Biogas Market Size, Share & COVID-19 Impact Analysis, By Feedstock (Organic Residue & Wastes {Biowaste, Municipal & Sewage, Agricultural Waste, and Others}, and Energy Crops), By Application (Power Generation, Heating, Combined Heat and Power, and Others), and Regional Forecast, 2020-2027

The global biogas market size was USD 25.50 billion in 2019 and is projected to reach USD 31.69 billion by 2027, exhibiting a CAGR of 5.30% during the forecast period (2020-2027).

This report covers COVID-19 impact analysis on Biogas Market

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Biogas is a mixture of gases produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste, or food waste. Mainly it contains carbon dioxide and methane and little amount of water vapors and supplied compounds. This gas is burnt in the presence of oxygen, which releases energy. This energy is used for different purposes, such as generating electricity, cooking food, transportation, and heating.

Rising concerns about environmental safety and increased demand for clean energy are the factors driving the biogas market growth. According to IEA, currently around 18 GW of installed power generation capacity is running on this gas around the world, most of which is in Germany, the United States, and the United Kingdom.

COVID-19 Pandemic Severely Affects Bioenergy Projects

The COVID-19 pandemic has caused restrictions on travel, work, and industry, which is 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. Unavailability of raw materials, components, and technical support has led to a high impact on project development resulting in delays. Recently in March 2020, construction on the Tees Renewable Energy Plant (Tees REP), a 299 MW biomass power plant in the U.K., was suspended due to the COVID-19 pandemic. The company said, only a small number of critical maintenance staff remains on-site, following all social distancing protocols in compliance with the U.K. central government guidance.

The U.S. Energy Information Administration (EIA) currently 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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Acceptance of Paris Climate Change Agreement by Several Countries to Boost Market

The number of countries accepting the Paris Climate Change Agreement has increased considerably. This agreement has urged countries to increase their consumption of renewable energy sources in total capacity. The use of this type of gas has drawn considerable attention globally as an innovative strategy to tackle climate change, to minimize GHG emissions, and to fulfill the Kyoto Protocol agreements. In the energy sector, fossil fuel emissions are the main source of global warming. Biogas, on the other hand, 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

Rising Investments in Renewable Energy to Drive Market

The environmental protection regulations across the globe are forcing the power generation industry to opt for cleaner and environment-friendly energy resources. Several countries around the world are focused on developing renewable energy capacities to reduce their dependence on conventional power generation. Renewable investment records indicate that the global dependence on coal and other fossil fuels is decreasing due to the heavy investment in bioenergy, solar, wind, and geothermal energy.

Bioenergy is one of the major sources of renewable energy, holding more than 50% share in the world’s total renewables consumption, and can solve many global challenges such as the limited availability of fossil fuels and related environmental issues. It is the only renewable energy that can be used across all three energy sectors, i.e., electricity, heat, and transport. Thus most of the countries are considering investing in these energy sources. This, in turn, is driving the global market during the forecast period.

High Demand for Upgraded Biogas Will Augment Market Growth

The shortage of conventional fossil fuel such as oil and natural gas, coupled with environmental degradation,  is one of the  major global problems. Production and use of renewable energy resources are likely to help overcome these problems. This type of gas plays an essential role in creating a sustainable society and reducing dependency on oil. It is a high-energy methane gas, which is further refined or upgraded into biomethane. Purified biomethane has the same properties as natural gas and can function as a highly efficient and environment-friendly fuel for natural gas cars, or be injected into the natural gas grid.

According to the International Renewable Energy Agency (IRENA), this gas, when used as a vehicle fuel can reduce greenhouse gas emissions by about 60% to 80% compared to fossil-based fuels. Presently, more than 100,000 natural gas vehicles are running in Germany. Around 150 filling stations offer 100% biomethane, and more than 300 filling stations offer a mixture of biomethane and natural gas. Thus, increasing the production of automobiles is projected to boost the demand for biomethane.

RESTRAINING FACTORS

High Initial Investment for Establishing Plants to Hinder Market Growth

The initial investment for establishing the plants is high. The cost of a plant construction includes land, equipment, engineering, materials, and labor. Some countries provide financial assistance for the construction of these plants. However, financial assistance is also required for the development and expansion of the plant. The process of procuring and storing feedstock is 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 this gas. The output of the plant needs to be sufficient and consistent to cover the installation and operating costs.

SEGMENTATION

By Feedstock Analysis

Organic Residue & Wastes to Hold the Major Share Owing to its Vast Use in Agricultural Activities  

Based on feedstock, the market is divided into organic residue & wastes and energy crops. Organic residue & wastes further trifurcated into biowaste, municipal & sewage, agricultural waste, and others. The organic residue & wastes segment held the major share of the global market. 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.

