Biogas Outlook Is Bright with Marine Fuel, 45Z, Roeslein Says

July 29, 2026

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by Kim Chipman (Agri-Pulse) Biogas is having a moment, with potentially hundreds of millions of dollars set to be unleashed with finalization of 45Z. An even bigger opportunity though is marine fuel, Roeslein Renewables says. READ MORE

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Biogas Market to Reach USD 109.62 Billion by 2036 Driven by Renewable Energy Mandates, Methane Reduction Initiatives, and Expanding Biomethane Production (Fidelity)

Excerpt from Fidelity: According to Future Market Insights (FMI), the global biogas market is entering a period of sustained expansion as governments worldwide accelerate renewable energy adoption and strengthen policies aimed at reducing greenhouse gas emissions. Increasing integration of anaerobic digestion into national energy strategies, coupled with rising investments in waste-to-energy infrastructure, is positioning biogas as a critical component of the global transition toward cleaner and more sustainable energy systems. The market was valued at USD 46.54 billion in 2025 and is expected to reach USD 50.31 billion by the end of 2026. Between 2026 and 2036, the market is projected to expand at an 8.1% CAGR, reaching approximately USD 109.62 billion by 2036.

The market is being driven by expanding renewable energy mandates, increasing emphasis on distributed power generation, and tightening methane emission regulations across agricultural and municipal waste management sectors. Governments and utilities are increasingly recognizing anaerobic digestion as a dual-purpose solution capable of producing renewable energy while efficiently managing organic waste streams.

Key Market Highlights

Market Value (2025): USD 46.54 Billion
Market Size (2026): USD 50.31 Billion
Forecast Value (2036): USD 109.62 Billion
CAGR (2026–2036): 8.1%
Leading Feedstock Type: Crops (37.8%)
Leading Application: Co-generation (35.2%)
Fastest-Growing Country: Brazil (12.2% CAGR)

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Why Is the Biogas Market Growing?

The biogas market is expanding as governments intensify efforts to decarbonize energy systems while improving waste management efficiency. Increasing concerns regarding climate change, energy security, and methane emissions are encouraging greater deployment of anaerobic digestion technologies capable of converting agricultural residues, food waste, wastewater sludge, and livestock waste into renewable energy.

Growing investments in renewable gas infrastructure are further supporting market expansion. Biomethane upgrading technologies are enabling producers to inject renewable gas into existing natural gas networks while supplying cleaner transportation fuels.

Key growth drivers include:

Expanding renewable energy mandates supporting biogas production.
Growing investments in biomethane upgrading and grid injection infrastructure.
Rising adoption of combined heat and power (CHP) systems.

Analyst Perspective

"The biogas market is evolving beyond traditional waste management applications into an integrated renewable energy ecosystem that supports decarbonization, circular economy objectives, and energy security. Companies investing in biomethane upgrading technologies, advanced anaerobic digestion systems, and strategic renewable gas partnerships will be well positioned to capitalize on long-term market growth."

– Nikhil Kaitwade, Market Research Analyst, Future Market Insights

Which Feedstock Segment Leads the Biogas Market?

Crops lead the global biogas market with a 37.8% share, supported by their abundant availability, consistent supply, and high suitability for anaerobic digestion. Energy crops such as maize and grass silage continue to play a significant role in European biogas production, while increasing utilization of crop residues is helping countries reduce greenhouse gas emissions associated with open-field burning.

The growing focus on sustainable agricultural practices and renewable energy production is encouraging wider adoption of crop-based feedstocks.

Key Highlights:

Crops account for 37.8% of the market.
Wide feedstock availability supports reliable biogas production.
Agricultural waste utilization strengthens circular economy initiatives and reduces emissions.

Why Does the Co-generation Application Dominate the Market?

The Co-generation segment represents 35.2% of the global market as industries and utilities increasingly utilize combined heat and power systems to improve energy efficiency and reduce dependence on fossil fuels.

Growing industrial demand for reliable renewable energy sources and supportive government policies encouraging renewable power generation continue to strengthen adoption across manufacturing facilities, commercial buildings, and municipal utilities.

Key Highlights:

Co-generation accounts for 35.2% market share.
CHP systems improve overall energy efficiency and sustainability.
Increasing renewable energy targets continue driving market adoption.

Market Dynamics

Market Drivers

Growing renewable energy mandates, supportive government policies, expanding investments in waste-to-energy infrastructure, and rising biomethane production continue to accelerate market expansion.

Emerging Market Trends

Manufacturers and project developers are increasingly investing in advanced biomethane upgrading technologies, AI-enabled plant monitoring, high-efficiency anaerobic digestion systems, and renewable gas infrastructure.

