Biogas holds significant promise for helping to decarbonize industrial activities that are difficult to conduct without fuel combustion, though substantial barriers have thus far limited market development. As carbon prices rise and mandates continue to emerge around renewable pipeline gas, demand for biogas and renewable natural gas (RNG) will likely accelerate. Of the biogas generated globally for use in industrial applications today, roughly two-thirds is converted into RNG. Municipal facilities, such as landfills and wastewater treatment sites, and agricultural operations are the largest generators of industrial biogas, though the prominence of each source varies significantly by geographic region.
By far, the largest driver in the industrial biogas space today is government policy, including financial incentives for biogas development and regulation on emissions levels. Other drivers include an abundance of suitable feedstock in certain regions and corporations’ internal decarbonization goals. However, the industrial biogas market is also facing significant headwinds, the most prominent being that in many places, biogas and RNG can be 4 to 6 times more expensive than fossil gas. Other barriers include the significant added cost of upgrading biogas to RNG, and policy silos that only provide incentives for generating biogas for specific applications.
This Guidehouse Insights report examines the global market for biogas in industrial buildings. It analyzes current market issues, technology trends, drivers, barriers, and the policy landscape. Market forecasts are presented for revenue and unit sales. Forecasts, which extend through 2033, are segmented by technology, value chain position, and region.
1. Executive Summary
1.1 State of the Market
1.2 Market Drivers and Barriers
1.3 Market Forecasts
2. Market Issues
2.1 Introduction
2.2 Gas Types
2.2.1 Biogas
2.2.1.1 Anaerobic Digestion
2.2.1.2 Landfill Gas Recovery
2.2.1.3 Gasification
2.2.2 RNG
2.3 Industrial Applications
2.3.1 Power Generation
2.3.2 Process Heating
2.3.3 Municipal
2.4 Policy
2.4.1 US
2.4.2 EU
2.4.3 China
2.4.4 India
2.5 Drivers
2.5.1 Government Incentives
2.5.2 Government Mandates
2.5.3 Feedstock Availability
2.5.4 Corporate Decarbonization Goals
2.6 Barriers
2.6.1 Comparatively Low Natural Gas Prices
2.6.2 Cost of Upgrading Biogas
2.6.3 Policy Silos
2.7 Pricing
3. Industry Value Chain
3.1 Competitive Landscape
3.2 M&A Activities
3.3 Business Model Evolution
3.3.1 Indications in M&A Activity
3.3.2 Mid-Term to Long-Term Developments
4. Market Forecasts
4.1 Methodology
4.2 Definitions and Scope
4.3 Global Forecasts
4.4 Regional Forecasts
4.4.1 North America
4.4.2 Europe
4.4.3 Asia Pacific
4.4.4 Latin America
4.4.5 Middle East & Africa
5. Conclusions and Recommendations
5.1 Three Big Takeaways
5.2 Recommendations
5.2.1 Policymakers Must Continue Broadening the Scope of Decarbonization Regulations
5.2.2 Fossil Energy Companies Must Leverage Their Experience to Boost the Biogas Market
5.2.3 Industrial Plant Managers Must Remain Open to New Approaches While Having a Role in Planning Industrial Decarbonization Efforts
5.2.4 Agricultural and Municipal Facilities Must Be Attuned to Their Feedstocks’ Opportunities
6. Acronym and Abbreviation List
7. Table of Contents
8. Table of Charts and Figures
9. Scope of Study, Sources and Methodology, Notes