Biomethane Market Valuation to Reach US$ 5.1 Billion by 2030 Amid Increasing Global Focus On Reducing Carbon Emissions- Persistence Market Research

Discover the growing biomethane market, a sustainable energy source with a CAGR of 6.1%. Explore key statistics, technology trends, and regulatory factors shaping this renewable energy industry. Learn about challenges, opportunities, and collaborations driving biomethane adoption. Make informed decisions with comprehensive market insights.

New York, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Biomethane Market Overview:

The biomethane market has gained significant attention in recent years as a sustainable and renewable energy source that contributes to the reduction of greenhouse gas emissions. Biomethane, also known as renewable natural gas (RNG), is produced through the anaerobic digestion or upgrading of biogas derived from organic waste, agricultural residues, and wastewater treatment plants.

The global biomethane market is forecast to expand at a CAGR of 6.1% and thereby increase from a value of US$3.3 billion in 2023, to US$5.1 billion by the end of 2030. It is chemically identical to natural gas and can be used in various applications, including transportation, heating, and electricity generation.

The biomethane market has experienced impressive growth over the past decade, driven by increasing environmental awareness, government initiatives promoting renewable energy, and the need for cleaner fuel alternatives. Several factors contribute to this growth trajectory. First, the rising demand for sustainable transportation fuels, particularly in Europe, has led to increased biomethane production and consumption in the automotive sector. Second, the circular economy approach, which emphasizes waste-to-energy solutions, has further propelled the market's expansion. Third, governments worldwide are implementing supportive policies and incentives to promote biomethane production and reduce carbon emissions. As a result, the biomethane market is expected to continue its upward trajectory, offering promising opportunities for investors and industry stakeholders.

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Key Market Statistics:

 Report Coverage  Details 
 Market Revenue 2023 US$3.3 billion 
 Projected Market Value (2030F)  US$ 5.1 billion
 Global Market Growth Rate (CAGR 2023 to 2030)  6.1 % 
 Forecast Period  2023-2030
 No. of Pages  208 Pages 
 Market Segmentation  By Feedstock Type; By Production Process; By Application; By End Use; By Region 

 Regions Covered  North America; Latin America; Europe; South Asia & Pacific; East Asia; The Middle East & Africa. 
 Key Companies Profiled 
  • Veolia Group
  • Air Liquide
  • E.ON SE
  • Nature Energy
  • Landwärme GmbH
  • Gasrec Ltd.
  • SGN
  • Future Biogas Limited
  • Biokraft International AB

Key Market Players:

The biomethane market is characterized by a diverse range of players, including biogas plant operators, technology providers, and energy companies. Several key market players have emerged as leaders in this sector, contributing significantly to its growth and development. Some of the prominent companies operating in the biomethane market include:

Air Liquide: A global leader in gases, technologies, and services for industry and health, Air Liquide has a strong presence in the biomethane market, offering biogas upgrading solutions and expertise in the purification and liquefaction of biomethane.

Wärtsilä: Known for its advanced energy solutions, Wärtsilä has been actively involved in the production of biomethane for the maritime and energy sectors. They provide integrated solutions for biogas upgrading and power generation from biomethane.

EnviTec Biogas: EnviTec Biogas is a leading biogas plant operator and provider of biogas upgrading technologies. The company specializes in turning organic waste into valuable biomethane and biogas products.

Gasum: Operating primarily in the Nordic and Baltic countries, Gasum is a key player in the biomethane market, offering a range of renewable natural gas solutions for transport, industry, and energy applications.

CNG Services Ltd: Based in the UK, CNG Services specializes in the distribution of compressed natural gas (CNG) and biomethane as an eco-friendly alternative to traditional fuels. They play a crucial role in advancing the adoption of biomethane in the transportation sector.

