‘Green gas’ is a sustainable alternative to natural gas. It is produced by converting biomass into biogas, which can consequently be upgraded to natural gas standards. Expectations about green gas are high. According to the long term vision of Netbeheer Nederland, the representative association of gas grid operators, green gas will entail 50 percent of the domestic gas mixture by 2050. In line with this vision national government has adopted a green gas innovation support program. Production of green gas takes place in rural areas with abundant supply of organic production resources, especially manure. It is in demonstration projects that green gas niche development is to be proven. In this paper the central question is how green gas demonstration projects manifest at the local level. By conducting a stakeholder analysis, we take a ‘bottom-up’ research approach, which helps us to identify organizational and institutional barriers key local stakeholders have in relation to green gas demonstration projects. We judge this necessary to further understanding in green gas niche development. The results of the analysis are used to advice policymakers about design and use of policy instruments which can help to solve these barriers.