A UK startup developing artificial intelligence solutions for the bioenergy sector has been awarded £1 million under the government’s Manchester Prize programme for creating technology that helps biogas plants improve efficiency, increase renewable energy production and reduce carbon emissions.
BiofuelAi, based at the Surrey Technology Centre in Guildford, received the award for its AI-powered decision-support platform designed for anaerobic digestion facilities. The technology enables bioenergy operators to optimize plant performance, improve energy output and lower operational costs while reducing environmental impact, Envirotec reported.
The Manchester Prize, administered by the Department for Science, Innovation and Technology (DSIT), recognizes UK-developed AI innovations that can deliver significant public benefits.
BiofuelAi’s platform addresses a long-standing challenge in the biogas industry, where plant performance has often depended on operator experience and manual analysis. By creating a digital twin of a biogas facility through a combination of mechanistic modelling, machine learning and artificial intelligence, the system provides real-time insights into biological processes occurring within digesters.
The platform helps operators make more informed decisions on feedstock management, feeding schedules, storage practices and overall plant operations. According to company pilot trials, facilities using the technology recorded revenue gains of between 6 and 10 percent, profit increases of 7 to 13 percent and a 28 percent reduction in carbon emissions.
Alan Beesley, Chief Executive Officer and co-founder of BiofuelAi, said the biogas industry remains one of the least data-driven segments of the energy sector despite supplying renewable energy to thousands of homes. He noted that the company’s technology aims to make green energy production more reliable, affordable and accessible.
The company originated from the University of Surrey’s AI4AD research programme and has secured more than £1.5 million in research funding. Its founding team includes experts in artificial intelligence, mathematical modelling and biogas plant operations.
The award highlights the growing role of AI in supporting the bioenergy sector and the wider transition to cleaner energy systems. Anaerobic digestion facilities convert organic materials such as food waste, agricultural residues and wastewater sludge into biogas, which can be used to generate electricity, heat and biomethane.
The UK anaerobic digestion industry has expanded steadily over the past decade as efforts increase to reduce methane emissions and strengthen domestic renewable energy generation. Industry organizations have argued that improving the performance of existing facilities could unlock substantial additional bioenergy capacity without requiring major new infrastructure investments.
Science Minister Lord Vallance said the technology has the potential to strengthen Britain’s clean energy ambitions by helping renewable energy facilities generate more power while lowering carbon emissions. He described the innovation as an example of British AI leadership delivering practical results for future industries.
Professor Michael Short, Chief Technology Officer and co-founder of BiofuelAi, said the company spent years developing models capable of improving prediction and decision-making within anaerobic digestion systems. He added that successful deployment at operating facilities demonstrates the technology’s readiness for wider commercial adoption.
BiofuelAi is currently onboarding three additional sites and has signed a UK reseller agreement as it expands its commercial footprint. The company estimates that its technology could generate more than £500 million in value for clients over the next five years as adoption across the bioenergy industry grows.
