April 29, 2024 | By Sophia Mwema

Green gas is emerging as a vital player in the clean energy transition. From biogas to green hydrogen, these renewable alternatives to fossil fuels offer low-emission solutions for heating, transport, and power. In this guide, we explore what green gas is, how it's made, and why it matters now – more than ever.

What Is Green Gas?

Let’s start with the basics. The green gas definition refers to any type of gas fuel that’s produced from renewable sources instead of fossil fuels. That includes biogas, biomethane, and green hydrogen, among others.

These gases are making headlines—and for good reason. Unlike natural gas, which is a fossil fuel and a major contributor to greenhouse gas emissions, green gases offer low- or even zero-carbon alternatives.

 So what’s the difference when it comes to green gas vs. natural gas? It all comes down to the source. Natural gas is extracted from underground fossil reserves, while green gases are produced from organic materials, renewable electricity, or other sustainable inputs. The key takeaway: green gas is a cleaner, more climate-friendly alternative.

Why the Push for Green Gas Now? 

At COP26, over 100 countries signed the Global Methane Pledge to slash methane emissions by 30% by 2030. That’s big news, especially since methane—the main component of natural gas - has more than 80 times the warming potential of carbon dioxide in the short term.

 That urgency has put the spotlight on green gas solutions like biogas, biomethane, and green hydrogen systems. These alternatives help reduce our dependence on fossil fuels and limit harmful emissions. But how is green gas produced? Let’s break it down.

That urgency has put the spotlight on green gas solutions like biogas, biomethane, and green hydrogen systems. These alternatives help reduce our dependence on fossil fuels and limit harmful emissions. But how is green gas produced? Let’s break it down.

Green Gas Energy Sources and How They Work

Biogas vs. Biomethane: What’s the Difference?

Biogas

Biogas is produced via anaerobic digestion, where organic material breaks down without oxygen. It typically contains 50–65% methane, 30–50% carbon dioxide, and trace gases—depending on the feedstock.

Energy from biogas is nearly carbon-neutral: the CO₂ emitted during combustion is reabsorbed by growing new biomass. However, this neutrality can be offset by emissions from fertilizers, tractors, and gas processing.

The leftover digestate becomes a high-quality fertiliser, while the process also reduces methane emissions from decomposing waste. By using residues as feedstock, biogas limits emissions, manages waste, and produces valuable outputs.

Still, sustainability varies. Using waste avoids land-use conflicts, but growing energy crops may raise concerns about food competition and fossil-fuel inputs.

Biomethane

Now, when we upgrade biogas—by removing the CO₂ and impurities—we get biomethane, a fuel that’s chemically identical to natural gas but 100% renewable.

 To verify renewable origin, consumers rely on digital certification schemes. There six national biomethane registries running across Europe.

Austria: Biomethan Register Austria (www.agcs.at)

Denmark: Energinet.dk (www.energinet.dk)

France: Gaz Réseau Distribution France (www.grdf.fr)

Germany: Biogasregister (www.biogasregister.de)

Switzerland: VSG (Federation of Swiss Gas Industry) (www.erdgas.ch/biogas/ United Kingdom: Green Gas Certification Scheme (www.greengas.org.uk)

Biomethane complements intermittent renewables like wind and solar. The European Biogas Association sees it as key to reducing EU gas import dependence.

 Its green credentials rely on the entire supply chain being powered by renewable or low-carbon energy—from feedstock production to delivery.

 Still, sustainability depends on how that feedstock is sourced. Using waste? Great. Growing crops just for energy? That’s more controversial due to land use and fertiliser emissions.

The Benefits of Green Gas in Sustainability

Green gas supports circular economy principles by turning waste into energy and valuable byproducts like natural fertiliser. It reduces landfill use, supports energy resilience, and helps lower carbon footprints—especially for hard-to-decarbonise sectors.

 These gases can also support sector coupling, where electricity, heat, and transport systems are interconnected. Think: using biogas for heating, biomethane for fuelling trucks, or green hydrogen for powering industrial equipment.

What About Green Hydrogen?

Let’s talk hydrogen. It’s everywhere in nature but not in its usable form. So how do we get it? That depends on the process: 

Green hydrogen is produced using electrolysis powered by renewables—splitting water into hydrogen and oxygen using clean electricity. It’s the cleanest option, emitting no CO₂ when used, and is vital to a net-zero energy future.

 Blue hydrogen comes from steam methane reforming (SMR) of natural gas, with 60–95% of CO₂ captured through carbon capture and storage (CCS). However, CCS is energy-intensive, often underperforms, and can’t guarantee permanent CO₂ storage. Methane leakage along the supply chain further undermines its climate benefits, making blue hydrogen a controversial, fossil-fuel-dependent option.

 Orange hydrogen is a newer innovation made by steam reforming biogas or biogenic waste. It requires less energy than blue hydrogen, is more portable to deploy, and is being piloted across the EU as a promising mid-step in decarbonization.

 Why choose hydrogen vs. fossil fuels? Simple: it emits no carbon when used and is powered by clean energy. It’s ideal for heavy industry, aviation, and long-distance transport. Plus, it’s gaining traction fast—many green hydrogen companies are scaling production globally.

 That said, hydrogen has storage and transport challenges. Enter green ammonia.

Green Ammonia: A Hydrogen Carrier

A hydrogen-based fuel that’s easier to ship and store, green ammonia is an effective energy carrier—especially for large-scale, long-term energy storage and marine fuel alternatives.

Ammonia (NH₃) is made using the Haber-Bosch process, combining hydrogen with nitrogen under high heat and pressure. While toxic and a source of nitrogen oxide (NOₓ) emissions when burned, it has longstanding infrastructure for safe storage and global transport.

 Currently, most ammonia is produced with fossil-fuel-derived hydrogen, so it isn’t truly “green.” However, efforts are underway to use renewable hydrogen and improve catalyst efficiency to reduce the energy intensity of the Haber-Bosch process.

Tracking Green Gas Use: Certificates and Market Trends

Since biomethane and natural gas are indistinguishable once in the pipeline, how can companies prove they’re using the clean stuff? That’s where green gas certificates come in. These digital certificates (like Renewable Gas Guarantees of Origin, or RGGOs) confirm the renewable origin of the gas you buy.

Similarly, Renewable Energy Certificates (RECs) play a vital role in sustainability reporting. Let’s break down the benefits of renewable energy certificates (RECs):

-       Proof of clean energy use

-       Support for renewable development

-       Flexible compliance and reporting tools for companies

 Together, RECs and green gas certificates help create transparency, avoid greenwashing, and build trust.

Green Gas Market Trends to Watch

The global green gas market is booming. New green hydrogen companies and biomethane producers are entering the space, supported by policy incentives and net-zero goals. Europe, in particular, is betting big on biomethane to reduce energy imports. 

Innovations like Power-to-Gas—where surplus renewable electricity is converted into gas for storage—are unlocking new flexibility. This could be a game changer for stabilising grids and storing renewable energy long-term.

Closing Thoughts on Renewable Gas vs. Fossil Fuels

When you compare renewable gas vs. fossil fuels, the advantages stack up: lower emissions, better resource use, and more alignment with a net-zero future. While green gas isn’t a silver bullet, it’s a critical piece of the clean energy puzzle.

 From green hydrogen systems to biomethane certification, the tools are already here. The challenge now? Scaling fast, ensuring sustainability, and backing these innovations with policy and investment.

Whether you're a business aiming to cut emissions or a policymaker shaping tomorrow’s energy strategy, get in touch with us at GO2 Markets so we can support you in accessing the tools to support a cleaner, circular economy.