SGN has backed analysis suggesting biomethane could add £10bn to Scotland’s economy by 2050, support 8,000 skilled jobs, and meet around half of the country’s current gas demand.
The report, Scotland’s Green Gas Opportunity, argues that biomethane could provide 19TWh of renewable gas by 2050 by turning more agricultural and organic waste into energy. It says 85p of every £1 generated through the sector could be retained in the UK economy.
The analysis also claims biomethane could heat and decarbonise the equivalent of 76% of Scottish homes, using existing gas networks and boilers. SGN said 25 biomethane plants are already connected to its network, supplying the equivalent annual gas demand of more than 208,000 households.
Marcus Hunt, chief corporate affairs officer at SGN, said: “What makes biomethane particularly compelling is that we’re not starting from scratch. Scotland already has enough connected biomethane capacity on SGN’s network to meet the equivalent demand of more than one in ten homes connected to the gas grid, demonstrating that this technology is already delivering for consumers today.
“By turning more of Scotland’s agricultural and organic waste into renewable gas, we can create value in rural communities, reduce reliance on imported fuels and strengthen the resilience of our energy system. The opportunity now is to move from potential to delivery and unlock this industry at scale.”
The report says Scotland currently uses only around 2.5% of available organic farm waste for biomethane production, leaving significant feedstock potential. The technology captures methane from decomposing organic material and upgrades it for injection into the gas grid.
Charles McAllister, director of the Green Gas Taskforce, said: “Biomethane is a reliable, renewable and ready fuel with the potential to heat and decarbonise the equivalent of three quarters of Scottish homes whilst providing a stable revenue stream to Scottish farmers. Biomethane is injected into the Scottish gas grid and requires no change in end user equipment, offering a further choice for end users and a means to decarbonise seamlessly.
“In order to unlock Scotland’s green gas potential, the Green Gas Taskforce is calling on the Scottish Government to recognise biomethane’s potential and act to turbocharge its development.”
Biomethane sits at the intersection of energy security, rural income, waste management, and heat decarbonisation. Unlike wind and solar, it can provide continuous supply regardless of weather conditions. Unlike some home-heating alternatives, it can use existing gas infrastructure, reducing the need for immediate changes in end-user equipment.
That does not make it a simple answer to Scotland’s decarbonisation challenge. Biomethane supply is limited by feedstock availability, plant economics, grid access, planning, and competition for organic waste. The sector also needs clear policy support if it is to attract capital at the scale implied by the report.
Rural businesses could see new revenue streams from waste, while local supply chains could support plant construction, maintenance, logistics, and operations. At a time when agricultural margins are under pressure, energy-linked diversification may become more commercially attractive.
The wider energy system is also changing. Electrification remains central to the UK’s net-zero pathway, but grid constraints, heat-pump adoption costs, and industrial energy demand mean gaseous fuels are likely to remain part of the transition. Biomethane’s role will depend on whether it is directed towards homes, industry, transport, or a mix of uses where electrification is harder or slower.
Investors will look for policy certainty. Revenue support, grid connection rules, waste regulation, planning frameworks, and recognition within heat and gas decarbonisation policy will all influence whether biomethane projects can scale. Without clarity, the sector may remain a collection of local opportunities rather than a major infrastructure category.
The SGN-backed analysis also feeds into the broader discussion on domestic energy resilience. Imported gas exposure, geopolitical instability, and volatile wholesale prices have made locally produced energy more strategically valuable. Biomethane cannot replace all fossil gas, but it can reduce import dependence while supporting circular-economy goals.
The report frames Scotland’s biomethane opportunity as both an economic development plan and a decarbonisation route. Its progress will depend on whether policymakers, network operators, investors, and rural businesses can convert available waste resources into bankable projects at sufficient scale.
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