Biomethane is often overlooked as a viable transport fuel option, yet when produced from wastes can provide a highly competitive, low-cost transport fuel alternative. Biomethane upgraded for use in vehicles can be produced for between USD 0.45/lge and USD 0.55/lge from wastes, and between USD 0.65-0.75/lge when maize silage is added.

Large-scale production requires the purchase of feedstocks (e.g. maize silage) for the majority of the throughput and is thus more expensive. To the production costs for biogas, the cost of upgrading to biomethane must be added, but this typcially only accounts for 5-10% of production costs. The main constraint to the expanded use of biomethane is the need for a dedicated gas-based refuelling network and the relatively limited quantities of waste feedstocks relative to total transport demand.