Biogas Plant Market Size, Share & COVID-19 Impact Analysis, By Feedstock (Bio-municipal Waste, Agriculture Residue, Energy Crops, and Others), By Digester Type (Wet Anaerobic Digester and Dry Anaerobic Digester), By Application (Power Generation, Heat Generation, and Transportation), and Regional Forecast, 2021-2028

The global biogas plant market size was USD 3.10 billion in 2020. The market is projected to grow from USD 3.51 billion in 2021 to USD 6.52 billion in 2028 at a CAGR of 9.3% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with biogas plants witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of -39.1% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

A biogas plant is where biogas is produced with the utilization of manure, waste, and other organic feedstock. Biogas generation plays an important role in generating sustainable energy and decreasing the reliance on fossil fuels. Biogas is an environment-friendly and clean energy source, resulting in its increasing adoption as a renewable energy source in various developed and developing economies. According to the International Energy Agency (IEA), currently, more than 19 GW of installed power generation capacity is running on biogas worldwide, most of which are in Germany, the U.S., and the U.K.

COVID-19 Pandemic to Have Severe Effects on Bioenergy Projects

The COVID-19 pandemic has put several restrictions on work and travel, which are expected to cut billions of barrels of oil and trillions of cubic meters of gas from the global energy system in 2020. Due to this pandemic, bioenergy projects globally are facing major issues. The unavailability of raw materials, components, and technical support has led to a high impact on project development activities, resulting in delays. For instance, Strabag, one of the leading infrastructure companies and one of the prime players in the market, has halted all of its operations since March 2020.

Many biomethane and biogas projects have been postponed or suspended due to pandemics, and this has stalled the company’s activities and smooth functioning. Several companies in the market have seen a decline in revenue as compared to previous years. For example, Strabag has seen a decline of 4.1% in its 2020 revenue.

LATEST TRENDS

Widening Acceptance of Paris Climate Agreement to Bolster Biogas Plant Market Growth

The number of countries such as the European Union, China, and India accepting the Paris Climate Change Agreement has been increasing considerably. This agreement enforces countries to increase the consumption of renewable energy sources in total power generation. Increased usage is grabbing more attention as this energy helps in managing the problems of climate change and minimize GHG emissions. In the energy sector, emissions from fossil fuels are the key source of global warming. On the other hand, biogas causes far lower greenhouse gas emissions depending on the source and circumstances. It is also used for other applications such as heat production or electricity generation.

DRIVING FACTORS

Increasing Adoption of Renewables to Drive Market

The growing adoption of renewable energy sources in the overall power mix of various countries is one of the prime factors which will drive the construction activities worldwide. Reducing greenhouse gas (GHG) emissions and meeting increased energy demands simultaneously have been the primary targets of governing bodies in countries all around the globe. In pursuit of these targets, the installation of renewable energy sources is set to grow tremendously over the coming decade, which, in turn, will lead to the expansion of the market.

As per IEA, a significant portion of biogas produced globally is used for power generation and co-generation. For instance, in 2019, out of the total biogas production, around 65% was used for power and co-generation, and the rest was utilized for heat in buildings or upgraded to bio-methane. New energy targets launched by various governments to promote the inclination towards sustainable power have positively affected the market size. For instance, Brazil aims to have 42.5% of its primary energy supply from renewables by the end of 2023. According to an analysis provided by Carbon Brief, the U.K. government aims to have about half of its electricity from renewables in 2025.

Expanding Utilization of Organic Waste for Energy Production Will Augment Market Growth

Population growth and people’s migration from rural to urban areas have caused a spike in energy demand and have also increased waste generation substantially over the past few years. As per the United Nations, in 2050, around 68% of the world’s total population is expected to be living in urban areas. This will undoubtedly require ramping up of waste treatment capacities, thus fueling the market growth. Biogas plants can produce biogas from a wide range of organic matter, such as commercial and domestic food waste, agricultural material, municipal and industrial sewage, and livestock manures. These capabilities, coupled with rising waste generation, are expected to act as catalysts for the market growth in the coming years.

RESTRAINING FACTORS

High Initial Investments for Establishing Plants May Hinder Market Growth

The capital required for establishing construction costs is very high. The construction cost of a plant includes equipment, engineering, land, materials, and labor. Several countries in the world provide financial assistance for the construction of these plants. Furthermore, the supply chine which includes collection, sorting, processing, and distribution of feedstock, operation & maintenance of plants, and sale & distribution of the gas produced, is also costly and time-consuming.

SEGMENTATION

By Feedstock Analysis

Bio-municipal Waste Segment Held Major Market Share in 2020

Based on the feedstock, the market is fragmented into bio-municipal waste, agriculture residue, energy crops, and others. The agriculture residue held the maximum share. Agricultural waste comprises waste matter generated in agricultural activities. As per Global Bioenergy Statistics, energy generation from agricultural residues could meet about 3 – 14% of the total energy supply.

Energy crops are expected to grow at a substantial CAGR during the forecast period. The current global production of crops suitable for anaerobic digestion includes rice, wheat, sugarcane, sugar beets, maize, oats, rapeseed, and sorghum. These crops have the potential to generate 3,080 to 3,920 TWh of energy.

