Biomethane or Bio-CNG (Compressed Natural Gas) is a fuel which is chemically identical to natural gas; thus, it can be used to generate electricity, fuel vehicles and to heat homes. Where the more ‘traditional’ fossil fuel-derived methane gas is created from thousand-year-old fossilised remains of organic matter, Biomethane is instead produced from “fresh” organic matter. Therefore, it is a renewable source of energy that can be produced worldwide:
“Biomethane is a naturally occurring gas which is produced by the so-called anaerobic digestion of organic matter such as dead animal and plant material, manure, sewage, organic waste, etc. Chemically, it is identical to natural gas stored deep in the ground and produced from dead animal and plant material.”[i]
Advocates of the fuel claim that its befits lie in the fact it is renewable, as well as its potential to offer an alternative to diesel, and given that most HGVs (Heavy Goods Vehicles) run on this, it offers a potential alternative. This is especially important in the UK, where the government plan to ban new petrol and diesel car and van sales by 2030 and new petrol and diesel HGV sales by 2040.
The UK Biomethane network is expanding, with market leader CNG Fuels now operating ten refuelling stations, having recently opened an additional site in Castleford. With the new station, CNG Fuels estimate that they will be able to refuel 5,000 lorries across the UK daily. The new site will contribute to the reduction of 67,500 tonnes of greenhouse gas emissions per year- the equivalent of the annual emissions of over 40,000 cars. Further, the company forecasts that its total tonnes of CO2 saved will reach 584,000 a year when compared with regular diesel[ii]. CNG Fuels is also planning further expansion, doubling the number of refuelling sites to 20 by the end of 2023.
“Fleet operators around the world are urgently seeking ways to cut emissions from their fleets. Our fast-growing network of refuelling infrastructure has made biomethane more accessible than ever before, and fleets – ranging from local hauliers through to major household brands – are dramatically cutting emissions every day.” CNG Fuels CEO Philip Fjeld told The Grocer[iii].
Aldi is the latest major supermarket to adopt biomethane, and the retailer plans to operate just over 30 Bio-CNG vehicles in the UK by the end of this year. Aldi is joining a growing list of UK fleet operators utilising Bio-CNG, which now include Evri, John Lewis Partnership, Warburtons and Royal Mail. Aldi South Group has set a target to reduce operational emissions by 26% by 2025 compared with 2016 levels[iv]. With Biomethane providing a 90% reduction in life-cycle greenhouse gas emissions when compared with diesel, the business will be using this to cut its emissions. Aldi is also trialling HGVs powered using hydrotreated vegetable oil (HVO) and investigating pure electric and hybrid electric options.
Aldi’s national corporate responsibility director for the UK, Liz Fox, said:
“Aldi is committed to reducing our carbon footprint and adopting bio-CNG HGVs is another step forward in our plans to cut emissions from our UK fleets. CNG Fuels’ latest station in Castleford opens the door to major transport networks into the North East, and their growing network will only continue to extend the number of low carbon deliveries that we can make across the country every day.”[v]
Aldi’s plans to expand bio-methane usage mirror a wider interest in the fuel; CNG Fuels estimates that around 10% of the UK’s high-mileage HGV fleet will run on biomethane by 2025. It has recorded a doubling of demand for fuel year-on-year from fleet operators[vi]. With fuel costs increasing, bio-CNG could offer an alternative to Diesel, which averaged 196.8 pence per litre last month, according to the AA[vii]. A further benefit is that fuel duty in the UK for natural gas has been fixed by regulation at 24.7p/kg (approx 18.6p/litre of diesel) until 2032, compared to diesel at 57.95p/ltr. CNG Fuels estimate up to a 40% lifetime fuel cost saving when switching from diesel.[viii]
Additional pressure lies in the adoption of net-zero by companies; Net-Zero Tracker stated in June that half of the Forbes Global 2,000 have a net-zero public target, with national policy changes likely to push them to improve target ambition and credibility in the coming years, according to Edie.net.
Biomethane has also seen increasing praise from farming groups, with the sector eager for the UK government to recognise its potential and to stop 'dismissing' biomethane as a solution to the energy crisis. Biomethane can be produced on-farm via anaerobic digestion, thus making it attractive as a sellable product for farmers.
The Ulster Farmers Union (UFU) have said that biomethane injection into the gas network has the potential to reduce heating bills and contribute to energy security. The union has said it was 'struggling to comprehend' why the government continued to overlook the green energy source as a solution[ix].
UFU rural enterprise chair John Watt criticised the government for shunning "an alternative, green energy solution that is right under their nose – biomethane. We’ve been very vocal over the past five years on the merits of biomethane and its many uses, including injection to the natural gas grid. We identified how the green energy source acts as a direct substitute for conventional natural gas and when injected into the gas network, provides a potential heating source which ticks many boxes. Biomethane can be produced at scale and distributed thanks to the modern gas network here in Northern Ireland."[x]
According to FarmingUK News, The UFU's lobbying efforts have resulted in biomethane injection being mentioned in both the Northern Irish government's Future Agriculture Policy and Energy Strategy.
[ii] Aldi adopts biomethane-powered HGVs as demand for low-carbon fuel ‘skyrockets’ | News | The Grocer
[iv] Our Environment - Climate Change - ALDI UK
[v] Aldi to add biomethane HGVs to UK fleet as major new refuelling station opens - edie
[vi] Ibid
[vii] Compare latest petrol and diesel fuel prices | The AA
[ix] Energy crisis: UFU criticises government for 'dismissing' biomethane - FarmingUK News
[x] Ibid
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
