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Millie Kilham, Feedstock Manager, Farming Team

Millie Ward

In February 2025, <a href="https://www.futurebiogas.com/">Future Biogas</a> and <a href="https://www.astrazeneca.co.uk/">AstraZeneca</a> commissioned the UK’s first unsubsidised biomethane plant at Gonerby Moor in Lincolnshire. One year on, Future Biogas CEO <a href="https://www.linkedin.com/in/philipp-lukas-054504/">Philipp Lukas</a> explains how the project shows biomethane can scale in the UK without government subsidy – and that the commercial case for green gas has never been stronger.
Moor Bioenergy was built on a simple premise: that the right partnership model could make biomethane commercially viable without relying on taxpayer support. After twelve months of continuous operation, we have a year of evidence to prove it.
Since it opened last year, Moor has injected almost 100 gigawatt hours (GWh) of renewable biomethane into the gas grid, avoiding approximately 17,000 tonnes of carbon dioxide equivalent emissions (CO2e) that would otherwise have come from fossil gas. This represents almost 100% of total UK gas consumption for its exclusive offtaker, AstraZeneca, which has a long-term agreement for Moor to provide the gas it uses to generate clean heat for its R&amp;D and manufacturing operations across the UK.
Beyond energy generation, Moor Bioenergy has established itself as a key contributor to the local rural economy in Lincolnshire. anaerobic digestion produces biomethane which can be used as a direct drop-in replacement for fossil natural gas. The gas is produced from trillions of tiny microbes as they break down organic matter in oxygen-free tanks. The plant at Gonerby sources feedstock exclusively from regenerative energy crops, grown on a rotational basis within a 15-mile radius of the plant. Farmers benefit from five-year contracts that give local farmers financial security and provide them with diversification opportunities and the ability to plan their crop rotations up to a decade in advance. The anaerobic digestion also results in ‘digestate’ that is returned to farmers as a powerful, organic, soil-improver and fertiliser, replacing costly and carbon intensive traditional fertilisers which are typically manufactured or mined overseas. All feedstock is certified by the International Sustainability and Carbon Certification (ISCC) scheme, ensuring traceability and adherence to strict environmental criteria.
As the flagship plant for Future Biogas’ Project Carbon Harvest initiative, Moor Bioenergy also incorporates carbon capture technology. The biogenic CO2 (the same gas we breathe out, and one of the leading contributors to anthropogenic climate change) is separated during the upgrading of raw biogas into biomethane. This is the same CO2 that was absorbed (breathed in) from the atmosphere by the crops as they grew forming a complete cycle. What makes this plant different though is that this CO2 is being captured and used for commercial applications such as beverage carbonisation – putting the bubbles in fizzy drinks.
As the UK forges ahead with developing carbon storage facilities such as Endurance and HyNet, the CO2 from Moor is expected to be directed to geological sequestration, permanently removing it from the atmosphere. This is essential to Project Carbon Harvest: the objective of which is to move our biomethane plants beyond just renewable energy to verifiable, permanent carbon dioxide removal, i.e. removing more CO2 from the atmosphere than the whole process produces effectively providing much needed energy with net-negative emissions.
The unsubsidised model: how it works
The success of Moor Bioenergy rests on the key relationship with AstraZeneca, and a commercial model that differs fundamentally from traditional approaches to renewable energy deployment. To understand why, first consider the UK’s existing biomethane capacity, which was largely built with government support: first via the Renewable Heat Incentive, and subsequently the Green Gas Support Scheme (GGSS).
These mechanisms have been essential in establishing the biogas industry in the UK, but they come with limitations: finite budgets, complex eligibility criteria – and the possibility that subsidies may be reduced or halted. Indeed, the current Green Gas Support Scheme closes to new applications in 4 years, and it&#8217;s not yet clear what, will replace it.
