Biomethane Market Forecasts to 2028 – Global Analysis By Feedstock Energy Crops, Animal Manure and Other Products), Production Method (Fermentation and Gasification), Application and By Geography

Biomethane Market Forecasts to 2028 – Global Analysis By Feedstock Energy Crops, Animal Manure and Other Products), Production Method (Fermentation and Gasification), Application and By Geography

According to Stratistics MRC, the Global Biomethane Market is accounted for $2.25 billion in 2022 and is expected to reach $3.75 billion by 2028 growing at a CAGR of 8.9% during the forecast period. Anaerobic respiration or gasification of organic matter, including plant and animal waste, sewage, manure, industrial waste, and green waste, results in the production of biomethane, a natural gas. Biomethane is created by extracting methane from biogas that has a high calorific value. The power generation used in the car industry could benefit from the usage of biomethane, which also lowers greenhouse gas emissions. There are no additional production costs because biomethane is produced utilising the same infrastructure as natural gas. Rising environmental concerns are one of the key factors propelling the growth of the biomethane market.

According to the International Energy Agency, the global energy demand is expected to witness a year-on-year growth rate of 9% till 2030. According to the World Biogas Association (WBA), Biogas can reduce global GHG emissions by 10-13% and provide renewable energy from the world's food waste, industrial production wastes, feedstocks from agriculture, and sewage.

Market Dynamics:

Driver:

Rising environmental concerns

The fact that biomethane contributes to a decrease in greenhouse gas emissions is one of its major drivers. One of bio methane's most major environmental advantages is without a doubt the effect it has on the planet's atmosphere. Because carbon dioxide and other gases that contribute to the greenhouse effect are released during the breakdown of organic matter, unlike conventional energy sources, biomethane does not raise the concentration of greenhouse gases. In other words, biomethane is one of the best solutions to meet the rising energy demand without causing global warming, which puts all life on Earth in danger, including humans.

Restraint:

High Combustible Nature of Biomethane

Methane (CH4) is a colourless, odourless gas that is also very explosive. Water vapour and carbon dioxide are released during combustion. It can be produced synthetically or organically. Natural gas is the primary fuel used to generate heat and energy throughout the world. Chemical procedures are used to create the chemical compound carbon black, which is found in some types of tyre rubber. This is a limiting element because biomethane synthesis and transportation require a lot of care and attention.

Opportunity:

Rise in demand for green and clean fuel in automotive sector

In order to meet the energy demands of developing nations worldwide, traditional energy production operations are gradually being diversified to include renewable energy sources. The recent Climate Change Summit in Paris has encouraged several nations to adopt more renewable energy and cleaner fuels. According to projections, the automobile sector will account for a sizable amount of the world's demand for biomethane. Given that the automobile industry is a major source of greenhouse gas emissions, using biomethane as a vehicle fuel is anticipated to immediately benefit the environment through reduced emissions. Because biomethane and natural gas have comparable characteristics, the latter can be used in place of the former.

Threat:

Enormous Financial Investments

Capital requirements are the main barrier to the production of renewable natural gas. A production unit, trash collection, gas transportation, and distribution lines must all be established by the industry. Additionally, a lot of initiatives require government assistance, yet the government also contributes a certain amount of funds. The inefficiency of the methods utilised to produce biogas and the presence of pollutants in the finished product are further problems that could limit the market's expansion.

Covid-19 Impact

The global biomethane market is impacted by COVID-19, much like other industries. Businesses were shut down and there was a lockdown, which disrupted the value chain. Despite the fact that the coronavirus pandemic has weakened every industry in the biomethane market, producers are opening up new possibilities due to the growing number of applications for biomethane. For producers in the biomethane industry, the increased demand for environmentally acceptable biomethane in automotive and power production applications is generating revenue streams. Manufacturers are making efforts to make up for losses resulting from the COVID-19 epidemic and are looking into other opportunities to address market difficulties with biomethane.

The agricultural waste segment is expected to be the largest during the forecast period

The agricultural waste segment is estimated to have a lucrative growth. Agricultural plants use the organic waste found on farms to produce biogas, a renewable fuel source. The energy crops that have been bred especially for usage in agricultural wastes can be taken by these plants. Goober gas plants are another name for biogas facilities. Farmers that practise mixed farming use both plantation and cattle land. Furthermore, regional differences in the characteristics of cattle are significant. Due to the many cultures and religions present in some areas, different livestock pairings exist.

The automotive segment is expected to have the highest CAGR during the forecast period

The automotive segment is anticipated to witness the fastest CAGR growth during the forecast period. The use of biomethane as an automotive fuel is likely to immediately benefit the environment in terms of lower emissions because the automotive industry is responsible for a sizable volume of greenhouse gas emissions. Natural gas and biomethane have similar qualities, allowing the former to be used in place of the latter. As a result, biomethane can be added to natural gas grids and utilised as part of the fuel mix for vehicles.

Region with highest share:

North America is projected to hold the largest market share during the forecast period. Increasing demand for biogas for power generation applications, technical developments, and growing environmental awareness are some of the main factors propelling regional market expansion. Rising urbanisation and sectorial growth and development are further factors contributing to the region's significant market share. The biomethane market is anticipated to rise as a result of increased investments in biogas technology and increased regional government support.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the increased environmental awareness, technical developments, and demand for biogas, there has been an increase in the market for biogas for power-generating applications. Additionally, the region's primary market share is influenced by industry growth and development as well as fast urbanisation. Due to growing investments in biogas technology and increased support from regional governments, it is anticipated that the biomethane market in Europe will grow throughout the forecast period.

Key players in the market

Some of the key players profiled in the Biomethane Market include EnviTec Biogas AG, Future Biogas Limited, Ameresco, RENERGON International AG, Quantum Green, Storm Fisher, Scandinavian Biogas, Planet Biogas Global GmbH, AB Holding SPA, WELTEC BIOPOWER GMBH, Magne Gas, VERBIO, SoCalGas

Key Developments:

In October 2021, WELTEC BIOPOWER, an RNG plant manufacturer, announced a service partnership agreement with Bristola, a company based in the U.S. The main purpose of this partnership is to promote renewable energies by service and by building efficient biogas plant expansion.

In July 2021, Weber Green Tech, a partner and investor in Renergon International AG, invests in advanced biogas technology to support the global sustainability goals of energy conversion. This merger creates a new major player in operation and construction of organic waste processing plants.

In June 2021, Liquind 24/7 and EnviTec announced signing an agreement for the sale of Bio-LNG. A new liquefaction plant will produce this bio-LNG, and EnviTec will construct this plant in Pomerania, Germany, by EnviTec. The transport and distribution of bio-LNG to heavy-duty customers at its truck fueling stations will be organized by Liquind.

In May 2021, LIQVIS GmbH and EnviTec signed a contract for the supply of bio-LNG. EnviTec will start supplying bio-LNG in the third quarter of 2022, and this bio-LNG will be produced from the biogas plant in Gustrow.

In May 2021, Weltec Biopower GmbH is building a biomethane plant for the Spanish dairy cattle farm Torre Santamaria. The farm has already secured contractually sales of biomethane at an early stage.
Feedstock’s Covered:
• Energy Crops
• Animal Manure
• Sewage Sludge
• Agricultural Waste
• Organic Household Waste
• Industrial Food Processing Waste
• Waste Derived
• Other Feedstock’s

Production Methods Covered:
• Fermentation
• Gasification

Applications Covered:
• Automotive
• Power Generation
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements