Biomethane Market - Global Industry Size, Share, Trends, Competition Opportunity, and Forecast, Segmented By Feedstock Type (Agricultural Waste, Animal Manure, Organic Household waste, Energy Crops, and Others), By Production Method (Fermentation, Gasification), By Application (Automotive, Power Generation, and Others), By Region and Competition, 2020-2030F

Market Overview

The Global Biomethane Market, valued at USD 4.68 Billion in 2024, is projected to experience a CAGR of 6.21% to reach USD 6.72 Billion by 2030. Biomethane is a renewable natural gas, chemically comparable to conventional natural gas, produced by upgrading biogas derived from the anaerobic digestion of organic matter or through biomass gasification. Key market growth drivers encompass global decarbonization initiatives aimed at reducing greenhouse gas emissions, alongside strategic energy security objectives. Policy support and incentivization mechanisms further underpin this expansion. According to the European Biogas Association, biomethane production in Europe reached 4.9 billion cubic meters in 2023, with an installed capacity of 6.4 billion cubic meters per year by the first quarter of 2024.

A significant challenge impeding market expansion involves the substantial capital investment required for establishing production infrastructure and the inherent high operational costs associated with biomethane generation. This economic barrier can restrict the widespread deployment of biomethane facilities and delay project development.

Key Market Drivers

The global biomethane market is primarily propelled by the escalating worldwide drive for renewable energy and concerted decarbonization efforts. As nations and industries commit to reducing greenhouse gas emissions, biomethane offers a direct, dispatchable, and scalable alternative to fossil natural gas, capable of utilizing existing gas infrastructure. This strategic pivot towards cleaner energy sources positions biomethane as a critical component in achieving climate targets. According to the International Energy Agency's "Renewables 2023" report, published in January 2024, the biogas sector, encompassing biomethane, is forecasted to grow at a strong rate of 32% between 2023 and 2028, reflecting its essential role in energy transitions. Concurrently, supportive government policies, regulations, and financial incentives are instrumental in de-risking investments and fostering market development. These mechanisms include capital grants, tax credits, and renewable fuel mandates, which collectively enhance the economic viability of biomethane projects. For instance, according to the Biomethane Industrial Partnership Europe 2024, Italy has established a €1.7 billion capital expenditure investment support scheme, specifically covering 40% of investment costs for upgrading existing biogas plants to biomethane and for constructing new facilities. Such policy support directly stimulates project deployment and infrastructure expansion.

The combined influence of these factors is accelerating the biomethane market's expansion as a versatile energy solution across multiple sectors. Overall, according to CEDIGAZ's 2024 annual report on the global biomethane market, global biomethane production was estimated at 9.5 billion cubic metres in 2023, marking a 23% increase from the previous year. This trajectory underscores biomethane's increasing adoption as a reliable and sustainable energy source globally.

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Key Market Challenges

The substantial capital investment required for establishing biomethane production infrastructure and the inherent high operational costs significantly impede the expansion of the global biomethane market. The considerable upfront expenditure for advanced anaerobic digestion facilities, gas upgrading technologies, and grid injection points presents a significant barrier to entry for potential investors and developers. This economic hurdle often delays project finalization and limits the widespread deployment of new biomethane plants, particularly for smaller enterprises or in regions with less mature financial support mechanisms.

High operational costs, driven by feedstock procurement, energy consumption for upgrading processes, and ongoing maintenance, further constrain market growth. The need to ensure competitive pricing against conventional natural gas, without robust and consistent support mechanisms, can render biomethane projects less attractive. According to the European Biogas Association in their 2023 Gas for Climate 2050 report, an estimated €83 billion in investment is required to fully unlock the biomethane potential of 35 billion cubic meters by 2030 in the European Union, yet planned investments currently cover only 20% of these future needs. This significant funding gap underscores how financial constraints directly limit the pace and scale of market development.

Key Market Trends

Increasing corporate adoption of biomethane for ESG and decarbonization objectives is a pivotal market trend, reflecting a strategic shift in how businesses address their environmental footprint. Corporations are increasingly integrating renewable natural gas directly into their operations to achieve quantifiable emissions reductions and enhance sustainability reporting. This direct procurement fosters a robust demand side for biomethane, stimulating further investment and expansion in the production sector. According to the European Biogas Association's Statistical Report published in December 2024, approximately 23% of biomethane produced in Europe in 2023 was utilized for transport, 17% for heating in buildings, 15% for power generation, and 13% for industrial processes. This highlights the diverse application areas driven by corporate mandates. For example, Hapag-Lloyd and Shell Western LNG B. V. signed a multi-year agreement for the supply of liquefied biomethane in September 2025, demonstrating significant corporate commitment to decarbonize maritime logistics. These long-term agreements provide critical market certainty, underpinning the financial viability of new biomethane projects.

