The global biomethane market is on a steep upward trajectory, with its value projected to increase from US$ 13.81 billion in 2025 to US$ 40.00 billion by 2032, registering a remarkable CAGR of 16.4%. As the global energy sector pivots toward cleaner, renewable alternatives, biomethane is emerging as a key solution in the transition to net-zero emissions, offering both environmental and economic benefits.
𝐂𝐥𝐢𝐜𝐤 𝐇𝐞𝐫𝐞 𝐅𝐨𝐫 𝐌𝐨𝐫𝐞: https://www.fairfieldmarketresearch.com/report/biomethane-market
A growing number of governments are adopting biomethane as a core component of their renewable energy strategies. Favorable policy frameworks and incentives are catalyzing growth across regions. Initiatives like the European Union’s Renewable Energy Directive II, the U.S. Inflation Reduction Act, India’s SATAT and GOBAR-Dhan schemes, and California’s Low Carbon Fuel Standard are accelerating the deployment of biomethane infrastructure and fueling demand in transport, industrial, and energy sectors.
These policies are further complemented by national targets for reducing greenhouse gas emissions, promoting waste management, and expanding circular economy practices.
Innovations in feedstock utilization and processing technologies are helping to expand biomethane production capacity globally. North America is focusing on high-yield energy crops such as miscanthus and switchgrass. The U.S. Department of Energy’s US$ 52 million investment in 2024 into energy crop research marks a key step toward feedstock sustainability.
Europe is leveraging agricultural residues for thermal gasification and anaerobic digestion—both proven techniques for producing biomethane. Anaerobic digestion remains the dominant method due to its operational simplicity and cost-efficiency, with companies like Shell and Gasum scaling up their facilities to meet growing demand.
Biomethane is playing an increasingly vital role in decarbonizing transportation. Compressed biomethane (CBG) and bio-LNG are emerging as popular alternatives to diesel and petrol for long-haul and municipal fleets. With regulatory pressure intensifying globally, adoption is gaining pace.
In 2024, Shell opened Germany’s largest bio-LNG plant, producing 100,000 tons per year—enough to fuel over 4,000 trucks. Meanwhile, OPAL Fuels is expanding renewable natural gas (RNG) infrastructure across the United States to support fleet operators under the Renewable Fuel Standard.
North America: The region benefits from strong federal and state support, growing investment in bioenergy infrastructure, and an expanding network of RNG fueling stations. Companies like TotalEnergies and Vanguard Renewables are developing large-scale RNG plants utilizing agricultural waste, supported by long-term purchase agreements.
Europe: A leader in biomethane innovation, Europe continues to invest in agricultural and municipal waste-to-energy projects. Countries such as Italy, the Netherlands, and France are spearheading advanced production technologies backed by firms like Engie and Gasum.
Asia Pacific: Rapid urbanization and rising energy demand are pushing countries like India and China to invest in waste-to-energy programs. Municipal solid waste is a dominant feedstock, and government initiatives are paving the way for industrial-scale biomethane production.
Despite the optimistic outlook, high capital requirements and inconsistent feedstock supply chains remain key barriers. A single biomethane plant can require upwards of US$ 5 million, limiting participation in developing markets.
Governments are stepping in with subsidies, grants, and regulatory mandates to address these issues. India’s National Bioenergy Programme and its Compressed Biogas Blending Obligation (CBBO) aim to create reliable markets and improve the economic feasibility of biomethane projects through demand assurance and financial support.
Biomethane’s ability to convert waste into energy positions it as a critical component of circular economy strategies. Industries are increasingly aligning their sustainability agendas with biomethane projects to reduce carbon emissions and waste.
In 2025, AstraZeneca partnered with Future Biogas to commission a UK-based biomethane plant producing 100 GWh annually for internal operations. In Finland, Gasum and Fazer are converting bakery waste into transportation fuel. Air Liquide’s dairy waste-based facilities in the U.S. generate 74 GWh of biomethane yearly—demonstrating how industrial waste can be repurposed into valuable energy assets.
Major energy players and renewable technology firms are actively expanding their biomethane portfolios through acquisitions, joint ventures, and infrastructure investments.
Key recent developments include:
These strategic moves highlight biomethane’s growing relevance in the global clean energy mix and the competitive momentum building around it.
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