Your Biomethane Development Pathway, VIC

Published 2026-10-29

This brief assesses the transition of manure from 800 housed dairy cows into 706 Nm³/day of biomethane. The preferred next investigation is a site-specific gas injection feasibility study to resolve network capacity. This is selected over BioLNG or electricity candidate routes due to the declared objective, though high network connection costs could pivot the project toward onsite power. The immediate next action is to confirm the actual manure collection rate to validate the 706 Nm³/day modelled output.

Action plan

Confidence 0%

First: Execute a 14-day feedstock sampling program to confirm the actual tonnage and methane potential of the manure from the 800 cows.

Next: Engage with the relevant Victorian gas network operator to screen the feasibility of a 706 Nm³/day injection point near the proposed (but currently unconfirmed) site.

Then: Complete an EPA Victoria permission screening to confirm whether the project requires a registration or a full licence under the A07 activity codes.

Decision gate: Commercial viability assessment to be performed once CAPEX for the anaerobic digester and gas upgrading equipment is obtained against the verified feedstock volumes.

Developing this pathway in VIC

Confidence 0%

Victoria presents a mature renewable gas landscape with 7 matching pathway records in public registries, including the Lilydale renewable energy hub which is ramping up operations in late 2025. Market context shows high interest in biomethane to decarbonise the Victorian gas network, though regulatory pathways for small-scale manure digestate management are strictly governed by EPA Victoria.

Screen EPA Victoria permission requirements

  • Why it matters for you: The scale of processing (800 cows) determines if the project falls under A07a (large) or A07b (small) organic waste categories [VIC-3, VIC-4].
  • Evidence needed: Final project footprint and proposed annual throughput in tonnes.
  • Next action: Consult VIC-2 to determine the specific permission pathway (licence vs registration).
  • Who confirms it: EPA Victoria.

Define digestate management strategy

  • Why it matters for you: Nutrient management in Victoria is a critical development dependency for site approval [VIC-5].
  • Evidence needed: Soil nutrient baseline for the site and a proposed land application plan.
  • Next action: Draft a digestate management plan aligned with VIC-5 guidelines.
  • Who confirms it: Environmental consultant / EPA Victoria.

Project Objective and Scenario

Confidence 0%

The declared objective is to investigate the development of a biomethane facility in Victoria utilising manure from 800 fully housed dairy cows. The modelled output is 706 Nm³/day of biomethane (346.75 operating days/year). While the AU Pricing Model provides a reference price of 25 AUD/GJ, the project currently lacks a defined site and network connection point. This stage is a candidate route comparison where biomethane is the primary focus, alongside modelled alternatives including BioLNG (500 kg/day), recoverable CO2 (854 kg/day), hydrogen (126 kg/day), and electricity (1,932 kWh/day). Commercial viability is not established as CAPEX, OPEX, and offtake terms remain unknown. The scenario assumes full housing of the herd; however, the actual tonnage of available feedstock is not yet verified through physical collection trials.

Commercialisation screen

Confidence 0%

Commercial viability not established. The next task is the development of a Cost Basis Report. While the AU Pricing Model suggests a reference of 25 AUD/GJ for biomethane, no formal offtake agreements or price floor mechanisms are in place. The recoverable CO2 output of 854 kg/day is a deterministic model result, but biogenic CO2 buyer prices are not verified on Shelby and must not be inferred as guaranteed revenue. Similarly, certificates and government funding are excluded from this base case. The 1,932 kWh/day electricity alternative uses a 0.1709 AUD/kWh reference price, but net revenue is unknown as parasitic load and connection costs are not yet modelled. The site location remains the primary unknown variable affecting the cost of both electricity and gas infrastructure.

Your next pathway decisions

Confidence 0%

The modelled production of 706 Nm³/day of biomethane relies on the user-declared input of 800 fully housed cows. While the herd size is fixed, the actual recoverable mass for anaerobic digestion is an assumed value that requires physical verification. Based on the declared gas pool, the candidate route for electricity (1,932 kWh/day) offers a simplified onsite utility path, whereas biomethane requires high-pressure injection or local transport.

Verify manure collection efficiency

  • Why it matters for you: Modelled output (706 Nm³/day) assumes 100% capture, but facility design affects actual gas yields.
  • Evidence needed: Daily dry matter tonnage records and seasonal wash-water volume data.
  • Next action: Conduct a 14-day feedstock characterisation study on-farm.
  • Who confirms it: Site resource authority.

Assess gas injection versus BioLNG

  • Why it matters for you: The 500 kg/day BioLNG alternative bypasses gas pipelines but introduces specialised cryo-transport costs.
  • Evidence needed: Comparison of network connection quotes versus small-scale liquefaction CAPEX.
  • Next action: Screen local gas network capacity for 706 Nm³/day injection.
  • Who confirms it: Gas Network Operator (e.g., AGIG as per VIC-6).

Frequently asked questions

Does 800 cows guarantee 706 Nm3 of biomethane per day?

No, this is a modelled output. Actual production depends on the manure collection system and the specific methane potential of the feedstock.

Can I sell the 854 kg/day of CO2 immediately?

No, recoverable mass does not equate to a sale. A buyer and food-grade purification equipment must be secured, and these costs are not yet modelled.

Is electricity or gas injection better for this Victorian site?

Both are candidate routes. Gas injection aligns with your objective but requires network proximity; electricity may be simpler if the site is remote from pipelines.

Are Victorian government grants included in the 25 AUD/GJ price?

No, all certificates and funding are excluded from this base case commercial screen.

Sources & References

www.energy.vic.gov.au

www.epa.vic.gov.au

www.epa.vic.gov.au

www.epa.vic.gov.au

www.epa.vic.gov.au

www.agig.com.au

Pre-feasibility research only, not engineering, financial or legal advice or a guarantee of supply, demand or price.

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