Europe 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 Digestion and Dry Anaerobic Digestion), By Application (Power Generation, Heat Generation, and Transportation), and Regional Forecast, 2021-2028

The Europe biogas plant market size was USD 1.67 billion in 2020. The market is expected to grow from USD 1.87 billion in 2021 to USD 3.47 billion in 2028 at a CAGR of 9.2% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with biogas witnessing a negative demand shock across the region amid the pandemic. Based on our analysis, this market exhibited a lower growth of -37.51% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Biogas is generated from manure, waste, and other organic feedstock. This gas is critical in reducing dependency on fossil fuels. It is an environmental friendly and clean source of energy, with the least negative influence on the environment. As a result, the use of biogas as a sustainable energy source is expanding in several European countries. According to the European Biogas Association, more than 11.5 GW of installed power generation capacity in Europe is now powered by biogas.

Lack of Skilled Labour and Raw Materials Severely Hampered the Biogas Projects

WHO declared COVID-19 a pandemic in January 2020. This pandemic has resulted in travel, employment, and industry restrictions, resulting in billions of gallons of oil and billion metric tons of gas being removed from the global energy grid by 2020. As a result of the pandemic, several bioenergy projects worldwide are facing severe legal challenges. As a number of nations imposed travel restrictions, the supply chain was interrupted. The lack of raw materials, components, and qualified labourers has significantly influenced project development, resulting in further delays.

For example, STRABAG SE, a major competitor in the biogas plant sector, has announced that it will cease all activities in March 2020. The building of various bio-methane and biogas projects has been halted due to the pandemic, hating the company's activities and seamless operation. Many important industry participants have reported revenue declines compared to past years; for example, STRABAG SE has seen a 4.1% reduction in revenue for 2020.

LATEST TRENDS

Numerous Countries in Europe Accepting the Paris Climate Change Agreement to Boost Market

Several European countries have ratified the Paris Climate Change Agreement. This agreement obligates countries to enhance their use of renewable energy in their power generation. Biogas is gaining popularity because, as compared to fossil fuels, it produces significantly fewer greenhouse gas emissions. Furthermore, this gas is widely used in various applications, including the production of electricity. As a result, European countries are investing heavily in biogas energy.

DRIVING FACTORS

Growing Adoption of Renewables Energy to Drive Market

The adoption of renewable sources in the overall power mix of numerous countries in Europe is continuously increasing. Stringent regulation regarding greenhouse gas (GHG) emissions along with increased energy demand will provide a significant boost for renewable energy installation. As per European energy agencies, currently, in the region, around 19,000 biogases and 725 bio-methane plants are already in operation. These plants produce around 167 TWh of biogas and 26 TWh of bio-methane. Numerous energy targets established by various governments to encourage a shift toward sustainable energy have benefited the industry. For instance, the European government has targeted to increase renewable energy by 32% by 2030. The biogas sector is expected to contribute largely toward achieving this goal. Thus, the demand for biogas plants will increase considerably in the coming years.

Waste Utilization for Energy Production Will Accelerate Market Growth

The adoption of renewable sources in the overall power mix of numerous countries in Europe is continuously increasing. Stringent regulation regarding Greenhouse Gas (GHG) emissions and increased energy demand will significantly boost renewable energy installation. As per European energy agencies, currently, around 19,000 biogases and 725 bio-methane plants are already in operation in the region. These plants produce around 167 TWh of biogas and 26 TWh of bio-methane. Various governments established numerous energy targets to encourage a shift toward sustainable energy that has benefited the industry. For instance, the European government has targeted to increase renewable energy by 32% by 2030. The biogas sector is expected to contribute largely toward achieving this goal. Thus, the demand for biogas plants will increase considerably in the coming years.

RESTRAINING FACTORS

The High Initial Investment Required to Start a Plant Stifle Market Growth.

One of the primary commercial constraints for biogas plants is the large initial investment required. Industry participants will have to invest significant money in developing a production unit and well-managed waste collection, gas transmission, and gas distribution lines. Equipment, engineering, land, materials, and labour are all included in the cost of constructing a plant. This has resulted in a less fragmented industry, proving difficult for newcomers to navigate.

Furthermore, the majority of the initiatives will require government-sponsored assistance. Additionally, the temperature must be maintained while manufacturing biogas, which poses a significant difficulty for nations with cold weather throughout the year.

SEGMENTATION

By Feedstock Analysis

Agriculture Residue Segment Held Largest Share owing to High Generation of Waste from Agriculture Sector

Based on feedstock, the market is segmented into bio-municipal waste, agriculture residue, energy crops, and others.

