Biomethane Market Projected to Reach $60.2 Billion, at a 28.7% CAGR by 2030 | MarketsandMarkets™

Delray Beach, FL, Nov. 25, 2025 (GLOBE NEWSWIRE) -- The global Biomethane Market size is expected to grow from USD 10.3 billion for 2023 to USD 60.2 billion by 2030, at a CAGR of 28.7% according to a new report by MarketsandMarkets™.  This anticipated expansion underscores the increasing prominence and adoption of biomethane as a renewable energy source. Several factors contribute to this robust growth trajectory, including heightened global awareness of climate change, a growing emphasis on reducing greenhouse gas emissions, and a concerted push towards sustainable and cleaner energy alternatives. The market's potential is further propelled by advancements in biomethane production technologies, fostering increased efficiency and cost-effectiveness. Additionally, supportive government policies and incentives worldwide are creating a conducive environment for the biomethane sector, encouraging investments and fostering innovation. As industries and consumers increasingly prioritize environmentally friendly energy sources, biomethane's role in addressing these demands is becoming more pivotal.

The push for net-zero carbon emissions is a central theme in global efforts to address climate change. As a clean and renewable energy source, biomethane plays a crucial role in this context, offering a sustainable alternative to traditional fossil fuels. The market's upward trajectory is further fueled by the collective commitment of governments to transition towards cleaner and more sustainable energy systems.

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Biomethane Market Scope:

Biomethane, derived from organic waste through processes like anaerobic digestion, serves as an efficient and environmentally friendly fuel for electricity generation. Technology allows for the conversion of biogas into biomethane, which can be seamlessly integrated into existing natural gas infrastructure or utilized in combined heat and power (CHP) plants. The growing emphasis on decarbonizing the energy sector and reducing greenhouse gas emissions has led to increased adoption of biomethane for power generation. Governments and utilities worldwide are incentivizing the use of renewable energy sources, including biomethane, through favorable policies, feed-in tariffs, and renewable energy targets. Additionally, biomethane's dispatchability makes it an attractive option for balancing the intermittent nature of some renewable sources like wind and solar, contributing to grid stability. As a result, power generation emerges as a key driver in the biomethane market, playing a pivotal role in the transition towards cleaner and more sustainable energy systems.

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Biomethane Market Dynamics:

Drivers:

1. Strong focus on achieving sustainable waste management and renewable energy targets
2. Increased use of biomethane as alternative to conventional fossil fuels with constant technological advancements

Restraints:

1. Requirement for high initial investments and lack of infrastructure and standardized regulatory policies, coupled with intense competition
2. High production cost and inadequate infrastructure for long-distance transportation of biomethane

Opportunities:

1. Increased focus on waste-to-energy projects to reduce environmental impact
2. Incorporation of diverse feedstocks in biomethane production

Challenges:

1. Fluctuations in supply of feedstock and time-consuming regulatory approval process

Europe region holds the largest share of the biomethane market

Europe is poised to command the largest market share in the biomethane market, primarily due to the region's proactive approach towards renewable energy and stringent environmental regulations. European countries have been at the forefront of adopting sustainable practices, with a strong emphasis on reducing carbon emissions and transitioning towards cleaner energy sources. Biomethane aligns well with these objectives, as it can be produced from organic waste through advanced technologies like anaerobic digestion. The European Union's ambitious renewable energy targets, supportive government policies, and robust infrastructure for natural gas and biomethane distribution contribute to the region's dominance in the biomethane market. Additionally, the well-established circular economy practices and a growing commitment to decarbonization in various sectors, including transportation and power generation, further drive the adoption of biomethane in Europe, positioning the continent as a leader in the global biomethane market.

Key Market Players:

Some of the major players in the Biomethane Market are Air Liquide (France), Gasum Ltd. (Finland), Archae Energy (Texas), and OPAL Fuels (US).

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