According to the World Biogas Association, globally, more than 1.6 billion tonnes of food is lost every year, of which 1.3 billion tonnes are edible. If all accessible food waste is collected and recycled by the anaerobic digestion process, it has the potential to generate around 880 to 1100 TWh of energy, which can be used as electricity and heat.

Energy crops are expected to grow significantly during the forecast period. In the U.S., numerous states such as Minnesota, North Dakota, Iowa, Illinois, Nebraska, and Arkansas have high availability of crop residues from corn, wheat, and soybean, which can all be digested for biogas production.

By Application Analysis

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Electricity Generation Application to Dominate the Market

Based on the application, the market can be segmented into power generation, heating, combined heat and power (CHP), and others. Electricity demand is continually growing as a result of increasing household incomes, electrification of transport, and increasing demand for digitally connected devices and air conditioning. In 2018, the world total electricity final consumption reached 22 315 TWh, 4.0% higher than in 2017.

The heating segment is projected to grow at a significant pace during the forecast period. The voluntary target within the updated Renewable Energy Directive (RED) for member states to increase renewable energy in heating and cooling by 1.3 percentage points/year should open up opportunities for heating applications.

The others segment includes the transportation segment. Globally, transportation is one of the major sources of carbon emissions. Enactment of stringent government regulations regarding carbon emissions across the globe is boosting the demand for alternative fuels. In Germany, a network of around 900 natural gas filling stations is available for about 100,000 natural gas vehicles. Of those, 150 stations offer 100% biomethane, and over 300 filling station mixtures from biomethane and natural gas.

REGIONAL INSIGHTS

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Geographically, the global market has been analyzed across five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Europe held the major share of the global market in 2019. The EU Directive for RES (2009/28/EG) sets the target to achieve a share of renewable energies of 18% of the gross energy consumption until 2020. National targets determine a share of electricity generation from RES of 40–45 % until 2025 and 55–60 % until 2035. Germany, U.K, France, Spain, Italy, and Sweden are the major countries utilizing bio-based energy sources. Germany is the biggest biogas producer in Europe, which hosts more than 10,000 plants, more than half the total number of installations currently in operation across the EU.

The Asia Pacific market is expected to grow at the highest pace during the forecast period. Developing economies such as China and India are implementing strong regulations to lower their carbon footprint, which is a crucial factor driving the growth of the market. According to the Indian Ministry, the country generated approximately 1.45 lakh metric tonnes of waste per day, only 53 percent of waste was processed under the Swachh Bharat Mission (SBM), a flagship program of the Prime Minister. The Centre aims to attain 100% scientific management of solid waste, and also make the country Open-Defecation Free.

North America has been a significant region for the market. The U.S. has more than 2,200 plants for producing biogas in all 50 states, i.e., 253 anaerobic digesters on farms, 1,269 water resource recovery facilities utilizing anaerobic digesters, 68 stand-alone systems that digest food waste, and 652 landfill gas projects.

KEY INDUSTRY PLAYERS

Key Players to Concentrate on Expanding Production Capacities

The global market is highly fragmented due to the presence of a large number of players. Several players across the global market are increasingly participating in organic & inorganic developments to strengthen their market position globally. Most of the companies are focused on expanding their production capacities by introducing new plants or expanding the existing ones. For instance, in May 2020, Weltec Biopower is to build a biogas plant in Veria, Greece. The main investor  of the project is one of the largest abattoirs for cows and pigs in Greece.

In February 2020, Brightmark Energy company announced plans to expand its biogas project, partnering with six total farms in the region. The ‘Yellowjacket’ project would extract methane from 265,000 gallons of dairy manure per day and convert it into renewable natural gas (RNG) and other useful by-products.

List of Key Companies Profiled:

• Future Biogas Limited (U.K)


• Air Liquide (France)


• 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)

KEY INDUSTRY DEVELOPMENTS:

• April 2020 – Ductor, a Finnish-Swiss biotech company, is building three combined biofertilizer-biogas facilities in northern Poland. The new facilities will be built in Poland's Zachodniopomorskie region. Two of the new plants have installed capacity of 0.5MW, and the third will be 1MW. All three plants are expected to be operational in 2021.


• June 2020 – The Nordic energy company Gasum announced that they would open a liquefied natural gas (LNG) and liquefied LBG filling station near Arlanda Airport in Stockholm at the end of the year. The station is Gasum’s first in the Stockholm area

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The biogas market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies and leading feedstock, and application of the product. Besides this, the biogas industry 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 of the advanced market over recent years.

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