Global Biomethane Market Research Report: Forecast (2024-2030)

Market Definition

Biomethane, also known as renewable natural gas (RNG) or green gas, is a sustainable & environmentally friendly gaseous fuel. It is produced using organic materials, such as organic household waste, animal manure, agricultural waste, etc., through processes like anaerobic digestion or gasification. It is chemically identical to fossil natural gas but is derived from renewable sources, making it a crucial component of the transition to cleaner & more sustainable energy systems.

Market Insights & Analysis: Global Biomethane Market (2024-30):

Global Biomethane Market is estimated to grow at a CAGR of around 6.5% during the forecast period, i.e., (2024-30). The market growth is not confined to one industry but spans a diverse range of application sectors, including electricity generation, vehicle fuel, residential & commercial heating, etc. Benefits associated with biomethane gas, such as its versatility, environmental benefits, and contribution to the circular economy, are driving its adoption across the globe.

Biomethane, being a prominent renewable gas, is at the forefront of transformation in many application sectors. Transportation is one such application sector that is currently undergoing a green revolution, in turn, promoting the usage of biomethane. This gas is being used to power natural gas vehicles (NGVs) and buses, reducing carbon emissions and mitigating air pollution. Fleets around the globe are embracing biomethane as a clean, sustainable, and cost-effective fuel for long-haul trucking, public transit, and even ships, which would boost the demand for biomethane in the global market.

Additionally, biomethane also plays a crucial role in the circular economy. It effectively closes the loop on waste management by converting organic waste, including municipal solid waste (MSW) & sewage sludge, into a valuable energy resource. This circular approach reduces landfill dependency, curbs methane emissions, and helps manage waste more sustainably, thus boosting the growth of the Biomethane Market during the projected timeframe.

Global Biomethane Market Driver:

Growth of Renewable Energy Demand to Promote Biomethane Market – The consumption of renewable energies has seen an incredible increase in recent years due to the worldwide awakening for clean & more efficient energy sources, therefore supporting the demand for biomethane gas globally. This demand is further supported by rising awareness about climate change, environmental degradation & the limited natural resource of coal. According to the International Energy Agency (IEA), the capacity for renewable energy is predicted to grow by more than 8% in 2022, totaling over 320 GW. Hence, this growth in renewable energy capacity is expected to drive the Biomethane Market growth.

Moreover, the increasing demand for renewable energy extends to residential & commercial heating & cooling applications. Further, technologies like solar thermal systems and geothermal heat pumps are employed for utilizing renewable energy in these applications, further fostering its consumption.

Global Biomethane Market Opportunity:

Increasing Partnerships & Plant Development Projects to Open New Doors for Market Players – The Biomethane Market is experiencing a surge in partnerships & plant development projects, unlocking exciting opportunities in the renewable energy landscape. As the world seeks cleaner & more sustainable energy solutions, biomethane has emerged as a star player. Partnerships are at the core, and key stakeholders, including energy companies, waste management firms, technology providers, and governments, are coming together to leverage their expertise & resources for mutual benefit. These collaborations are driving innovation, reducing costs, and accelerating the adoption of biomethane technology. For instance:

• In 2023, AstraZeneca signed a long-term agreement with the clean energy firm Future Biogas to produce bio-methane instead of natural gas.

Further, established energy companies & utilities are increasingly recognizing the potential of biomethane as a sustainable energy source. The companies are actively partnering with biogas producers & are also investing in biomethane plant projects to diversify their energy portfolios. Thus, these collaborations would bring financial stability to the Biomethane Industry and provide access to the extensive infrastructure of energy companies.

Global Biomethane Market Challenge:

Uninterrupted Availability & Quality of Feedstock to Hamper the Market Growth – One of the primary challenges faced by the Biomethane Market is the availability & quality of feedstock. Biomethane production relies on organic waste materials, including agricultural residues, municipal solid waste, sewage sludge, and organic industrial waste. Further, ensuring a consistent feedstock supply with the appropriate composition & quality is a major logistical market challenge.

Besides, the availability of organic feedstock can be unpredictable & seasonally dependent. Hence, this inconsistency in supply poses a hindrance for biomethane production plants, which require a steady & reliable source of feedstock to operate efficiently. Moreover, interruptions in supply can lead to downtime and reduced plant productivity, thus impacting the market share growth.

Global Biomethane Market Trend:

Favorable Government Policies & Incentives to Create New Trends – Governments worldwide are recognizing the importance of renewable energy & are actively supporting the growth of the Biomethane Market through favorable policies & incentives. They are playing a pivotal role in shaping the renewable energy landscape by providing the regulatory framework, financial support, and incentives needed to foster the industry’s growth. The biomethane sector is no exception, benefiting from a range of policies & incentives that drive investments and innovation across this industry.

Moreover, some of the key supports provided by governments worldwide to biomethane manufacturers include Feed-In Tariffs (FITs), Renewable Portfolio Standards (RPS), Tax Credits and Incentives, Renewable Gas Obligations (RGOs), etc. These initiatives are predicted to encourage investments & innovation in biomethane production, thus supporting the market expansion during the future years.

Global Biomethane Market (2024-30): Segmentation Analysis

Global Biomethane Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment and includes predictions for the period 2024–2030 at the global level. In accordance to the analysis, the market has been further classified as:

Based on the Feedstock:

• Organic Household Waste
• Animal Manure
• Agricultural Waste
• Sewage Sludge
• Organic Industrial Waste
• Energy Crops

Agricultural Waste is leading the feedstock segment of the Biomethane Market. The industry, foreshadowed as a sustainable energy solution, is experiencing a global upswing in demand for agricultural waste as a feedstock. Biomethane production provides an additional revenue stream for farmers while promoting responsible waste management and reducing the carbon footprint of farming operations, thus supporting the segment growth.

Further, the production of biomethane from agricultural waste enhances energy security by utilizing indigenous feedstock resources. This reduces dependence on imported fossil fuels, making it an appealing feedstock option in countries with limited access to traditional energy resources, thus supporting the market demand.

Based on Application:

• Electricity Generation
• Heat Generation
• Vehicle Fuel
• Others (Gas Grid, Combine Heat & Power (CHP Engines), etc.)

Electricity Generation is foreseen to capture the major share of the Biomethane Market during the projected years. The electricity generation industry is undergoing a transformative shift towards sustainable & environmentally friendly energy sources. In this era of increasing awareness for climate change, biomethane is emerging as a frontrunner in the quest for cleaner electricity generation. Furthermore, derived from organic waste materials, biomethane offers a versatile & eco-friendly solution for producing electricity, thus supporting its demand in the global marketplace.

Global Biomethane Market (2024-30): Regional Projection

Geographically, the Global Biomethane Market expands across:

• North America
• South America
• Europe
• Asia Pacific
• The Middle East & Africa

Asia-Pacific is home to a diverse set of economies & energy demands. The region is experiencing a significant surge in the adoption of biomethane as a renewable energy source owing to factors such as increasing awareness for environmental safety, stable energy supply, organic agriculture practices, etc. Several countries present in this region are dealing with severe air quality issues & the consequences of climate change. Hence, to combat these challenges, governments & industries are turning to cleaner energy alternatives, with biomethane emerging as a promising solution.

Further, the increase in supportive government policies in different parts of the region is expected to propel the growth of biomethane consumption, thus driving the market demand. Some of the major hotspots for the biomethane industry in the region include China, India, Japan, and Australia.   

Gain a Competitive Edge with Our Global Biomethane Market Report

• Global Biomethane Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & to make vital decisions.

• This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Biomethane Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, business organizations can develop strategies to minimize risks & optimize their operations.