Synthetic Natural Gas Market

Synthetic Natural Gas Market Size & Share - Future Growth Expectations

The global synthetic natural gas market size is projected to reach USD 18.6 billion by 2027 from an estimated USD 15.7 billion in 2022, at a CAGR of 3.5% during the forecast period. The major factors driving the growth of this market include the growing demand of energy for high performance.

The synthetic natural gas market has been expanding as a result of several significant factors.

  • Diversification of Energy Sources
  • Transition to Clean Energy
  • Energy Storage and Grid Balancing
  • Integration with Current Infrastructure
  • Industrial Applications
  • Technological Developments

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Diversification of Energy Sources:

  • Derived from a variety of feedstocks, such as coal, biomass, municipal solid waste, and renewable electricity, synthetic natural gas provides a flexible and adaptable energy source. SNG offers a practical solution for boosting energy security and resilience as nations look to diversify their energy sources and lessen their reliance on imports of conventional natural gas.

Transition to Clean Energy:

  • Compared to conventional natural gas obtained from fossil fuels, synthetic natural gas generated from renewable sources including biomass, biogas, and renewable power provides a low-carbon option. SNG contributes to decarbonizing the energy industry and moving toward cleaner, more sustainable energy sources as nations make commitments to lowering greenhouse gas emissions and meeting climate targets.

Energy Storage and Grid Balancing:

  • Through the use of power-to-gas (PtG) or biomass-to-gas (BtG) processes, excess renewable electricity produced during times of low demand can be transformed into synthetic natural gas (SNG). The natural gas grid may then be stabilized and supply and demand can be balanced by injecting stored SNG into it or using it to generate electricity when demand is high.

Integration with Current Infrastructure:

  • SNG may be easily incorporated into the natural gas distribution networks, storage facilities, and pipelines that are currently in place. This allows for the efficient transportation and distribution of carbon-neutral or renewable gas to end consumers. Because SNG is compatible with current infrastructure, it is easier to implement and accept as a renewable energy source.

Industrial Applications:

  • Synthetic natural gas is used in a wide range of industrial processes, including as process heating, heat production, industrial feedstock, and combined heat and power (CHP) system fuel. Synthetic gas products have a consistent market demand since energy-intensive processes in industries like steel, cement, chemicals, and manufacturing rely on SNG.

Technological Developments:

  • The generation of synthetic natural gas is now more efficient, affordable, and scalable thanks to continuous developments in the fields of gasification, methanation, electrolysis, and catalytic conversion. The ability to produce SNG from a variety of feedstocks thanks to innovations like integrated PtG/BtG systems, high-efficiency electrolyzers, and sophisticated catalysts drives market expansion.

The synthetic natural gas market is anticipated to keep expanding as long as nations embrace decarbonization, energy security, and renewable energy. Synthetic natural gas is a renewable and sustainable energy source that will continue to be adopted and expanded with the help of market integration, regulatory assistance, and technological advancement.

Synthetic Natural Gas Market Share - Global Industry Landscape

The synthetic natural gas market is characterized by the presence of several key players competing for market share. Some of the leading companies in the synthetic natural gas industry include:

  • Basin Electric Power Cooperative (US)
  • Air Liquide (France)
  • EnviTec Biogas AG (Germany)

These companies, along with government agencies, research institutions, and industry associations, contribute to the development and commercialization of SNG technologies and projects globally. Market share within the SNG market is expected to evolve as technologies mature, production costs decrease, and regulatory frameworks incentivize the use of low-carbon and renewable energy sources.

Basin Electric Power Cooperative (US)

  • Basin Electric Power Cooperative, headquartered in Bismarck, North Dakota, is one of the largest electric generation and transmission cooperatives in the United States. While historically focused on coal-based power generation, Basin Electric has been diversifying its energy portfolio in response to market and regulatory pressures. The company offers Synthetic Natural gas under their largest subsidiary, the for-profit Dakota Gasification Company, owns and operates the Great Plains Synfuels Plant near Beulah, North Dakota, which gasifies lignite coal and captures some of the carbon dioxide emissions (CO2) and sends them to produce several value-added products. The company has geographic presence in Inland, Europe, North America, and Other Foreign.

Air Liquide (France)

  • Air Liquide is a significant player in the Synthetic Natural Gas (SNG) market, leveraging its expertise in industrial gases and energy solutions. SNG, also known as substitute natural gas or renewable natural gas, is produced through the gasification or anaerobic digestion of organic materials such as biomass, agricultural waste, or municipal solid waste. Air Liquide's involvement in the SNG market typically revolves around providing key technologies and solutions for gasification processes or biogas upgrading. The company is one of the largest global suppliers of industrial gases. It operates through three business segments: Gas & Services, Global Markets & Technologies, and Engineering & Construction. Air Liquide has geographic presence in Americas, Europe, Asia Pacific, Middle East and Africa.

EnviTec Biogas AG (Germany)

  • EnviTec Biogas AG is a leading player in the synthetic natural gas (SNG) market, known for its innovative solutions in biogas production and upgrading. The company specializes in the conversion of organic waste materials into biogas through anaerobic digestion, a process that harnesses the natural decomposition of organic matter by bacteria to produce methane-rich gas. In the realm of SNG, EnviTec Biogas AG is at the forefront of technology, utilizing advanced processes to upgrade biogas to a quality comparable to natural gas. This involves removing impurities such as carbon dioxide and hydrogen sulfide, as well as adjusting the gas composition to meet pipeline specifications. Through their expertise in biogas upgrading, EnviTec Biogas AG contributes significantly to the development of renewable energy sources and the reduction of greenhouse gas emissions. EnviTec has a worldwide presence with its own subsidiaries, joint ventures, and sales offices. The company has geographic presence in Germany, France, Italy, Denmark, Czech Republic, great Britain, USA, China, Estonia, and Others.

Related Reports:

Synthetic Natural Gas Market by Source (Coal, Biomass, Renewable Energy), Technology (Anaerobic Digestion & Fermentation, Thermal Gasification, Power to Gas, Fluidized bed gasifier, Entrained flow gasifier), Application & Region - Global Forecast to 2029

Synthetic Natural Gas Market Size,  Share & Growth Report
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