Top 5 Biomethane Market Technology Trends:

The biomethane market is witnessing significant technological advancements that are driving its growth and efficiency. Several key technology trends are shaping the industry:

  1. Biogas Upgrading Technologies: Continuous developments in biogas upgrading technologies, such as pressure swing adsorption (PSA) and water scrubbing, are improving the efficiency of biomethane production. These advancements enhance the removal of impurities like carbon dioxide and hydrogen sulfide, resulting in higher-purity biomethane suitable for various applications.
  2. Innovative Feedstock Utilization: Biomethane producers are exploring innovative feedstock sources, including agricultural residues, algae, and organic waste from industries such as food processing. This diversification of feedstocks improves sustainability and reduces the environmental impact of biomethane production.
  3. Decentralized Biomethane Production: The trend towards decentralized biomethane production is gaining momentum. Small-scale biomethane plants, often integrated with agriculture or wastewater treatment facilities, are becoming more common. These systems are cost-effective and reduce transportation costs associated with biogas feedstock.
  4. Biogas-to-Liquid (BtL) Technologies: The development of biogas-to-liquid technologies allows for the production of synthetic natural gas or other liquid fuels from biomethane. This innovation opens new avenues for renewable energy use in the transportation sector.
  5. Digitization and Automation: Biomethane plants are increasingly adopting digital and automation technologies for process control and optimization. These systems enhance operational efficiency, reduce maintenance costs, and improve overall productivity.

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Regulatory Landscape:

The regulatory environment plays a crucial role in shaping the biomethane market. Governments around the world are implementing policies and incentives to promote the production and use of biomethane as a renewable energy source. Key regulatory aspects include:

Renewable Energy Targets: Many countries have set ambitious renewable energy targets, including biomethane, as part of their efforts to reduce greenhouse gas emissions. These targets create a favorable market environment for biomethane production.

Feed-in Tariffs and Incentives: Governments often offer financial incentives, such as feed-in tariffs or tax credits, to encourage biomethane production and investment in upgrading facilities.

Quality Standards: Regulatory bodies establish quality standards for biomethane to ensure its safe and efficient use in various applications, such as transportation and heating. Compliance with these standards is a prerequisite for market entry.

Carbon Pricing Mechanisms: Carbon pricing mechanisms, such as carbon taxes and emissions trading schemes, can incentivize the use of biomethane as a low-carbon alternative to fossil fuels.

Environmental Regulations: Environmental regulations, including emissions reduction targets and air quality standards, can drive the adoption of biomethane as a cleaner energy source in sectors like transportation.

Consumer Trends:

Consumer preferences and demands are also influencing the biomethane market:

Green Energy Adoption: Increasing environmental awareness among consumers is driving demand for cleaner and more sustainable energy sources. Biomethane, with its low carbon footprint, aligns with these preferences.

Sustainable Transportation: Consumers are showing a growing interest in sustainable transportation options. Biomethane as a vehicle fuel appeals to individuals and businesses seeking to reduce their carbon emissions.

Corporate Sustainability Goals: Many businesses are setting ambitious sustainability goals, including the use of renewable energy sources like biomethane to power their operations and reduce their environmental impact.

Circular Economy Emphasis: Consumers are increasingly supporting the concept of the circular economy, where organic waste is converted into valuable biomethane and other byproducts, reducing waste and promoting sustainability.

Local and Regional Sourcing: Consumers are favoring locally produced biomethane, which reduces transportation-related emissions and supports local economies.

Biomethane Market Challenges and Opportunities:

The biomethane market presents a unique set of challenges and opportunities, reflecting its rapid growth and potential as a sustainable energy source.


  1. High Initial Investment: Establishing biomethane production facilities and upgrading existing biogas plants can require substantial upfront investments. This financial hurdle can be a barrier to entry for smaller players in the market.
  2. Feedstock Availability: Biomethane production heavily relies on the availability of organic feedstock, such as agricultural residues and organic waste. Fluctuations in feedstock supply due to seasonal variations and competition from other sectors can pose challenges for consistent production.
  3. Grid Integration: Integrating biomethane into existing natural gas infrastructure and grids can be complex and costly, requiring modifications and adherence to quality standards.
  4. Technological Complexity: While technological advancements offer opportunities, the complexity of biogas upgrading and purification technologies can be a challenge, particularly for smaller facilities with limited resources.


