Biomethane Market Forecasts to 2030 - Global Analysis By Feedstock (Organic Waste, Energy Crops, Sewage Sludge, Animal Manure, Industrial Waste, Food Processing Waste and Other Feedstocks), Production Method, Application, End User and By Geography

According to Stratistics MRC, the Global Biomethane Market is accounted for $4.28 billion in 2024 and is expected to reach $6.32 billion by 2030 growing at a CAGR of 10.8% during the forecast period. Biomethane, also known as renewable natural gas (RNG), is a sustainable alternative to traditional natural gas derived from fossil fuels. Biomethane is chemically identical to natural gas and can be used interchangeably in existing gas infrastructure for heating, electricity generation, and transportation, offering a renewable and low-carbon energy source with potential environmental benefits.

According to the World Biogas Association (WBA), Biogas can reduce global GHG emissions by 10-13% and provide renewable energy from the world's food waste, industrial production wastes, feedstocks from agriculture, and sewage.

Market Dynamics:

Driver:

Growing concerns over climate change and air pollution

As societies become increasingly aware of the environmental impacts of fossil fuel consumption, there is a heightened demand for cleaner and renewable energy sources. Biomethane, derived from organic waste, offers a sustainable alternative to traditional fossil fuels, significantly reducing greenhouse gas emissions and air pollutants when used for heating, electricity generation, and transportation. This heightened awareness and demand for cleaner energy sources propel the growth of the biomethane market as a key contributor to mitigating climate change and improving air quality.

Restraint:

Intermittent supply

Intermittent supply in biomethane production stems from the variability and seasonality of organic feedstock availability. Factors like weather conditions affecting crop growth and waste generation rates contribute to this unpredictability. This intermittency poses challenges for maintaining a consistent and reliable biomethane supply, impacting the reliability of energy production and distribution. In turn, this uncertainty can deter potential investors and hinder market growth.

Opportunity:

Mounting sustainable waste management solutions

Mounting sustainable waste management solutions, such as anaerobic digestion and biogasification, play a pivotal role in propelling the growth of the biomethane market. These solutions divert organic waste from landfills, reducing methane emissions and environmental pollution. By utilizing organic waste as feedstock for biomethane production, these processes not only mitigate waste disposal challenges but also create a valuable renewable energy resource. Consequently, the availability of abundant and diverse feedstock sources fosters increased biomethane production, driving market expansion and facilitating the transition towards a more sustainable energy future.

Threat:

Limited infrastructure for biomethane distribution and utilization

Limited infrastructure for biomethane distribution and utilization arises due to the need for specialized facilities such as gas grid injection points and refuelling stations. The establishment of such infrastructure requires significant investment and coordination among stakeholders, including energy companies, government agencies, and transportation providers. This lack of infrastructure hampers market growth by constraining the accessibility and scalability of biomethane as an energy source.

Covid-19 Impact

The covid-19 pandemic initially slowed the growth of the biomethane market due to disruptions in supply chains, project delays, and reduced investments caused by economic uncertainty. However, as the world focuses on economic recovery and sustainable solutions, there's a renewed interest in renewable energy sources, including biomethane. Government stimulus packages and green recovery initiatives may accelerate market growth by incentivizing investments in biomethane infrastructure and production facilities.

The organic waste segment is expected to be the largest during the forecast period

The organic waste segment is estimated to have a lucrative growth. Organic waste, such as food scraps, agricultural residue, and manure, serves as a valuable feedstock for biomethane production. Through anaerobic digestion, microorganisms break down this waste, producing biogas primarily composed of methane. This biogas can then be refined to produce biomethane, a renewable energy source comparable to natural gas. Utilizing organic waste for biomethane not only mitigates environmental pollution but also contributes to sustainable energy production and waste management.

The electricity generation segment is expected to have the highest CAGR during the forecast period

The electricity generation segment is anticipated to witness the highest CAGR growth during the forecast period. Biomethane plays a crucial role in electricity generation by serving as a sustainable fuel source. In this application, biomethane is combusted in gas turbines or engines to drive generators, producing electricity. Its utilization reduces greenhouse gas emissions compared to fossil fuels, contributing to cleaner energy production. Additionally, biomethane can be integrated into existing power grids, providing a reliable and renewable source of electricity to meet the growing energy demands while mitigating environmental impact.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period. Rapid urbanization, population growth, and industrialization have led to heightened concerns about pollution and greenhouse gas emissions, prompting governments to seek sustainable energy solutions. Government policies promoting renewable energy, coupled with growing awareness of environmental issues, are fostering the development of biomethane projects across the region, particularly in countries like China, India, and Japan.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to increasing environmental concerns and the shift towards renewable energy sources. Stringent regulations promoting renewable energy adoption, coupled with supportive government incentives, have spurred investments in biomethane production facilities. The market is characterized by a growing network of biomethane plants, particularly in countries like Germany, the UK, Sweden, and France.

Key players in the market

Some of the key players profiled in the Biomethane Market include Wartsila Corporation, Air Liquide, Engie, EnviTec Biogas AG, Greenlane Renewables, AB Energy, PlanET Biogas Global GmbH, Clarke Energy, Future Biogas Limited, Scandinavian Biogas, BioConstruct GmbH, MAPFRE S.A., SoCalGas, Quantum Green, Ameresco, Renergon International AG, StormFisher, Verbio SE, Weltech Biopower GmbH and Magne Gas.

Key Developments:

In May 2024, Air Liquide has taken another step forward in sustainable biomethane production by implementing an internal charter, developed with experts and WWF France. Specifically, the charter is centred around four main pillars: contributing efficiently to the energy transition; serving as a lever for agro ecological practices; maximising the benefits for local ecosystems and promoting a circular economy; and preserving biodiversity and preventing environmental risks.

In June 2023, MAPFRE, alongside its partner Abante and IAM Carbonzero, launched the fund MAPFRE Energias Renovables II, FCR. As an innovative project in the European context, it will invest in biomethane, a 100% green biofuel obtained from animal and vegetable waste that can be injected directly into the natural gas grid, generate electricity via engines, and be used as a fuel.

Feedstocks Covered:

• Organic Waste
• Energy Crops
• Sewage Sludge
• Animal Manure
• Industrial Waste
• Food Processing Waste
• Other Feedstocks

Production Methods Covered:

• Anaerobic Digestion
• Gasification
• Pyrolysis
• Chemical Methanation
• Power-to-Gas (P2G)
• Other Production Methods

Applications Covered:

• Heat Generation
• Electricity Generation
• Transportation Fuel
• Gas Grid Injection
• Combined Heat and Power (CHP) Systems
• Other Applications

End Users Covered:

• Residential
• Commercial
• Industrial
• Transportation
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
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