Study Shows: Biomethane Creates Billions in Value Added and Thousands of Jobs in Austria

A new study on the economic impact of biomethane production in Austria demonstrates impressively that expanding domestic biomethane production from organic waste, industrial by-products, and residues from agriculture and forestry is not only a key pillar for energy independence, security of supply, and climate protection, but also a major economic stimulus for Austria’s economy.

The analysis, conducted by the Renewable Gases Service Center on behalf of the Ministry of Economic Affairs, shows that the expansion of every additional 1 TWh of biomethane capacity triggers investments averaging around EUR 560 million. This generates approximately EUR 390 million in domestic gross value added and creates more than 5,100 full-time jobs during the construction phase.

Biomethane also delivers enormous economic benefits during ongoing operations: Every additional TWh of biomethane generates around EUR 160 million annually in domestic gross value added and supports approximately 3,200 permanent full-time jobs. Particularly noteworthy is the high level of regional value creation: Around 99 percent of the economic effects remain within Austria — a clear contrast to fossil natural gas, for which enormous amounts of money flow abroad every year.

The study also highlights the fiscal benefits of expanding biomethane production. The investment phase alone generates average tax revenues and levies of around EUR 140 million for the public sector. During operation, an additional EUR 55 million per TWh flows to public budgets annually.

At present, Austria is utilizing only a fraction of its available biomethane potential. At the same time, dependence on fossil gas imports remains enormous, causing EUR 3 to 5 billion to irretrievably flow abroad each year. In light of the new study findings, the swift adoption of the Renewable Gas Act would therefore represent a clear win-win situation for Austria.
“The study clearly shows that domestic biomethane production not only strengthens energy independence and security of supply while making a valuable contribution to climate protection and regional circular economy, but above all creates substantial domestic value added instead of losing money abroad for fossil imports. Every euro invested in domestic biomethane is therefore an investment in our country that pays off in many ways. However, the enormous potential of biomethane can only be unlocked and investment security created with reliable legal framework conditions. If Austria is truly serious about achieving the desired economic upswing, the existing economic potential — such as boosting domestic biomethane production — must finally be utilized. This is why the Renewable Gas Act must be adopted swiftly,” said Johannes Hauptmann, Chairman for Biogas at the Austrian Compost & Biogas Association (KBVÖ).

Full study: Economic Effects of Biomethane Production in Austria