Our biomethane projects
We’ve got projects underway to investigate how to produce biomethane for our gas network. We’re excited by the potential to bring together the energy, agricultural and waste sectors to create environmental and economic benefits for New Zealand.
First steps towards biomethane
In April 2024 we announced two initiatives with Manawatū District Council (MDC) and Midwest Disposals to explore how to produce biogas and introduce it into the Powerco network. Over the next 12 months we conducted technical analysis and engineering design at the Manawatū Wastewater Treatment Plan and the wider Manawatū Resource Recovery Park, and Bonny Glen landfill respectively.The journey continues
In June 2025 we announced that both projects are technically feasible.We’re now proceeding with Front End Engineering Design (FEED) with MDC and continuing to evaluate options with Midwest Disposals.
Overall that’s a positive step for our biomethane aspirations – through these assessments we’ve learned a lot about how we would produce biomethane, and we’re keen to keep going.
The importance of gas
Gas is a critical part of New Zealand’s energy mix.Gas supplies reliable energy for heating, cooking and hot water for 290,000 homes, and 16,000 small businesses.
Having gas as an energy option means we have energy resilience, because our gas networks can withstand major storms well.
It also gives us energy security. It means we’re not over-reliant on our intermittent renewable electricity system (hydro, solar, wind and geothermal) to provide all of our energy needs.
While natural gas supply may wind down over time, developing biomethane as a renewable replacement means we can continue to enjoy the benefits of gas.
Get the biomethane basics
Find out how biomethane is made and what it's used for.