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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, Transportation, and Others), and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI104667

 

KEY MARKET INSIGHTS

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The global biogas plant market size was USD 5.05 billion in 2019. The global impact of COVID-19 has been unprecedented and staggering, with biogas plant witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global biogas plant market will exhibit a huge decline of -41.5% in 2020. The market is projected to grow from USD 2.95 billion in 2020 to USD 7.71 billion in 2027 at a CAGR of 14.7% in the 2020-2027 period. 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 source of energy in various developed and developing economies. According to the International Energy Agency (IEA), currently, around 18 GW of installed power generation capacity is running on biogas around the world, most of which is in Germany, the U.S., and the U.K.


COVID-19 Pandemic to Have Severe Effects on Bioenergy Projects


The COVID-19 pandemic has caused restrictions on travel, work, and industry, 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 have led to a high impact on project development activities, resulting in delays. For instance, Strabag, which is one of the leading infrastructure companies and one of the prime players in the biogas plant market, has halted all of its operations from March 2020. Moreover, the U.S. Energy Information Administration (EIA) estimates that biomass will be used to generate 27.3 billion kilowatt-hours (kWh) of electricity this year, down from 28.8 billion kWh in 2019.


LATEST TRENDS


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Widening Acceptance of the Paris Climate Agreement to Boost the Market


The number of regional blocs and 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 the total power generation. The use of biogas is drawing considerable attention globally as an innovative strategy to tackle climate change, to minimize greenhouse gas (GHG) emissions, and to fulfill the Kyoto Protocol agreements. In the energy sector, fossil fuel emissions are the main cause of global warming. Biogas, on the other hand, causes far lower GHG emissions depending on the source and circumstances. It is also used for other applications such as heat production and electricity generation.


DRIVING FACTORS


Increasing Adoption of Renewables to Drive the Market


The growing adoption of renewable energy sources in the overall power mix of various countries is one of the chief factors that will drive the construction of biogas plants worldwide. Reducing greenhouse gas emissions and meeting the increased energy demands have been the primary goals of governing bodies in countries around the globe. In pursuit of these ambitions, 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 the IEA, a significant portion of biogas produced globally is used for power generation and co-generation. For instance, in 2018, out of the total biogas production, 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 set by various governments to promote the transition towards sustainable power have positively affected market size. For instance, Brazil aims to have 42.5% of its primary energy supply to be from renewables by the end of 2023. According to the analysis provided by Carbon Brief, the UK 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


The increasing population and migration of people from rural to urban areas have resulted in a spike in energy demand and have also increased waste generation substantially over the past few years. As per the United Nations, 68% of the world’s total population is expected to be living in urban areas by 2050, which was estimated to be 55% in 2018. This will undoubtedly require ramping up of waste treatment capacities, thus fueling market growth. Biogas plants can produce biogas from a wide range of organic matter, such as commercial food waste, domestic food waste, municipal and industrial sewage, agricultural material, and livestock manures. These capabilities, coupled with rising waste generation, are expected to act as catalysts for the biogas plant market growth in the coming years.


RESTRAINING FACTORS


High Initial Investments for Establishing Plants May Hinder Market Growth


High initial investments are required for establishing biogas plants. The construction cost of a plant includes equipment, engineering, land, materials, and labor. Several countries across the globe provide financial assistance for the construction of these plants. Financial assistance is also required for the development and expansion of these plants. Moreover, the procuring and storing of feedstock is also time-consuming and costly. Financial assistance and regulations are required for the collection, sorting, processing, and supply and distribution of feedstock, construction and operation of plants, and sale & distribution of the gas produced. The output of these plants needs to be sufficient and consistent to cover the installation and operating costs.


SEGMENTATION


By Feedstock Analysis


Bio-municipal Waste Segment Held a Major Market Share in 2019


Based on feedstock, the market is segmented into bio-municipal waste, agriculture residue, energy crops, and others. The bio-municipal waste segment held the major share of the global market. Currently, many countries are focusing on solid waste management. According to the Department for Environment, Food & Rural Affairs, the total waste from households (WFH) generation in the UK was 26.4 million tonnes in 2018. There is an EU target for the UK to recycle at least 50% of WFH by 2020. Such targets provide a positive influence on the growth of the market.


The energy crops segment is expected to grow significantly 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.


Agricultural waste comprises all organic 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 globally.


By Digester Type Analysis


Wet Anaerobic Digester Type Held the Dominant Share of the Market


Based on digester type, the market can be segmented 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. A wet digester system generally processes feedstock with less than 15% solids content. The feedstock for a wet digester is typically in slurry form and can be pumped.


A dry digester system generally processes feedstock with greater than 15% solids content, such as agricultural wastes.


By Application Analysis


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Power Generation Application Held the Dominant Share of the Market


Based on application, the market can be segmented into power generation, heat generation, transportation, and others. The electricity generation application segment held the dominant share of the market. Electricity demand is constantly increasing as a result of increasing household incomes, electrification of transport, and growing demand for digitally connected devices and air conditioning. According to the IEA, the world's total electricity final consumption reached 22,315 TWh in 2018, 4.0% higher than in 2017.


