Increasing energy demand and limited non-renewable energy resources have raised energy security concerns within the European Union. With the EU’s commitment to becoming the first climate-neutral continent, transitioning to renewable energy sources has become essential. While wind and solar energy are intermittent, consistent and reliable green energy sources, such as biogas and biomethane, offer promising alternatives. Biogas and biomethane production from biomass address key challenges, including grid stability (“supply on demand”), decentralized energy production, energy density, and efficient storage and transportation via existing natural gas infrastructure. This study examines technologies for converting woody biomass into biomethane and proposes a conceptual design utilizing the best available technologies. The system, situated in Slovenia’s Kočevje region—one of Europe’s richest forest habitats—was scaled based on the availability of low-quality woody biomass unsuitable for other applications. Combining biomass gasification, catalytic methanation, and biomethanation, supplemented by hydrogen from electrolysis, provides an effective method for converting wood to biomethane. Despite the system’s complexity and current technological limitations in energy efficiency, the findings highlight biomethane’s potential as a reliable energy carrier for domestic and industrial applications.