Green Methane Market Size, Share, Growth, and Industry Analysis, By Type (Agricultural Waste, Municipal Landfill, Others), By Application (Electricity Generation, Vehicle Fuel, Others) and Regional Insights and Forecast to 2031

Updated On: 22 April 2024

GREEN METHANE MARKET REPORT OVERVIEW

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The global green methane market size was USD 3010.1 million in 2022 and will touch USD 10750 million by 2029, exhibiting a CAGR of 17.4% during the forecast period.

Green methane is usually produced by renewable or sustainable method since it commonly emerges as a by-product of biological processes or through the application of renewable resources. In this regard, then, green methane does not threaten the environment with the release of further carbon gas into the atmosphere as is likely to occur in the case of traditional methane extracted from the fossil fuels. Green methane can be produced from organic, waste, or raw material residue through anaerobic digestion derived from agricultural residues, sewage, or from landfill gas. In another approach, a process referred to as power-to-gas: from using too much renewable energies, mainly from the sun or the wind, one can divide hydrogen from water in the course of electrolysis and then blend it with carbon dioxide to bring about methane. Powering life with green methane means lowering greenhouse gas emissions, gaining an extra level of independence from the existing energy supply pattern, and speeding up the way to cleaner energy.

Over time, the green methane market have expanded considerably with the rise in environmental awareness about gains procured from non-fossil renewable energy and efforts to slash greenhouse gas emissions. Government incentives and regulations on renewables energy use that would reduce over-reliance on fossil fuels have been the main drivers into the markets. These investments in technology will make investments in making green or natural methane gas to be a lot easier and cheaper. Industries making use of green methane are set to see a broad-based move as a substitute for traditional manufactured and compressed natural gas in transportation, heating, and power generation. The growing concept of a circular economy in view of resources being reused and recycled is driving more adoption of green methane as the most applicable, sustainable solution for organic waste management. It is therefore evidently possible that the green methane market will continue growing over several years, being environmentally and economically beneficial.

COVID-19 Impact: Market Growth Hampered By Pandemic Due to Disruptions in Supply Chains

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

COVID-19 pandemic affected the face of the green methane market dynamics negatively. First, by the fact that with the lockdowns plus general travel restrictions reduced industrial activity and transportation, automatically reducing potential demand for green methane as fuel. Lower demand translates into reduced revenues for companies producing and distributing green methane. At the second point, there was an economic depression arising from the pandemic, and thus reduced investment in clean energy projects, which in this case is green methane production. Where there were no investments, limited growth and employment were realized, even in green methane. In addition, COVID-19 broke out, greatly affecting the supply of the materials and devices needed to produce green methane; this is what led to further depressions in the developments of the market.

LATEST TRENDS

"Growing Focus on Renewable Energy to Drive Market Growth"

The green methane market has been witnessing an exponential pace of trends for the past years towards shaping future growth and development. Hereby, the major trends include the shift of focus toward conventional and cleaner fuels not only from the concerns of utilization but also from considerations about renewable and sustainable solutions for conventional fossil fuels. Renewable natural gas, also commonly referred to as green methane, results from the anoxic decomposition of organic feedstocks, for example, agricultural residue, food waste, or wastewater, not through thermochemical processes but mainly via gasification or pyrolysis. Other emerging trends embrace the upward recognition of green methane as flexible non-carbon fuel in sectors such as transportation, electricity, and industrial applications, augmented by rapidly advancing technology development and accompanying technology cost reduction.

GREEN METHANE MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into Agricultural Waste, Municipal Landfill, Others.

• Agricultural Waste: Methanation via agricultural waste, which can bring in something to generate green methane, is from residues post crop harvest, from animal manure, and from organic byproducts of farming activities.

• Municipal Landfill: Decomposition of organic wastes under anaerobic conditions in municipal landfills also generates methane. Landfill gas containing methane and other gases, such as carbon dioxide, can be captured from such sites, put into use as a source of energy through various processes, such as landfill gas recovery systems, with the latter meant to lower greenhouse gases from landfills and provide renewable energy.

