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July 2025

Biomethane Opportunities to Decarbonise Australian Industry

Biomethane Opportunities to Decarbonise Australian Industry

Blunomy partnered with Energy Networks Australia (ENA) to develop a report on the opportunity for biomethane to help decarbonise Australian industry.

Blunomy's analysis shows that harnessing readily-available organic waste streams could unlock around 400 PJ of biomethane each year, enough to meet up to 96% of today’s East Coast gas demand while leveraging the networks that already supply Australian industry. And not only can it meet a significant part of demand, it can do it cost-effectively: the first 50 PJ of biomethane could be supplied at just 10-27 AUD/GJ, consistent with the range paid for fossil gas in recent years.

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Q&A

Q: What role can biomethane play in decarbonising Australian industry, and what is required to scale it?

A: Australia holds ~400 PJ/year of recoverable biomethane that can directly replace fossil gas via existing networks, but unlocking its full potential requires targeted policy support to enhance feedstock recovery and lower production costs.

 

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