getting there is sharpened by the UK's growing exposure to imported gas. Without further growth in domestic biomethane generation, the National Energy System Operator (NESO) has forecast that UK natural gas import dependency will climb to 70% by 2030. Achieving the Taskforce's 120 TWh target by 2050 would, by contrast, cut gas imports by 61% in NESO's Holistic Transition scenario, a significant swing in the UK's underlying energy security.
The jobs and wages argument
Central to the Taskforce's case is the claim that biomethane growth would not simply displace emissions but would actively reshape rural economies. Jobs created by an expanded UK biomethane sector are forecast to carry a 20% wage premium over the national average; in Scotland, the figure is 17% above the Scottish average. In both cases, the Taskforce stresses that these jobs would be concentrated outside major cities, in the rural communities where biomethane plants and their associated feedstock supply chains are typically based.
There is also a domestic-content argument that the Taskforce uses to differentiate biomethane from other renewable technologies. According to its analysis, biomethane plants offer an average UK content share of 85%, the highest of any renewable or low-carbon technology assessed. In practice, this means that for every £1 invested in UK biomethane infrastructure, 85p remains within the domestic economy, supporting local manufacturing, construction and engineering employment rather than leaking overseas through imported components or technology licensing.
Scotland's farming sector: an underused resource
The Scotland-specific report places particular emphasis on the role of farming in unlocking the country's biomethane potential. At present, only 2.5% of Scotland's organic farm waste is used to generate biomethane, a figure the Taskforce describes as representing a substantial untapped resource. Scaling up the use of this feedstock could provide Scottish farmers with a stable revenue stream over a 15 to 20-year period, offering a degree of income predictability that is otherwise scarce in an agricultural sector currently under considerable economic pressure.
Anaerobic digestion also produces digestate, the nutrient-rich organic material left over once methane has been extracted. Given its nitrogen content, digestate can serve as a green substitute for synthetic fertiliser, all of which is currently imported into Great Britain. The Taskforce argues that properly valorising digestate as bio-fertiliser would reduce the net cost of biomethane production, improve the sustainability of Scottish agriculture, and open further revenue opportunities for farmers participating in the supply chain.
Notably, the single largest current source of biomethane feedstock in Scotland is whisky waste, drawn from a distilling industry that employs around 40,000 people domestically. This points to a wider pattern the Taskforce highlights: that Scotland's biomethane opportunity is closely bound up with sectors, such as whisky and farming, that are already central to its rural economy.
Beyond heating: industry, transport and power
While domestic heating represents the most immediately visible application, the Taskforce's research highlights several other uses for biomethane that are already underway or in development. The fuel can be used interchangeably with natural gas to decarbonise industrial processes requiring high-grade heat, such as food production and manufacturing, without any modification to existing equipment. This is a meaningful distinction in Scotland, where 58,000 businesses depend on gas for their energy needs, many of which face significant cost or technical barriers to full electrification.
In transport, biomethane is already fuelling part of the UK's heavy goods vehicle fleet, with around 3,250 biomethane trucks currently on UK roads. Separate analysis commissioned by the Taskforce found that the total cost of ownership for a 44-tonne biomethane HGV is already lower than its diesel equivalent, while matching it on performance, load capability and refuelling practicality, thanks to the existing reach of the gas network.
The report also points to a role for biomethane in balancing the electricity grid as Scotland's wind and solar capacity continues to expand. Dispatchable, low-carbon power generated from biomethane in gas-fired stations could help meet demand during periods of low renewable output, such as still, dark evenings when wind and solar contribute little.
A further possibility raised in the report is the bio-hybrid heating system, which pairs an existing biomethane-fuelled gas boiler with a smaller heat pump. The heat pump handles home heating during milder periods, cutting household gas demand by at least 70% over a year, while the boiler remains in use during colder spells and for hot water. The Taskforce argues this approach delivers emissions reductions comparable to a standalone heat pump installation, but at substantially lower upfront cost, an important consideration given that 40% of Scottish homes currently carry an EPC rating of D or below and that full energy efficiency retrofits can cost between £8,640 and £17,280 depending on property size and condition.
The economic case for net zero, and what government needs to do
Beyond the sector-specific benefits, the Taskforce's research makes a broader claim about the cost of the UK's overall net zero transition. According to its analysis, maximising the UK-wide biomethane opportunity would reduce the total cost of reaching net zero by £174 billion, equivalent to a saving of £250 per household per year. This figure positions biomethane not simply as one decarbonisation option among many, but as a tool for making the wider transition more affordable across the economy.
To realise this potential, the Green Gas Taskforce has set out five specific policy priorities for government. These include establishing a national target for biomethane production; delivering an ambitious post-2030 policy framework following the extension of the Green Gas Support Scheme, to ensure consistent delivery of new plants; rapidly securing biomethane's zero-rating under the UK Emissions Trading Scheme; creating a functional market for greenhouse gas removals generated through biogas upgrading and biomethane combustion, alongside formal valorisation of digestate as a fertiliser substitute; and securing clear government recognition of the UK's gas infrastructure as a strategic enabler of decarbonisation, economic growth and energy security.
Voices from the sector
A spokesperson for the Green Gas Taskforce described biomethane as "the low carbon answer to the UK's gas supply question," arguing that scaling up the sector would deliver "57,000 well paid and skilled jobs in the rural heartlands of the country." With government expected to consult on the future regulatory framework for biomethane in the coming months, the spokesperson called for biomethane supply to be formally recognised as a domestic energy priority.
Dr Angela Needle, director of strategy at Cadent, said biomethane was "a ready solution to the challenges we need to tackle today," pointing to its existing role heating hundreds of thousands of UK homes and reducing emissions from industry and HGVs. She added that emerging sectors such as data centres were increasingly interested in the technology, and urged government to back biomethane as "one of the most credible options available to the UK right now to meet our energy needs."
Simon Kilonback, chief executive of SGN, struck a similar note on the Scottish side, describing biomethane as offering "enormous potential" to play a key role within a diverse energy mix that takes advantage of Scotland's renewable resources. He highlighted the fact that biomethane can be stored and transported through existing gas infrastructure to wherever it is needed, allowing Scotland to lean further into intermittent renewables like wind while retaining the security of a gas network capable of meeting demand year-round, including during periods of low renewable output or the cold snaps when energy demand peaks.
Taken together, the two reports make a case that goes well beyond the usual decarbonisation framing. For the Green Gas Taskforce, biomethane is being positioned as a rare policy opportunity that aligns energy security, rural economic development and the affordability of the net zero transition, provided government is willing to commit to the regulatory certainty the sector says it now needs.
How biomethane could deliver £80bn and tens of thousands of jobs across Scotland and rest of the UK
