Annual global biogas production to exceed 2 trillion cubic feet by 2024

According to a report released recently by Navigant Research, the global biogas industry has an astounding nearby future, at least for the next ten years. In fact, the report announces the annual global biogas production to exceed 2 trillion cubic feet by 2024. Also, the same report states that investments in biogas production facilities will generate as much as USD 25.8 billion in cumulative revenue from 2015 to 2024. However, the global biogas industry has some flaws that need to be addressed in order to fulfill its potential.

Even though the cleanest renewable fuel, biogas needs support & incentives

Biogas is produced by breaking down organic matter in the absence of oxygen through a process named anaerobic digestion. Therefore, it is obvious that in order to feed a biogas plant, substantial amounts of organic matter, such as food waste, cow manure, or wastewater sludge, are necessary and must be continuously supplied. This is why constant quality feedstock supply is a key success factor of the biogas industry. Unfortunately, not all entities have the same supply capacity and it is evident that while municipalities are well served in terms of quantity and quality (larger populations, landfills, etc.), smaller biogas plants such as those located on farms and in rural communities are much more exposed to supply deficiency. Consequently, greater viability and attractiveness for these smaller-scale biogas projects rely on public support & incentives to be more competitive than other sources of energy, such as fossil fuels.

Thus, even though the global biogas industry is in a propitious position in many markets, governmental incentives such as California’s Low Carbon Fuel Standard in the United States greatly support and promote sustainable energy alternatives like biogas, especially for smaller scale projects. Moreover, considering biogas is reputed as the cleanest renewable fuel for transportation by the United States and the European Union, all stars seems aligned for its global industry to embrace its potential. As long as its logistical challenges like the collection, transportation, handling, and supply of organic feedstock, as well as biogas and digestate, are managed optimally.

Expansion despite fragmentation

The words of Mr. Roberto Rodriguez Labastida, senior research analyst working for Navigant Research, are eloquent and testify of what the global biogas industry needs to assess towards achieving its worldwide deployment and implementation: “The market’s ability to develop new business cases and opportunities is really key to its expansion, […] Because of the biogas industry’s natural fragmentation, significant efforts are expected to be necessary to find potential markets – either regional or for new end uses, like transportation – to reach a point in which all stakeholders are aligned.”

This quote depicts exactly what BiogasWorld and other Green Startups & green businesses are doing in order to boost and maximize the growth of the global biogas industry. We are working to raise awareness about biogas and its obvious benefits in terms of sustainability while promoting and developing its global industry. We want to make a part of these significant efforts to align all its stakeholders, in order to reduce their efforts to find potential markets and grow their business. Thus, the global biogas industry as a whole will benefit and be enhanced by all the steps forward taken by each of us.

By Simon Lefebvre | 2016-05-11

Sources: Navigant Research (1)