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Global Biomethane Industry Report 2024: Market Analysis By Production, Technology, Feedstock, End-Use, & Region 2023-2029 - ResearchAndMarkets.com


The "Global Biomethane Market: Analysis By Production, By Technology, By Feedstock, By End-Use, By Region Size and Trends with Impact of COVID-19 and Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.

The global biomethane market was valued at US$3.66 billion in 2023. The market value is expected to reach US$5.63 billion by 2029. The market is expected to grow at a CAGR of approx. 8% during the forecasted period of 2024-2029 as the global biomethane market production is expected to reach 18.07 billion cubic meters by 2029.

Biomethane is being adopted 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 energy utilities are investing heavily in biomethane to support decarbonization policies and clean energy supplies.

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

Europe held the major share of the market both in terms of market value and market production. European biomethane production has been further analyzed based on feedstock (Agriculture Residues, Energy Crops, Organic Waste, and Others), end-use (Building, Transport, Power, Industry, and Others), and regions (Germany, France, UK, Denmark, and Rest of Europe). Currently, the EU produces enough biomethane to satisfy approximately 2% of its total natural gas consumption.

However, the REPowerEU plan aims to increase this share to 20% by 2030, necessitating a substantial increase in production to over 350 TWh annually. Capacity expansion efforts are already underway, with Europe boasting 1,322 biomethane-producing facilities as of April 2023. Countries like Denmark, Germany, France, the UK, the Netherlands, and Italy are leading the charge in biomethane production, driven by supportive government initiatives and ambitious renewable energy targets.

The expansion of the US biomethane sector is supported by legislative measures such as the Inflation Reduction Act (IRA), which provides fiscal support to biogas for all end-uses and extends credits for alternative fuels in transportation. Additionally, demand for biomethane from non-transportation sectors is expected to drive significant growth, with natural gas utilities and large natural gas users purchasing RNG to decarbonize their supplies and comply with environmental, social, and governance (ESG) commitments. The US's biomethane market production has been further analyzed based on feedstock (Municipal Solid Waste, Agriculture Waste, Food Waste & Waste Water) and end-use (Transport Fuel and Power Generation).

China is the major 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) on renewable energy, which includes high targets for renewables, including RNG, given its dual carbon strategic goals. Combined with the rural revitalization strategy and the strong focus of China's policy on energy security, the still undeveloped RNG sector is expected to register an accelerated development during the 14th FYP period (2021-2025). The growth would be facilitated by improvement in policy support, better grid access to the network, and the participation of big players in the sector.

The Indian biomethane market production has also been analyzed based on the following feedstocks (Agricultural Waste, Pressmud, Municipal Solid Waste, Animal Waste, and Others).

Market Segmentation Analysis:

By Technology: The anaerobic digestion segment held the highest share of the market, whereas thermal gasification is expected to be the fastest-growing segment in the forecasted 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 advancements continue to improve process efficiency, enhance gas yields, and reduce operational costs, the use of anaerobic digestion for biomethane production is poised for continued growth in the forthcoming years.

On the other hand, thermal gasification technology has emerged as 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 decomposition, thermal gasification utilizes high temperatures and controlled oxygen levels to convert organic materials into a synthesis gas composed of hydrogen, carbon monoxide, and methane. While thermal gasification with biomethane synthesis is still in the pre-commercial phase, there is significant potential to scale up this technology in the mid to long term.

By Feedstock: Municipal solid waste held the highest share of the market, whereas the agriculture segment is expected to be the fastest-growing segment in the forecasted period. The utilization of municipal solid waste (MSW) as a feedstock for biomethane production has been on the rise as the increasing global population and urbanization have led to a corresponding surge 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 have incentivized the adoption of waste-to-energy technologies such as anaerobic digestion for MSW treatment. On the other hand, as sustainable agriculture practices gain momentum, and policies incentivize renewable energy production from agricultural sources, the utilization of agricultural feedstock for biomethane is poised for significant growth in the forthcoming years.

By End-Use: Transport fuel held the highest share of the market and is expected to be the fastest-growing segment in the forecasted period. In the transportation sector, biomethane can be utilized as a direct substitute for compressed natural gas (CNG) or liquefied natural gas (LNG) in vehicles. Its use helps to significantly lower carbon dioxide emissions and other pollutants compared to conventional gasoline or diesel. In the past few years, the European transportation sector has also seen a strong increase in demand for biomethane supported by the numerous bio-LNG plants in operation and under construction. To continue this momentum and achieve rapid decarbonization policymakers in Europe would need to adopt a neutral-technology approach.

Competitive Landscape:

The global biomethane industry is fragmented. In the competitive landscape of the biomethane market, players are adopting various strategies to expand their market share and gain a competitive edge. For instance, on April 25, 2024, TotalEnergies and Vanguard Renewables signed an agreement to create an equally owned joint venture to develop, build and operate Farm Powered renewable natural gas (RNG) projects in the US.

TotalEnergies and Vanguard Renewables would advance 10 RNG projects into construction over the next 12 months, with a total annual RNG capacity of 0.8 TWh (2.5 Bcf). On the other hand, on April 25, 2024, Brimex Energy, a joint venture between Mexico-based Grupo Serrano and England-based Farmergy, obtained the first permit in Mexico for the production of biomethane. The permit authorizes the production and storage of biomethane.

Key Attributes:

Report Attribute Details
No. of Pages 179
Forecast Period 2024 - 2029
Estimated Market Value (USD) in 2024 $3.89 Billion
Forecasted Market Value (USD) by 2029 $5.63 Billion
Compound Annual Growth Rate 7.6%
Regions Covered Global

Market Dynamics

Growth Drivers

Challenges

Market Trends

Key Players

For more information about this report visit https://www.researchandmarkets.com/r/2bu33w

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