The agriculture residue segment dominated the European market. Although the feedstock type varies from country to country, most countries have one dominating feedstock source for biogas generation. Energy crops and agricultural waste, for example, account for more than 70% of the feedstock utilized in Germany, Austria, Latvia, Hungary, and Italy.

Industrial organic waste from the food and beverage industry produces biogas in Belgium, Denmark, and Poland. In Sweden, sewage from wastewater treatment plants is the most common fuel for biogas production.

During the projected period, the bio-municipal garbage segment is expected to increase rapidly. Around 118 to 138 million tonnes of bio-waste are created annually in the European Union, with only about a quarter of that being properly recycled into high-quality compost and digestate.

By Digester Type Analysis

Wet Anaerobic Digestion Type Held Dominating Share of Market Majorly Due To Low Investment and Operating Cost

Based on digester type, the market is segmented into wet anaerobic digestion and dry anaerobic digestion.

The wet anaerobic digestion segment dominated the market. Organic material with only 10–20 percent dry matter or less is used in these digesting systems. A wet anaerobic digestion system has much lower capital and operating expenses than a dry anaerobic digestion system.

The dry anaerobic digestion segment contributes substantially during the projection period. Dry anaerobic digestion systems for organic materials with a 20% to 40% dry matter content. This approach offers an alternative to wet anaerobic digestion to maximize manure's value.

By Application Analysis

Power Generation Application Held Dominating Share of Market Owing to Increasing Demand for Power in Europe

Based on application, the market is segmented into power generation, heat generation, and transportation.

The electricity generation application segment held the dominant share of the market owing to high standards of living, electrification in transportation, and increasing demand for digitally connected devices and air conditioning. Biogas plants in Europe have an installed electric capacity (IEC) of roughly 11,500 MW, with a total amount of energy generated by biogas in Europe totaling 65,000 GWh.

During the projection period, the transportation segment is expected to increase at a high rate. Europe's strict carbon pollution standards are driving up demand for alternative fuels. Europe is the world's largest producer of biomethane, mostly utilized as a vehicle fuel or for injection into the natural gas infrastructure. Bio-methane is being produced in 18 European nations.

REGIONAL ANALYSIS

Currently in Europe, Germany, France, Spain, U.K, Sweden, and Italy are the key countries utilizing bio-based energy sources. Germany is the main biogas producer with more than 9,500 biogas plants operating in the country. Additionally, the country is also the largest producer of bio-methane with more than 200 plants operating in the country.

Sweden has a goal to become the first country to abandon fossil fuels in transportations by 2030. The country has been using biogas and biomethane as green fuels at the forefront to achieve its goal. Around 68 bio-methane upgrading facilities were producing about 1.3 TWh bio-methane in 2019. In 2019, around 64% of the produced biogas was upgraded to bio-methane mainly used as a transportation fuel

Italy is another major country in the European biogas plants market. In Italy, there is high availability of agricultural feedstock and widespread use of gas in transport activities. Furthermore, to achieve the renewables expansion target in the transport sector boosts the biogas & biomethane production.

KEY INDUSTRY PLAYERS

Key Participants to Concentrate on Expanding Production Capacities

The European market is highly fragmented due to the presence of numerous players. Many key players in the market are largely participating in organic & inorganic developments to solidify their market position. Most businesses focus on increasing their production capacity by constructing new factories or expanding existing ones.

Thöni Group recently announced that it had obtained an order to construct Finland's first TTV factory in Lappeenranta. The two lines will treat sewage sludge and organic garbage. The TTV steel digester can handle up to 16,000 tonnes of sewage sludge and 9,000 tonnes of organic bio-waste per day.

The contract for the extension of the bio-waste digestion plant for the regional waste collection and treatment firm TIRME S.A. in Mallorca was granted to STRABAG Umwelttechnik GmbH, Dresden, in March 2018. The contract comprises the preparation of the construction site, digestion, and digestate treatment.

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)


• AB HOLDING SPA (Italy)


• RENERGON International AG (Switzerland)


• STRABAG SE (Austria)


• Thoni (Austria)


• Naskeo Environnement S.A. (France)


• IES BIOGAS S.r.l (Italy)


• Zorg Biogas (Switzerland)

KEY INDUSTRY DEVELOPMENTS:

• June 2021 – Liquind 24/7 and EnviTec has signed a contract for the sale of Bio-LNG. This bio-LNG will be produced from the new liquefaction plant which will 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.


• June 2020 – EnviTec Biogas AG has secured contracts in Estonia with a double order from AS EG Ehitus which is a subsidiary of gas network operator AS Eesti Gaa. The order is for the upgrade of two EnviThan biogas plants.

REPORT COVERAGE

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

REPORT SCOPE & SEGMENTATION