Biomethane Market (Feedstock - Agricultural Waste, Energy Crops, Industrial Waste, Municipal Waste, Sewage Sludge; Production Method - Anaerobic Digestion, Gasification; Application - Heat Generation, Electricity Generation, Alternative Fuel) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2018 - 2026
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Biomethane Market - Snapshot
Biomethane is an eco-friendly non-fossil source of energy. Biomethane is normally produced from biogas, which is derived from organic matter such as sewage, landfill, food waste, or distillery waste. This makes biomethane a renewable source of energy.
Biomethane as a transport fuel
Shortage of conventional fossil fuels such as oil and natural gas and environmental degradation are major concerns worldwide. Production and use of renewable energy resources are likely to help overcome these issues. Biomethane, which is derived from biogas, can be used as vehicle fuel. Purified biomethane has the same properties as natural gas and it can function as a highly efficient and eco-friendly fuel for natural gas cars. Also, it can be injected into natural gas grids. Biomethane offers various environmental benefits when used as a transport fuel. It reduces the amount of CO2 emissions significantly. Biomethane is suitable for all engine types and all modes of transport. Biomethane has around 40 more octane numbers than gasoline fuel, which can overcome the issue of engine knocking. Increasing production of automobiles is projected to boost the demand for biomethane during the forecast period. Presently, more than 98,000 natural gas vehicles are running in Germany. Around 150 filling stations in the country offer 100% biomethane and more than 300 filling stations offer a mixture of biomethane and natural gas.
High initial investment and high installation and operating costs
The initial investment for establishing a biomethane plant is high. Certain countries provide financial assistance for construction of biomethane plants. However, financial assistance is also required for development and expansion of the plant. The process of procuring and storing feedstock is time-consuming and costly. Financial assistance is also required for collection, sorting, processing, supply, and distribution of feedstock; construction and operation of biomethane plants; and sale and distribution of biomethane. The output of biomethane needs to be sufficient and consistent to cover installation and operating costs.
Surge in demand for electricity
Surge in population across the globe, growth of the industrial sector, and rise in infrastructure development activities are boosting the demand for electricity. Electricity has facilitated functions such as interactions, industrial activities, and services. Demand for energy is increasing due to development of countries and rise in standards of living. Countries across the globe are increasing their electricity generation capacity by establishing new plants or increasing the capacity of existing plants to meet the rising demand for electricity. Companies are increasing the use of renewable sources of power generation, due to stringent government regulations on greenhouse gas (GHG) emissions. High availability of feedstock and issues related to waste management are projected to present opportunities to companies to invest in the bioenergy industry. According to International Energy Outlook–2017, the total world energy consumption is expected to increase from 575 quadrillion British thermal units (BTUs) in 2015 to 736 quadrillion BTUs by 2040, which is an increase of 28%.
Developments in terms of expansion and acquisitions in the biomethane market
In September 2018, EnviTec Biogas AG signed a cooperation agreement with a China-based partner company for further development of the biogas industry in China. EnviTec Biogas AG is building a biogas plant in the province of Shanxi, China. The 1,570-m3 biogas plant is being built nearly 500 kilometers southwest of Beijing. It is the company’s fifth successful construction project in China. In September 2018, Evergaz strengthened its presence in Germany by acquiring BayWa R.E.’s biomethane plant in Lower Saxony. BayWa R.E. is a leading global developer of renewable energy. This plant is Evergaz’s third biogas plant in Germany. In September 2017, EnviTec Biogas AG enhanced its services by expanding its warehouse facilities at the Calbe/Saale site in Germany. The company plans to accelerate and improve the availability of replacement parts and consumables for plant operators in Braunschweig, Berlin, and Leipzig, thereby reducing the downtime. In March 2017, Evergaz announced the acquisition of two biogas plants in Germany. The two plants are located in Pessin and Dessau and each of them has production capacity of 1400 Nm3/h of biomethane. . In April 2015, VERBIO Vereinigte BioEnergie AG successfully commissioned a major production site at Schwedt/Oder, Germany for production of biomethane. The new plant is anticipated to use a new, internally generated technology to manufacture biomethane from 100% straw.
Europe biomethane market to expand at a rapid pace
Europe dominated the global biomethane market in 2017. The market in the region is expected to expand at a rapid pace during the forecast period. Increasing government incentives, renewable energy targets, and rising investments in the biogas technology in the region are expected to drive the biomethane market in Europe during the forecast period. Europe had 17,662 biogas plants by the end of 2016, with all 28 EU members active in the field along with Iceland, Norway, Serbia, and Switzerland. In 2016 alone, 41 new biomethane plants were opened in Europe. Germany dominated the Europe biomethane market in 2017.