The bio-municipal waste segment is expected to grow significantly during the forecast period. Currently, several countries across the globe are focusing on solid waste management. According to the Department for Environment, Food & Rural Affairs, the total waste from households (WFH) generation in the U.K. was 26.4 million tonnes in 2019. There is an EU target for the U.K. to recycle at least 65% of WFH by 2035. Such targets provide a positive influence on the growth of the market.

By Digester Type Analysis

Wet Anaerobic Digester Type Held Major Share in the Market

Based on digester type, the market can be divided into a wet anaerobic digester and a dry anaerobic digester. The wet anaerobic digester segment held the major share of the global market as most of the feedstock process in the digester is in liquid form. This system uses organic material with a consistency of 10–20% dry matter or less. The main advantage of this digester system is that it allows for optimal mixing and thus result in high production. Also, the investment and operating costs are lower. A dry digester system generally processes feedstock with more than 15% solids content, such as agricultural waste.

By Application Analysis

Power Generation Application Held the Dominant Share of Market

Based on application, the market can be segmented into power generation, heat generation, and transportation. The power generation application segment held the dominant share of the market. Electricity demand is constantly increasing due to increasing household incomes, electrification of transport, and growing demand for digitally connected devices and air conditioning. According to Enerdata, the world's total electricity final consumption reached 23,177 in 2020 compared to 22,315 TWh in 2018.

The heat generation segment is expected to grow at a substantial rate during the forecast period. In European Union, the voluntary targets within the updated Renewable Energy Directive (RED) for member states should open up opportunities for heat generation applications of biogas so as to increase renewable energy in heating and cooling by 1.3 percentage points/year.

Transportation is a key source of carbon emissions. The stringent government regulations regarding greenhouse gas emissions across the globe are boosting the demand for alternative fuels. IRENA’s Renewable Energy Roadmaps show that renewable fuels are expected to account for a 10% share of energy usage in the transport sector by 2030.

REGIONAL INSIGHTS

Geographically, the market has been segmented into five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

Europe led the biogas plant market share in 2020 owing to increased investment in bio-related energy. According to the European Biogas Association, more than 19,000 biogas plants were operational in Europe by the end of 2020. Europe-wide installed electric capacity (IEC) was around 11,500 MW. Germany, the UK, France, Spain, Italy, and Sweden are the major countries utilizing bio-based energy sources. Germany is the biggest producer in Europe, hosting more than 9,500 plants, more than half the total number of installations currently in operation across the European Union (EU).

The Asia Pacific market is expected to witness the highest CAGR during the forecast period. The biogas potential is limitless in the region. The abundant availability of organic waste and a growing appetite for more sustainable energy sources are expected to propel the regional market. China, India, and Thailand have been investing heavily in the last few years. China plans to produce 30 billion cubic meters of biogas from agricultural waste and manure by 2030 as part of its wider vision to reduce domestic coal consumption in rural regions by 50 megatonnes. China needs to build around 4,000 upgrading facilities over the next ten years to achieve such a target.

North America is expected to contribute significantly to the global market during the forecast period. More than 2,200 plants are producing biogas in the U.S. As per the American Biogas Council, the country has the potential to add around 13,500 new systems.

KEY INDUSTRY PLAYERS

Mayor Players to Focus on Expanding Production Capacities

This market is highly fragmented due to the existence of the log list of key players. Many players are increasingly participating in organic & inorganic developments to maintain their position in the market. Companies operating in the market are concentrating on expanding their production capacities by expanding the capacities of the existing ones or by introducing new plants. For example, in July 2021, Green Genius, with the support of Bank Pekao, started the construction of its first plant in Poland. This plant will use agricultural raw materials, including beet pulp, distilling dregs, vegetable and fruit residues from juice production, and other agricultural by-products as feedstock. In May 2020, Weltec Biopower announced the plan to construct a 500 kW plant in Veria, northern Greece. The plant would be constructed in collaboration with Tetoros Machinery, and it will be using waste from animal husbandry, slaughtering cattle manure, and meat processing leftovers as a feedstock.

List of Key Companies Profiled:

• Future Biogas Limited (U.K.)


• PlanET Biogas Global GmbH (Germany)


• WELTEC BIOPOWER GmbH (Germany)


• Scandinavian Biogas Fuels International AB (Sweden)


• EnviTec Biogas AG (Germany)


• Ameresco (U.S.)


• Quantum Green (India)


• AB HOLDING SPA (Italy)


• RENERGON International AG (Switzerland)


• StormFisher (Canada)


• Strabag (Austria)


• Thoni (Austria)


• Naskeo Environnement S.A. (France)


• IES BIOGAS S.r.l (Italy)


• FINN BIOGAS (Australia)

KEY INDUSTRY DEVELOPMENTS:

• In June 2021 – EnviTec and Liquind 24/7 has signed a contract for the sale of Bio-LNG. This bio-LNG will be produced from the new liquefaction plant which would be constructed in Pomerania, Germany, by EnviTec. Liquind is organizing the transport and distribution of bio-LNG to heavy-duty customers at its truck fueling stations.


• In August 2020, EnviTec Biogas received an order to construct 1MW of plant in Greece. The plant is located in the Thessaloniki regional unit and will use silage, food waste, and wet manure as feedstock.

REPORT COVERAGE

The global biogas plant market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies and leading feedstock and the application of the product. Besides this, the report offers insights into the current key market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

REPORT SCOPE & SEGMENTATION