Compressed Biogas Market Size (2024 - 2030)

The compressed biogas market was evaluated at USD 42.28 Billion in 2023 and is forecasted to attain USD 74.79 Billion by 2030, showcasing a rapid compound annual growth rate (CAGR) of 8.49% during the forecast period spanning from 2024 to 2030.

COMPRESSED BIOGAS

Industry Overview:

The term "biogas" pertains to a collection of gases generated through the anaerobic decomposition of organic matter, including but not limited to plant residues, municipal waste, agricultural byproducts, and food scraps. Constituting carbon dioxide, methane, moisture, and minute traces of hydrogen sulphide, this gas is deemed renewable owing to its reliance on waste production. A pivotal driver behind the prevailing trends in the organic biogas market is the escalating investor interest in biogas facilities and the concerted efforts towards embracing clean energy to mitigate greenhouse gas (GHG) emissions. For example, in 2021, GAIL (India) Ltd. allocated over $673.1 million towards the establishment of compressed biogas and ethanol plants, alongside assembling a renewable energy portfolio of at least 1 GW, aiming to bolster the availability of cleaner fuels for household and vehicular consumption.

Biogas undergoes compression to yield Compressed Bio-Gas (CBG), boasting a methane (CH4) content exceeding 90%, subsequent to the elimination of hydrogen sulphide (H2S), carbon dioxide (CO2), and water vapor. Exhibiting calorific value and attributes akin to compressed natural gas (CNG), CBG emerges as a green, renewable automotive fuel, leveraging the substantial biomass reservoirs within the nation to potentially supplant CNG across automotive, industrial, and commercial domains. Raw biogas, characterized by a CO2 and methane blend, can be compressed up to a minimum of 300 bar and transported via composite gas cylinders, with operational conditions precluding phase separation (liquid and gas). Following purification and moisture extraction, biogas is compressed up to 4 bars before being stored in liquefied petroleum gas (LPG) cylinders, rendering it suitable for culinary applications. Additionally, besides electricity generation, biogas plants yield organic fertilizers, facilitating waste management endeavors and environmental hygiene upkeep.

COVID-19 Impact on the Compressed Biogas Market

The advent of the COVID-19 pandemic has inflicted setbacks upon the Compressed Biogas Market. Notably, the Nepali Mount Everest Biogas Project encountered significant interruptions in preliminary activities. Furthermore, the pandemic-induced disruptions cast doubts on India's ability to achieve its targeted 15 million m3 biogas generation by 2023. The escalating electricity consumption and burgeoning interest in alternative fuels for attaining resilient energy security constitute primary catalysts propelling the Compressed Biogas Market. Nonetheless, the pervasive lack of public awareness and comprehension concerning biogas as an energy source is anticipated to impede market proliferation. The ongoing COVID-19 crisis has wrought operational and logistical challenges, impinging upon the marketing and manufacturing realms of agricultural produce. The agricultural sector players, particularly in nations like India, grapple with dire financial repercussions stemming from consumption pattern disruptions and the soaring pricing dynamics of assorted food commodities. The precipitous decline in agricultural activities and consequent slump in agricultural waste output may pose obstacles to the prospects of the organic biogas industry. However, in response to the crisis, there's a heightened emphasis on clean technologies to broaden energy access, potentially auguring well for the industry's trajectory amidst an escalating focus on leveraging renewable energy sources.

Market Drivers:

Growing Demand for Renewable Energy Sources Will Propel the Compressed Biogas Market's Expansion.

The escalating imperative for eco-friendly, renewable energy sources to address burgeoning energy requisites while mitigating environmental impacts drives the burgeoning demand for the Compressed Biogas Market. With biogas offering a safer waste disposal mechanism and contributing to environmental cleanliness amidst escalating waste generation due to population upsurge, the market's growth trajectory gains momentum. Moreover, the exorbitant costs and accessibility constraints associated with non-renewable energy sources like fossil fuels further accentuate the market's traction.

Biogas Assumes a Pivotal Role in Meeting Escalating Demands for Renewable Energy Sources in the Foreseeable Future.

