As New South Wales prepares for mandatory Food Organics and Garden Organics recycling, councils are being handed more than a waste solution. The staged rollout could also lay the groundwork for further development of a nascent renewable gas industry, specifically biomethane.
The days of Food Organics and Garden Organics (FOGO) being treated as a ‘nice to have’ are coming to an end in New South Wales (NSW).
New legislation requires councils across the state to provide FOGO services to households by 2030, while businesses and institutions will begin transitioning even sooner, with the first mandates commencing from July 2026.
For local government, the changes represent one of the most significant shifts in waste management policy in decades.
But while much of the conversation has focused on landfill diversion and recycling targets, the reforms could also have another, less discussed impact: the unlocking of Australia’s emerging biomethane industry and with it, a source of lower emission renewable gas.
The NSW Government’s mandates will provide something that has historically been difficult for renewable gas projects to secure – a large, reliable and source-separated stream of organic waste.
Nerise Cook, Executive General Manager of Gas Networks at Jemena – owner and manager of some of Australia’s most significant gas and electricity assets – said feedstock certainty has long been one of the biggest barriers to scaling anaerobic digestion and biomethane production in Australia.
For councils, the mandates are primarily about reducing the amount of food waste entering landfill. Greater Sydney is forecast to run out of landfill capacity by 2030 or earlier, while the NSW Government has committed to halving organic waste sent to landfill by the same year under its Waste and Sustainable Materials Strategy 2041.
Analysis conducted by the NSW Government found the household FOGO mandates alone could divert almost 950,000 tonnes of organic waste from landfill each year.
Traditionally, much of that recovered organic material has been used for composting. But increasingly, attention is turning to how these waste streams could also support renewable energy generation through biomethane production.
From waste challenge to energy opportunity
Biomethane is a renewable gas produced by refining the biogas that is created when organic material breaks down through anaerobic digestion.
Food waste, agricultural waste, wastewater and other organic materials can all be used as feedstocks in the process. Once upgraded, biomethane can be injected directly into existing gas networks and used in homes, businesses and industrial manufacturing without modifications to existing infrastructure or appliances.
Cook stated that this compatibility is one of the technology’s greatest advantages, particularly for industries that are difficult to electrify and rely on high-temperature heat processes.
Sectors such as brickmaking, glass manufacturing, fertiliser production, food and beverage processing and heavy manufacturing all require consistent high-heat energy sources that electricity alone struggles to provide economically at scale.
Cook added that the NSW FOGO reforms could therefore do more than reduce landfill volumes – they could also help create the supply-side foundations needed for a viable biomethane industry.
By mandating source-separated organic waste collections, the reforms improve both the quality and consistency of feedstock. That makes the material significantly more suitable for anaerobic digestion than mixed waste streams contaminated through traditional landfill collection systems.
The staged rollout also provides some of the assurances that investors and infrastructure developers are looking for.
Large supermarkets, hospitality venues and other major food waste generators will begin transitioning to source-separated food organics collections from July 2026, with additional businesses progressively included through to 2030 based on waste volumes. Household services will then become mandatory statewide by July 2030.
That creates a clearer long-term pipeline for potential biomethane projects, allowing industry and councils to plan infrastructure investments with greater confidence. The NSW Government’s Renewable Fuel Strategy and Renewable Fuel Scheme are also expected to play a key role, helping to strengthen demand signals for renewable fuels and supporting the scale-up of biomethane production in NSW.
Importantly, these reforms also align multiple policy objectives simultaneously.
Reducing food waste to landfill lowers methane emissions from decomposing waste sites. At the same time, converting those organic materials into biomethane creates a renewable energy solution capable of displacing natural gas.
Combined with the production of compost and other circular economy products, the result is a waste stream that can potentially deliver multiple environmental and economic benefits from the same material.
Regional councils stand to benefit
For regional and rural councils in particular, the implications could extend beyond waste management outcomes alone.
Cook said that many of the feedstocks suitable for biomethane production are concentrated in regional areas through agriculture, food manufacturing, wastewater treatment and organic waste processing.
“That creates opportunities for new regional industries and local economic activity tied to renewable gas production,” she said.
According to the Australian Renewable Energy Agency’s Bioenergy Roadmap, Australia’s bioenergy sector could contribute around $10 billion in additional GDP annually, reduce emissions by approximately nine per cent and create more than 26,000 jobs nationally.
The NSW reforms may now provide some of the practical policy settings needed to help that broader opportunity materialise.
Jemena has already been involved in some of Australia’s earliest biomethane projects, including the Malabar Biomethane Injection Plant, which has been injecting biomethane into the NSW gas distribution network since 2023, using gas generated at Sydney Water’s Malabar Wastewater Resource Recovery Plant. The Malabar project became the first in Australia to receive GreenPower certification for biomethane injected into a gas network.
Cook added that policies like the NSW FOGO mandate could help accelerate further projects by increasing feedstock availability and improving long-term investment confidence.
Challenges ahead
The NSW Environment Protection Authority (EPA) is working with councils and industry to support the transition, including through infrastructure grants, education programs and operational guidance. According to the EPA, 70 councils have already implemented or are planning FOGO services, while the mandates will apply to another 58 councils by 2030.
Weekly food waste collection services will also become standard under the reforms to improve food waste recovery and reduce contamination and odour issues.
Some councils may face infrastructure constraints, contract timing issues or challenges servicing multi-unit developments, with an exemption framework expected for limited circumstances where compliance may be difficult within mandated timeframes.
But despite these hurdles, the broader direction is now clear.
What was once considered simply a waste management reform is increasingly becoming part of a much larger conversation about renewable energy transition, emissions reduction and circular economy development.
For councils preparing for the rollout, the focus may currently be on bins, collection contracts and community education.
But the long-term significance of the reforms could ultimately extend far beyond kerbside waste collection.
To find out more, visit gorenewablegas.com.au
