BIomethane Market: Current Analysis and Forecast (2023-2030)

Biomethane (also known as "renewable natural gas") is the "upgrading" of biogas (a process that removes CO2 and other pollutants present in biogas), or the subsequent gasification of solid biomass. It is a nearly pure methane source produced by methanation. The LHV of biomethane is approximately 36 MJ/m3. Because it is indistinguishable from natural gas, it can be used without requiring changes to transmission and distribution infrastructure or end-use equipment, and is fully compatible with use in natural gas vehicles.

The Biomethane Market is expected to grow at a strong CAGR of 4.4% during the forecast. Biomethane is a climate-friendly fuel because it has a low influence on global warming, as methane traps heat in the atmosphere 25 times more effectively than carbon dioxide. It also contributes to various countries clean energy objectives and helps diversify their gas supplies, reducing dependency on fossil fuels

Although the biomethane industry is currently very small-scale, there is growing interest in several countries, particularly because of its potential to use existing infrastructure to supply clean energy to a wide range of end users. Currently, biomethane accounts for approximately 0.1% of natural gas demand. However, there is a growing number of government measures to support the decarbonization of natural gas network supply and transportation.

Based on Feedstock, the Biomethane Market is divided into Crops, Animal Manure, Municipal Solid Waste, and Municipal Wastewater segments. The Animal Manure segment acquired a majority share in the Biomethane Market and is expected to showcase a substantial growth rate during the forecast period. An anaerobic digester is a system for manure treatment, not manure disposal. Cattle manure has high water and fiber contents, resulting in low biogas yields and degradation efficiency, which hamper an increased use of the biogas technology in agriculture. Upgrading biogas to biomethane can remove any CO2 and other contaminants present in the biogas. Biomethane can be produced from a wide variety of feedstocks, including animal manure from livestock including cattle, pigs, poultry, and sheep. The production of biomethane from biogas is a growing area with significant potential for further growth, although this is heavily contingent on the strength and design of policies aimed at decarbonizing gas supply in different parts of the world.

Based on End-Use, the Biomethane Market is divided into Building, Power and Heat, Industry, and Transport segments. The power and heat segment acquired a majority share in the Biomethane Market and is expected to showcase a substantial growth rate during the forecast period. Biomethane, also known as "renewable natural gas," can be used in various energy sectors, including power and heat. The majority of the biogas produced in the world was used for the production of power and heat in 2018. The profitability of biomethane production depends on plant size, substrate input, and grid connection costs. Biogas can be used directly to produce electricity and heat, with an approximately equal split between electricity-only facilities and co-generation facilities.

For a better understanding of the market adoption of the Biomethane industry, the market is analyzed based on its worldwide presence in countries such as North & South America (U.S.A., Rest of North & South America), Europe (Germany, France, Denmark, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), Rest of World. Europe acquired the highest market share in the Biomethane Market and is expected to witness an influential CAGR in the forecasted period. Europe is the largest producer of biogas today. Germany is by far the largest market, and home to a third of Europe's biogas plant capacity. Energy crops were the primary choice of feedstock that underpinned the growth of Germany's biogas industry, but policy has recently shifted more towards the use of crop residues, sequential crops, livestock waste and the capture of methane from landfill sites. Other countries such as Denmark, France, Italy and the Netherlands have actively promoted biogas production. As the leading biogas-producing region, Europe has around 20,000 biogas plants, with the majority situated in Germany. Most are built for on-site electricity generation and co generation, with around 500 plants dedicated to the upgrading of biogas. Furthermore, Several countries in Europe are also developing gas-based transport infrastructure; most of Sweden's biomethane production is used in vehicles, giving it the highest share of biomethane use in transport demand. Italy has a well-established natural gas vehicle fleet and an expanding fuelling network, and has recently introduced biomethane blending obligations.

Some of the major players operating in the market include: Veolia Group, Air Liquide, Shell plc, Landwarme GmbH, BP p.l.c., SGN, Biokraft International AB, VERBIO, Gasum Oy, and Greenlane Biogas.