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3. Synthetic Natural Gas Industry - Emerging Trends to Fuel the Global Growth

The global synthetic natural gas market 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 (SNG), sometimes referred to as renewable natural gas (RNG) or alternative natural gas, is created by techniques including anaerobic digestion, gasification, or methanation from renewable resources like biomass, organic waste, or collected carbon dioxide (CO2).

Emerging Trends in the Global Synthetic Natural Gas Market are:

• Rising Demand for Renewable Energy
• Policy Support and Renewable Energy Mandates
• Integration with Biogas and Biomethane Production
• Recycled Materials and Energy-From-Waste
• Decentralized and Distributed Energy Generation
• Infrastructure Development and Grid Integration

The synthetic natural gas industry is an efficient way to decarbonize the natural gas industry, lessen dependency on fossil fuels, and move toward low-carbon, sustainable energy. To fully realize synthetic natural gas's promise as a renewable energy source and tackle climate change, further technological innovation, regulatory backing, and market growth are needed.

To know about the assumptions considered for the study download the pdf brochure

Rising Demand for Renewable Energy:

• The shift to renewable energy sources and attempts to reduce carbon emissions are increasing the need for renewable energy alternatives to traditional natural gas. In support of efforts to reduce greenhouse gas emissions, synthetic natural gas derived from renewable sources provides a low-carbon option for transportation, power generation, and heating.

Policy Support and Renewable Energy Mandates:

• The synthetic natural gas business is experiencing development and investment due to policies, laws, and mandates pertaining to renewable energy. As part of national and regional energy transition initiatives, the production and use of synthetic natural gas are encouraged by renewable energy targets, carbon pricing mechanisms, and incentives like feed-in tariffs and renewable energy credits (RECs).

Integration with Biogas and Biomethane Production:

• Synthetic natural gas is frequently created in tandem with the production of biogas and biomethane from organic waste, agricultural residues, and wastewater treatment plants. Methane emissions from organic waste streams are captured by integrated biogas-to-SNG systems, which also purify biogas to pipeline-quality standards and generate renewable natural gas that may be used as a fuel for vehicles or injected into the natural gas grid.

Recycled Materials and Energy-From-Waste:

• Because it can transform organic waste streams, landfill gas, and other biomass resources into useful energy products, synthetic natural gas is useful in the circular economy and waste-to-energy initiatives. Synthetic natural gas produced by waste-to-energy projects lowers landfill emissions and pollution while promoting resource recovery, trash diversion, and the production of renewable energy.

Decentralized and Distributed Energy Generation:

• Grid balancing and decentralized energy generation are made possible by distributed SNG production facilities that are situated close to biomass sources or waste streams. In addition to improving energy security and lowering transmission losses, distributed SNG production boosts regional economies by utilizing locally accessible renewable resources and generating employment in both rural and urban locations.

Infrastructure Development and Grid Integration:

• The effective implementation of synthetic natural gas projects depends on investments made in these two areas. Scaling up SNG production and use requires upgrading current natural gas pipelines, injection facilities, and gas distribution networks to support renewable natural gas injection and guarantee grid dependability and safety.

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