Technological innovation in biomethane production pathways is concurrently driving market growth by improving operational efficiencies, expanding feedstock versatility, and lowering overall production costs. Advancements in anaerobic digestion, gas upgrading techniques, and integrated waste-to-energy solutions are enabling higher methane yields and the processing of a broader array of organic waste materials. These innovations are crucial for scaling up production capacities and making biomethane more competitive. The 2024 European Biomethane Map, released by the European Biogas Association in July 2024, highlighted a 32 percent growth in the number of biomethane plants across Europe, demonstrating the impact of ongoing technical improvements. Furthermore, Clarke Energy, a Rehlko company, commissioned India's first membrane-based biogas upgrading plant in October 2025, which processes biodegradable organic food waste, showcasing a tangible advancement in upgrading technology for efficient biomethane extraction. Such developments are essential for unlocking new feedstock sources and enhancing the economic attractiveness of biomethane production globally.

Segmental Insights

The Global Biomethane Market's agricultural waste segment is experiencing significant growth, primarily due to global decarbonization efforts and supportive regulatory frameworks. Government policies and incentives worldwide, often influenced by organizations like the World Biogas Association, actively promote the anaerobic digestion of agricultural residues such as animal manure and crop waste. This rapid expansion is driven by the intrinsic value of transforming substantial volumes of organic waste into renewable natural gas, which addresses environmental concerns by mitigating methane emissions and fostering a circular economy. Furthermore, the production of biomethane offers farmers a new revenue stream and yields digestate, a valuable biofertilizer that can reduce reliance on synthetic alternatives, thereby enhancing agricultural sustainability.

Regional Insights

North America stands as a leading region in the global biomethane market, primarily propelled by its comprehensive policy framework and extensive feedstock resources. The U. S. Environmental Protection Agency’s Renewable Fuel Standard program, alongside California’s Low Carbon Fuel Standard, significantly incentivizes biomethane production and its adoption, particularly as a transportation fuel. Further bolstering this growth are supportive federal initiatives such as the Inflation Reduction Act, which encourages investment in renewable energy projects. The region benefits from abundant and diverse organic waste streams, agricultural residues, and energy crops, ensuring a reliable and cost-effective supply of raw materials for renewable natural gas generation. This combination of strong regulatory support and readily available feedstocks establishes North America's prominent market position.

Recent Developments

• In October 2025, German energy company Uniper and Spanish developer Five Bioenergy entered into a seven-year agreement for the purchase of biomethane. Uniper will procure biomethane from three large-scale plants located in Murcia, Spain, with deliveries anticipated to commence in early 2027. This collaboration aims to enhance Uniper’s low-carbon energy portfolio, contributing to the decarbonization of the road and maritime sectors. The partnership underscores Five Bioenergy's commitment to advancing sustainable energy solutions and securing a stable market for its biomethane production.

• In September 2025, Moeve announced a partnership with ID Energy Group to collaboratively develop biomethane projects across Spain. This initiative is projected to add up to 1 TWh of renewable gas production capacity annually, aligning with Spain's 2030 biomethane targets. The plants are intended for agricultural and livestock regions, processing substantial organic residues. This collaboration integrates ID Energy Group's expertise in plant development with Moeve's industrial experience, reinforcing both companies' roles in the circular economy and the renewable energy transition within the Global Biomethane Market.

• In August 2025, scientists at the Norwegian Institute of BIOeconomy Research (NIBIO) achieved a breakthrough in biomethane production. Researchers developed a method utilizing biofilm reactors to convert carbon-based gases, including carbon dioxide, into biomethane with a purity of 96%. This innovative approach employs communities of microorganisms to process gases, and notably, it incorporates unconventional substrates such as plastic waste and woody biomass. This research holds potential to revolutionize energy production methods and contribute significantly to carbon emission reduction strategies in the Global Biomethane Market by offering a cleaner, sustainable natural gas alternative.

• In October 2024, Emvolon, an MIT spin-off, partnered with Montauk Renewables, Inc. for a field pilot to demonstrate the commercial viability of converting biogas into green methanol. This collaboration will leverage Emvolon's patented technology, which repurposes car engines as modular chemical plants, to transform methane from landfill biogas into carbon-negative fuels. The initial pilot is planned for Montauk's renewable gas production site in Humble, Texas. This represents a significant step in monetizing flared tail gas resources and advancing carbon-negative fuel solutions within the biomethane sector.

Key Market Players

• EnviTec Biogas AG
• CNG Services Ltd.
• Future Biogas Ltd.
• Verbio SE
• PlanET Biogas Global GmbH
• Gasrec Ltd.
• Biogas Products Ltd.
• Carbotech Gas Systems GmbH
• Southern California Gas Company (SoCalGas)

Report Scope:

In this report, the Global Biomethane Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Biomethane Market, By Feedstock Type:

o   Agricultural Waste

o   Animal Manure

o   Organic Household Waste

o   Energy Crops

o   Others

• Biomethane Market, By Production Method:

o   Fermentation

o   Gasification

• Biomethane Market, By Application:

o   Automotive

o   Power Generation

o   Others

• Biomethane Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Biomethane Market.

Available Customizations:

Global Biomethane Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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