Biogas is a gas mixture produced by breaking down organic matter without oxygen. Processes such as anaerobic digestion and landfill are used to generate biogas. Primarily containing methane and carbon dioxide, biogas has several advantages over fossil fuels in applications like CHP plants, commercial use, domestic stoves, and transportation. Inkwood Research predicts that the global biogas market is expected to surge with a 4.42% CAGR during the forecast years 2022-2030.
Factors such as supportive government policies and regulations and the need to reduce emissions will likely aid the overall market growth over the forecast period. Moreover, several countries have recently witnessed increasing investments in the biogas industry. For instance, in May 2022, the Government of Canada and the Government of Quebec announced joint funding of CAD 100 million for the expansion of the bio mechanization facilities owned by the Société d’économie mixte de l’est de la Couronne sud (SEMECS) in Montérégie. The expansion includes installing a new organic material receiving area with a pit, adding three new digesters, installing an Énergir gas transfer platform and expanding the capacity to 120,000 tons per year.
Top Applications of Biogas across Market Verticals
Our analysis suggests that the global biogas market can be divided into three major applications – biofuel production, electricity generation, and heat generation.
Biofuel Production
In the past few decades, the world has been highly dependent on fossil fuels, such as coal and crude oil, which were the major causes of greenhouse gas emissions. In recent years, many countries have planned to start phasing out coal energy to cleaner energy sources, such as natural gas and renewables. In several countries, biogas has increasingly been upgraded to compressed biomethane (CBG), a renewable version of compressed natural gas (CNG), for use in cars and buses. As a result, global market players are investing significantly to establish biofuel manufacturing plants globally.
For instance, in September 2021, Shell PLC announced an investment to build an 820,000 tons per year biofuels facility at the Shell Energy and Chemicals Park Rotterdam, the Netherlands. Once built, the facility will be among Europe’s biggest in producing sustainable aviation fuel (SAF) and renewable diesel from waste. The Rotterdam biofuels facility is expected to start production in 2024.
Electricity Generation
There is a rapid surge in electricity generation globally owing to accelerating energy demands from urbanization, industrialization, and expanding population levels. Burning wood and wastes generate steam in biomass power plants that may be used to generate heat in buildings & businesses or to drive a turbine to produce electricity. In 2021, global electricity generation exceeded 2752.52 Terawatt-hours (TWh), rising from 21570.7 TWh in the year 2010.
Furthermore, as per World Biogas Association (WBA), around 10-13% of the global greenhouse gases (GHG) can be reduced with the help of biogas produced from sewage, industrial production wastes, food waste, and feedstocks from agriculture. The optimization of fuels and reduction in GHG is predicted to significantly impact electricity generation in South America, Asia-Pacific, Africa, and other developing regions, which are majorly investing in several strategies to boost the role of biogas in electricity generation.
Heat Generation
One of the simplest use of biogas is for thermal (heat) energy. In areas where fuels are scarce, biogas systems can provide heat energy for basic cooking and water heating functionalities. Gaslighting systems can also use biogas for illumination. The biogas uses a heating plant and combined heat and power (CHP) to generate heat.
Furthermore, various countries are investing in biogas-based projects due to energy security concerns and lowering the dependency on fossil fuels. For instance, in May 2022, with a total investment of around $16.8 million, Kelag Energie & Warme announced its plans to build a biomass power plant to supply heat in a municipality in some parts of Vorarlberg. Hence, with the increasing demand for heat generation through clean energy sources coupled with supportive government policies and investment, the biogas market for heat generation applications is expected to witness significant growth during the forecast years.
Applicability of Biogas: Future Prospects
When biogas is conditioned or upgraded to pipeline-quality natural gas, it becomes renewable natural gas (RNG). The future uses of renewable natural gas are expected to depend on the development of renewable resource markets. As a result of high oil prices and limited renewable fuel options, biogas in the transportation industry will likely be a key demand driver. Moreover, biogas is a low-cost option for zero-carbon transportation fuel. Therefore, several industries will potentially consume the majority of renewable biogas produced. Ultimately, technological advances are expected to determine the prospects of renewable natural gas, but its success also depends on a level playing field in energy policy, determining the growth of the global biogas market.
FAQs:
Which regions are assessed in the global biogas market?
Europe, North America, Asia-Pacific, and Rest of World are assessed in the global biogas market.
Which key segments are analyzed in the global biogas market report?
Source type and application segments are analyzed in the global biogas market report.