Scotland could unlock £10 billion of economic value, create around 8,000 skilled jobs and produce enough homegrown green gas to meet half of its current demand by 2050, according to a major new report published today.
The report, Scotland's Green Gas Opportunity, highlights the significant untapped potential of biomethane – a renewable gas produced from organic wastes and agricultural feedstocks – to support economic growth, strengthen energy security and help decarbonise homes, businesses, industry and transport.
Commissioned by the Green Gas Taskforce and supported by SGN, the report concludes that Scotland has sufficient sustainable feedstocks to generate 19 TWh of biomethane by 2050, equivalent to around 50% of Scotland's current gas demand. It also highlights that more of the money invested in biomethane stays in the UK than with any other renewable energy source.
The report finds that scaling biomethane production could:
- Contribute £10 billion in gross value added (GVA) to Scotland's economy by 2050
- Support the creation of around 8,000 jobs by 2050, with wages 17% above the Scottish average
- Retain 85p of every £1 invested within the UK economy - the highest domestic content share of any renewable or low-carbon technology
- Deliver investment and skilled employment across rural communities, helping spread economic growth beyond Scotland's largest cities
- Generate enough green gas to heat and decarbonise the equivalent of 76% of Scottish homes
How is biomethane being used already?
Unlike many renewable technologies, biomethane can be produced continuously regardless of weather conditions and can be transported, stored and supplied through the existing gas network. Crucially, it’s also fully compatible with the boilers, cookers and appliances already used in Scottish homes and businesses, enabling consumers to benefit from low-carbon energy with minimum disruption.
Biomethane is already delivering benefits today with 25 plants connected to SGN’s network, supplying enough renewable gas to decarbonise the equivalent annual gas demand of more than 208,000 households. Just 2.5% of Scotland’s organic farm waste is currently used to produce biomethane, leaving a substantial untapped resource capable of delivering green, homegrown energy in the years ahead.
Marcus Hunt, Business Development Director at SGN and Co-Chair of the Green Gas Taskforce, 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 warns that realising this opportunity will require swift, coordinated action to create the right investment and policy environment.
Biomethane and anaerobic digestion have an important role to play in Scotland’s transition to net zero, helping to reduce emissions while making better use of local resources. This report highlights the potential to support economic activity, including in rural communities, and strengthen our homegrown energy supply.
I welcome the work of the Green Gas Taskforce in bringing forward this analysis, which we will consider as part of our wider approach to delivering a just and affordable energy transition.
Gillian Martin
Cabinet Secretary for Climate Action and Rural Affairs
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.”
