The global biomethane market is experiencing a remarkable growth trajectory as governments, industries, and utilities accelerate efforts toward carbon neutrality and sustainable energy solutions. Biomethane—also known as renewable natural gas (RNG)—is derived from organic matter such as agricultural waste, landfill gas, and wastewater sludge through anaerobic digestion and upgraded to pipeline-quality gas.
Global Biomethane Market size and share is currently valued at USD 8.00 billion in 2024 and is anticipated to generate an estimated revenue of USD 28.02 billion by 2034, according to the latest study by Polaris Market Research. Besides, the report notes that the market exhibits a robust13.4% Compound Annual Growth Rate (CAGR) over the forecasted timeframe, 2025 - 2034
Market Overview
Biomethane has emerged as a compelling alternative to conventional natural gas, offering similar combustion characteristics without the associated carbon footprint. It plays a critical role in supporting the circular economy, enabling the reuse of organic waste to generate clean energy.
Governmental policies such as the European Union’s REPowerEU initiative, the United States’ Inflation Reduction Act (IRA), and incentives under Canada’s Clean Fuel Regulations are providing substantial momentum for the development and integration of biomethane into national energy grids. Additionally, the growing focus on energy security amid geopolitical tensions is driving many countries to diversify their energy portfolios with domestically produced biomethane.
Market Segmentation
The biomethane market can be segmented based on feedstock, production method, and end-use sector:
By Feedstock:
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Agricultural Waste
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Energy Crops
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Municipal Solid Waste (MSW)
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Sewage Sludge
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Landfill Gas
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Food and Beverage Industry Waste
Among these, agricultural waste and energy crops dominate the market due to the availability of high organic content and support for rural biogas programs.
By Production Method:
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Anaerobic Digestion
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Thermochemical Gasification
Anaerobic digestion is the most commonly used method, owing to its technical maturity and cost-effectiveness, while thermochemical gasification is gaining interest for producing biomethane from dry biomass.
By End-Use Sector:
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Transportation (bio-CNG and bio-LNG)
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Residential Heating
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Power Generation
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Industrial Use
Transportation represents a rapidly growing segment, especially in Europe and North America, driven by carbon offset requirements and the use of low-emission vehicle fuels.
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Country-Wise Market Trends
Germany
Germany leads the European biomethane landscape with over 230 biomethane injection plants. The country’s Energy and Climate Protection Act and its emphasis on replacing natural gas with RNG in the heating and transport sectors are driving massive investments. The expansion of Germany’s gas grid infrastructure allows for greater biomethane integration. Agricultural residues and manure are the dominant feedstocks.
France
France is targeting 10% biomethane in its gas mix by 2030, supported by long-term purchase agreements (PPAs) and feed-in tariffs. Regional authorities are actively promoting small-scale biomethane units, particularly in rural communities. The transport sector is also witnessing a spike in bio-CNG station installations.
United Kingdom
The UK is actively pursuing biomethane as part of its Net Zero Strategy, focusing on decarbonizing heat through the Green Gas Support Scheme (GGSS). Landfill gas and food waste are major contributors to its biomethane production. The UK also supports gas-to-grid injection and has implemented carbon intensity thresholds for RNG supply chains.
United States
The U.S. biomethane market is growing rapidly, bolstered by state-level programs like California’s Low Carbon Fuel Standard (LCFS) and federal tax credits. Biomethane is being utilized in public transport and waste management vehicle fleets. Leading feedstocks include landfill gas and dairy waste, particularly in states like California, Wisconsin, and New York.
Canada
Canada is investing in RNG infrastructure as part of its Clean Fuel Regulations. Provinces like British Columbia and Quebec are leading in biomethane adoption, focusing on municipal and agricultural waste. Utilities such as FortisBC offer RNG to consumers through voluntary programs.
Netherlands
With an ambitious goal to inject 2 bcm of biomethane into the grid by 2030, the Netherlands supports decentralized production units and has a well-established certification system for green gas. Farmers and energy cooperatives are central to its market structure.
Denmark
Denmark has integrated biomethane into over 25% of its gas grid, with a target to become fossil-free in gas supply by 2035. Policy incentives and standardized connection processes have streamlined development. Pig manure and straw are key feedstocks.
Sweden
Sweden focuses on using biomethane as a transport fuel, particularly in public buses and trucks. Tax exemptions and subsidies for bio-CNG and bio-LNG vehicles, along with an extensive network of fueling stations, have propelled market growth.
India
India is emerging as a promising market through its SATAT (Sustainable Alternative Towards Affordable Transportation) initiative, which aims to establish over 5,000 compressed biogas plants. Agricultural residues and press mud from sugar mills form the primary feedstock.
China
China has made biomethane a key part of its rural energy strategy. Pilot projects using agricultural waste and sewage sludge are underway. Integration with existing LNG infrastructure is being explored to support transport decarbonization.
Brazil
Brazil is leveraging its robust sugarcane and livestock industries for biomethane production. The government offers incentives through the Renovabio program, promoting low-carbon biofuels and investments in waste-to-gas technologies.
Key Companies in the Biomethane Market
1. Air Liquide (France)
Air Liquide is a global leader in biomethane production and distribution, operating more than 20 biomethane production units worldwide. The company offers gas upgrading and purification technologies and partners with transport fleets to promote RNG usage.
2. Engie (France)
Through Engie Bioz, the company is investing in biomethane plants across France, Belgium, and North America. Its strategy includes long-term partnerships with agricultural producers and a focus on grid-scale biomethane deployment.
3. EnviTec Biogas AG (Germany)
EnviTec designs and operates biogas and biomethane plants globally. Its modular upgrading systems and turnkey plant solutions make it a preferred partner for decentralized energy production.
4. Nature Energy (Denmark)
Recently acquired by Shell, Nature Energy is Denmark’s largest biomethane producer. The company focuses on large-scale centralized plants using agricultural residues and exports biomethane across Europe.
5. Bright Biomethane (Netherlands)
A specialist in gas upgrading technologies, Bright Biomethane provides membrane-based solutions and compact units for small-scale operations. Its systems are deployed in over 15 countries.
6. DMT Environmental Technology (Netherlands)
DMT offers a portfolio of biogas upgrading systems including water scrubbers and membrane separation technologies. Its plants operate in the U.S., Europe, and Asia.
7. Xebec Adsorption Inc. (Canada)
Xebec provides advanced PSA systems for biomethane purification. With a strong footprint in North America and Asia, it caters to industries transitioning to RNG.
8. Wärtsilä (Finland)
Wärtsilä is a global player in energy system integration, offering biogas upgrading, compression, and grid injection services. It works with municipal waste and agricultural projects.
9. Future Biogas (United Kingdom)
This UK-based company focuses on producing and injecting biomethane into the gas grid. It collaborates with landowners and food producers for sustainable feedstock sourcing.
10. PlanET Biogas Group (Germany)
With over 500 biogas plants worldwide, PlanET offers engineering, construction, and upgrading services for biomethane systems. The company emphasizes sustainable farming integration.
Conclusion
As the global energy landscape shifts toward low-emission fuels, biomethane is gaining significant traction. Governments are incentivizing production, industries are investing in infrastructure, and end-users are embracing cleaner alternatives for transportation and heating.
While high capital costs and feedstock variability present challenges, the long-term benefits of biomethane—reduced emissions, energy independence, and waste valorization—are proving transformative. Countries like Germany, France, the U.S., and India are showcasing scalable models that other regions can replicate.
With supportive policies, improved technologies, and increasing climate urgency, the biomethane market is set to evolve into a cornerstone of the renewable gas economy.
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