Market Trends of Biogas Industry
Electricity Generation Expected to Dominate the Market
- The world in the past decade witnessed a constant increase in global electricity generation due to increasing energy demand from ever-increasing levels of population, industrialization, and urbanization. 2021 global electricity generation amounted to 2752.52 Terawatt-hours (TWh), which rose from 21570.7 TWh in 2010. According to the International Energy Agency, the global energy demand is expected to witness a year-on-year growth rate of 9% over seven years
- Biogas is a crucial source of electricity generation in the power sector, contributing to the global goals of the clean energy transition. The generation of electricity from Biogas is an established technology being widely implemented worldwide. CHP engines are often used for electricity generation, with heat recovery and use. The growing demand for biogas in the power sector has resulted in a huge growth in biogas installed capacity globally, reaching 21.37 GW in 2022.
- According to the World Biogas Association (WBA), Biogas can reduce global GHG emissions by 10-13% and provide renewable energy from the world's food waste, industrial production wastes, feedstocks from agriculture, and sewage. The reduction in GHG and optimization of fuels are expected to impact electricity generation from Biogas positively.
- Moreover, developing regions, such as Asia-Pacific, South America, and Africa, are developing several plans and strategies to increase the role of Biogas in their electricity generation mix. For instance, in May 2022, the Ghana government commissioned a new Hybrid-PV-Biogas-Pyrolysis-Plant with a capacity of 400kW at Ashanti, Ghana. The time required to complete this project was of the 48-month project. The plant can process 12 tons of waste into bio-fertilizer and energy daily. The project can generate power of 200KW from solar, 100KW from biogas, and an additional 100KW from the pyrolysis of plastic waste.
- Furthermore, India too is swiftly working on bioenergy development for the power sector. As of 2022, India had around 10,232MW of installed capacity of biomass power, and the government has again taken initiatives to promote the source. For example, in 2022, the Ministry of New and Renewable Energy notified the National Bioenergy Programme, with an outlay of INR 1715 Crores (USD 209 million) for a period 2021-2026, to be implemented in two phases.
- Thus, such developments are expected to support the growing electricity demand worldwide during the forecast period.
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Europe to Dominate the Market
- According to the Europe Biogas Association (EBA), biogas production in Europe is expected to reach 98 billion cubic meters (bcm) of biomethane over next 27 years.
- In the recent years, Europe witnessed significant growth in the installation of a biogas plant. As of 2021, according to the European Biogas Association, about 18,977 biogas plants and 1,023 biomethane plants were installed, with a total installed capacity of 167TWh and 2.5 billion cubic meters (bcm).
- Germany has more than 9,692 biogas plants, as of 2021. Apart from biogas plants, Germany also has a small number of plants burning wood or generating heat from biogenic waste. From 1,050 plants in 2000, the number of biogas plants reached nearly 9,692 in 2021.
- Further, the country develops a new biogas infrastructure that can provide additional support to the growing biogas market. For instance, in April 2022, Wärtsilä announced the construction of a major bio-LNG facility in Germany. The facility is likely to be the second-largest facility in the world capable of liquefying biomethane and synthetic methane from renewable energy to produce REEFUEL - a carbon-neutral transportation fuel. The plant is expected to become fully operational by the first quarter of next year.
- As of 2021, the United Kingdom had around 1,841MW of biogas installed capacity. Most of the biogas (including sewage and landfill gases) produced in the United kingdom (19TWh) is used for power generation. Moreover, According to the Renewable Energy Association, around 8PJ of biomethane is qualified for payments under the renewable heat incentive (RHI), and biomethane production likely to reach 110PJ in 2026 as new plants come online.
- For instance, in December 2021, AstraZeneca announced a partnership with Future Biogas, to support the development of a 125GWh biomethane production plant fitted with carbon capture technology. The construction of the plant is expected to begin in 2023 and is expected to commence commercial operations in two years. Such projects are likely to lead to the growth of the biogas market during the forecast period.
- Hence, the afore-mentioned points, Europe is likely to dominate the market during the forecast period.
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