The production of hydrogen from electrolysis (Power-to-Gas) to upgrade biogas (via a Sabatier reaction of 4H2 + CO2 → CH4 + 2H20) has been proposed as a method of increasing the production of gaseous transport fuel, whilst providing ancillary services to the electricity grid as a form of energy storage (<10MW). As a relatively new topic in energy research, there is much uncertainty in the literature. This work explores the likely costs, their contribution to the levelised cost of energy (LCOE), and a sensitivity analysis of system costs, incentives, and supplementary incomes for a range of time periods. Using a discounted cash flow model, the LCOE was found to be €107-143/MWh (base value €124) in 2020, €89-121/MWh (base value €105) in 2030, and €81-103/MWh (base value €93) in 2040. As electricity cost dominates the LCOE (56%) and run hours are a function of such, interaction with the electricity market was then analysed. The concept of consuming grid electricity was explored as difficult-to-manage energy alone was an insufficient resource. Economic optimisation of the Power-to-Gas plant modelled as a large purchaser was sought, with particular interest given to the effects on curtailment. The results showed that bidding more for electricity produced a more economical system due to the increased capacity factor, as did integrating more variable renewable generation into the mix. Within these optimisation controls the carbon intensity of the gas produced was examined and synergies between environmental and economic optimisation were found. Although Power-to-Gas derived gaseous transport fuel may not meet the criteria for advanced biofuels in the examined 2030 electricity mixes under the EU Renewable Energy Directive (Recast), it contributes to RES-T targets and has positive externalities for power producers and grid operators, providing a route for the future production of renewable gas.