Organic Biogas Market size is projected to expand considerably over 2021-2027, due to the significant shift away from fossil fuels to renewable resources due to global warming concerns. Likewise, the rising popularity of biogas energy as a green fuel, to prevent nitrogen pollution and generate electricity, will further promote industry expansion over the forecast spell. This organic gas helps in mitigating methane emission from manure lagoons or landfills, which is later used as a fuel to reduce climate impacts.
Biogas refers to a combination of gases formed through the anaerobic decomposition of organic matter like plant residue, municipal waste, agricultural waste, and food waste. This gas consists of carbon dioxide, methane, moisture, as well as a small amount of hydrogen sulfide. It is considered a renewable energy source, as it is dependent on the generation of wastes.
Growing investment interest towards biogas plants and the strong focus on clean energy to limit GHG emissions are among the prominent factors fostering the organic biogas market trends. GAIL (India) Ltd., for instance, invested around $673.1 million in 2021, with an aim to build a portfolio of at least 1-GW of renewable energy and establish compressed biogas and ethanol plants. This initiative was taken with an objective to supplement the availability of cleaner fuel to households and automobiles.
Despite the environmental benefits, the release of harmful compounds and air contaminants, like CO?, into the environment during organic biogas production may impede the industry share in years ahead.
With respect to application, the organic biogas market share from the vehicle fuels segment is expected to register considerable revenue by 2027. This can be credited to the increasing upgradation of biogas to compressed biomethane, as a clean version of compressed natural gas for use in buses and cars. Moreover, the strong focus on the use of renewable fuel to curb GHG emissions in the transport sector across various countries, including Sweden, will also broaden the biogas application scope as a vehicle fuel.
North America organic biogas industry will witness a commendable growth rate through 2027, given the introduction of varied GHG emission norms in countries including the U.S. In 2021, U.S. President Joe Biden set a new target to achieve a 50-52% reduction in economy wide GHG pollution from the 2005 levels by 2030, to tackle the climate crisis.
Key participants in the organic biogas market include Biofrigas Sweden AB, Scandinavian Biogas Fuels International AB, Gasrec Ltd., Cryonorm BV, Next Kraftwerke GmbH, Dreyer & Bosse (WOLF GmbH), Malmberg, Acrona Systems, Ros Roca Envirotec, Kohler & Ziegler, Guild Associates, MT-Energie, DMT Environmental Technology, Greenlane, Cirmac, Xebec Adsorption, CarboTech (International Chemical Investors), DGE GmbH, Air Liquide, and EnviTec, among others. Strategic product launches, partnerships, and acquisitions are among the initiatives being undertaken by these firms to expand their business portfolio in the global market.
For instance, in May 2021, Air Liquide launched its first green bond issue through an investment of over $586.1 million, to finance biogas and other sustainable projects to reduce its CO? emission level.
The prevailing crisis caused by the coronavirus pandemic has impacted the marketing and production of agricultural goods due to labor and logistical constraints. The increased prices of various food commodities also have disrupted the consumption pattern, creating financial havoc for stakeholders of the agricultural system in countries like India. This substantial decline in agricultural activities may lead to the reduced generation of agricultural wastes and in turn, hamper the organic biogas industry outlook.
However, there has been a heightened focus on clean technologies to increase energy access in response to the crisis. Several countries are aware of the opportunities presented by low-carbon technologies for developing resilient and sustainable energy systems while creating employment opportunities and driving economic growth. This growing emphasis on the use of renewable energy sources may thus help the industry regain traction over the forthcoming years.