From a user perspective, biomethane can be utilized without modifications to transmission, distribution infrastructure or end-user equipment. It is fully compatible with natural gas vehicles as well. The key advantage of biomethane over natural gas lies in its reduced greenhouse gas emissions. This is because biomethane is produced from biogas, which captures methane that would otherwise be released into the atmosphere. In contrast, natural gas primarily consists of methane extracted from fossil fuels and its extraction, production, and transportation can result in methane leaks and emissions that contribute to climate change.
Biomethane also contributes to energy security, as it can also be easily stored, providing an alternative to intermittent generation from other sources, such as solar and wind.
Growing share of the biogas produced worldwide is upgraded to biomethane. It is mostly injected into natural gas grid or used for the transport sector either as CNG (bio-CNG) for passenger vehicles or as more energy-dense liquefied gas (bio-LNG) serving heavy duty transport.

Technology-wise, biogas upgrading is the process of removing carbon dioxide, trace gases and impurities from raw biogas to produce biomethane as purified methane gas. The upgrading process generates a highly concentrated CO₂ stream which has multiple applications and can be further processed and marketed as biogenic CO2. The CO₂ from biogas plants can also be combined with hydrogen in methanation process to yield an additional stream of methane - synthetic natural gas, bio SNG.

In summary, there are different upgrading technologies that basically make use of the different chemical and physical properties of the various biogas components to separate them. Membrane separation, chemical and physical absorption are mostly used.