Beef cattle partition dietary nitrogen (N) into meat or excrete it mainly in faeces and urine, which can contribute significantly to water and air pollution. The effects of two inorganic nitrogen (N) fertilizer application rates—15 (LN) or 80 (HN) kg N/ha—to Lolium perenne‐dominant swards in autumn, on herbage chemical composition, intake, digestion and N balance in beef cattle, and in vitro fermentation and methane production were studied. Four growing beef steers used in a 2 × 2 crossover design experiment were offered zero‐grazed grass harvested 21 days post‐N application between July and October. The same grasses were incubated in an eight‐vessel rumen simulation technique in a randomized complete block experiment. Grass dry‐matter (DM) concentration was 26 g/kg lower and crude protein (CP) concentration was 35 g/kg DM higher for HN compared to LN. There was no difference in herbage DM intake or in vivo DM digestibility between treatments. Nitrogen intake and the digestibility of N were higher for HN compared to LN. Total and urine N loss were 41 and 45 g/day greater, respectively, for HN compared to LN, but faecal N loss did not differ between treatments. The quantity of N retained and therefore N‐use efficiency did not differ between LN and HN (25% vs. 22%). In vitro rumen pH and ammonia‐N concentrations were higher for HN compared to LN, whereas volatile fatty acid concentrations and molar proportions did not differ between treatments. In vitro methane and total gas production were 0.9 mmol/day and 280 ml/day lower for HN than LN respectively. Under the particular conditions of this experiment, reducing fertilizer N application rate reduced total and urinary N excretion, which has potential environmental benefits; however, methane output measured in vitro was increased.