Biogas: Revolutionary Breakthrough or Bogus? 

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As the need to find scalable alternatives to fossil fuels is becoming increasingly urgent, biogas, biomethane and biofuels are attracting scores of investment. It’s thought by some that this ‘renewable natural gas’ (RNG) could slot into our established systems and allow for a fairly seamless transition towards renewables. However, there are concerns over its legitimacy. 

Biogas is Booming 

Last year, Nature Energy was bought by Shell for $2bn. Meanwhile, BP took over Archaea Energy for $3.3bn, who had made $100m in the quarter before the sale. BP cites RNG as one of the routes it will pursue in the energy transition. 

These big sales happened as investors have been getting increasingly excited about biofuels, including huge names like Blackrock. It’s thought that investments are needed in RNG to keep pace with the predicted increase in demand in the coming years. RNG makes up about 0.5% of natural gas production in North America but some predict this could multiply tenfold by 2050.

But it isn’t just about saving the world, experts note that these investments benefit the companies involved. Analyst, Natalia Patterson says…

“[Selling RNG] means BP, Chevron and Shell are able to offer low-carbon products to their clients, and they get credit for that”

Revolutionary? 

Right now, biogas and biomethane are not likely competitors with traditional natural gas but experts hope that scaled technological developments could allow them to take over in the next ten years. Despite its modest standing, the IEA (International Energy Agency) calls RNG “indistinguishable” from traditional natural gas and says it can be “transported and used wherever gas is consumed, but without adding to emissions”. Sounds pretty ideal! 

Biofuels are made by organic material breaking down, so one of the great things about them is that they can be produced by capturing the gas from landfill sites for example. However, according to the IEA, just 8% of biofuels came from waste sources in 2021. 

Or is Biogas bogus? 

Many environmental advocates claim that biofuels are in fact a form of greenwashing, allowing major energy suppliers and consumers to continue business as usual. It’s thought that investing in RNG research allows big polluting energy companies to appear to be working towards a green transition whilst continuing to pursue fossil fuels. Even if it were possible to scale RNG in the near future, some think making energy consumption guilt free would allow for an exponential increase in usage which would have other detrimental effects on the planet’s resources. 

A recent article in the Guardian drew attention to a algae-based biofuel that found itself subject to a flurry of excited investment from big oil, who ultimately pulled out. Critics thought ExxonMobil’s research effort into the sector was merely a distraction from their polluting business. The company invested $350m into algae biofuels over the course of 12 years, but industry insiders say long-term commercialisation of the sector would require several billion dollars. The EU has also recently rejected attempts to import palm oil as biodiesel. And last year in New Zealand, protestors took issue with the government’s mandate of biofuels in petrol stations. 

So what do you think? Is this a revolutionary technology set to put to rest our climate woes or simply a crutch that will ultimately increase consumption? Let us know in the comments! 

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