Gaseous Biofuels Market Size (2023 - 2030)

The Global Gaseous Biofuels Market was esteemed at USD 20.48 Billion in 2022 and is projected to reach a value of USD 35.19 Billion by 2030, growing at a fast CAGR of 7% during the forecast period 2023-2030.

Because of worries about climate change, energy security, and the need for sustainable substitutes for conventional fossil fuels, the world's energy sector has undergone a substantial upheaval recently. Gaseous biofuels, sometimes referred to as bio-methane or biomethane, are created when organic matter, such as agricultural leftovers, food waste, sewage sludge, and energy crops, is digested or gasified anaerobically. To create a methane-rich gas that may be utilized as a replacement for natural gas, the organic material must be broken down in the absence of oxygen. Due to rising environmental concerns and the demand for sustainable energy sources, the market for gaseous biofuels has seen tremendous expansion in recent years. Gaseous biofuels have emerged as a viable substitute for fossil fuels thanks to their renewable nature, advantages in waste management, and wide range of applications. Gaseous biofuels are probably going to be extremely important in the transition to a low-carbon economy as nations all over the world step up their efforts to battle climate change. 

Global Gaseous Biofuels Market Drivers:

Government policies drive gaseous biofuels market growth and sustainability transition

The adoption of government rules and incentives is one of the key factors boosting the market for gaseous biofuels worldwide. Globally, a lot of governments have realized how crucial it is to switch to renewable energy sources and lessen greenhouse gas emissions. To encourage the development and use of gaseous biofuels, they have implemented friendly legislation and financial incentives. Governments might, for instance, provide feed-in tariffs, which ensure a set price for gaseous biofuels put into the natural gas infrastructure. These tariffs promote investment in bio-methane-producing facilities and offer long-term revenue stability. Government-set renewable energy goals and renewable portfolio requirements also increase the demand for gaseous biofuels, guaranteeing a market for suppliers. These regulations and incentives offer an encouraging environment for industry participants to invest in R&D, infrastructure improvement, and the expansion of manufacturing capabilities. As a result, the market for gaseous biofuels expands and grows, which promotes the construction of a low-carbon and sustainable energy industry.

Gaseous biofuels address waste challenges, reduce emissions, and offer economic benefits raising market demand.

The global rise in waste management difficulties has become a significant market driver for gaseous biofuels. The production of organic waste has significantly increased as a result of rapid urbanization, population growth, and shifting consumer habits. Landfills and incineration, which are common forms of waste disposal, have limitations in terms of their effects on the environment and their use of resources. An efficient response to these problems with waste management is gaseous biofuels. Anaerobic digestion or gasification can be used to convert organic waste materials including sewage sludge, food waste, and agricultural residues to create bio-methane. Gaseous biofuels aid in lowering methane emissions, a strong greenhouse gas, by diverting organic waste from landfills and using it for energy production. In addition, the generation of gaseous biofuel has positive economic effects in addition to aiding in waste management. Waste can be turned into a useful resource that generates income and jobs rather than being viewed as a liability. The circular economy and sustainable development are aligned with this waste-to-energy strategy, making gaseous biofuels an appealing alternative for waste management organizations, local governments, and energy providers.

Global Gaseous Biofuels Market Challenges:

The high initial investment costs related to developing bio-methane-producing plants are one of the main issues facing the global market for gaseous biofuels. It costs a lot of money to build anaerobic digestion or gasification plants, as well as the infrastructure needed for filtration, compression, and injection into the natural gas system. The initial costs associated with setting up a facility, buying equipment, implementing technology, and adhering to regulations might be high. Potential investors may be put off by the high initial investment expenses, which may also impede the market growth for gaseous biofuels. The long-term economic viability and competitiveness of gaseous biofuels are anticipated to increase as technology develops, economies of scale are attained, and supportive policies are put in place.

Global Gaseous Biofuels Market Opportunities:

The growth of renewable natural gas (RNG) as a fuel for transportation is one significant market opportunity for gaseous biofuels. In vehicles like buses, lorries, and even passenger cars, RNG made from gaseous biofuels can be utilized in place of natural gas obtained from fossil fuels. RNG offers a major possibility to lower greenhouse gas emissions in the transportation industry and meet carbon neutrality objectives as a result of the rising demand for greener and more sustainable transportation options. The widespread adoption of RNG as a practical substitute for conventional fossil fuels can be facilitated by the construction of refuelling infrastructure and supportive regulations. 

