We've announced our plans to go ahead with five biomethane demonstration projects that are likely to be the first in the UK to inject green gas into the grid. The announcement follows Government backing for this emerging technology that confirms support for biomethane to grid from April 2011.

Biomethane will make a contribution to decarbonising the gas grid by delivering renewable heat to households through the existing gas network and central heating boilers. According to a study by National Grid, this could account for at least 15 per cent of the domestic gas market by 2020.

Biomethane is a mixture of gases (predominantly methane) that are sourced from organic material, such as cattle slurry, food and household waste. It has similar thermal characteristics to natural gas and, once upgraded to grid specification, can be injected into the gas grid for end use by customers.

The first project will involve British Gas working with Thames Water and Scotia Gas Networks to build plant at Didcot sewage works. Thames Water already makes and flares raw biogas from sewage processing. The project will design and build a plant to clean the gas and inject it into the grid.

First gas from this project could flow into the grid in summer 2010. Upon completion, British Gas will also enter into a long-term gas purchase contract with Thames Water.

British Gas has also signed development agreements with four other companies to carry out feasibility studies with a view to delivering biomethane to grid. Gearóid Lane, Managing Director of Communities and New Energy, British Gas, says,"These five projects demonstrate once again British Gas' leadership in renewable energy. By making early investments in biomethane we intend to drive forward the opportunity to deliver green gas to our customers."