Biogases could meet 25% of global natural gas demand, says IEA

A new report by the International Energy Agency identifies significant untapped potential in biogas and biomethane, hindered by regulatory and economic barriers.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Global biogas production could reach the equivalent of nearly 1 trillion cubic metres of natural gas annually, according to a new geospatial assessment published by the International Energy Agency (IEA) on May 28. This volume would represent about 25% of current annual global natural gas demand.

The study, titled The Outlook for Biogases and Biomethane, is based on a first-of-its-kind analysis of over five million potential locations worldwide. It focuses on sustainable feedstocks, such as agricultural and municipal organic waste, which can be processed without competing with food systems. These resources are particularly abundant in emerging economies, which account for nearly 80% of the identified global potential.

Mature technologies and local production

The supply chains and technologies required to produce biogas are widely available and well established. The report notes that these fuels are typically produced close to where they are consumed, using materials that are often sourced domestically. They can be used directly for heat or power generation, while biomethane—an upgraded form of biogas—can be injected into existing gas infrastructure without major modifications.

According to the IEA, these characteristics make biogases a tool to reinforce energy security while supporting local, particularly rural, economies. The report counts over 50 new public policies introduced since 2020 to foster sector development.

Persistent regulatory and economic barriers

Despite rising interest, biogas still plays a minor role in the global energy mix. Less than 5% of the sustainable potential is currently utilised. The report highlights several barriers, including administrative delays that can extend to seven years just to secure necessary project permits.

Biomethane production costs also remain higher than those of natural gas in many markets. However, the IEA’s analysis shows that up to five times the current level of biomethane output could be developed at costs equal to or lower than prevailing wholesale natural gas prices, if targeted measures such as carbon dioxide (CO₂) pricing were implemented.

An interactive tool to visualise global potential

In addition to the report, the IEA released an interactive mapping tool to visualise global biogas potential, along with regional fact sheets detailing available feedstock types and quantities. The agency aims to provide public decision-makers and investors with a concrete basis for planning sector deployment.

“The potential is particularly significant in emerging and developing economies,” said IEA Executive Director Fatih Birol. “This report highlights the additional actions that governments can take to fully tap into this energy resource.”

Australia refocuses its national biomass plan on agriculture and forestry, excluding green hydrogen and urban waste from eligible feedstocks.
A bipartisan group of 47 lawmakers is calling on the US Environmental Protection Agency to maintain high biodiesel quotas to support local agriculture affected by falling exports to China.
Subsidised bio-LNG is gaining traction in European maritime transport, supported by strong demand and a narrowing price gap with unsubsidised volumes.
Renova and its partners have launched commercial operations at the Karatsu biomass power plant, converted to the FIP scheme to secure a long-term power purchase agreement.
The commercial court of Évry has initiated judicial reorganisation proceedings for Global Bioenergies, with no buyout offer submitted to date, leaving open the possibility of liquidation.
Irving Pulp & Paper secures a $660mn loan to modernise its Saint John pulp mill, with new facilities capable of generating up to 145 MW of exportable electricity.
Canadian supplier Greenlane recorded $7.9mn in third-quarter orders through its subsidiary Airdep, confirming growing demand for its biogas desulfurization systems in Europe and the Americas.
Spanish group Qualitas Energy inaugurated the Three Maids facility near Winchester, an anaerobic digestion plant able to produce 120 GWh of biomethane annually from agricultural waste.
The federal government is granting $370mn to Canadian canola producers affected by a 75.8% tariff imposed by China, and is introducing fiscal and regulatory measures to strengthen the domestic biofuel industry.
Netherlands-based BTG Bioliquids and Canada’s NanosTech join forces to develop a modular solution for advanced biofuel production, with a project underway in Europe and Canada.
Teréga and GRDF have commissioned a backfeed station in Lot-et-Garonne, showcasing their cooperation to adapt gas networks to the rise of locally produced biomethane in Nouvelle-Aquitaine.
An Indonesian ministerial delegation visited China to explore waste-to-energy solutions, as the country moves forward with a $200mn project in Makassar.
Anaergia’s Italian subsidiary has been selected by Nortegas Renovables to build a biomethane facility in Andalusia using agricultural residues.
Mondi SCP will build a new biomass power plant in Ružomberok to boost energy self-sufficiency from 75% to 90% by 2027, with a €120mn ($129mn) investment supported by the European Union’s Modernisation Fund.
With a new EnviThan facility in Aube, EnviTec Biogas reaches 40 units in operation in France and confirms its deployment pace in the biomethane market.
Southwest Gas has submitted an agreement to the California Commission to inject biomethane produced from food and wastewater into its network, in line with SB 1440 regulatory requirements.
Quercus Real Assets and Elionia finalise a €76 mn bank financing to build three biomethane plants in Italy, with 50% of the debt guaranteed by SACE.
VINCI, through its subsidiaries, has established itself in the construction of Spain’s largest second-generation biorefinery, a €1.2bn project aimed at supplying 500,000 tonnes of sustainable fuels per year.
Ameresco commissions a biomethane facility in Lee County, processing 4,500 cubic feet of landfill gas per minute, and directly injects this renewable gas into the transmission network to reduce emissions and strengthen energy security.
A $24mn financing supports the construction of a 4.8 MW biomass plant designed to replace diesel in Opitciwan, bringing jobs and enhanced energy security for the Atikamekw community.