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Results updated 20 January 2022

The biomethane method package came into effect in January 2022.

The method package credits the reduction in emissions when:

  • biogas from the breakdown of organic waste is captured, refined into biomethane and combusted

  • biomethane is used as a natural gas substitute.

Read the method variations:

See the Emissions Reduction Assurance Committee (ERAC) advice to the Minister [654KB PDF].

Overview

In late 2020, the Minister for Industry, Energy and Emissions Reduction tasked the Clean Energy Regulator with developing an Emissions Reduction Fund (ERF) method for biomethane.

Biomethane is produced by capturing and refining biogas from organic waste. This includes animal effluent and wastewater. Biomethane can be used as a natural gas substitute.

Biomethane projects can earn carbon credits for the reduction in emissions when:

  • biogas is captured, upgraded to biomethane and combusted

  • biomethane is used in place of natural gas.

The draft biomethane method package builds on existing waste methods by including biomethane project activities. This increases the opportunities to deliver abatement and create Australian Carbon Credit Units (ACCUs).

Why we are consulting

The Emissions Reduction Assurance Committee is seeking feedback on proposed variations to 3 ERF waste methods, which will form the biomethane method package: 

  • Carbon Credits (Carbon Farming Initiative—Animal Effluent Management) Methodology Determination Variation 2021

  • Carbon Credits (Carbon Farming Initiative—Electricity Generation from Landfill Gas) Methodology Determination Variation 2021

  • Carbon Credits (Carbon Farming Initiative—Domestic, Commercial and Industrial Wastewater) Methodology Determination Variation 2021.

Eligible projects under the existing waste methods will be able to transfer to the relevant varied method.

The Emissions Reduction Assurance Committee is seeking stakeholder feedback on whether to also vary 2 other methods to include biomethane activities:

  • Carbon Credits (Carbon Farming Initiative—Alternative Waste Treatment) Methodology Determination 2015

  • Carbon Credits (Carbon Farming Initiative—Source Separated Organic Waste) Methodology Determination 2016.

The Minister for Industry, Energy and Emissions Reduction must consider a range of factors when deciding whether to vary a method. This includes whether the method’s activity could have any adverse social, environmental, or economic impacts. Your feedback is sought on whether these types of impacts are likely to arise from carrying out a biomethane project under the proposed varied methods.

Consultation documents

The draft biomethane simple method guide contains information on the operation of biomethane projects under the proposed method variations.

The supplement to the animal effluent method details additional project requirements for the animal effluent method.

Next steps

The Clean Energy Regulator and the Emissions Reduction Assurance Committee will consider any submissions provided by the due date in finalising the method.

Timeline

  • Opened
    closed
    1 November 2021
  • Closed
    closed
    30 November 2021
Contact
Clean Energy Regulator
1300 553 542