New Zealand to fast-track biogas development in the face of a looming gas crunch
New Zealand has embarked on a whole-of-government approach to unlocking the potential of biogas, to both head off a looming gas crunch and meet multiple environmental and economic challenges.
The country has unveiled its biogas action plan ahead of an anticipated gas crunch and in support of its emissions reduction targets and commitment to developing a circular economy.
New Zealand’s Energy Minister Simon Watts unveiled the government-led Biogas Work Programme when addressing the Biogas Bridge Forum, cohosted by the Bioenergy Association of New Zealand and gas industry association GasNZ.
WBA Chief Executive Charlotte Morton was a guest of honour, providing valuable insight into the association’s Global Biogas Regulatory Framework and aligned certification scheme, key instruments to enabling accelerated development of the sector. Charlotte spoke with Radio New Zealand’s Kathryn Ryan after addressing the Biogas Bridge Forum. Catch up on the interview here.
The Biogas Work Programme
The Biogas Work Programme is built around three key pillars, Signalling Support, Removing Barriers and Working with Industry.
In his speech, the Minister told the industry forum, “We are actively working to strengthen market confidence and investment by clearly communicating our commitment to biogas.”
As a downpayment on the commitment the minister proceeded to make several key announcements. First, The New Zealand government, through its Energy and Electricity Security Bill, is to amend the Commerce Act to ensure biomethane pipeline services are regulated in the same way as natural gas. This creates a clear legal and commercial framework for pipeline access, pricing and operational standards.
Secondly, working hand in glove with the Ministry of Business, Innovation and Employment and Ministry for the Environment opportunities to divert biological waste destined for landfill into energy production would be explored.
The Minister said, “This kind of cross-agency collaboration is vital. It reflects a whole-of-government approach to unlocking the potential of biogas, not just as an energy source, but as a solution to multiple environmental and economic challenges.”
Thirdly, the biogas work programme will provide a much-needed analysis of feedstock volumes, energy potential, seasonality and future availability, alongside transport logistics and existing outlet uses.
The minister said, “I expect this work will be instrumental in supporting investor confidence by delivering clear, accessible insights through interactive maps, data downloads and stakeholder-focused reporting.”
Regulation and Finance
Meanwhile the Gas Industry Company, the industry body that works alongside industry and government to coregulate New Zealand’s gas, is progressing a targeted work programme on biogas to enable the development of a renewable gas sector. Some specific work includes:
- supporting the existing certification framework to ensure quality and credibility
- exploring renewable gas targets and procurement on the demand side to underwrite investment, and
- updating operational gas governance settings to accommodate biomethane injection into networks.
On finance the Minister highlighted existing schemes the industry could tap into; the Waste Minimisation Fund and Regional Infrastructure Fund, purposefully designed to back infrastructure projects that strengthen our energy security and environmental stewardship. And the recently announced Investment Boost, as part of Budget 2025, provides additional momentum by supporting capital investment in critical energy assets.
“Leverage support for biogas from these funds,” the Minister told the forum. He concluded, “The Government is here to support you. We are listening, we are acting and we are excited about what we can achieve together.
“By enabling the production and use of renewable gas, we can decarbonise hard-to-electrify sectors, support regional energy resilience, all while creating new opportunities for regional innovation and investment.”
The Gas Crunch – Analysis
In his speech the minister referred to the key role biogas can play in delivering energy security. New Zealand is bracing for a major gas crunch due to a steep and accelerating decline in domestic natural gas production, with demand continuing to outpace supply.
Official reserves plunged by 27% in 2024, falling from 1,300 PJ to 948 PJ and production is expected to drop below 100 petajoules/year by 2026, two to three years earlier than previously forecast.
Gas plays a key role in New Zealand’s energy mix, critically serving as mass balance for intermittent renewables and directly as heat for heavy industries and national institutions like fertiliser and methanol production, (food processing, hospitals and prisons.
Rapid development of a biogas industry is the only viable option open to New Zealand. The country lacks infrastructure for gas imports—no pipeline to Australia and no commercial LNG import terminals. The looming situation is magnified by: tight global markets, following Russia’s war of aggression against Ukraine; domestic production constraints, following a ban on natural gas exploration in 2018, which while set to be repealed won’t supply a quick fix; and increased reliance on gas-backed electricity generation during renewable fluctuations.
In this context, the Biogas Bridge Forum was an important strategic staging post in the development of the industry.
Watch NZ Minister for Energy Simon Watts’s speech to the Biogas Bridge Forum
Read the text of the Minister’s speech.
The #MakingBiogasHappen programme
With the #MakingBiogasHappen programme (MBH), WBA aims to cut years from the normal time it takes to develop the necessary policies, regulations and standards needed to support and accelerate national biogas development.
To find out more about the two flagship MBH projects, Global Biogas Regulatory Framework or the Anaerobic Digestion Certification Scheme International, contact Sarah Letsinger, MBH Policy Lead.