Compare the cost of useful output - not equipment alone.

Separate production from delivery

Show costs to produce the gas, then the costs to deliver the required product at the customer’s specification. Include development, integration, utilities, maintenance, feedstock and residual handling. Network connection, road logistics and customer compression can change which configuration is preferable.

Show scale and utilisation together

Larger facilities may spread fixed costs, while local projects may reduce collection distances. IEA analysis identifies plant-scale effects and variation in feedstock procurement costs. That supports whole-chain assessment rather than a universal preference for the largest plant. [[ International Energy Agency (IEA), Outlook for Biogas and Biomethane ](https://www.iea.org/reports/outlook-for-biogas-and-biomethane/assessing-the-sustainable-potential-and-cost-of-feedstocks-for-biogas-and-biomethane)] Test output interruptions and ramp-up explicitly.

Compare upgrades incrementally

For an existing facility, distinguish costs that continue in both scenarios from new costs. Include displaced electricity or heat and changes to waste-treatment obligations. Dividing only a module’s capital cost by gas output would omit important interfaces.

Display support transparently

Assess commercial outcomes with support included where applicable, but identify awarded, proposed and hypothetical support. Show gross production cost separately from co-product credits and supported revenue. A proposed 15-year arrangement is Shelby’s policy-testing position, not an available national tariff. [C01]

Use disciplined scenarios

Prepare a quoted or measured central case and clearly labelled sensitivities for utilisation, feedstock, electricity, connection and selling price. Keep currency and heating-value bases consistent. If a comparable Australian quotation is unavailable, show the gap rather than manufacturing a number from inconsistent datasets.

Turn the comparison into a decision

The output should explain which input changes the result and what evidence is needed next. It should help users prepare engineering, buyer and financing discussions - not declare a project bankable from a few assumptions.

Frequently asked questions

What is LCOG?

A discounted cost-per-unit measure: present value of included costs divided by present value of gas output, with scope and assumptions stated.

Can European costs be used directly in Australia?

No. Currency, year, scale, support, logistics and cost boundaries must first be reconciled.

Should co-products reduce reported production cost?

Show gross cost and any adjusted measure separately, with allocation and credits explained.

Sources & References

• International Energy Agency (IEA), Outlook for Biogas and Biomethane

  Publication: 2025-05-28

  Observation period: 2025 report; modelled costs are not Australian supplier quotations

  Relevant page / section: Assessing the sustainable potential and cost of feedstocks for biogas and biomethane

  Last link / title verification: Not verified (check attempted 2026-10-11)

  Verification incomplete, do not rely on this reference for an investment or approval decision.

  High for analytical framework; modelled international costs are not Australian quotes

• Shelby Bioenergy, Shelby’s National Renewable Gas Policy consultation response

  Publication: 2026-10

  Observation period: October 2026

  Relevant page / section: Supplied company position

  Last link / title verification: Not verified

  Company position / supplied material, not independent evidence.

  Proposals and scenarios, not adopted policy or market offers.

• Shelby Bioenergy, Shelby research and calculator methodology

  Publication: 2026-10

  Observation period: Research cut-off 7 October 2026

  Relevant page / section: Research and calculation controls

  Last link / title verification: Not verified

  Company position / supplied material, not independent evidence.

  Selected sources, not a national asset census.