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


Transportation is one of the major sources of carbon emissions. The enactment of stringent government regulations regarding carbon emissions across the globe is 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


Europe Biogas Plant Market, 2019 (USD Billion)

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Geographically, the global market has been analyzed across five key regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Europe led the biogas plant market share in 2019. According to the European Biogas Association, more than 18,000 biogas plants were operational in Europe by the end of 2019. Europe-wide installed electric capacity (IEC) of biogas plants was 11,082 MW, and the total amount of electricity generated from biogas in European countries is 63,511 GWh. Germany, the UK, France, Spain, Italy, and Sweden are the major countries utilizing bio-based energy sources. Germany is the biggest biogas producer in Europe, hosting more than 10,000 biogas plants, more than half the total number of installations currently in operation across the European Union (EU).


The Asia Pacific market is expected to grow at the highest pace during the forecast period. The potential of biogas is limitless in this region. The abundant availability of organic waste and a growing appetite for more sustainable energy sources are expected to propel the regional market. Countries such as China, India, and Thailand are investing heavily in new biogas plants. 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. To achieve this target, China will need to build approximately 3,000 to 4,000 upgrading facilities over the next ten years.


North America is expected to contribute significantly to the global market during the forecast period. The US has more than 2,200 plants for producing biogas across all 50 states. According to the American Biogas Council, the U.S. currently has the potential to add 13,500 new biogas systems, providing over 335,000 construction jobs and 23,000 permanent jobs.


KEY INDUSTRY PLAYERS


Key Participants to Concentrate on Expanding Production Capacities


The biogas plant market is highly fragmented due to the existence of a large number of players. Several players across the global market are increasingly participating in organic & inorganic developments to solidify their position. Most of the companies are concentrating on expanding their production capacities by introducing new plants or expanding the capacities of the existing ones. For example, in February 2020, Brightmark Energy announced plans to expand its biogas project, partnering with six total farms in North America. Similarly, in October 2019, Mazoon Dairy Company (MDC) opened a new biogas plant in Oman. The plant is part of MDC’s strategy to use waste-to-energy to enhance the efficiency of waste management.


LIST OF KEY COMPANIES PROFILED: 



  • Future Biogas Limited (The UK)

  • PlanET Biogas Global GmbH (Germany)

  • WELTEC BIOPOWER GmbH (Germany)

  • Scandinavian Biogas Fuels International AB (Sweden)

  • EnviTec Biogas AG (Germany)

  • Ameresco (The US)

  • 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)

  • Agrinz Technologies GmbH (Austria)

  • SP Renewable Energy Sources (India)

  • Air Liquide (France)


KEY INDUSTRY DEVELOPMENTS:



  • In June 2021, Future Biogas Limited announced plans to build its portfolio of 25 new biogas plants by 2028 along with carbon capture and storage (CCS) capabilities to supply green gas to the grid. The company aims to sell the carbon offsets generated by permanent geological CO2 storage to corporate buyers seeking to offset their emissions. 

  • In June 2021, Future Biogas Limited announced plans to build its portfolio of 25 new biogas plants by 2028 along with carbon capture and storage (CCS) capabilities to supply green gas to the grid. The company aims to sell the carbon offsets generated by permanent geological CO2 storage to corporate buyers seeking to offset their emissions. 

  • In August 2020, EnviTec Biogas has received an order for the construction of 1MW of a biogas plant in Greece. Silage, food waste, and wet manure will be used as feedstock in the plant which is located in the Thessaloniki regional unit.

  • In May 2020, Weltec Biopower a German-based biogas service provider announced the plan to construct 500 kW of a biogas 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.


REPORT COVERAGE


An Infographic Representation of Biogas Plant Market

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The 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 applications of the product. Besides this, the report offers insights into the current 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











































 ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historic Period



  2016-2018



Unit



  Value (USD Billion)



 


Segmentation



By Feedstock



  • Bio-Municipal Waste

  • Agriculture Residue

  • Energy Crops

  • Others



By Digester Type



  • Wet Anaerobic Digestion

  • Dry Anaerobic Digestion



By Application



  • Power Generation

  • Heat Generation

  • Transportation

  • Others



By Region



  • North America (By Feedstock, Digester Type, Application, and Country)

    • The U.S.

    • Canada



  • Europe (By Feedstock, Digester Type, Application, and Country)

    • Germany

    • The UK

    • France

    • Spain

    • Italy

    • Scandinavia

    • Benelux

    • Russia

    • Rest of Europe



  • Asia Pacific (By Feedstock, Digester Type, Application, and Country)

    • China

    • India

    • Japan

    • Australia

    • South East Asia

    • Rest of Asia Pacific



  • The Middle East & Africa (By Feedstock, Digester Type, Application, and Country)

    • GCC

    • South Africa

    • Rest of the Middle East & Africa



  • Latin America (By Feedstock, Digester Type, Application, and Country)

    • Brazil

    • Mexico

    • Rest of Latin America





Frequently Asked Questions

As per the study by Fortune Business Insights, the global market size was USD 5.05 billion in 2019.

The global market is projected to grow at a CAGR of 14.7% in the forecast period.

The market size of Europe stood at USD 3.46 billion in 2019.

Based on application, the power generation segment is holding the dominant share in the market.

The global market size is anticipated to reach USD 7.71 billion by 2027, growing at a substantial CAGR of 14.7% during the forecast period (2020-2027).

Based on feedstock, the bio-municipal waste segment holds the dominating share in the market.

Rising concerns about environmental safety and increased demand for clean energy are the factors driving the growth of the market.

The top players in the market are EnviTec Biogas AG, WELTEC BIOPOWER GmbH, Ameresco, AB Holding SpA, and StormFisher, among others.

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