With Moor, we set out on a different path. The plant’s commercial foundation is a 15-year offtake agreement with AstraZeneca, reflecting the pharmaceutical company&#8217;s commitment to achieving 100% renewable energy for its operations. This long-term certainty, combined with equivalent agreements with feedstock growers and the commercialisation of captured CO2, creates the commercial stability needed for the facility to operate without public subsidy, and with ultimate integrity.
The integrity of the model depends on 100% additionality. Rather than relying on renewable gas certificates, which do little to stimulate new supply, AstraZeneca’s partnership directly enabled the construction of a new plant. That means every molecule of biomethane from Moor Bioenergy adds real, additional renewable energy to the UK system.
This matters for corporate buyers who face increasing scrutiny of their decarbonisation claims. As companies face growing pressure from investors, regulators and customers to demonstrate meaningful climate action, the distinction between certificate trading and genuine investment in new capacity becomes critical.
A shifting policy landscape
Moor Bioenergy’s first year of operation has coincided with a shift in biomethane’s place within UK energy policy that suggests the wider biomethane sector may be approaching a turning point. In July 2025, the National Energy System Operator (NESO) published its <a href="https://www.neso.energy/publications/future-energy-scenarios-fes">Future Energy Scenarios</a>, the first under NESO’s new remit as an independent body overseeing the whole energy system. In this, the Holistic Transition pathway – the only one that achieves the UK’s Nationally Determined Contributions for 2030 and 2035 under the Paris Agreement – calls for 64 TWh of biomethane production by 2050. This is more than double the government’s previous estimates, and represents more than a tenfold increase from the production levels of today.
<a href="https://greengastaskforce.co.uk/wp-content/uploads/2025/09/GGT-Unlocking-the-Potential-of-Biomethane.pdf">Research from Alder BioInsights</a> published in September 2025, estimated that the UK’s biomethane production capacity could increase as high as 120TWh a year by 2050, and identified that sustainable feedstock would be integral to delivering at this scale. The research suggests that the constraint on growth is policy ambition, rather than the availability of resources.
The Green Gas Taskforce, launched in April 2025 as a collaboration between the UK’s largest biomethane producers, all five British gas networks and key industry associations, has helped build the evidence base for these conclusions. Its October 2025 report on <a href="https://greengastaskforce.co.uk/wp-content/uploads/2025/10/Cadent-GGT_Biomethane_Study.pdf">the economics of biomethane</a> found that scaling up green gas production could reduce the cost of achieving net zero by roughly £150-£220 billion.
But against this backdrop of growing recognition, there’s one significant policy anomaly. Under the UK Emissions Trading Scheme (ETS), biomethane supplied directly to ETS installations receives a zero emissions factor. However, identical biomethane injected into the gas grid – which is how most biomethane reaches end users – receives no such recognition. For corporate buyers subject to the ETS, purchasing grid-injected biomethane delivers no reduction in their reported emissions under the scheme.
This stands in contrast to the equivalent scheme in the European Union, under which sustainably sourced biogas may be “zero-rated” even when use occurs at a different installation from the one where it was produced. This disparity places UK biomethane producers at a competitive disadvantage relative to their European counterparts. More importantly for the UK’s net zero journey, it also removes a significant commercial incentive for corporate buyers to invest in green gas.
The government has now indicated that it’s working with the ETS Authority to consider whether the scheme could account for grid-injected biomethane, with a consultation on the future biomethane policy framework expected by the end of the 2025/26 financial year. For the sector, clarity on this question has become urgent given the Green Gas Support Scheme closure. Without a clear successor framework, investment decisions are already being delayed.
The forward path
NESO’s scenarios make clear that there is no credible pathway to net zero that does not involve substantial scaling of biomethane production. The technology is proven and, as Moor Bioenergy demonstrates, the commercial model can work without subsidy.
The comparison with other low-carbon gas alternatives is instructive. While hydrogen has long been positioned as the solution for decarbonising gas demand, production at scale still appears far off and expensive by comparison. Adaptation of both the grid and of combustion equipment would be required. By contrast, biomethane is available now on a drop-in basis; compatible with existing infrastructure, and capable of delivering verified emissions reductions today.
