This paper presents a study of two Swedish municipalities engagement in biogas development. To analyse the drivers of such biogas development, the conceptual framing incorporates two perspectives on local biogas policy: first, policy drivers as connected to environmental goals and, second, policy as a matter of green place branding. The results indicate that biogas engagement serves as a self-governing activity with the fulfilment of environmental goals as a driver; furthermore, it is a way of expressing the mission of municipalities as engines of environmental policy. In one studied municipality, biogas engagement has an important symbolic value for green identity, meaning that green place branding is a driver. Still, interviewed actors from both municipalities lack clear long-term visions of biogas. Further studies of biofuel production should critically investigate visions of the future among central and local governments and evaluate the implications of municipalities as biofuel producers.