Biogas Market Research

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0 Biogas Market Research


Global megatrends such as climate change are driving the adoption of other sources of renewable
energy. In addition, price volatility, supply issues and environment hazards of fossil fuels have
increased in the past decades. Biogas is one of the most sustainable energy resources and has become a
starting point of an exponential market growth curve.[CITATION How13 \l 2057 ]

1.1 Biogas Market Executive Summary

Biogas production is a very fast growing market in Europe and some parts of Asia. The global market
is projected to reach $338.5 million by 2016 with a compounded annual growth rate of 22%. Asia
currently leads the way today with the highest number of anaerobic digesters. Biogas technology
developers and plants utilizing and distributing biogas are the primary profiteers of the biogas industry
growth[ CITATION Bio13 \l 2057 ].

1.2 Biogas Demand

Biogas can usually be upgraded to biomethane and used as a substitute for natural gas which is injected
into the grid or used as vehicle fuel. In countries like the UK and Netherlands where natural gas
dominates, biogas will only form a portion of the natural gas injected into grid but will probably
replace coal-fired power and heat generation. Grid injection of biogas is the most viable route with a
major threat to the natural gas supply. Biogas use in non-traditional means such as in transport is still in
its conceptual stage and may not present huge potential for other traditional gas countries. [ CITATION
Flo12 \l 2057 ]

1.3 Biogas Current Production

In Europe, factors such as national renewable energy policy and subsidy schemes, current natural gas
demand and the availability of biomass determine the success of biogas as an energy source. The
production of biogas was estimated to be about 10.9 million tons equivalent of oil (Mtoe) in 2010,
more than 31% rise in comparison to 2009. This growth can be attributed particularly to favourable
support schemes provided especially Germany.
Current Biogas Production sources

10%
Municipal solid waste,
co-digestion,
decentralized
agricultural plants
27%
Landfill
Sewage sludge
63%

Figure 1: Current Biogas Production sources

Germany was estimated to have more than 7,000 biogas plants as of 2010 and leads the way in Europe
with over 61% production. 84% of these biogas plants use co-digestion of crops and animal waste as
raw materials. The United Kingdom is the second largest in Europe with a total production capacity of
1.8 Mtoe as of 2010 using landfill as the feedstock [ CITATION Flo12 \l 2057 ]. Biogas production capacity
of other countries in Europe is summarized in the figure below.

Biogas Production in Europe

Figure 2: Biogas production in Europe 2009-2010[ CITATION Flo12 \l 2057 ]


Figure 3: Biogas Production in Europe 2006-2010 [ CITATION Flo12 \l 2057 ]

1.4 Biogas Potential Markets

The European Biomass Association (AEBIOM) has estimated the biogas potential in Europe in terms
of biomass origin at almost 8.4 Mtoe in 2020. This will correspond to the 8% EU gas demand
[ CITATION Ann13 \l 2057 ]. As the European Biogas market continues to grow, the German market has
slumped drastically since early 2012 as a result of a change in Germany renewable energy law as
regards guaranteed feed-in price incentive for German farmers. As a result, biogas plant constructions
in Germany have reduced by more than a third compared to 2009-2011. Half of the existing plants in
Netherlands are expected to shut down due to the termination of subsidies from the Dutch government
in 2016/2017[ CITATION Bob13 \l 2057 ] . Sweden on the other hand is a front runner in Europe with
respect to the use of biogas in transport and currently has an ambition to have a fossil fuel free vehicle
fleet in 2030. China and India are expected to take the lead by 2020 as government policy provides
adequate financing and tax incentives to support biogas production as well as its huge biomass
potentials. For example, it is China’s target to have 300 million rural residents using electricity
generated with biogas by 2020.[CITATION How13 \l 2057 ]

Bibliography

[1] How to Profit from Biogas Market Developments. [Online] Global Intelligent Alliance. [Cited: November 17,
2013.]
http://www.xebecinc.com/pdf/GIA_Industries_White_Paper_How_to_Profit_from_Biogas_Market_Devel
opments.pdf.

[2] Biogas Upgrading Market - Global Industry Size, Share, Trends, Analysis And Forecasts 2012 - 2018.
[Online] [Cited: November 17, 2013.] http://www.transparencymarketresearch.com/biogas-upgrading-
market.html.

[3] Perspectives for Biogas in Europe. Foreest, Floris van. s.l. : The Oxford Institute for Energy Studies, 2012.

[4] Annual EU report projects increased pellet, biogas consumption. Biomass Magazine. [Online] [Cited:
November 17, 2013.] http://biomassmagazine.com/articles/9367/annual-eu-report-projects-increased-
pellet-biogas-consumption.

[5] EU Biofuels Annual 2013. Bob Flach, Karin Bendz, Roswitha Krautgartner and Sabine Lieberz. s.l. : USDA
Foreign Agricultural Service, 2013, Vol. NL3034.

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