Biogas upgraders in the developed world pin tall hopes on production of biomethane as a sustainable fuel, chiefly because from the use of renewable feedstock and removal of CO2 from biogas. Of the various feedstock used, agricultural waste has become commonplace. The biomethane market has witnessed spurt of opportunities from the booming renewable energy sector, with biomethane forming a crucial role in the energy mix of several progressive nations across the globe. The growing usage of biomethane in the energy sector is shaping the evolution of the biomethane market.
Clocking CAGR of 6.7% between 2017 and 2025, analysts at TMR, project the market to reach worth of US$2,624.5 Mn by 2025.
Focus toward Increasing Penetration of Renewables Spurs Production
Governments in various countries in collaboration with industry players have sped up efforts to low-carbon energy transition, increasing the penetration of renewables. Biomethane promises a significant impact on reducing the carbon footprint across the value chain, as organic residues are turned into valuable resources for consumption in economies. Biogas production and its subsequent purification to biomethane ensures the reduction of emissions from organic residues.
Past decades has witnessed industries in various developing and developed economies to conduct feasibility studies on the generation of energy that boosts the concept of circular economy. A great deal of the motivation stems from the vast concerns of climate change due to rising greenhouse gas emissions. Thus, governments are not shying way to set ambitious targets of increasing the share of renewables by the end of the decade. A case in point is France focusing on meeting the Law on Energy Transition for Green Growth target on augmenting the share of renewable gas to 10% of overall gas consumption by 2030.
Biomethane Production to Soar in Europe
The cost-competitiveness of biomethane in the green energy sector has been on the rise, unlocking new revenue streams in the global biomethane market. Efforts have intensified to increase the parity of biomethane with natural gas - particularly in Europe. Thus, production plants of renewable gas are attracting investments. Biomethane production, stridently, holds vast promise in the European Union (EU) green energy transition, thereby spurring prospects in the biomethane market in Europe.
Policy thrust notably from the governments of various countries in EU has made Europe a regional market with hotbed of opportunities for biomethane producers. This is evident in Sweden, Germany, and Switzerland. Players in the value chain are also eyeing incredible opportunities in North America. These regions have seen substantial funds focusing on the decarbonization in the transport sector.
Purchase A Report- https://www.transparencymarketresearch.com/checkout.php?rep_id=12380<ype=S
Relentless Efforts to Reduce Carbon Footprint of Transport Sector Propel Growth
The automotive industry has emerged as a massive market for biomethane market. The relentless focus on decarbonizing transport is a key trend that has led to burst of opportunities in this end-use industry. The need for commercializing cleaner fuel, also reckoned as the ‘green’ fuel, has stimulated recent developments in the production of biomethane especially in the developed world. A number of vehicles for biomethane upgrade hold substantial cost benefits. However, chemical companies must offer cost-effective biomethane options to the transportation. These include expanding the waste feedstocks and reducing the cost of biogas purification.
In the foreseeable future, countries are expected to spur gas-based refueling network in this regard. This might boost the uptake of methane in the transportation industry worldwide in the next few decades. The focus on renewable heat power, such as combined heat and power engines (CHP), is another trend favoring revenue streams in the biomethane market. This is likely to attract massive interest due to the larger role of electricity in decarburization of economies.
Paucity of New Investments Constrains Growth
Developed regions - notably Europe and North America - have been fortunate to attract spate of investments in biomethane production, the reason having to do with the vast strides renewable energy sector has made in those regions over the years. However, investments, such as venture funding, into feasibility studies on green energy are slow to pick up pace in developing regions, such as Asia Pacific. High green premium on the adoption of renewable energy is one major concern that has decelerated the growth. This has impacted the production of biomethane as well. Key approaches to circumvent are to reduce the cost of feedstock used in biogas production and adopt sustainable agricultural practices. Industry players inclined to support attaining a low-carbon economy in Asia Pacific will spur developments in this direction.
Intense Competition Dots the Landscape
Over the past few years, the biomethane market has witnessed the entry of numerous new players. Incumbent players are keenly strengthening their production and distribution facilities. The two trends combined have led to a high degree of competition. The strategy is helping these players conquer new geographies. Producers are increasingly leaning on making biomethane production more sustainable and economical.
Some of the players deeply entrenched in the biomethane market are EnviTec, Planet Biogas Global GmbH, Biogas Products Ltd., ETW Energietechnik GmbH, and Future Biogas Limited.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Biomethane Market (Feedstock - Organic Household Waste, Animal Manure, Energy Crops, Agricultural Waste, Sewage Sludge, and Industrial Food Processing Waste; Application - Automotive and Power Generation; Production Method - Fermentation and Gasification) - Global Analysis, Size, Share, Growth, Trends, and Forecast 2017 - 2025”.
Comments