Biogas Market Expected to Reach $61 Billion by 2031

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Increased use of biogas in electricity generation, vehicle fuel and heating is driving the market, which is expected to reach $61 billion by 2031, according to new research.

Additionally, countering greenhouse gas emissions and the increased regulations to curb fossil fuel dependency are encouraging a shift from traditional fuels. As a result, the biogas market is expected to grow by a CAGR of 6.8% over a 10-year period through 2031, according to the report from Future Market Insights (FMI).

The sales of biogas are also expected to grow by 7% this year compared to 2020. Electricity will account for much of the market share, according to the report, and biogas is also used widely in clean fuel for vehicles.

The International Energy Agency says 60% of biogas production happens in the United States and Europe, with the latter having some 20,000 biogas plants. The IEA says the share of biogas used for power and heat will go up from around 70% currently to 85% by 2040.

Biogas creation is helping the continued growth of the market. Several companies have announced plans this year to create biogas from emissions such as methane or cow manure, like Bloom Energy and Chevron is doing, to using items like poultry litter as BP and CleanBay Renewables have partnered to do.

More facilities used to great the clean energy fuel are also being implemented.

North America is expected to see some of the most growth in the biogas market with a 6% increase in CAGR through 2031, according to FMI. It says increased demand for renewable energy especially in the United Kingdom and Germany will push growth to 5.9% in Europe.

China is expected to be the most lucrative market in East Asia, according to the research, with deployment of large-scale biogas plants. Additionally, South Korea and Japan will make up 7.4% of the biogas market this year.

While increased need for renewable energy is helping the biogas industry to grow, the report says the high cost of setting up biogas plants will slow the growth. Also, the increasing preference for electric vehicles will slow the use of vehicles that use clean fuel.

The report says municipalities will enhance growth in the market, especially in areas like waste and water treatment.

The top five companies in the market in 2021 according to the report are Total SA, Air Liquide, Wartsila, Planet Biogas Global GmbH and Envitec Biogas AG. They are expected to account for nearly 27% of biogas sales in 2021, according to FMI.

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–> This post appeared first on Environment + Energy Leader.

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