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3. Biomethane Market Size & Share - Future Growth Expectations

The global biomethane market size is expected to reach USD 60.2 billion by 2030 from an estimated USD 10.3 billion in 2023, at a CAGR of 28.7% during the forecast period. The major factors driving the growth of this market include the increasing global focus on renewable energy sources, prompting governments and organizations worldwide to implement policies and incentives that encourage the adoption of renewable energy, particularly biomethane.

The biomethane market has been witnessing significant growth due to several key factors

• Increasing Focus on Renewable Energy
• Government Support and Incentives
• Waste Management and Circular Economy Initiatives
• Decarbonization of the Transport industry
• Extension of Biogas Infrastructure
• Technological Developments
• Corporate Sustainability objectives

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Increasing Focus on Renewable Energy:

• Renewable energy sources are receiving more attention as a result of growing climate change concerns. Anaerobic digestion or gasification of organic waste results in the production of biomethane, which is thought to be a low-carbon, renewable fuel substitute for fossil fuels. The need for biomethane as a clean energy source is growing as nations set aggressive goals for the deployment of renewable energy sources and decarbonization.

Government Support and Incentives:

• To encourage the production and use of biomethane, governments all over the world are putting laws, financial support systems, and incentives into place. Goals for renewable energy, feed-in tariffs, tax breaks, grants, and subsidies all promote investment in biomethane plants and propel the industry's expansion. Regulatory frameworks including carbon pricing, renewable energy requirements, and emissions reduction objectives also open up new markets for biomethane as a sustainable energy source.

Waste Management and Circular Economy Initiatives:

• The production of biomethane is essential to waste management and the shift to a circular economy. By using anaerobic digestion or gasification techniques, organic waste products like food waste, landfill gas, sewage sludge, and agricultural leftovers can be transformed into biomethane. In addition to keeping organic waste out of landfills, the generation of biomethane lowers greenhouse gas emissions, produces sustainable energy, and promotes waste reduction and circular economy activities.

Decarbonization of the Transport industry:

• The transportation industry is a major source of greenhouse gas emissions, and there is growing demand to use low-carbon fuels to decarbonize transportation. When utilized as a fuel for compressed natural gas (CNG) or liquefied natural gas (LNG) vehicles, biomethane has advantages for the environment, including lower carbon emissions and better air quality. The market for biomethane as a renewable transportation fuel is expanding as governments and fleet operators look for fuel substitutes.

Extension of Biogas Infrastructure:

• The biomethane market is expanding as a result of the construction of biogas infrastructure, which includes anaerobic digestion plants, biogas upgrading facilities, and distribution networks for biomethane. The production, purification, and injection of biomethane into the natural gas grid or distribution as an automotive fuel are made possible by investments in biogas infrastructure. The availability and use of biomethane rise with the expansion and broad use of biogas infrastructure, propelling market growth.

Technological Developments:

• The biomethane market is experiencing innovation due to ongoing developments in purification techniques, biogas upgrading technology, and biomethane production technologies. The cost-effective synthesis of biomethane from a broader variety of feedstocks is made possible by increased efficiency, higher purity levels, and lower production expenses. The generation of biomethane is scalable and reliable due in part to technological developments, which makes it a competitive and feasible renewable energy source.

Corporate Sustainability objectives:

• A lot of businesses, governments, and other institutions have made the commitment to lessen their carbon impact and set sustainability objectives. These organizations can lower emissions, meet sustainability goals, and show environmental care by integrating biomethane into their energy procurement plans. Investment in biomethane production projects is being driven by corporate demand for biomethane as a renewable energy source, which is also propelling market expansion.

As more governments, businesses, and consumers become aware of the economic, social, and environmental advantages of biomethane as a sustainable and renewable energy source, the biomethane market is anticipated to expand. The biomethane industry is expected to rise in the upcoming years due to favorable regulations, incentives, technology developments, and increased public awareness of the need for decarbonization.

