Bioenergy Australia congratulated the state government on its goal of becoming the nation's renewable energy powerhouse through proposals such as Battery of the Nation and the Marinus Link undersea cable.

However, in a submission for the government's draft renewable energy action plan, it said the plan was not ambitious enough, focussed too heavily on electricity and missed the "abundant opportunities" in heat generation and transport fuels.

"According to the Australian Energy Update 2019, which uses data from 2017-18, renewable energy represented 42 per cent of Tasmanian's primary energy consumption, with oil comprising 34 per cent, gas 12 per cent and coal 10 per cent," it said.

"This data shows that if Tasmania is to be leading in renewable energy, it needs to decarbonise its gas network through the use of biomethane and develop a renewable fuels industry that converts waste and residue into fuels such as biodiesel, renewable diesel and ethanol.

"Doing so will allow Tasmania to achieve its stated aim of becoming a world-leading provider of clean, reliable and affordable energy, whilst simultaneously supporting the creation of local jobs and exportable product."

It said biogas could be stored locally and dispatched as peak power.

It could be upgraded to natural gas quality and injected into the gas grid to provide "net zero carbon energy" for gas users, industry, transport and electricity generation.

"The technology is well established in Europe, with over 1000 operational plants," it said.

"Biomethane has potential to rapidly decarbonise a number of otherwise hard to decarbonise sectors, simply because those sectors are already connected to existing gas infrastructure.

They included heavy transport, industry and dispatchable energy.

Bioenergy Australia said Tas Gas' natural gas networks provided existing infrastructure that gave an opportunity to decarbonise and contribute to renewable energy targets through renewable gas.

It said that was without the need to fully electrify, which was not as efficient in energy and financial terms for many industrial customers and heavy transport.

The SWIRL swimming pool and indoor recreation centre at Smithton is heated by a biomass boiler, with liquid national gas cylinders as a back-up.

Essentially, the complex is heated by burning locally sourced woodchips.

"It's great," Circular Head Council civil engineer Jamie Warr said.

"I don't think we've had too many issues and it doesn't cost too much to run."

He said it was "a lot" cheaper to run than LNG or diesel and would be significantly cheaper than a regular electric system.

"There's a fair bit of capital cost, but the running costs and maintenance costs are pretty minimal," he said.

"It's a very efficient system."