A new report from Guidehouse Insights examines the global biogas market for industrial buildings and applications.
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. According to a new report from Guidehouse Insights, the market for industrial biogas is expected to accelerate significantly over the next decade as decarbonization policies, carbon pricing regulations, border carbon adjustments, and other measures to address carbon pollution exert economic pressure on fossil fuels. Guidehouse Insights expects annual demand for industrial biogas is expected to grow from 666.9 billion cubic feet (BCF) in 2024 to 2,042.4 BCF by 2033, representing a compound annual growth rate (CAGR) of 13.2%.
"Of the biogas generated globally for use in industrial applications today, roughly two-thirds is converted into renewable natural gas (RNG) for use in any application that would normally use fossil gas. The balance of industrial biogas is used for power generation, process heating, or cogeneration, typically onsite where it was generated," says Grant Samms, research analyst with Guidehouse Insights. "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, according to the report.
The report, Biogas for Industrial Buildings and Applications, examines the global market for biogas in industrial buildings. It analyzes current market issues, technology trends, drivers, barriers, and the policy landscape. Market analyses are presented for revenue and unit sales. Analyses, which extend through 2033, are segmented by technology, value chain position, and region. An executive summary of the report is available for free download on the Guidehouse Insights website.