International comparisons underscore the point. In Denmark, over 40% of gas supply already comes from domestic biomethane, with the country on course to reach 100% by 2030. France is targeting 16% biomethane in its distribution network by 2030. In the UK today, biomethane makes up approximately 1% of the gas grid. The technology is not experimental; it’s becoming fundamental to energy transition strategies across Europe.
Moor Bioenergy was always intended as the first of many bioenergy with carbon capture and storage (BECCS) plants we would develop, and the pipeline is growing. We have multiple new biomethane plants equipped with with BECCS at various stages of planning, and this year we’re exploring the retrofit of BECCS technology to some existing plants in our portfolio, accelerating our transition to carbon-negative operations.
Each new BECCS plant has the potential to capture thousands of tonnes of biogenic CO2 per year for permanent geological storage, actively removing carbon from the atmosphere. But realising this vision at scale requires policy certainty. While a clear successor mechanism to the GGSS would be welcome, the industry most needs grid-injected biomethane to be treated as zero-emission under the UK ETS. This, more than anything, would preserve biomethane’s momentum, enabling it to continue scaling towards its potential.
But current capacity is limited and with planning permissions being slow, the ability for supply to keep up with demand could be in jeopardy. We’re also in conversations with other large organisations including data centres who have ambitious decarbonisation targets and are looking to emulate AstraZeneca’s success. And one thing is clear. These companies are looking for high-integrity and additional options that will future-proof their decarbonisation plans and offer long-term pricing certainty.
The fundamentals are in place. Biomethane offers a proven, scalable, homegrown renewable gas that strengthens energy security, supports rural communities, and delivers verifiable decarbonisation for hard-to-abate industries. A year of operation at Moor Bioenergy has demonstrated that the commercial model works. What the sector needs now is policy that matches the opportunity.
Discover how sustainable, additional biomethane stands ready to support your organisation’s decarbonisation goals, <a href="https://www.futurebiogas.com/contact/">contact Future Biogas today</a>.

Future Biogas – Moor Bioenergy February 2026

A year at Moor Bioenergy: lessons from the UK’s first unsubsidised biomethane plant

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Future Biogas today announces the acquisition of Burton Agnes Renewables Limited (BAR), a biomethane production facility located at Harpham Grange Farm in East Yorkshire.
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Future Biogas has managed, maintained and operated the site since 2021 and has now acquired BAR, securing long-term ownership of the operational asset while continuing to run the facility day-to-day.
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Set in the heart of the Yorkshire countryside, the plant is surrounded by a thriving agricultural community.  Local farms have the opportunity to grow sustainable bio-energy crops as part of a diversified rotation to support biomethane production. As part of the circular process, solid and liquid digestate (the natural fertiliser produced as a by-product of the anaerobic digestion process) is returned to farms as a low carbon source of nutrients and organic matter.
The plant currently produces approximately 40 gigawatt hours (GWh) per annum of biomethane, supporting renewable gas supply and the UK’s decarbonisation ambitions with enough green energy to power 2,800 typical UK households1. The site also has potential to capture over 7,000 tonnes of CO2 per year (at current capacity). The capture and storage of this CO2 could render the emissions generated by the plant to be carbon negative; meaning the entire process would remove more carbon from the atmosphere than it produces.
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BAR is now one of 11 plants operated by Future Biogas and this acquisition marks the 10th plant in which the company now owns a majority stake.
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Philipp Lukas – CEO Future Biogas said “Biomethane is so important for the global energy transition. We’ve been exceptionally proud to operate the Burton Agnes Renewables site since 2021. This acquisition reflects our long-term commitment to the site, to the local growers community and regenerative agriculture. We will continue to operate the plant, while exploring potential development opportunities that will increase production and further enhance the sustainability of the gas produced there.”
