Fast-Paced Growth Ahead for Biomethane Market by 2034

نشر بتاريخ 2025-05-19 12:22:06

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Market Overview

The global biomethane market is experiencing robust growth as nations accelerate the transition toward renewable and low-carbon energy solutions. Biomethane, a renewable natural gas (RNG), is produced by upgrading biogas derived from organic waste. With properties nearly identical to fossil-based natural gas, biomethane serves as a sustainable substitute in power generation, transportation, and industrial applications.

Global Biomethane Market size and share is currently valued at USD 8.00 billion in 2024 and is anticipated to generate an estimated revenue of USD 28.02 billion by 2034, according to the latest study by Polaris Market Research. Besides, the report notes that the market exhibits a robust13.4% Compound Annual Growth Rate (CAGR) over the forecasted timeframe, 2025 - 2034

As countries strengthen regulations to meet climate goals and reduce greenhouse gas (GHG) emissions, biomethane has emerged as a key player in the renewable energy mix. With renewable gas technologies advancing and grid integration improving, biomethane is poised to play a critical role in the global shift away from fossil fuels.

Key Market Growth Drivers

1. Supportive Government Policies and Incentives

A growing number of countries are introducing incentives and regulatory frameworks to support biomethane production. Subsidies, feed-in tariffs, renewable energy credits, and inclusion in national gas grids have significantly boosted project viability. The EU’s Renewable Energy Directive (RED II), California’s Low Carbon Fuel Standard (LCFS), and Canada’s Clean Fuel Regulations exemplify the global momentum.

2. Decarbonization of the Transportation Sector

The transportation sector, one of the largest contributors to carbon emissions, is turning to biomethane as a low-carbon fuel alternative. Biomethane can be used in compressed natural gas (CNG) and liquefied natural gas (LNG) vehicles with minimal modification, making it attractive for long-haul freight and public transit.

3. Waste Management and Circular Economy

The use of organic waste from agriculture, landfills, and wastewater treatment plants not only helps generate biomethane but also supports sustainable waste management. The conversion of waste to energy is integral to the circular economy model, reducing methane emissions from landfills and enabling energy recovery.

4. Increasing Demand for Renewable Natural Gas (RNG)

As utilities and industries seek to meet renewable energy targets, the demand for RNG is rising. Biomethane, as a drop-in replacement for fossil natural gas, enables existing infrastructure to be utilized, lowering transition costs for utilities and end users.

Market Challenges

1. High Upfront Capital Costs

Setting up a biomethane production facility involves high capital expenditure, especially for purification and upgrading technologies like membrane separation, water scrubbing, and pressure swing adsorption. Financial barriers can slow down adoption, particularly in developing regions.

2. Feedstock Variability and Supply Chain Complexity

Biomethane production depends on a steady supply of organic feedstock such as agricultural waste, food waste, and sewage sludge. Variability in feedstock quality and quantity can impact the consistency and efficiency of gas production.

3. Regulatory and Policy Fragmentation

While some regions offer strong support, others lack comprehensive regulatory frameworks. Inconsistent policies and approval timelines can hinder cross-border projects and reduce investor confidence.

4. Limited Pipeline Access and Infrastructure

Even in advanced economies, the integration of biomethane into the natural gas grid is constrained by infrastructure limitations. Expanding and upgrading gas distribution systems for biomethane injection remains a costly and time-consuming process.

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https://www.polarismarketresearch.com/industry-analysis/biomethane-market

Regional Analysis

Europe

Europe remains the largest and most mature biomethane market, accounting for over 60% of global production. The European Commission’s REPowerEU plan aims to scale biomethane production to 35 bcm (billion cubic meters) annually by 2030. Countries like Germany, France, the Netherlands, and Denmark are leading with hundreds of operating biomethane plants. Germany alone has over 230 biomethane injection sites.

Key Trends:

Grid integration incentives and certificates of origin.
Rapid growth in bio-CNG and bio-LNG for transportation.
Agricultural waste and manure as primary feedstocks.

North America

The U.S. and Canada are rapidly scaling up biomethane production, driven by climate goals and state-level policies. California is a leader with the LCFS program, incentivizing RNG for vehicles. RNG is also gaining traction in gas utilities to decarbonize heating.