• Others: Organic green methane sources have also been obtained from other organic sources other than agricultural waste and municipal landfills, such as industrial organic waste and organic waste from food processing facilities, and wastewater treatment plants.

By Application                                                                                                                                           

Based on application the global market can be categorized into Electricity Generation, Vehicle Fuel, Others.

• Electricity Generation: It can be used as a fuel to produce electricity through the burning of the green methane in gas turbines or engines that will generate electric power.

• Vehicle Fuel: The Green Methane can be pure and can be used directly instead of gasoline in natural gas vehicles (NGVs) without processing, or it can be processed further to hydrogen in replacement flowing into the power cells. The vehicle fuel will be produced off lesser greenhouse gas emissions than the conventional produced gasoline and diesel.

• Others: Green Methane can also be applied to carry out a multitude of activities such as different industrial operations, heating, and much more. It also has the potential for being used as feedstock in the manufacture of various chemicals. Besides, a proliferation of other uses can be made.

DRIVING FACTORS

"Rising Climate Change Concerns to Boost the Market Growth"

Green methane market growth is driven by rising concerns about climate change. The high demand for the mitigation of climate change and reduction in greenhouse emissions have made the world divert to cleaner, cheap, or renewable sources of energy. Methane is one of the greenhouse gases which cause severe global warming and is the most powerful one. The reduction in emission can help in reducing climate change. Green therefore points towards enabling methane production more sustainably, since opportunities are offered to reduce overall emissions of greenhouse gases. Several countries and regions set very strong renewable energy targets to advance toward a low-carbon economy. In other words, green methane can present another argument in reach of such targets as a source of renewable and sustainable energy for several kinds of applications, be it electricity, heat, or transportation. Organic waste generation was also being taken care of in treating invasive species through anaerobic digestion. The tendency of invasive species to choke the soil since decomposing organs in the soil aid in the aeration of the soil is low. Decomposable waste approach in invasive species would provide another source of renewable energy to the people near ecosystem and biodiversity conservation projects.

"Technological Advancements to Expand the Market Growth"

Innovation in upgrading technologies for biogas has reduced the cost of the application, resulting in cheaper and efficient biogas delivery. These have therefore driven the barriers open for green methane production opportunities to both large and small applications. Many governments have started introducing favourable policies and incentives for the development and deployment of renewable energy technologies that will tap in green methane. These include feed-in tariffs and other renewable benefits, tax incentives, and grants for the construction of biogas plants and biogas upgrading facilities.

RESTRAINING FACTORS

"High Investments Costs to Impede Market Growth"

One of the main barriers for the growth of the market include high capital costs, especially on the initial phases of entering green methane facilities development and construction. This can be related to the purchase and installation costs associated with biomass or waste-to-methane conversion equipment and costs associated with relative transportation and storage of the methane. Thus, high capital costs might hence deter interested investors and relatively even scatter wide deployment of green-oriented stakeholders in green methane projects.

GREEN METHANE MARKET REGIONAL INSIGHTS

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"North America to Dominate in the Market due to Presence of a Large Consumer Base"

The market is segmented into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America has emerged as the most dominant region in the global green methane market share.  The region particularly U.S. and Canada have already opened the way for very high renewable targets, thus increasing demand for biomethane as a renewable vehicle fuel and a renewable source of natural gas to produce heat and power. In Canada, with policies to support it, the country has also seen advancements in this area, whereby the likes of Ontario and Quebec have pledged massive investments towards the biogas infrastructure.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The green methane market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in Green methane, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Clean Energy Fuels (U.S.)
• Archaea Energy (U.S.)
• Montauk Renewables (U.S.)
• VERBIO (Germany)
• Vanguard Renewables (U.S.)
• Future Biogas (U.K.)

INDUSTRIAL DEVELOPMENT

January 2024: Clean Energy Fuels Corp said it has completed a new renewable natural gas (RNG) production facility at Drumgoon Dairy in Lake Norden, S.D.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.