Biomethane: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

The refined version of raw biogas, known as biomethane, can replace natural gas in some applications. Biomethane, commonly referred to as “renewable natural gas,” is a nearly pure form of methane that can be created by either “upgrading” biogas (a method that gets rid of any CO2 and other pollutants) or by gasifying solid biomass and then methanating it.

Market Insights

The market for biomethane was assessed at USD 2.21 billion in 2022, and it is anticipated to expand at a CAGR of 5.8% during the next five years. A compressed type of biogas known as Renewable Natural Gas (RNG) is energy-producing biomethane. When organic wastes like plant and animal waste, sewage, manure, industrial pollutants, and green waste are gasified or respired by fermentation, biomethane, also known as natural gas, is produced. RNG is an environmentally friendly gas that may be used for a variety of purposes, including home cooking, heating, and power generation.

It is also used as a substitute fuel in the auto industry. It works perfectly and reduces carbon dioxide emissions from the environment because it is more environmentally friendly than other fuel sources. Biogas is treated to extract the methane with a high calorific value to produce biomethane. Biomethane reduces greenhouse gas emissions and has the potential to be an energy source for the automobile sector. Importantly, the infrastructure for producing biomethane is the same as that for natural gas, eliminating the need for additional production costs.

Global demand for biomethane is fueled by its huge potential for usage in the energy and automotive sectors. The green gas biomethane could be used as a fuel for cars in a refined form. The automobile sector is anticipated to grow as a result of the rising demand for renewable natural gas as car fuel. RNG may also be used in car engines, which would help this sector grow. The new national greenhouse gas (GHG) emissions standards for light trucks and passenger vehicles for Model Years 2023–2026 were finalized by the EPA in December 2021.

The rising demand for renewable energy has accelerated the demand for energy plants to generate biomethane. For this, the major players are concentrating on partnerships and the development of plants which is driving the growth of the biomethane market over the forecast period.

According to the IEA, approximately 320 GW of renewable energy capacity will be available in 2022, an increase of more than 8%. For example, AstraZeneca will begin working with the sustainable energy company Future Biogas in December 2021 at a facility that will create bio-methane rather than natural gas to merely supply heat and power for AstraZeneca’s UK facilities. The UK gas grid will receive more renewable gas as a result of this project. Switching to 100% renewable energy for heat and power is the cornerstone of AstraZeneca’s “Ambition Zero Carbon” goal, which calls for the company to become carbon-neutral across all of its operations by 2025 and carbon-positive by 2030. As a result of the increased demand for natural products, the industry is expanding quickly.

Market Dynamics: Drivers

Increase in Demand for Biofuels Propelling Market Expansion

Environmental deterioration and the scarcity of traditional fossil fuels like oil and natural gas are important global problems. Renewable energy resources are produced and used, which should aid in resolving these problems. Vehicles can run on biomethane produced from biogas. Purified biomethane has the same qualities as natural gas and can be pumped into natural gas grids or used as a highly effective and environmentally friendly fuel for natural gas vehicles. As a result, the growth in demand for biofuels is driving up the price of biomethane. The use of biomethane as a fuel for transportation offers many benefits. Significantly less CO2 emissions are produced. Additionally, it works with various kinds of motors and transportation systems. Because biomethane has about 40 more octane values than gasoline, engine knocking may be less of a problem. Therefore, it is anticipated that an increase in auto manufacturing will fuel the growth of the global biomethane market in the coming years.

Increased Investment in the Production of Renewable Energy

The value of the biomethane market is being increased by the increased adoption of strict energy rules and the increased focus on renewable power generation. To lessen their reliance on conventional power generation, major economies around the world are concentrating on the production of renewable energy. In order to lessen their reliance on coal and other fossil fuels, they are making large investments in biomass, solar, and wind energy.

Market Segmentation

• Based on Feedstock Source, the Global Biomethane market is segmented into
  • Organic household waste
  • Animal manure
  • Energy crops
  • Agriculture waste
  • Sewage sludge
  • Industrial food
  • Processing waste
• Based on Application, the Global Biomethane market is segmented into
  • Automotive
  • Power Generation
  • Others
• Based on Production Method, the Global Biomethane market is segmented into
  • Fermentation
  • Anaerobic digestion
  • Gasification
• Based on Geography, the Global Biomethane market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa

• All market revenue has been given in US Dollar.

Historical Year: 2020-2021
Base Year: 2022
Estimated: 2023
Forecast- 2024-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Biomethane Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Biomethane Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Biomethane Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Biomethane Market study?