COVID-19 Impact on Global Gaseous Biofuels Market:

A greater emphasis is being placed on renewable energy sources, such as gaseous biofuels, as a result of the COVID-19 epidemic. The demand for sustainable and resilient energy infrastructure is increasing as countries attempt to rebuild their economy after a pandemic. This has led to increased financial and government backing for renewable energy initiatives, including the creation of gaseous biofuels. As a result of the pandemic's exposure of the faults in systems depending on fossil fuels, there has been a push toward cleaner, more environmentally friendly energy alternatives. The pandemic has also had a substantial effect on the market for gaseous biofuels, causing numerous projects to be delayed or abandoned. Due to the outbreak, there are financial limits and arising economic uncertainties. Project implementation and building activities have also been impeded by supply chain interruptions, labor shortages, and travel restrictions. These difficulties have hindered the market's growth and expansion for gaseous biofuels, delaying investments and project completion dates.

Global Gaseous Biofuels Market Recent Developments:

In January 2023, the first biofuel bunkering tests by TotalEnergies Marine Fuels, which also carried out comparable testing in Singapore the previous year, was completed in France. By creating a variety of low-carbon fuels like LNG, bio-methane, e-methanol, and e-ammonia, the company hopes to aid in the decarbonization of the shipping sector. In January 2023, there were two biofuel bunker operations. At the Port of Le Havre, the tanker "Minerva Tychi" received 200 MT of a bio-marine gas oil blend. MGO made up 70% of the blend, with the remaining 30% being sustainable, second-generation UCOME made from wasted cooking oil.

 GASEOUS BIOFUELS MARKET REPORT COVERAGE:

Global Gaseous Biofuels Market Segmentation: By Feedstocks

• Biomethane

• Biogas

Based on the feedstocks used, the market for gaseous biofuels can be divided into biomethane and biogas segments. Due to its high methane content and simple integration with existing natural gas infrastructure, biomethane, which is created by the anaerobic digestion or gasification of organic materials, has significantly increased in popularity in the market. Biomethane has a wide range of uses, including producing heat, power, and as a fuel for vehicles. Due to favorable government regulations, targets for renewable energy, and rising demand for sustainable energy sources, the market has expanded significantly. On the other side, biogas is the term used to describe the unprocessed combination of gases created during the anaerobic digestion procedure. Methane, carbon dioxide, and traces of other gases make up the majority of it. Common decentralized applications for biogas include the production of on-site heat and small-scale electricity. Although biomethane has a greater market share, biogas still has a lot of potentials, particularly in areas with a lack of infrastructure for sophisticated biomethane purification and injection.

Global Gaseous Biofuels Market Segmentation: By Application

• Transportation

• Power Generation

• Residential and Commercial

Based on application, the market for gaseous biofuels may be divided into three categories: transportation, power generation, and residential and commercial. As gaseous biofuels, like biomethane, are used more frequently as a cleaner alternative to fossil fuels in vehicles, including buses, Lorries, and even passenger cars, the transportation industry maintains a substantial market share. Gaseous biofuels are used in combined heat and power plants to generate energy in this sector, which is also quite important. Additionally, the domestic and commercial sectors present a market opportunity because gaseous biofuels can be used to meet the energy needs of homes, buildings, and institutions for heating, cooking, and other purposes. Due to the arising environmental restrictions and the requirement for decarbonization, the transportation sector now holds the majority of the market share. However, because of the ongoing transition to renewable energy sources and the implementation of low-carbon technology, the power-generating, residential, and commercial sectors are anticipated to experience significant growth. 

Global Gaseous Biofuels Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

The market for gaseous biofuels can be divided into North America, Europe, Asia Pacific, South America, and the Middle East & Africa depending on the region. Due to favorable policies, goals for renewable energy, and a well-established infrastructure for biomethane production and use, Europe has a substantial market share in gaseous biofuels. With expanding investments in gaseous biofuels and rising usage in the transportation industry, North America is another important market. Due to its rising industrialization, urbanization, and emphasis on sustainable energy sources, the Asia Pacific area offers considerable market prospects. South America has potential, especially in nations like Brazil where the generation of biomethane from agricultural waste is picking up speed. Although the Middle East and Africa region is still in its infancy, positive government initiatives and growing public awareness of the advantages of gaseous biofuels are anticipated to spur market expansion. North America and Europe now hold the majority of the market share, while other areas have untapped potential for market growth. 

Global Gaseous Biofuels Market Key Players:

1. BTG International Ltd

2. Renewable Energy Group, Inc.

3. Abengoa Bioenergy S.A.

4. Cargill

5. DowDuPont, Inc.

6. Wilmar International Ltd

7. POET, LLC

8. Archer Daniels Midland Company

9. VERBIO Vereinigte BioEnergie AG

10. My Eco Energy

11. China Clean Energy Inc.