Biogas Plant Market to Reach USD 10.2 Billion by 2035, Driven by Renewable Energy Demand

WILMINGTON, DE, UNITED STATES, September 15, 2025 /EINPresswire.com/ -- The global biogas plant market has gained strong momentum as nations across the world accelerate their shift toward renewable energy and circular economy models. Biogas plants convert organic waste such as agricultural residues, food waste, sewage sludge, and livestock manure into biogas through anaerobic digestion. This biogas can be used to generate electricity, heat, or upgraded to biomethane for use as a renewable natural gas (RNG).

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Key Players:

• Renergon International AG
• MSA Bio-Energy Pvt. Ltd.
• BALKANIKA ENERGY PLC
• WELTEC BIOPOWER GMBH
• Biomali
• HomeBiogas
• PlanET Biogas
• HoMethan
• 2G Energy AG
• AB HOLDING SPA
• PlanET Biogas USA Inc.
• Ameresco, Inc.
• Agrinz Technologies GmbH
• Beijing Sanyi Green Energy Development Co., Ltd.
• SP Renewable Energy Sources Pvt. Ltd

Market Growth Drivers

Renewable Energy Demand & Climate Goals

With global targets to achieve net-zero emissions, renewable energy solutions like biogas are being prioritized. Biogas plants contribute to reducing greenhouse gas (GHG) emissions while providing a reliable renewable energy source.

Waste Management & Circular Economy

Biogas plants address the dual challenge of managing municipal, agricultural, and industrial waste while producing energy. This aligns with the circular economy model where waste is converted into valuable resources.

Government Incentives & Policies

Countries in Europe, Asia, and North America have introduced subsidies, feed-in tariffs, and tax benefits to promote the establishment of biogas plants, creating a favorable investment climate.

Energy Security & Rural Electrification

Biogas is increasingly being used to provide decentralized energy in rural areas, reducing dependency on fossil fuels and enhancing local energy security.

Rising Demand for Biofertilizers

Apart from energy, biogas plants generate nutrient-rich digestate, which is used as an organic fertilizer, boosting soil health and reducing reliance on chemical inputs.

Regional Insights

Europe: Leading the global biogas market due to strong policy support, high renewable energy adoption, and advanced waste management infrastructure. Germany, Italy, and France are key contributors.

North America: The U.S. and Canada are investing in biogas projects to expand renewable natural gas (RNG) supply for transportation and industrial use. Supportive programs like the Renewable Fuel Standard (RFS) are driving growth.

Asia Pacific: Rapidly growing market driven by China and India, where agricultural waste and livestock manure are being utilized for rural electrification and clean cooking fuel. Japan and South Korea are also investing in biomethane.

Latin America: Emerging growth potential in Brazil, Chile, and Argentina, where agricultural residues and municipal waste present untapped opportunities.
Middle East & Africa: Early-stage adoption, but government initiatives for renewable energy diversification are likely to boost future growth.

Market Challenges

High Initial Investment Costs: Setting up biogas plants requires significant capital, which may hinder adoption in developing regions.

Technological Barriers: Efficient upgrading of biogas to biomethane remains a challenge for widespread adoption in transportation.

Feedstock Supply Chain Issues: Seasonal availability and logistics of collecting organic waste can impact biogas production consistency.

Regulatory Complexity: Variations in subsidies, tariffs, and renewable energy policies across regions create uncertainties for investors.

Market Trends

Rise of Biomethane as Vehicle Fuel: Upgraded biogas (biomethane) is being used as a substitute for compressed natural gas (CNG) in transportation fleets, especially in Europe.

Integration with Smart Grids: Biogas plants are increasingly being integrated into smart grid systems for decentralized power generation.

Co-Digestion Technology: Mixing multiple feedstocks (e.g., manure + food waste) is gaining popularity to improve efficiency and yield.

Corporate Sustainability Investments: Big companies in food & beverage, agriculture, and energy sectors are investing in biogas plants as part of ESG (Environmental, Social & Governance) commitments.

Hybrid Energy Models: Combining biogas with solar and wind energy to ensure 24/7 clean power supply.

Future Outlook

The future of the biogas plant market is highly promising, driven by global commitments to renewable energy, waste reduction, and carbon neutrality. With increasing adoption of biomethane as a transport fuel, decentralized energy production, and biofertilizer usage, biogas is expected to play a central role in the sustainable energy mix.

Technological advancements in anaerobic digestion, biogas upgrading, and hybrid energy integration will further reduce costs and improve efficiency. By 2034, the biogas industry is expected to not only double in market value but also significantly contribute to achieving the world’s climate and renewable energy goals.

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