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<div>1. Household equivalent based on 40,000,000 kWh per year output / 14,200 kWh per household per annum = 2,816 households, source: Ofgem </div>
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<a href="https://www.ofgem.gov.uk/information-consumers/energy-advice-households/average-gas-and-electricity-use-explained">https://www.ofgem.gov.uk/information-consumers/energy-advice-households/average-gas-and-electricity-use-explained</a>
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<h5><img loading="lazy" decoding="async" class="alignnone size-medium wp-image-5922" src="https://cms-live.futurebiogas.com/wp-content/uploads/2026/02/V6A4264-300x200.jpg" alt="" width="300" height="200" />Burton Agnes Renewables</h5>
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Future Biogas acquires Burton Agnes Renewables biomethane plant in East Yorkshire

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<h2 class="FB-Mainbody">Government, embassy, consultancy, utility and industry group visits Moor Bioenergy at a pivotal milestone in Ireland’s energy regulation roadmap.</h2>
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Future Biogas, the UK’s leading developer and operator of anaerobic digestion (AD) plants, this week welcomed a 20+ strong delegation of influential stakeholders to its Moor Bioenergy site, representing a full spectrum of Ireland’s energy interests. This fact-finding visit closely follows key Irish regulatory announcements such as the <a href="https://enterprise.gov.ie/en/publications/leap.html">Large Energy User Action Plan</a> (LEAP) and <a href="https://www.cru.ie/publications/28906/">Large Energy Users Connection Policy</a> (LEU).
The group included: the UK Embassy in Dublin; the Department of Agriculture, Food and The Marine; the Agriculture and Food Development Authority; Climate Action Regional Offices; local councils; engineering consultants; trade associations; utilities; potential offtakers from the manufacturing and food and beverage sectors; the UK’s Department for Energy and Net Zero; and the Europe-wide innovation agency, Climate KIC.
Philipp Lukas, CEO of Future Biogas, said: “We are immensely proud that so many influential Irish organisations expressed such strong interest in our flagship Moor Bioenergy facility – the UK’s first industrial-scale, unsubsidised biomethane plant. The visit underlined growing demand from Ireland’s central and local government, utilities, industry and their collective advisors for an immediate drop-in substitute to fossil gas, both for baseload and dispatchable power. Biomethane is a clear and proven solution, whether sleeved in the short term through existing UK interconnectors or produced domestically in plants across Ireland.
<img loading="lazy" decoding="async" class=" wp-image-5897 alignleft" src="https://cms-live.futurebiogas.com/wp-content/uploads/2026/02/003-FB_Moor-Feb26-4212-1-300x200.jpg" alt="" width="434" height="289" />
We look forward to continued discussions with this group to support the delivery of the Irish government’s step-change ambition for 5.7 TWh per year of biomethane supply by 2030 – serving energy intensive sectors such as food and beverage, packaging and glass, utilities and data centres.”
<a href="https://www.futurebiogas.com/our-projects/moor-bioenergy-ltd/">Moor Bioenergy</a>, near Grantham in Lincolnshire, is the UK’s first unsubsidised bioenergy with carbon capture and storage (BECCS) facility. It produces biomethane under an exclusive 15-year offtake agreement with AstraZeneca, and captures approximately 14,000 tonnes of biogenic CO₂ per year for use in food and beverage production. Combined with equivalent agreements with feedstock growers, this creates the commercial stability needed for the facility to operate without public subsidy.
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In Ireland this economic proposition is even stronger since, unlike the UK, grid-injected biomethane is treated as zero-emission under the EU Emissions Trading Scheme. Through its recent LEAP and CRU policy initiatives, Irish regulators’ expectations on renewable sourcing and system responsibility for large energy users are tightening – especially for data centres. However, many energy-intensive projects remain without connection certainty; with grid congestion and delays becoming a growing site-selection constraint. Biomethane can bypass these logjams, as an immediate drop-in substitute for fossil gas in turbines, gas engines, combined heat and power (CHP) plants or fuel cells.
