Global Biomethane Market

MARKET SCOPE:

The global Biomethane market is projected to grow significantly, registering a CAGR of 8.1% during the forecast period (2024 – 2032).

Biomethane, also known as renewable natural gas (RNG) or green gas, is a type of biogas that has undergone a purification process to remove impurities, resulting in a high-quality methane-rich gas. It is produced through the anaerobic digestion or upgrading of organic materials such as agricultural residues, organic waste, and wastewater. Biomethane is chemically identical to natural gas and can be used interchangeably as a clean and renewable energy source. Governments and utilities set renewable energy targets to reduce greenhouse gas emissions and increase the share of renewable energy in the overall energy mix. Biomethane, as a renewable and low-carbon fuel, contributes to meeting these goals. Biomethane is used as a clean fuel for vehicles, particularly in natural gas vehicles (NGVs). The transportation sector, seeking alternatives to conventional fuels for reducing emissions, drives demand for biomethane.

MARKET OVERVIEW:

Driver: Increasing technological advancements is driving the market growth.

Technological advancements in biomethane production processes are crucial for enhancing efficiency, reducing costs, and promoting the widespread adoption of biomethane as a clean and renewable energy source. Ongoing research focuses on optimizing anaerobic digestion processes, which are fundamental to biomethane production. Improvements in reactor design, microbial communities, and operating conditions contribute to higher efficiency in converting organic feedstocks into biogas. Innovations in handling and utilizing the digestate byproduct from anaerobic digestion can improve the overall sustainability of biomethane production.

Opportunities: Growing need for supportive regulations is anticipated for the market growth in the upcoming years.

Supportive regulations and renewable energy policies are key drivers for the growth of the renewable energy sector, including biomethane. Governments around the world implement various measures to incentivize the production and utilization of renewable energy sources. Feed-in tariffs are financial incentives provided by governments to renewable energy producers, guaranteeing a fixed payment for each unit of energy produced. FiTs can encourage biomethane production by offering a stable and attractive price for the energy generated. This helps to attract investments in biomethane projects. Governments set specific targets for the share of renewable energy in the total energy mix. These targets aim to increase the use of renewable sources and reduce dependence on fossil fuels.

COVID IMPACT:

Lockdowns, restrictions, and disruptions in supply chains could have affected the production of biomethane. Biomethane production often involves the collection and processing of organic waste, and disruptions in waste collection or processing facilities could impact feedstock availability. The development and maintenance of biomethane infrastructure, such as upgrading facilities and distribution networks, may have faced delays or challenges due to the pandemic-related restrictions and uncertainties. The overall decline in energy demand during certain phases of the pandemic might have influenced the demand for alternative fuels, including biomethane. Changes in transportation patterns, reduced industrial activities, and economic slowdowns could impact the demand for biomethane as a transportation fuel. Governments worldwide shifted priorities to address immediate health and economic challenges posed by the pandemic. Funding and policy support for renewable energy projects, including biomethane initiatives, may have been affected. The transportation sector, a key consumer of biomethane, experienced significant disruptions during the pandemic. Lockdowns and travel restrictions led to changes in commuting patterns and reduced demand for certain types of transportation fuels.

SEGMENTATION ANALYSIS:

Automotive segment is anticipated to grow significantly during the forecast period

Biomethane can be used as a clean alternative fuel for various types of vehicles, including cars, buses, trucks, and even certain types of off-road vehicles. Compared to traditional fossil fuels, biomethane has the potential to reduce greenhouse gas emissions, as it is derived from organic materials and is considered a renewable and low-carbon fuel. Biomethane is compatible with natural gas vehicles (NGVs), which are specifically designed to use compressed natural gas (CNG) or liquefied natural gas (LNG) as fuel. Some traditional internal combustion engine vehicles can also be converted to run on biomethane. Biomethane used in the automotive sector is often produced through anaerobic digestion, a biological process that breaks down organic matter to produce biogas, which is then upgraded to biomethane.

Agriculture waste segment is anticipated to grow significantly during the forecast period

Biomethane production from agricultural waste involves the conversion of organic materials, such as crop residues, animal manure, and other biomass generated from farming activities, into methane-rich gas. This process is typically carried out through anaerobic digestion or other biological processes. Anaerobic digestion is a biological process in which microorganisms break down organic matter in the absence of oxygen, producing biogas as a byproduct. Biogas consists mainly of methane and carbon dioxide. The produced biogas is then upgraded to biomethane through a purification process, removing impurities such as carbon dioxide and hydrogen sulfide. The resulting biomethane is a high-quality renewable natural gas. Agricultural residues, such as corn stover, wheat straw, and rice husks, can be used as feedstock for biomethane production. Biomethane production from agricultural waste helps utilize organic materials that would otherwise be considered waste, contributing to waste reduction and improved waste management practices.

REGIONAL ANALYSIS:

The Asia Pacific region is set to witness significant growth during the forecast period.

Several countries in the Asia-Pacific region have been investing in biomethane production facilities. These facilities typically use organic waste from agriculture, municipal solid waste, and wastewater treatment plants to generate renewable natural gas. Waste-to-energy initiatives are gaining traction in countries like China, Japan, South Korea, and India. Biomethane production fits into the broader framework of sustainable waste management and the utilization of organic waste for energy purposes. Many countries in the Asia-Pacific region have set ambitious renewable energy goals and targets. Biomethane, being a renewable and low-carbon energy source, aligns with these goals and contributes to the diversification of the energy mix. Biomethane has the potential to play a significant role in the transportation sector as a clean and renewable fuel. Countries with a focus on reducing emissions from the transportation sector may explore biomethane as an alternative to traditional fossil fuels.

COMPETITIVE ANALYSIS

The global Biomethane market is reasonably competitive with mergers, acquisitions, and Application launches. See some of the major key players in the market.

Air Liquide

• Air Liquide is building the largest biomethane production plant in the world in the United States as part of its ongoing biomethane development efforts. This will increase the Group's ability to produce biomethane globally to 1.8 TWh. With the opening of its new production facility in the state of Illinois, Air Liquide will be able to continue offering its clients in the transportation and industrial sectors low-carbon solutions and supporting them as they lower their emissions.

Archaea Energy INC.

• The inaugural Archaea Modular Design (AMD) renewable natural gas (RNG) facility in Medora, Indiana, has officially started operations, according to bp's Archaea Energy. This plant, which is adjacent to a Rumpke Waste and Recycling dump, is the first to operate since bp acquired Archaea in December 2022.

EnviTec Biogas AG

CNG Services Ltd.

Crygon Purr

EnviTec Biogas AG

Future Biogas Ltd.

Others

SCOPE OF THE REPORT

By Application

• Automotive
• Power Generation
• Industrial
• Others

By Feedstock

• Organic Household Waste
• Agriculture Waste
• Others

By Region

• North America (the United States & Canada)
• Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)
• Asia Pacific (China, Japan, India, and Rest of Asia Pacific)
• Rest of the World (the Middle East & Africa, and Latin America)

KEY REASONS TO PURCHASE THIS REPORT

It provides a technological development map over time to understand the industry’s growth rate and indicates how the Biomethane market is evolving.

The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Biomethane submarket will be the main driver of the overall market from 2024 to 2032.

It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.

It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032. Show more