Biogas Market Expecting An Outstanding Growth Till 2025

Biogas, as a key renewable energy source, is likely to play a major role in the transformation to a low carbon economy.


Cindy Chan

12 days ago | 3 min read

Adoption of renewable energy tops the list of solutions to tackle climate change and rising temperatures. Biogas, as a key renewable energy source, is likely to play a major role in the transformation to a low carbon economy. Popularity of biogas has soared in the last few years owing to supportive government policies and incentives aimed at realizing climate change goals. Unlike fossil fuels, such as coal and oil, biogas does not contribute to the intensification of greenhouse effect, which has prompted its adoption at large.

By utilizing anaerobic digestion, methane emitted from livestock manure, landfill solid wastes, and sewage can be captured and leveraged as biofuel for heating, cooking, and other power needs. Numerous households in China and Nepal produce biogas from animal waste in small, simple digesters and use it for cooking purposes.

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Governments of various countries have been introducing incentives to promote the use of biogas and reduce dependency on crude oil and other non-renewable sources. In 2018, the state government of Rajasthan, India had offered subsidies of around 1/3rd to 1/4th of the expense for building a biogas plant in rural zones. The move aims at attaining the target of powering 3,700 households with biogas under the nation's National Biogas Policy, which came into force on May 30, 2018. The policy helped households with abundant supply of cow manure to set up biogas systems. Also, the Indian Government has set a target to build around 5,000 compressed biogas (CBG) plants across the country by 2023.

Apart from usage of biogas for producing cooking gas, it can also be used for other purposes, such as waste management. Improper waste management is one of the factors impacting environmental degradation. It also causes outbreak of diseases, sometimes epidemic, and spreads pollution. Biogas generation from wastes can help in achieving waste management goals, while generating usable energy out of it.

Wastage of food has been increasing rapidly on a global scale, intensifying the problem of waste disposal. The U.S. landfills consist of 21% of food waste, out of that only 5% of food waste gets recycled into fertilizer or soil improver. In 2015, the USDA and EPA had targeted to lessen the amount of food waste sent to landfills by 50% by 2030. The U.S. houses around 2,000 operational biogas systems and among them only a few handle food wastes. According to estimates, the country still possesses the capability to establish 13,000 more biogas systems.

The transportation sector has evolved as a key growth avenue for biogas industry with many transportation companies rapidly adopting biogas as fuel. Recently, biogas company Biokraft, Norwegian subsidiary of Scandinavian Biogas, inked a multi-year agreement with Hurtigruten to supply liquid biogas (LBG) to its ships. The collaboration will help to reduce harmful emissions and showcase a paradigm shift in shipping market. The transportation company will modify a minimum of six of its ships to operate on biogas from 2021. The first delivery of liquid biogas generated at biogas plant in Skogn is anticipated to be made in 2020.

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To conclude, appreciable initiatives have been undertaken by governmental bodies and awareness level among people has elevated to develop sustainable, renewable, and biodegradable energy sources. This has undeniably augmented the adoption of biogas to chart out a lucrative growth path for biogas businesses. Unlike sporadic renewable energy options, such as wind and solar power, biogas provides an uninterrupted source of energy with a very high-capacity factor and can be used with minimal environmental degradation.

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Created by

Cindy Chan







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