Access the Complete Report in PDF Format: https://www.futuremarketinsights.com/reports/brochure/rep-gb-1397

Regional Outlook

The global biogas market is witnessing strong momentum across both developed and emerging economies as governments prioritize renewable energy generation and sustainable waste management. Europe continues to maintain a leading position through well-established agricultural biogas infrastructure and supportive renewable energy policies, while Latin America and Asia Pacific are emerging as high-growth regions backed by expanding investments in biomethane production and anaerobic digestion facilities.

Country Growth Snapshot

Brazil Leads Global Growth

Brazil is projected to register the fastest growth at a 12.2% CAGR through 2036, supported by the RenovaBio program, abundant agricultural waste feedstock from sugarcane, livestock, and crop processing industries, along with increasing investments in decarbonization initiatives.

Germany Maintains Strong Momentum

Germany is expected to expand at an 11.6% CAGR, driven by its mature agricultural biogas infrastructure, extensive biomethane grid injection capacity, and strong policy support under the Renewable Energy Sources Act (EEG).

India Emerges as a High-Growth Market

India is forecast to grow at a 9.3% CAGR, supported by government initiatives such as SATAT (Sustainable Alternative Towards Affordable Transportation) and increasing utilization of agricultural residues and livestock waste for compressed biogas production.

China Demonstrates Steady Expansion

China is projected to register an 8.9% CAGR, driven by large-scale livestock waste management programs, rapid renewable energy adoption, and increasing deployment of biogas plants supporting rural energy diversification.

Spain Records Stable Growth

Spain is expected to grow at an 8.1% CAGR, supported by national biogas development roadmaps, increasing food waste diversion mandates, and expanding renewable gas production infrastructure.

Competitive Landscape

The biogas market remains moderately consolidated, with leading companies focusing on expanding renewable gas production capacity, biomethane upgrading technologies, and integrated waste-to-energy solutions.

Growing collaboration between energy companies, utilities, agricultural organizations, and waste management providers is accelerating commercialization of biomethane and improving operational efficiency across the value chain.

Leading Companies

BP p.l.c. – Expanding renewable energy investments through biomethane production and integrated low-carbon energy solutions.
Shell – Strengthening its renewable gas portfolio with investments in biogas production, upgrading technologies, and sustainable energy infrastructure.
Veolia – Leveraging expertise in waste management and circular economy solutions to expand biogas generation capabilities.
Engie, Scandinavian Biogas, GAIL Gas Limited, GRTgaz, Eni S.p.A., VNG AG, PlanET Biogas Group, Future Biogas Ltd., Bharat Biogas Energy Limited (BBEL), Asia Biogas (Thailand) Co. Ltd. continue expanding through technological innovation, renewable gas infrastructure development, and strategic collaborations.

Frequently Asked Questions (FAQ)

1. What is the current size of the biogas market?
The biogas market was valued at USD 46.54 billion in 2025 and is expected to reach USD 50.31 billion in 2026.

2. What will the biogas market be worth by 2036?
The market is projected to reach USD 109.62 billion by 2036.

3. What is the expected CAGR of the biogas market?
The market is forecast to grow at an 8.1% CAGR from 2026 to 2036.

4. Which feedstock segment leads the biogas market?
Crops lead the market with a 37.8% share.

5. Who are the leading companies in the biogas market?
Key companies include BP p.l.c., Shell, Engie, Veolia, TotalEnergies, Scandinavian Biogas, GAIL Gas Limited, GRTgaz, Eni S.p.A., VNG AG, PlanET Biogas Group, Future Biogas Ltd., Bharat Biogas Energy Limited (BBEL), Asia Biogas (Thailand) Co. Ltd.

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About Future Market Insights (FMI)

Future Market Insights (FMI) is a global market intelligence and consulting firm providing comprehensive market research, competitive intelligence, and strategic business insights across industries. The firm delivers detailed forecasts, technology analysis, and data-driven recommendations that support informed decision-making for manufacturers, investors, distributors, and policymakers worldwide. READ MORE

Tags

wastewater waste-to-fuel Waste-to-Energy waste management Transportation Fuels Policy tax policy Spain sludge silage regulations methane/biomethane markets/sales market forces Marine/Maritime Bio and Renewable/Sustainable Fuel (SMF) manure mandates Latin America Investing India Germany food waste European Union (EU) energy policy corn/maize China CBG (compressed biogas) Brazil Biogas Asia Pacific anaerobic digester/digestion Agricultural waste/residue 45Z Clean Fuel Production Tax Credit BioRefineries/Renewable Fuel Production electricity/power generation Regulations-Federal Sustainability

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