  1. Green Energy Transition: The increasing global focus on reducing carbon emissions and transitioning to green energy sources presents a significant opportunity for biomethane as a low-carbon alternative to fossil fuels.
  2. Circular Economy: Biomethane production aligns with the principles of the circular economy by converting organic waste into valuable energy, reducing waste disposal costs, and promoting sustainability.
  3. Supportive Regulations: Favorable government policies, such as subsidies, incentives, and renewable energy targets, create a conducive environment for investment and growth in the biomethane market.
  4. Growing Demand: The rising demand for sustainable transportation fuels and clean energy sources across various sectors, including industry and heating, presents substantial market opportunities.

Supply Chain Analysis:

The biomethane supply chain involves multiple stages, from feedstock collection to distribution:

Feedstock Collection: The supply chain begins with the collection of organic feedstock, which can include agricultural residues, food waste, and sewage sludge. Efficient feedstock collection is essential to ensure a consistent supply.

Anaerobic Digestion: Feedstock undergoes anaerobic digestion at biogas plants to produce biogas, a mixture of methane and carbon dioxide.

Biogas Upgrading: The biogas is then upgraded through various technologies like pressure swing adsorption (PSA) or water scrubbing to remove impurities and produce high-purity biomethane.

Quality Control: Quality control measures ensure that the biomethane meets specified standards for purity and energy content.

Injection into Natural Gas Grid or Transportation: Biomethane can be injected into the natural gas grid, transported via pipelines, or used as a vehicle fuel after compression or liquefaction.

Distribution and End Use: Biomethane is distributed to end users, including industrial facilities, residential heating systems, and transportation fleets, for consumption as a clean and renewable energy source.

Global Market Comparison:

The biomethane market varies significantly by region, driven by factors such as regulatory support, market maturity, and feedstock availability.

Europe: Europe is a global leader in the biomethane market, with well-established infrastructure and favorable policies supporting its growth. Countries like Germany, Sweden, and the Netherlands have made significant investments in biomethane production and usage.

North America: The biomethane market in North America is growing, with the United States and Canada making strides in upgrading biogas to biomethane for use in transportation and industry. The development of biomethane production infrastructure is gaining momentum.

Asia-Pacific: The Asia-Pacific region is witnessing increased interest in biomethane, driven by environmental concerns and a shift towards cleaner energy sources. Countries like China and India are exploring opportunities in biomethane production, although the market is still evolving.

Rest of the World: Various countries in Latin America and Africa are also exploring biomethane production, primarily for electricity generation and agricultural applications. These regions offer untapped opportunities for biomethane market expansion.

Biomethane Market: Consumer Adoption Barriers

Despite the promising potential of biomethane as a sustainable and renewable energy source, several barriers have hindered its widespread adoption among consumers.

Lack of Awareness: One of the primary obstacles to consumer adoption of biomethane is the lack of awareness about its benefits and availability. Many consumers are still unfamiliar with this clean energy alternative and its advantages, which can deter them from considering it as a viable option.

Infrastructure Development: The limited availability of biomethane refueling or distribution infrastructure poses a significant challenge, particularly in the transportation sector. Without a well-developed network of biomethane filling stations or pipelines, consumers may find it inconvenient or impractical to use biomethane as a fuel for their vehicles or heating systems.

Price Competitiveness: The cost of biomethane production and distribution can be higher compared to conventional fossil fuels in some regions. Consumers often prioritize cost-effectiveness, and until biomethane becomes more competitively priced, it may remain a less attractive option.