<img loading="lazy" decoding="async" class=" wp-image-5881 aligncenter" src="https://cms-live.futurebiogas.com/wp-content/uploads/2026/02/029-FB_Moor-Feb26-4448_websize-300x200.jpg" alt="" width="431" height="287" />
Looking at the wider European context, in Denmark 40% of gas supply already comes from domestic biomethane, with the country on course to reach 100% by 2030. While France is targeting 16% biomethane in its distribution network by 2030. The technology is not experimental; it’s becoming fundamental to energy transition strategies across Europe.
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Breda Maher, from Ireland’s <a href="https://www.caro.ie/the-caros/what-we-do">Climate Action Regional Offices</a>, added: “Future Biogas’s work at Moor Bioenergy is a powerful demonstration of how environmental ambition and economic opportunity can go hand in hand. Beyond generating green energy, its circular, locally rooted model is strengthening the rural economy and enhancing farm resilience; keeping value within the community and delivering benefits far beyond emissions reduction alone. Seeing it first‑hand has truly highlighted the breadth and potential of sustainable energy infrastructure.”
Denyse Julien, Program Manager at <a href="https://www.climate-kic.org/who-we-are/about-climate-kic/">Climate KIC</a> continued: “Future Biogas’s Moor Bioenergy facility is an excellent demonstration of how innovation, community partnership and climate ambition can come together to deliver real decarbonisation solutions. It shows what’s possible when we take a truly holistic approach to developing and managing a bioenergy facility. As Ireland moves forward with its national biomethane strategy, there is enormous opportunity to adopt locally‑driven approaches to build circular, resilient economies that work for farmers, industry and the climate. As Climate KIC, we’re proud to facilitate this collaboration between the UK and Ireland, and advance biomethane as a cornerstone of the circular bioeconomy.”<img loading="lazy" decoding="async" class=" wp-image-5889 alignright" src="https://cms-live.futurebiogas.com/wp-content/uploads/2026/02/073-FB_Moor-Feb26-4998_websize-300x200.jpg" alt="" width="461" height="307" />
Since it opened in February 2025, Moor Bioenergy has injected over 100 gigawatt hours (GWh) of renewable biomethane into the gas grid, avoiding approximately 18,000 tonnes of carbon dioxide equivalent emissions (CO₂e) that would otherwise have come from fossil gas. This not only represents around 20% of total global gas consumption for AstraZeneca but also demonstrates genuine <a href="https://academy.sustain-cert.com/topic/what-is-additionality/">additionality</a>: rather than purchasing existing renewable gas certificates, AstraZeneca’s partnership directly enabled new production capacity.
Beyond energy generation, Moor Bioenergy has established itself as a key contributor to the local rural economy. The plant sources feedstock exclusively from regenerative energy crops,grown on a rotational basis within a 15-mile radius, under five-year contracts that give local farmers financial security and provide them with diversification opportunities. The residue or ‘digestate’ from the plant is returned to farmers as a soil-improver, replacing costly and carbon intensive traditional fertilisers which are typically manufactured or mined overseas.
Biomethane offers a proven, scalable, renewable gas that strengthens energy security, supports rural communities, and delivers verifiable decarbonisation for hard-to-abate industries.
<img loading="lazy" decoding="async" class=" wp-image-5910 alignleft" src="https://cms-live.futurebiogas.com/wp-content/uploads/2026/02/060-FB_Moor-Feb26-4038-300x200.jpg" alt="" width="431" height="287" />
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Kara Owen, British Ambassador to Ireland, concluded: “The British Embassy Dublin is proud to support closer collaboration between the UK and Ireland in advancing renewable energy solutions. The visit to Moor Bioenergy highlighted the innovation already underway and the opportunities that biomethane presents for both our countries. Continued partnership between governments, industry and communities will be essential as we work together toward a secure, sustainable, and low‑carbon future.”
<img loading="lazy" decoding="async" class="wp-image-5879 aligncenter" src="https://cms-live.futurebiogas.com/wp-content/uploads/2026/02/077-FB_Moor-Feb26-4798_websize-300x200.jpg" alt="" width="476" height="317" />

Future Biogas hosts high-level Irish delegation

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