Versatile Usability and Cost Efficiency Drive Biogas Power Generation Market
Reliable, stable and sustainable energy supply has become crucial. The pressure on governments to improve their energy security and climate policies in building up rapidly, which is leading to introduction of novel energy conservation solutions, particularly a multitude of sustainable energy sources. With fossil fuels depleting at terrible pace and clamour for alternative energy sources aggravating rapidly, biomass energy is being increasingly perceived as a promising alternative by both residential and commercial sectors.
Constant surge in the lookout for renewables is propelling demand for non-conventional energy generation methods such as biogas power generation. The World Biogas Association is aiming at increased global awareness of biogas technologies and thereby encourage the uptake of biogas power generation as viable solution through the route to sustainable future. Such initiatives by governments as well as authoritative bodies will continue to work to the advantage of biogas power generation market.
Biogas Increasingly Becomes a Preferred Energy Source, Pushing Prospects of Biogas Power Generation
Biogas has been a favoured alternative energy source owing to its usage flexibility and versatility, easy storage requisites, and cost efficiency. Putrescible waste (a solid waste that contains organic matter that gets decomposed and capable of attracting or providing food for birds or animals) and bio-waste (food, human, green and brown) account for major renewable energy supplies. The benefits of biogas extend from local level to national level. While the former would generate new economic opportunities and employment in the agricultural sector, the latter would include urban regions benefitting from cleaner air and community health improvement.
Investments in renewable energy are at a constant rise, thereby fostering the performance of global biogas power generation market. While biogas power generation allows to turn the cost of waste management into a revenue generation opportunity, it is highly likely that the market for biogas power generation will witness a prospering growth outlook in future.
Preference for Readily Available Renewable Source Alternatives Restrains Biogas Power Generation Market Growth
Although rising adoption of biogas power generation technology in industrial segment is expected to flourish in line with the growing cleaner energy demand within the sector, sizeable investment and inadequacy of financing options continue to be an impediment facing emerging biogas projects. The economics of biogas power generation are yet to become competitive without sufficient subsidies and/or tax concessions, which remains a major roadblock in front of established as well as newly entering market players.
Moreover, the competition from other more popular and readily available renewable energy sources such as wind, solar, and geothermal is increasing each year. Biogas plants are also affected by colder climatic conditions as their digesters demand a specific level of heat energy to maintain a constant biogas supply. Biogas production is currently a more viable power generation option across rural areas unlike other renewable alternatives. The global biogas power generation market thus has a long way to go.
Supportive National Policies Favour Biogas Industry, Thereby Fuelling Growth of Biogas Power Generation Market
Interest in renewable energy sources is gathering momentum. There are enhanced policy dialogues between governments for a transition towards a sustainable future - a balanced approach to long term social, environmental, and economic objectives. Of the 17 sustainable development goals (SDGs) and 169 targets (a part of United Nations global partnership), the biogas industry achieves nine of the SDGs – plausibly more than any other sector, as per International Energy Agency (IEA). Governments are thus largely involved in the build-up of a biogas-based ecosystem through subsidy, planning, design, construction, operation, and maintenance of biogas plants.
While countries such as Germany and China have witnessed rapid market growth during the last decade, the market is still in its infancy across all other key countries. Led by China, further followed by India, the market for biogas power generation will possibly see dominance of Asia Pacific in long-term future. Moreover, coercive waste energy policies are proving to be a boost for the industry. For instance, according to Ministry of New and Renewable Energy, India generated on an average 1.45 lakh MT of waste per day in 2018 and only 53% of it was processed under the country’s flagship programme Swachh Bharat Mission by Q1 2019. While the centre aims to achieve 100% scientific management of solid waste in the near future, it clearly points to massive scope for the growth of biogas power generation market in the country, further contributing to market growth in the region.
Biogas Plant Expansion Remains Focal Area for Key Players in Biogas Power Generation Market
The global biogas power generation market is intensely fragmented in nature due to presence of numerous players who are participating in inorganic and organic developments for a stronger regional and global footprint. Companies are prioritising expansion through introduction of new plant(s) or physical and operational expansion of the existing ones. For instance, Weltec Biopower GmbH announced the launch of its newly built biogas plant in in Veria, Greece in May 2020. built a biogas. In February 2020, Brightmark Energy, LLC also declared its plans to enter multiple partnerships with six farms in the region over the expansion of its biogas project.
Some of the key players operating in the global biogas power generation market are AB Energy SpA, Air Liquide S.A., BTS Biogas Srl, EnviTec Biogas AG, WELTEC Group, Future Biogas Limited, Ameresco, Inc., PlanET Biogas Global GmbH, and Quantum Green.