Positioned as refined biogas or green gas, biomethane, or PNG, biogas stands poised to supplant traditional fossil fuels, serving as a versatile energy source for power generation, heating applications, and injection into gas grids. Biomass emerges as a paramount renewable energy source, offering versatility in generating heat, power, gas, and liquid fills. The eco-friendliness and adaptability of energy derived from biogas distinguish it from alternative renewable energy sources like wind or solar power, with biogas production minimally influenced by weather dynamics.

Market Restraint:

Stringent governmental regulations pose impediments to the Compressed Biogas Market's growth trajectory.

Governmental regulations wield significant influence over the viability and future trajectories of bioenergy facilities. Policy tools encompassing regulations, targets, mandates, incentives, tax legislations, and directives wield sway over bioenergy initiatives. The intricacy of methods and regulations varies across different biomass types, with diverse regulations governing aspects such as environmental zoning, land clearance, petroleum/gas, electricity, transportation, local development, health, and safety. Consequently, the regulatory landscape plays a pivotal role in shaping the operational framework and growth prospects of bioenergy ventures.

Compressed Biogas - By Feedstock Bio-municipal Waste

• Agricultural Residues
• Energy Crops
• Others

Agricultural Residues dominated the market, encompassing organic waste generated from farming-related activities. According to global bioenergy statistics, agricultural waste contributes between 3 and 4% to the world's total energy output. The forecast indicates a significant surge in energy crop utilization in the coming period. Various crop residues such as corn, wheat, and soybean are abundant in numerous regions of the United States and can be effectively utilized to produce compressed biogas.

Compressed Biogas - By Application Power Generation

• Heat Generation
• Transportation
• Upgraded Biogas
• Cooking Gas

Global electricity production has witnessed a consistent rise over the past decade due to escalating energy demands driven by population growth, industrialization, and urbanization. From 2010 to 2021, global electricity production surged from 21,570.7 Terawatt-hours (TWh) to 2,752.52 TWh. The power sector heavily relies on biogas for electricity generation, contributing significantly to the global transition towards cleaner energy sources. Biogas power generation is a well-established technology adopted worldwide. The World Biogas Association (WBA) suggests that biogas utilization can harness renewable energy from food waste, industrial by-products, agricultural feedstocks, and sewage, consequently reducing global greenhouse gas emissions by 10–13%.

Compressed Biogas - By Region North America

• South America
• Europe
• Asia-Pacific
• Rest of the World

North America is projected to command the largest market share during the forecast period. The biogas production in North America is poised for substantial growth. Efforts are underway to establish a unified quality standard for natural gas distribution networks, facilitating the inclusion of unconventional sources like biomethane. The United States and Canada exhibit significant interest and potential in green energy initiatives. While Canada's biogas energy sector is still in its nascent stage, there exists considerable room for expansion, promising benefits for communities across the nation. Biogas generation offers manifold advantages in energy utilization, environmental conservation, and economic development. In Canada, the biogas generation sector represents a burgeoning industry with considerable growth prospects.

Compressed Biogas Market Share by Company

1. Acrona Systems
2. Ros Roca Envirotec
3. Kohler & Ziegler
4. Guild Associates
5. MT-Energie
6. DMT Environmental Technology
7. Greenlane
8. Cirmac, Xebec Adsorption
9. CarboTech (International Chemical Investors)
10. DGE GmbH
11. Air Liquide
12. EnviTec

Several notable companies compete in the organic biogas market. Others such as Gasrec Ltd., Cryonorm BV, Next Kraftwerke GmbH, Dreyer are also actively diversifying their product portfolios, forging alliances, and engaging in acquisitions to bolster their global market presence.

NOTABLE DEVELOPMENTS IN THE COMPRESSED BIOGAS MARKET:

Expansion: On January 5th, 2021, Wärtsilä announced plans to supply two large-scale biogas upgrading units to various locations in Denmark. These facilities, to be constructed in the towns of Kong and Kvaers, are expected to annually convert over 40 million Nm3 of biogas into biomethane. They will generate approximately 470 GWh of green gas energy, equivalent to fueling more than 45,000 automobiles. It is anticipated that by 2022, these facilities will commence injecting biomethane into the Danish gas system.