From biomethane to green hydrogen, green gas has become a popular catch-all for a diverse set of renewable alternatives to fossil fuels. These gases can support lower-emission outcomes across applications like heating, transport, and power—areas that, given their traditional reliance on fossil fuels, remain challenging to decarbonize.

Yet with so many technologies, terms, and trade-offs in play, understanding where green gas fits into a corporate sustainability strategy isn’t always straightforward.

This guide offers a clear starting point for corporate sustainability professionals looking to engage with these emissions reduction tools: exploring what green gases are, how they’re produced and used, and where they can help businesses achieve a cleaner, more resilient energy future.

What Is Green Gas?

Although an umbrella term, green gas in corporate sustainability contexts typically refers to gaseous fuels derived from renewable sources. Under this green gas definition—which includes gases like biomethane, biogas, and green hydrogen—green gases are not simply lower-emission alternatives, but fuels produced using renewable inputs from the outset.

Consider the case of green gas vs. natural gas. While natural gas is often perceived as a cleaner-burning fossil fuel compared to coal or oil, it is still a finite resource that contributes significantly to greenhouse gas emissions. Green gases, in contrast, are designed to support long-term decarbonization by offering renewable, lower-impact substitutes across energy systems.

This distinction is especially relevant now, as targeting high-impact fossil fuel pollutants becomes increasingly critical to meeting near-term climate goals. For example, methane—the main component of natural gas—has around 80 times the warming potential of CO₂ over a 20-year period. Its outsized climate impact, along with growing global policy action on methane-specific emissions*, has spotlighted green gases like biogas and biomethane as increasingly viable tools for accelerating emissions reductions. This appeal lies in their dual impact: these fuels can displace fossil-based gas in key sectors while also helping to avoid methane emissions by capturing and repurposing organic waste as energy.

* Such as COP26’s Global Methane Pledge, where over 100 countries committed to a 30% reduction in methane emissions by 2030.

How Is Green Gas Produced?

Green gas energy sources are as diverse as the gases themselves, drawing on a range of renewable inputs like organic waste, agricultural residues, and renewable electricity. Below is a brief look at how some of the most common green gases are produced:

• Biogas: Generated through anaerobic digestion, where organic materials such as food waste, manure, or crop residues break down in the absence of oxygen.

• Biomethane: Produced by purifying biogas to remove carbon dioxide and other impurities, resulting in a renewable gas that is functionally equivalent to natural gas.

• Green hydrogen: Created through electrolysis, a process that uses renewable electricity to split water into hydrogen and oxygen.

Other gases like green ammonia (a hydrogen-derived fuel) and orange hydrogen (from biogenic sources) are also emerging as promising components of a low-carbon gas portfolio, especially for industrial and maritime use cases.

Use Cases: Biogas vs. Biomethane, Green Hydrogen

While there is some overlap in how these gases are used, they generally serve different energy demands.

Biogas is typically used on-site for local heat and power, especially in agricultural or industrial settings. When upgraded to biomethane, however, the gas becomes fully compatible with existing gas infrastructure—allowing it to be injected into national grids or used as a drop-in replacement for natural gas in transport, heating, and industrial applications.

In contrast, green hydrogen and its derivatives are gaining traction as potential solutions for hard-to-abate sectors like steel, cement, and chemicals, as well as for long-haul transport and emerging fuels like green ammonia. While not yet widely available at scale, green hydrogen companies are scaling production and infrastructure to meet growing demand; the global green hydrogen market is set to surge nearly eightfold by 2030.

Green Gas for Corporate Sustainability

One of the clearest incentives for businesses to engage with green gas lies in its ability to support practical corporate decarbonization. Biomethane can be used with existing infrastructure, making it an accessible drop-in alternative to fossil fuels for many heating, transport, and industrial processes. Depending on the specific application, this compatibility can allow businesses to reduce direct Scope 1 emissions* without major operational overhauls.

Biomethane also supports climate-related reporting. Companies can report credible progress toward voluntary or compliance-related emissions targets through mechanisms like biomethane certificates or Guarantees of Origin (GOs), which provide traceability and verify renewable origin. This has become especially critical under EU regulations: for example, under the EU Emissions Trading System (EU ETS), biomethane backed by appropriate certification may be assigned a zero-emission factor.**

Green hydrogen, while less mature in market availability, is a particularly promising option for decarbonizing heat- or energy-intensive Scope 1 operations in hard-to-abate sectors. Since electrolysis generates no direct CO₂ emissions, green hydrogen can support emissions reductions in industrial processes where other alternatives are less viable or scalable in the long term. For example, several cement manufacturers are piloting green hydrogen systems in kiln operations—an energy-intensive process where electrification remains technically challenging and biomethane may only partially reduce emissions.

* From activities like onsite fuel combustion, vehicle fleets, industrial thermal processes, etc.

** Enabling companies to reduce reported Scope 1 emissions and associated carbon costs under EU ETS compliance, while also supporting voluntary climate targets.

Green Gas and Energy Resilience

Beyond their emissions reduction benefits, green gases offer flexible production and storage options that can support more resilient energy strategies for businesses. Especially in Europe and North America, where most global biomethane production occurs, biomethane can be produced domestically and used with existing gas infrastructure. This gives corporate energy buyers a reliable, lower-carbon alternative to imported natural gas that is less exposed to international supply disruptions and related price volatility.

Though still scaling, green hydrogen systems offer long-duration storage potential and can help stabilize grids with high levels of variable renewable energy. For instance, in markets where renewable electricity volumes are increasingly curtailed due to grid constraints*, green hydrogen can be a strategic way to convert surplus power into storable, low-emissions fuel. This makes green hydrogen implementation a compelling next step for energy-intensive businesses already engaged in Scope 2 procurement, expanding corporate decarbonization efforts while improving long-term supply stability and energy cost visibility.

* Such in Scotland, Germany, and several of the US power markets (e.g., CAISO, MISO, ERCOT).

Getting Started with Green Gas

This blog offers just a snapshot of the vast, often complex world of green gas. But even with the basics in hand, offtakers just starting their journey may still find themselves asking: where to start?

GO2’s green gas team helps businesses answer this question. Renewable gas represents just one of many possible paths toward a better energy future, so whether it’s sourcing cost-effective biomethane, informing on green gas market trends—or assessing whether these solutions are even a good fit—we ensure our clients have the green gas insight needed to move their energy strategies forward.