$5.63 billion market by 2029, driven by government initiatives and key supporting policies and growing demand in the transport sector

Global biomethane market

Dublin, May 28, 2024 (GLOBE NEWSWIRE) — “Global Biomethane Market: Analysis by Production, Technology, Feedstock, End-Use, Region Size and Trends with Covid-19 Impact and Forecast to 2029.” the report has been added to ResearchAndMarkets.com offering.

The global biomethane market in 2023 was valued at USD 3.66 billion. By 2029, the market value is expected to reach USD 5.63 billion. The market is expected to grow at a CAGR of approximately USD 2.5 billion. 8% over the forecast period 2024-2029 as the global biomethane market production is expected to reach 18.07 billion cubic meters by 2029.

Biomethane is being used by cities, corporations, industrial users and fleet owners to decarbonize hard-to-electrify sectors, move towards a circular economy and respond to ESG concerns. European and North American utilities are investing heavily in biomethane to support decarbonization policies and clean energy supplies.

New applications are emerging, such as the use of biomethane to produce clean hydrogen. Therefore, the combination of environmental imperatives, policy support, technological innovation and market demand is expected to lead to significant growth of the biomethane market in the coming years.

Europe held the largest market share in terms of both market value and market production. European biomethane production was further analyzed based on raw materials (agricultural residues, energy crops, organic waste and others), end use (construction, transport, energy, industry and others) and regions (Germany, France, UK, Denmark and the rest Europe). Currently, the EU produces enough biomethane to meet around 2% of its total natural gas consumption.

However, the REPowerEU plan assumes increasing this share to 20% by 2030, which will require a significant increase in production to over 350 TWh per year. Efforts have already been made to increase production capacity, and as of April 2023, there were 1,322 biomethane plants in Europe. Countries such as Denmark, Germany, France, the UK, the Netherlands and Italy are leading the way in biomethane production thanks to supportive government initiatives and ambitious renewable energy targets.

The expansion of the U.S. biomethane sector is supported by legislative measures such as the Inflation Reduction Act (IRA), which provides fiscal support for biogas for all end uses and provides credits for alternative fuels in transportation. Additionally, demand for biomethane from sectors other than transportation is expected to drive significant growth, with natural gas utilities and large natural gas users purchasing RNG to decarbonize their supply and meet environmental, social and governance obligations ( ESG). Biomethane production in the U.S. market has been further analyzed based on feedstock (municipal solid waste, agricultural waste, food waste and sewage) and end use (transportation fuels and power generation).

China is the main producer of biomethane in the Asia-Pacific region and has the potential to grow further in the coming years. China has adopted its 14th Five-Year Plan (FYP) for renewable energy, which includes high targets for renewable energy sources, including RNG, taking into account strategic dual-carbon targets. Combined with the rural revitalization strategy and China’s strong policy focus on energy security, the still untapped RNG sector is expected to experience accelerated development in the 14th fiscal period (2021-2025). Growth would be facilitated by improved political support, better network access and the participation of large players in the sector.

Biomethane production in the Indian market was also analyzed based on the following feedstocks (agricultural waste, sludge, municipal solid waste, animal waste and others).

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Market segmentation analysis:

By technology: The anaerobic digestion segment had the largest market share, while thermal gasification will be the fastest growing segment in the forecast period. Anaerobic digestion (AD) has historically dominated the biomethane market due to its maturity, scalability, and compatibility with a wide range of organic feedstocks. As technological advances continue to improve process efficiency, increase gas yields and reduce operating costs, the use of anaerobic digestion for biomethane production will continue to increase in the coming years.

On the other hand, thermal gasification technology has proven to be a promising approach for converting biomass and organic waste into biomethane and other valuable products such as syngas and biochar. Unlike anaerobic digestion, which relies on microbial digestion, thermal gasification uses high temperatures and controlled oxygen levels to convert organic materials into a syngas composed of hydrogen, carbon monoxide and methane. Although thermal gasification with biomethane synthesis is still in the pre-commercial phase, there is significant potential to scale up this technology in the medium and long term.

By raw material: Municipal waste had the largest share in the market, while agriculture will be the fastest growing segment in the forecast period. The use of municipal solid waste (MSW) as a feedstock for biomethane production is increasing as the world’s growing population and urbanization have led to a corresponding increase in waste generation, creating a significant abundance of organic materials suitable for biomethane production.

Moreover, landfill diversion policies and regulations aimed at reducing methane emissions from waste decomposition encourage the use of waste-to-energy technologies such as anaerobic digestion in MSW processing. On the other hand, as sustainable agriculture practices gain momentum and policies encourage the production of renewable energy from agricultural sources, the use of agricultural feedstocks for biomethane production is likely to increase significantly in the coming years.

By end use: The largest market share was held by transport fuels, which will be the fastest growing segment in the forecast period. In the transport sector, biomethane can be used as a direct substitute for compressed natural gas (CNG) or liquefied natural gas (LNG) in vehicles. Its use allows you to significantly reduce the emission of carbon dioxide and other pollutants compared to conventional gasoline or diesel oil. Over the last few years, the European transport sector has also seen a strong increase in demand for biomethane, supported by numerous bio-LNG plants in operation and under construction. To maintain this momentum and achieve rapid decarbonization, European policymakers would need to adopt a technology-neutral approach.

Competitive environment:

The global biomethane industry is fragmented. In the competitive landscape of the biomethane market, players are adopting various strategies to increase their market share and gain a competitive advantage. For example, on April 25, 2024, TotalEnergys and Vanguard Renewables signed an agreement to form an equal-share joint venture to develop, build and operate renewable natural gas (RNG) projects fueled by U.S. farms.

TotalEnergys and Vanguard Renewables will launch 10 RNG projects over the next 12 months with a combined annual RNG production capacity of 0.8 TWh (2.5 Bcf). In turn, on April 25, 2024, Brimex Energy, a joint venture between Grupo Serrano from Mexico and Farmergy from England, obtained the first permit for the production of biomethane in Mexico. The permit authorizes the production and storage of biomethane.

Key Features:

Market dynamics

Growth factors

• Growing greenhouse gas emissions

• Growing development of biomethane installations

• Growing number of bio-LNG installations

• Growing electricity production through renewable energy sources

• A developing biomethane refueling station

• Strengthening energy generation infrastructure

• Government initiatives and key supporting policies

• Growing demand in the transport sector

Challenges

Market trends

• Hydrothermal gasification

• Advances in PSA technology

• Guarantee of Origin (GoO) Certificates.

• Improved reactor configurations and process optimization

• Raising awareness of the circular economy

• Growing international trade and cooperation

• Integration with renewable energy systems

Key players

• Veolia Group

• EnviTec Biogaz AG

• ENGI

• E.ON SE (E.ON Bioerdgas GmbH)

• Verbio SE

• Greenlane Renewables Inc.

• Landwarme GmbH

• PlanET Biogas Group

• AB Group

• Future Biogas Limited

• Bioenergy Devco

• Renergon International AG

More information about this report can be found at https://www.researchandmarkets.com/r/3x6h03

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