Organic Biogas Market To Receive Overwhelming Hike In Revenues By 2031

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Organic Biogas Market

Organic Biogas Market Expected to Reach $19.7 Billion by 2031

PORTLAND, OREGON, UNITED STATES, February 8, 2023 / / -- The organic biogas market size was valued at $10.7 billion in 2021, and the organic biogas industry is estimated to reach $19.7 billion by 2031, growing at a CAGR of 6.4% from 2022 to 2031. Biogas is an environmentally friendly and renewable energy source. It is produced when organic matter, such as food or animal waste, is broken down by microorganisms in the absence of oxygen, in a process called anaerobic digestion. It occurs naturally anywhere from within the digestive system to the depth of effluent ponds and can be reproduced artificially in engineered containers called digesters. Animal manure, food waste, wastewater, and sewage are examples of organic matter that can generate biogas through anaerobic digestion. Owing to the high methane content, biogas is flammable, and therefore produces a deep blue flame and can be used as an energy source. Biogas, also known as renewable natural gas, is“renewable” in the sense that humans and animals keep producing waste. It is commonly used in rural areas as cooking gas. It can be used to produce electricity. It can be used in instruments used for water heating, and room heating, and it can replace compressed natural gas for use in vehicles.

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The growth of the organic biogas market is expected to be driven by rising environmental awareness and an increase in supply concerns related to the utilization of fossil fuels. Furthermore, rapid infrastructure development and a rise in energy demand from commercial & industrial sectors have boosted the construction of biogas production plants. In addition, the implementation of stringent pollution regulations, an increase in understanding of environmental conservation, rise in concern related to economic sustainability in every sector have led to the utilization of organic waste to produce biogas, which is further utilized in the power generation and transportation sector for various purposes.

The organic biogas market has certain restraints. These include the release of harmful compounds and air contaminants, such as CO into the environment during organic production which is expected to lead to a decline in the market share in coming years. The risk associated with soil and water contamination in the process of anaerobic digestion in the landfill industry is high. High capital investment in setting up biogas production plants and technology implementation are hampering the organic biogas market growth.

China has the highest number of biogas plants among the IEA bioenergy with more than 100,000 biogas plants. It is one of the first countries to develop and utilize biogas. The main feedstocks used in biogas production in China are kitchen (food) waste, livestock waste (manures and slurries), and energy crops. There is a big move underway to promote the use of yellow straw as a feedstock. In contrast to the European industry, roughly two-thirds of the economic value of biogas plants in China comes from organic fertilizer, with one-third from energy production. While there are thousands of small biogas plants scattered around the country, the central government is now promoting larger-scale deployment, particularly of agricultural plants, to promote renewable energy growth and improve water and air quality.

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Germany is the largest biogas fuel producer and has more than 10,000 biogas plants operating in 2020. Half of the European continent's merchandisers are in Germany. Currently, 80% of the organic matter used in the biogas industry in Germany comes from plants grown exclusively for this purpose, according to the German Environment Agency.

The organic biogas market forecast is segmented on the basis of source, application, and region. By source, the market is fragmented into poultry & livestock, agriculture waste, landfill gas, and others. The landfill gas segment is further classified into electricity, direct use, combined heat and power, and alternate fuels. The direct use segment is further categorized into boilers, direct thermal & leachate evaporation, and others. In addition, by application, the market is segregated into power generation, cooking, combined heat & power, and clean mobility. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Europe accounts for the largest organic biogas market share, followed by North America, Asia-Pacific, and LAMEA.

The landfill gas segment dominates the global organic biogas market. Landfills for municipal solid waste are a source of biogas. Biogas is produced naturally by anaerobic bacteria in municipal solid waste landfills and is called landfill gas. Landfill gas with a high methane content can be dangerous to people and the environment as methane is flammable. Landfill gas contains many different gases. Methane and carbon dioxide make up 90 to 98% of landfill gas.

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The power generation segment dominates the global organic biogas market. Biogas is turned into electricity using a combustion engine, fuel cell, or gas turbine, with the resulting electricity being used on-site or sold onto the electric grid. A cubic meter of biogas contains the equivalent of 6kWh of heat energy. The same volume of biogas converted to electrical power yields 2kWh, the rest of the energy is dispersed as heat that can be reclaimed and applied to other uses.

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