Key Trends:

Use of landfill gas and dairy manure for RNG.
Utilities offering RNG as a green option to consumers.
Private equity and energy firms investing in large-scale RNG infrastructure.

Asia-Pacific

The Asia-Pacific market is in the nascent stage but shows strong potential due to the region’s large agricultural base and rising waste management needs. China and India are launching biomethane pilot programs, while Japan and South Korea explore RNG imports to reduce fossil dependence.

Key Trends:

Government support for bioenergy and waste-to-energy.
Emerging partnerships with Europe and the Middle East for RNG supply.
Focus on technology localization and community-scale projects.

Latin America

Latin America offers rich biomass resources but lags in commercial biomethane adoption. Brazil, Argentina, and Colombia are initiating projects supported by international financing. The potential lies in using agro-industrial waste and promoting rural energy security.

Key Trends:

Development of small and medium-scale biomethane units.
Integration into agricultural supply chains.
Regional cooperation to attract foreign investment.

Middle East & Africa

Although still underdeveloped, biomethane offers a solution for energy access in remote areas and sustainable waste management. Pilot projects are underway in South Africa, Egypt, and UAE, often in collaboration with European firms.

Key Trends:

Growing interest in off-grid renewable gas solutions.
Biomethane considered for hydrogen production in hybrid systems.
Policy development in early stages.

Key Companies in the Biomethane Market

1. Air Liquide (France)

A global leader in gas technologies, Air Liquide operates multiple biomethane production units across Europe and the U.S. The company uses advanced upgrading systems and has invested heavily in RNG for transportation.

2. EnviTec Biogas AG (Germany)

Specializing in biogas plant engineering and operation, EnviTec is expanding its footprint in the biomethane sector. Its modular upgrading solutions are widely used in agricultural and municipal projects.

3. Engie (France)

Through its subsidiary Engie Bioz, the company is developing biomethane facilities in Europe and North America. Engie’s strategy focuses on decarbonizing gas supply chains and supporting hydrogen production.

4. DMT Environmental Technology (Netherlands)

Known for its biogas upgrading solutions, DMT provides membrane and cryogenic separation systems for biomethane production. The company has installations in over 30 countries.

5. Future Biogas (UK)

One of the UK’s leading biogas producers, Future Biogas is now focused on injecting biomethane into the grid. It supports sustainable farming and long-term power purchase agreements.

6. Bright Biomethane (Netherlands)

A specialist in biogas upgrading systems, Bright Biomethane has delivered turnkey biomethane solutions across Europe, North America, and Asia. Its technology allows for efficient CO₂ separation and gas purification.

7. PlanET Biogas Group (Germany)

PlanET designs and builds biogas and biomethane plants for agricultural and industrial use. The company emphasizes flexible feedstock use and process automation.

8. Wärtsilä (Finland)

Wärtsilä is active in integrated bioenergy systems, offering upgrading and gas handling technologies. It partners with utilities and municipal waste facilities.

9. Xebec Adsorption Inc. (Canada)

Xebec provides pressure swing adsorption systems for biogas upgrading. With projects in Canada, the U.S., and China, it plays a key role in the global RNG supply chain.

10. Nature Energy (Denmark)

Recently acquired by Shell, Nature Energy operates some of Europe’s largest biomethane plants and aims to scale production across multiple geographies.

Conclusion

The biomethane market is on a strong growth path, driven by sustainability goals, the decarbonization of energy systems, and the increasing need to manage organic waste effectively. As a carbon-neutral fuel compatible with existing natural gas infrastructure, biomethane offers a practical solution to both environmental and energy challenges.

While high costs and infrastructure limitations remain hurdles, advancements in upgrading technologies, favorable policy frameworks, and increased investor interest are rapidly transforming the biomethane landscape. Europe continues to lead, but other regions—especially North America and Asia-Pacific—are emerging as dynamic growth frontiers.

With global net-zero targets looming, biomethane is expected to become a mainstream energy carrier, complementing bioenergy, sustainable fuels, and renewable heat solutions. The coming decade will be pivotal in shaping a circular, carbon-neutral economy—where biomethane plays a central role.

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