Highly competitive market with dominance of top players
The global biomethane market is highly fragmented. A large number of local and international players provide biomethane services. Key players operating in the global market include EnviTec Biogas AG, VERBIO Vereinigte BioEnergie AG, Future Biogas Limited, CNG Services Ltd, PlanET Biogas Global GmbH, Gazasia Ltd, Landwärme GmbH, Qila Energy, Evergaz, WELTEC BIOPOWER GmbH, ETW Energietechnik GmbH, and StormFisher Environmental.
Biomethane Market - Overview
The world is currently facing challenges arising out of shortage of conventional fossil fuels and degradation of environment. In order to overcome these issues, inclination toward use of renewable energy resources has increased and the need to produce energy from these resources has risen. Biomethane is a renewable energy resource produced by the natural breakdown of organic materials such as green waste, agricultural waste, household waste, waste from the food industry, and industrial waste. The process of breaking down of organic materials in an oxygen-free environment yields biogas, which is then purified to produce biomethane.
Purified biomethane has the same properties as natural gas and it can function as a highly efficient and eco-friendly fuel for natural gas cars. Also, it can be injected into natural gas grids. It offers various environment-related benefits when used as a transport fuel. It reduces the amount of CO2 emissions significantly compared to other fuels. Biomethane is suitable for all engine types and all transport modes.
Germany is a major country in terms of production and consumption of biomethane. More than 190 biomethane plants were operating in the country by the end of 2016. Additionally, in Germany, a network of more than 900 natural gas filling stations is available currently, serving more than 98,000 natural gas vehicles. Of these, 150 filling stations offer 100% biomethane and more than 300 filling stations offer mixture of biomethane and natural gas. In terms of alternative fuel consumption, Sweden leads the world.
This report analyzes and forecasts the biomethane market at the global and regional levels. The market has been forecast based on value (US$ Mn) and volume (thousand cubic meters) for the period from 2018 to 2026, considering 2017 as the base year. The study includes drivers and restraints of the global biomethane market. It also covers the expected impact of these drivers and restraints on the demand for biomethane during the forecast period. The report also highlights opportunities in the biomethane market at the global and regional levels.
The report includes detailed value chain analysis, which provides a comprehensive view of the global biomethane market. Porter’s Five Forces model for the biomethane market has also been included to help understand the competition landscape. The study encompasses market attractiveness analysis, wherein feedstock, production method, and application segments have been benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global biomethane market by segmenting it in terms of feedstock, production method, application, and region/country. In terms of feedstock, the market has been classified into agricultural waste, energy crops, industrial waste, municipal waste, sewage sludge, and others. Based on production method, the biomethane market has been divided into anaerobic digestion and gasification. In terms of application, the market has been segregated into heat generation, electricity generation, and alternative fuel. These segments have been analyzed based on the present and future trends. Regional segmentation includes the current and forecast demand for biomethane in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
The report provides size (in terms of volume and value) of the biomethane market for the base year 2017 and the forecast between 2018 and 2026. Market numbers have been estimated based on feedstock, production method, and application segments of the biomethane market. Market value and volume have been provided for the global, regional, and country-level markets.
The report comprises profiles of major companies operating in the global biomethane market. Key players operating in the global market are EnviTec Biogas AG, VERBIO Vereinigte BioEnergie AG, Future Biogas Limited, CNG Services Ltd, PlanET Biogas Global GmbH, Gazasia Ltd, Landwärme GmbH, Qila Energy, Evergaz, WELTEC BIOPOWER GmbH, ETW Energietechnik GmbH, and StormFisher Environmental. Market players have been profiled in terms of attributes such as company overview, financial overview, and recent developments.
- Europe is the leading consumer of biomethane across the globe. The region constitutes more than 50% share of the global market. The market in North America is expected to expand at a significant pace during the forecast period.
- In terms of alternative fuel consumption, Sweden leads the world
- Recently, concerns related to fossil fuels have increased. This presents opportunities to service providers operating in the biomethane market.
- By 2020, around 48 new biomethane plants are planned to be built in the U.K., with an investment of up to EUR 455 Mn
The global biomethane market has been segmented as follows:
by Production Method