Co-product markets and retrofit opportunities

The official consultation question

Q40 · §4.6(a) · paper page 33

Is facilitating the development of markets for biomethane co-products critical for the growth and long-term sustainability of the industry? What is the potential size and value of these markets? Should this be a priority in a national policy?

Shelby’s response

Yes. Co-product development should be a core commercialisation priority from the outset. Supporting existing and new plants to recover biogenic CO₂, produce marketable digestate and extract other useful products can diversify revenue, reduce disposal costs and improve returns from the same feedstock. Modular systems, such as Verdemobil’s biomethane upgrading and BioCO₂ recovery equipment, provide a practical way to add these capabilities progressively.

IEA Bioenergy’s 2021 inventory estimated 117 non-landfill biogas facilities, alongside 130 landfill-gas facilities. These historical figures indicate a retrofit opportunity, although they cannot establish today’s recoverable volumes or market value.

We’re in the process of mapping these facilities against regional demand for CO₂, fertiliser and other products, the next steps would be supporting modular upgrades and shared processing, storage and distribution where they improve economics. The aim should be to turn more existing output into Australian-made, saleable products, strengthening regional producers and the manufacturers they supply. National market value should be calculated from recoverable quantities and customer prices, with processing and delivery costs assessed separately.

Frequently asked questions

What is Shelby’s position on co-product markets and retrofit opportunities?

Co-products can diversify revenue and reduce disposal costs when qualified recovery connects to customers. Shelby cites a historical 2021 facility inventory as a retrofit indicator, not evidence of today’s recoverable volumes or national market value.

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.