Biomethane Market - Forecasts from 2024 to 2029

Biomethane Market - Forecasts from 2024 to 2029

The biomethane market is projected to reach US$6.36 billion in 2029, with a CAGR of 7.79%, from US$4.371 billion in 2024.

The biomethane market is anticipated to show steady growth during the forecast period. Biomethane is a form of gas that originates from organic wastes like cow dung or animal dung, garbage waste, and sewage waste. It’s a refined form of biogas, the generated gas consists of carbon dioxide, methane, and other gases that are formed due to anaerobic disruption of organic material in an oxygen-deficient environment. Biomethane is used in various applications including vehicle fuel and power generation combining heat and electricity.

The biomethane is a renewable natural gas and an alternative fuel option apart from fossil fuel for sustainable growth in the future. It is also used for domestic purposes as CNG biomethane is environment friendly. Increased demand for nature-friendly fuel transportation, growing investments in renewable energy, and enhanced environmental concerns and sustainability targets are the drivers for biomethane market growth.

Biomethane Market Drivers

Stringent govt. rules and increased demand for nature-friendly fuel in transportation drive the biomethane market growth.

Government rules and evolution in the transportation fuel sector drive the demand for biomethane market growth. The government regulations involve reducing carbon emissions by adopting alternative fuel choices other than diesel and gasoline. Biomethane is an alternative choice after fossil fuels and is in demand for vehicles like buses and trucks. This gas emits low greenhouse gases compared to other forms of fuel and is the forefront contender for sustainable transport solutions.

The biomethane is derived from organic waste and has nature-friendly benefits. This positions biomethane gas as a powerful aspect due to stricter government rules regarding emissions, and biomethane will emerge as a clean fuel alternative in the future. For instance, according to the article published by the International Energy Agency in 2023, India intends to extend the use of natural gas in India's economy through investments in gas infrastructure, with a forecast prediction of the contribution of natural gas to the respective energy sector is 15% by 2030.
Growing investments in renewable energy propels the biomethane market growth.

The global shift towards renewable energy is generating a platform for biomethane gas. Various nations worldwide are adopting renewable energy a compulsory aspect that may be house or corporate business. Many countries are initiating a “Renewable Portfolio Standard”, which is a green certificate aimed at enhancing renewable energy generation. Biomethane is an emerging alternative fuel that relates to the requirements of “Renewable Portfolio Standards”. Biomethane emits low carbon and is called clean burning gas, which consists of biowaste and water waste, which makes a sustainable solution for the future. This growing demand enhanced the investment activities in the renewable energy sector.

For instance, according to an article published by the European Biogas Association in June 2023, 18 billion euros were invested to increase the production of biomethane. These types of investments will boost the biomethane market in the future days.
Enhanced environmental concerns and sustainability targets propel the biomethane market growth.

Biomethane is an emerging trend in the market against traditional fuel due to its decarbonization properties and sustainability target. Compared to traditional fuels like diesel and gasoline, biomethane gas is capable of emitting low greenhouse gases, which is perfectly suitable for tackling climate change. This gas can be utilized in transportation and power generation. Furthermore, biomethane production reduces waste disposal to the environment. End products like food waste and animal waste are used to produce biomethane gas.

Waste from sources like agricultural waste and wastewater sludge can be converted into a suitable energy source for sustainable power generation in the future. This benefits economically and also helps to tackle excess waste, which becomes a raw material for producing electricity and transportation fuel globally. The environment and waste management can be coordinated for a sustainable future.

Biomethane Market – Geographical Outlook

Europe is expected to grow significantly

Europe is anticipated to account for a significant share of the biomethane market due to various reasons. The economic as well as environmental factors affect the region, which has a prestigious target to tackle climate change and reduce the emission of greenhouse gases. Biomethane is one of the alternatives to reduce carbon footfall when compared to fossil fuels like diesel and gasoline. These factors coordinate well with the region's goal towards its efforts to reduce carbon emissions.

Furthermore, where Europe is struggling to manage waste, biomethane provides a solution to tackle waste management by utilizing waste products from animals, food, water, and agriculture. Biomethane production can reduce carbon emissions while being an eco-friendly fuel that can be used for transportation and domestic purposes.

Biomethane Market Restraints
Increased capital investment may hinder the biomethane market growth.

Establishing a biomethane production plant requires a lot of money in terms of building, equipment, and raw materials. These aspects will be challenging for new entrants to the market.
Raw material inventory may curb the biomethane market growth.

To run a business for a longer period of time in the market, one needs to maintain raw materials, which are waste feedstock. As this production facility needs a lot of waste materials as raw materials, it may be challenging to ensure the availability of waste at all times for biomethane gas production.

Biomethane Key Industry Updates
November 2023: BPC Instruments launched a product called “Bio Reactor Simulator III”, a type of reactor designed for lab facilities for the continuous production of biogas. The product is human-friendly, and researchers can examine various conditions at any time to ensure the production process.
February 2023: Shell acquired Nature Energy, the biggest producer of natural gas in Europe. This deal will help Shell to make a transition towards clean energy, as Nature Energy is well known for its operational biogas plants around Europe.

Biomethane Major Players and Products
Bio change Solution: the product offered by AB HOLDING SPA is a solution that provides an improvised form of biogas to biomethane, a clean fuel alternative for power generation and transportation. The solution is designed to remove the impurities from the gas to produce biomethane.

The Biomethane market is segmented and analyzed as follows:

By Feedstock
Animal Manure
Organic Household
Energy Crops
Sewage Sludge
Others
By Production Process
Anaerobic Digestion
Pyrolysis
Gasification
By Production Application
Automotive
Power Generation
Others
By Geography
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Italy
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
Japan
China
India
South Korea
Taiwan
Thailand
Indonesia
Others