Australia should not put all of its renewable energy investments into just a few baskets, a group warns, as it will not address the nation's ongoing reliance on gas.

More than 50 organisations, from energy retailers to manufacturers, issued an open letter to the federal energy minister on Thursday, calling on the government to extend financial support to renewable gas projects.

The energy source, also known as biomethane, could reduce both emissions and prices, they say, while establishing a new renewable energy sector.

The call comes after the government listed biomethane as an emissions-reducing fuel in its Net Zero Report and after a study by Blunomy found Australia could produce significant amounts of the gas using existing materials.

Renewable gas, or biomethane, is created by p

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