Technical Compatibility: In some cases, consumers may face technical compatibility issues when attempting to use biomethane. Retrofitting existing vehicles or appliances to run on biomethane can be costly, and consumers may be hesitant to invest in such modifications.

Limited Availability and Accessibility: Biomethane availability can be limited to specific geographic regions, making it inaccessible to consumers in areas without established production or distribution networks. This lack of accessibility can discourage adoption.

Biomethane Market: Future Outlook

Despite the challenges, the future outlook for the biomethane market is promising, with several factors contributing to its growth and increased consumer adoption:

Regulatory Support: Governments around the world are increasingly recognizing the importance of reducing carbon emissions and promoting renewable energy sources. Supportive policies, incentives, and renewable energy targets are expected to drive greater adoption of biomethane.

Technological Advancements: Continued advancements in biogas upgrading and purification technologies are expected to improve the efficiency and cost-effectiveness of biomethane production. These developments will enhance the attractiveness of biomethane as a clean energy option for consumers.

Growing Environmental Consciousness: As environmental awareness continues to rise, consumers are becoming more conscious of their carbon footprint. Biomethane's low carbon emissions profile and sustainability credentials align with consumers' preferences for eco-friendly energy sources.

Expansion of Infrastructure: Investments in the expansion of biomethane distribution infrastructure, such as refueling stations and pipelines, will make it more accessible to consumers, particularly in the transportation sector.

Diversified Feedstock Sources: The use of innovative feedstock sources, such as algae and organic waste from various industries, will help ensure a more consistent and sustainable supply of biomethane, reducing dependence on specific feedstock types.

Increased Industry Collaboration: Collaborations between industry stakeholders, including energy companies, technology providers, and government agencies, will drive innovation and address key challenges, fostering a conducive environment for consumer adoption.

Biomethane Market: Collaborations and Partnerships

Collaborations and partnerships are playing a pivotal role in shaping the biomethane market, driving innovation, and addressing key challenges. Industry stakeholders are increasingly recognizing the value of working together to unlock the full potential of this renewable energy source.

Public-Private Partnerships: Government agencies and private sector companies are forming partnerships to accelerate the growth of the biomethane market. These collaborations often involve funding support, regulatory alignment, and the sharing of expertise to create an enabling environment for biomethane production and adoption.

Energy Companies and Technology Providers: Energy companies and technology providers are joining forces to develop and deploy advanced biogas upgrading technologies. These partnerships aim to enhance the efficiency and cost-effectiveness of biomethane production, making it more attractive to consumers and investors.

Biomethane Producers and End Users: Biomethane producers are forging partnerships with end users, such as transportation companies and industrial facilities, to secure long-term off-take agreements. These agreements provide stability and predictability to biomethane producers, encouraging further investment in production infrastructure.

Research Institutions and Industry Players: Collaborations between research institutions and industry players are driving innovation in biomethane production and utilization. These partnerships lead to the development of novel technologies, feedstock utilization techniques, and sustainability assessments, ensuring the continued evolution of the biomethane market.


Promote Regulatory Alignment: Governments should continue to support the biomethane market through favorable policies, incentives, and clear regulatory frameworks. Ensuring consistency in regulations across regions will facilitate market growth.

Encourage Research and Development: Investment in research and development initiatives focused on biomethane production, feedstock utilization, and distribution infrastructure is essential to drive innovation and reduce costs.

Expand Infrastructure: Expanding the biomethane distribution infrastructure, particularly in the transportation sector, is crucial for increasing accessibility and consumer adoption. Public and private sector partnerships can help fund and accelerate these developments.

Raise Awareness: Efforts should be made to raise awareness among consumers and businesses about the benefits of biomethane as a clean and renewable energy source. Education and outreach campaigns can help overcome adoption barriers related to lack of awareness.

Support Industry Collaboration: Encourage collaborations and partnerships among biomethane producers, technology providers, and end users to create a thriving ecosystem that fosters innovation and ensures the sustainable growth of the biomethane market.

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