The global annual market for biogas is expected to reach $20.9 billion by 2028, according to a new study released by Navigant Research.
Factors driving the market include an increase in the implementation of government policies on climate change and the adoption of low-carbon energy generation technologies.
Since the early 2000s, the global biogas market has made tremendous strides in development, with successful applications in areas such as electricity generation, heating, and even in transport when upgraded to the quality of traditional natural gas. This market is expected to continue to grow with a large and relatively established market in Europe and a rapidly growing market in the Asia Pacific.
For instance, transportation mandates such as the US Renewable Fuel Standard and California Low Carbon Fuel Standard have been instrumental in the RNG market, which represents only a fraction of the overall biogas market.
However, the biggest threat to the biogas market is the possibility of discontinuation of policies and incentives that originally brought market growth
“The biogas market largely developed out of strong policy support and incentives that made projects economically viable along with regulations mandating certain levels of adoption,” says Shayne Willette, research analyst with Navigant Research. “As decarbonization and sustainability continue to be pressing issues for the global economy, biogas and renewable natural gas (RNG) offer solutions that are vital to these efforts.”
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