Shelby Bioenergy · October 2026 · Australia
Biogas and biomethane deployment priorities
Early implementation should favour biomethane and direct-use biogas within a framework open to other gases. Shelby recommends flexible delivery choices, regional upgrades and staged priorities reviewed against real costs, demand and emissions evidence.
Shelby’s position, not adopted government policy or confirmation of lodgement. Historical evidence and policy-modelling assumptions are distinguished in the response.
The official consultation question
Q20 · §3.2(b) · paper page 21
Should there be a priority on particular renewable gases over others? If so, which ones, and why? Please provide detailed reasoning, including any considerations related to commercial readiness, emissions impact, regional opportunities, or market demand.
Shelby’s response
Yes. We’d recommend early implementation support for biomethane and direct-use biogas, within a framework that includes other renewable gases through tailored pathways. Prioritise upgrades to existing facilities and new small and medium regional plants alongside larger developments. This gives existing operators and new developers a practical opportunity to increase production, diversify revenue and build operating experience.
Support should help projects become investable through long-term purchasing arrangements, targeted capital assistance, coordinated approvals, infrastructure access and co-product markets. Developers should be able to select direct use, biomethane upgrading or network injection according to local demand and overall economics. Upgrading should receive support where it adds value, while direct-use biogas remains eligible where it delivers the stronger outcome.
BioLPG, renewable hydrogen and e-methane should retain clear development pathways suited to their maturity and customers, with hydrogen measures coordinated with the National Hydrogen Strategy. Review priorities as evidence grows, using sustainable feedstock, delivery costs, credible demand and verified emissions benefits to guide support. A broad scope should preserve investment options while staged implementation brings production forward.
France’s case study supports this staged approach: regulated purchasing arrangements provided a route to market, while subsequent network-access reforms addressed barriers to wider deployment. Australia should adopt that principle of addressing practical constraints as the market develops, while designing arrangements around Australian conditions.
Frequently asked questions
What is Shelby’s position on biogas and biomethane deployment priorities?
Early implementation should favour biomethane and direct-use biogas within a framework open to other gases. Shelby recommends flexible delivery choices, regional upgrades and staged priorities reviewed against real costs, demand and emissions evidence.
What should a project team read alongside this answer?
Read the linked commercial guides and original question. Separate the response’s recommendations and illustrative assumptions from source-reported operating evidence.
Sources & References
- Department of Climate Change, Energy, the Environment and Water, National Renewable Gas Policy consultation
Publication: Date not verified
Observation period: Not recorded
Relevant page / section: Claim-level locator not yet verified
Last link / title verification: 2026-10-11
Publisher link checked; individual claims, costs and regulatory applicability still require review.
Check scope and current applicability before relying on this reference.
- Department of Climate Change, Energy, the Environment and Water, National Renewable Gas Policy consultation paper
Publication: 2026-08
Observation period: Australia; 2026 consultation
Relevant page / section: Consultation questions; use answer-specific paper page and question reference
Last link / title verification: 2026-10-11
Publisher link checked; individual claims, costs and regulatory applicability still require review.
Source for questions/context, not proof of an implemented support mechanism. Question text attribution: Commonwealth, CC BY 4.0, as noted in Shelby’s supplied consultation response.
- Creative Commons, Attribution 4.0 International
Publication: Date not verified
Observation period: Not recorded
Relevant page / section: Claim-level locator not yet verified
Last link / title verification: 2026-10-11
Publisher link checked; individual claims, costs and regulatory applicability still require review.
Check scope and current applicability before relying on this reference.