Biomethane Market Share - Global Industry Landscape

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

• Air Liquide (France)
• Gasum Ltd. (Finland)
• Archaea Energy (Texas)
• OPAL Fuels (US)

These companies, together with other regional and specialized players, support the development of the biomethane market by making investments in production facilities, creating technological advancements, and encouraging the use of RNG as a low-carbon, renewable fuel. The biomethane industry's market share can fluctuate depending on various factors, including production capacity, distribution network, and strategic collaborations.

Air Liquide (France)

• Air Liquide, a French multinational, stands as the world's largest supplier of industrial gases, serving diverse sectors including pharmaceuticals, chemicals, and electronics. Operating across three core segments—Gas & Services, Global Markets & Technologies, and Engineering & Construction the company extends its services to multiple industries, including medical, electronics, and chemicals. Within its Gas & Services business segment, Air Liquide is actively engaged in providing biomethane, contributing significantly to the advancement of sustainable energy solutions. Drawing upon its extensive experience in gas production and distribution, the company plays a pivotal role in the production and dissemination of biomethane, a renewable natural gas sourced from organic materials. Air Liquide actively supports the development of biomethane projects and offers innovative solutions for the enhancement and purification of biogas. Aligned with the global push for renewable energy sources, the company's commitment to sustainability is evident in its strategic initiatives, partnerships, and a comprehensive array of solutions. Through these efforts, Air Liquide maintains a prominent position in propelling the growth and adoption of biomethane in the ever-evolving landscape of clean energy.

Gasum Ltd. (Finland)

• Gasum Ltd. stands as a leading energy company specializing in natural gas, biogas, and liquefied natural gas (LNG). With a diverse range of business areas encompassing natural gas supply, biogas production, LNG infrastructure, and energy services, the company plays a pivotal role in multiple facets of the energy sector. Gasum offers Liquified Biogas, also referred to as Liquified Biomethane, sourced from a wide array of feedstocks, including waste from homes, retail outlets, and industries, as well as municipal sewage sludge and agricultural side streams. Catering to maritime transport, power plants, residential households, and various industries, Gasum has established itself as a versatile energy provider. Headquartered in Finland, Gasum has garnered recognition for its proficiency in biomethane production and distribution, focusing on converting organic waste, such as agricultural residues, municipal solid waste, and wastewater, into a valuable and environmentally friendly energy resource. The company is committed to advancing sustainable energy solutions and adhering to circular economy principles. Operating with a global perspective, Gasum leverages its position in the biomethane market to meet the rising demand for cleaner and more sustainable energy alternatives. The company's strategic endeavors, including partnerships, investments, and technological advancements, underscore its dedication to propelling the growth of the biomethane sector and contributing to broader objectives like mitigating climate change and achieving energy sustainability.

Archaea Energy (Texas)

• Archae Energy is a company specializing in the production of biomethane, a renewable natural gas derived from organic waste sources such as agricultural residues, food waste, and wastewater. Archae Energy biomethane production process offers a sustainable solution for managing organic waste and reducing greenhouse gas emissions while providing renewable energy for various applications. As the demand for renewable natural gas continues to grow, biomethane production plays a vital role in the transition to a low-carbon energy future.

OPAL Fuels (US)

• OPAL Fuels is a company specializing in the production and distribution of renewable natural gas (RNG), also known as biomethane. RNG is derived from organic waste sources such as agricultural residues, food waste, landfill gas, and wastewater treatment plants. OPAL Fuels biomethane production process offers a sustainable solution for managing organic waste and reducing greenhouse gas emissions while providing renewable energy for various applications. As the demand for RNG continues to grow, biomethane production plays a crucial role in the transition to a low-carbon energy future.

Related Reports:

Biomethane Market by Feedstock (Energy Crops, Agriculture Residues & Animal Manure, Municipal Waste), Production Process (Anaerobic Digestion, Thermal Gasification), End-use (Transportation, Power Generation, Industrial) Region - Global Forecast to 2030