The rapid growth of biomethane injection into natural gas grids is a key driver of the Europe biomethane market.

WILMINGTON, DE, UNITED STATES, August 20, 2025 /EINPresswire.com/ -- The Europe biomethane market, valued at USD 2.9 Bn in 2024, is projected to reach USD 6.1 Bn by 2035, growing at a CAGR of 7.0% from 2025 to 2035. This growth is fueled by rising demand for renewable energy, supportive government policies, and increasing adoption of biomethane as a sustainable alternative in power generation, transportation, and industrial applications.

The Europe biomethane sector is growing due to conducive policies, decarbonization targets, and adoption of a circular economy. Biomethane uses include power generation, domestic heating, industrial processes, and increasingly as a green fuel for transport and gas grid injection.

Government regulations imposed by the EU Green Deal, Renewable Energy Directive (RED II), and Fit for 55 program are driving biomethane uptake through feed-in tariffs, subsidization, and renewable gas blending mandates. Industry leaders such as Engie, Gasum, and Veolia are increasing production through investments in infrastructure, tie-ups with waste management companies, and cross-border partnerships.

𝗗𝗶𝘃𝗲 𝗗𝗲𝗲𝗽𝗲𝗿 𝗶𝗻𝘁𝗼 𝗗𝗮𝘁𝗮: 𝗚𝗲𝘁 𝗬𝗼𝘂𝗿 𝗜𝗻-𝗗𝗲𝗽𝘁𝗵 𝗦𝗮𝗺𝗽𝗹𝗲 𝗡𝗼𝘄! https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=84843

In Europe, biomethane is being used increasingly for the production of electricity, space heating in households, industry, and as a green fuel for transport. Biomethane can also be fed directly into the natural gas grid. As a source of clean energy, biomethane helps achieve decarbonization objectives and waste management strategies and is, therefore, an essential part of the shift to a circular and low-carbon economy in Europe.

𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝗲𝗴𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻

𝗙𝗲𝗲𝗱𝘀𝘁𝗼𝗰𝗸

Organic Household Waste
Animal Manure
Energy Crops
Agricultural Waste
Sewage Sludge
Industrial Food Processing Waste
Others

𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗠𝗲𝘁𝗵𝗼𝗱𝗼𝗹𝗼𝗴𝘆

Fermentation
Gasification

𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻

Transport
Power Generation
Heat Generation

By Region: Europe is the dominant region in the global biomethane market, driven by stringent environmental regulations, government incentives, and a well-established gas grid infrastructure.

France: Has recently overtaken Germany as the leading biomethane producer, with a higher production share and more plants.
Germany: Remains a major player with an established biogas infrastructure, strong government incentives, and a clear regulatory framework.
Denmark: Stands out with a high average plant capacity despite a lower number of installations.
Italy, Spain, and the UK: Are also significant contributors to regional growth, with substantial planned investments.

𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝗿𝗶𝘃𝗲𝗿𝘀 𝗮𝗻𝗱 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀

𝗗𝗿𝗶𝘃𝗲𝗿𝘀:

Conducive EU Policies and Decarbonization Targets: The EU Green Deal, Renewable Energy Directive (RED II & RED III), and the REPowerEU plan, which sets an ambitious target of 35 bcm of biomethane production by 2030, are key drivers. These policies provide a clear signal to investors and policymakers, encouraging the expansion of the sector.

Energy Security and Diversification: The push for energy security, particularly in light of geopolitical tensions, has accelerated the adoption of domestically produced biomethane to reduce reliance on imported fossil fuels.

Circular Economy and Waste Management: Biomethane production provides a dual benefit of converting waste into a valuable energy source while producing a low-carbon bio-fertilizer, supporting the transition to a circular economy.

Technological Advancements: Continuous improvements in anaerobic digestion and biogas upgrading technologies, such as advanced membrane systems, are improving efficiency and lowering production costs.

𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀:

High Capital Costs: The initial investment required for a full-scale biomethane facility can be a significant barrier for smaller players.

Regulatory and Permitting Hurdles: The complex and sometimes inconsistent regulatory landscape across different EU member states can be time-consuming and costly.

Uncertainty in Long-Term Pricing and Subsidies: Despite strong policy support, fluctuations in natural gas prices and a lack of long-term certainty regarding subsidies can create financial risks for investors.

Feedstock Supply Fluctuations: The availability of organic waste materials can be subject to seasonal and external factors, posing a challenge to maintaining a consistent and reliable production process.

𝗠𝗮𝗿𝗸𝗲𝘁 𝗧𝗿𝗲𝗻𝗱𝘀

Growing Number of Plants: The number of operational biomethane plants in Europe is consistently increasing, reaching 1,678 by June 2025.

Increased Investor Confidence: The sector is witnessing a rising commitment from the industry, with significant private investment earmarked for new projects.

Shift Towards Waste-Based Feedstocks: Producers are increasingly moving away from purpose-grown energy crops towards using waste products like manure, agricultural residues, and organic food waste.

Focus on Grid Injection and Transport Fuel: A key trend is the rapid expansion of biomethane injection into natural gas grids and its growing use as Bio-CNG and Bio-LNG in the transport sector.

Emergence of Bio-CO2 Market: The production of biomethane also yields biogenic CO2 as a co-product, which is being increasingly utilized in the food and drinks sector, creating an additional revenue stream and strengthening the circular economy model.

𝗙𝘂𝘁𝘂𝗿𝗲 𝗢𝘂𝘁𝗹𝗼𝗼𝗸

The future of the European biomethane market is promising, with a clear trajectory for significant growth. The REPowerEU target of 35 bcm by 2030 provides a strong policy foundation, and continued investment and technological innovation are expected to drive the market forward. The long-term potential for biomethane is immense, with estimates suggesting production could reach 165 bcm by 2050, representing a significant portion of Europe's forecasted gas demand. Key to realizing this potential will be addressing the existing challenges, particularly by harmonizing regulatory frameworks, streamlining permitting processes, and ensuring long-term policy certainty to attract sustained investment.

𝗕𝘂𝘆 𝘁𝗵𝗶𝘀 𝗣𝗿𝗲𝗺𝗶𝘂𝗺 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 𝗥𝗲𝗽𝗼𝗿𝘁: https://www.transparencymarketresearch.com/checkout.php?rep_id=84843&ltype=S

𝗞𝗲𝘆 𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝘁𝘂𝗱𝘆 𝗣𝗼𝗶𝗻𝘁𝘀
Market Value: Global market size, European market share, and regional contributions.

CAGR: Projected growth rate for the 2025-2035 period.

Production Capacity: Current and forecasted biomethane production volumes in Europe.

Feedstock Analysis: Dominant and emerging feedstock types for production.

Application Analysis: Market share of transport, power generation, and other applications.

Competitive Landscape: Key market players, their strategies, and recent developments.

Policy and Regulatory Framework: Impact of EU and national policies on market growth.

𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗟𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲

The European biomethane market is highly fragmented, with a mix of specialized renewable gas producers and major energy companies. Key players are engaged in both organic and inorganic growth strategies to solidify their market position. Prominent companies in the European market include:

Nature Energy Biogas A/S (Denmark)
Gasum (Finland)
Air Liquide (France)
EnviTec Biogas AG (Germany)
Future Biogas Limited (UK)
VERBIO Vereinigte Bioenergie AG (Germany)
TotalEnergies (France)
Engie SA (France)
Waga Energy (France)

𝗥𝗲𝗰𝗲𝗻𝘁 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁𝘀

The publication of the European Biomethane Map 2025 by the EBA and Gas Infrastructure Europe (GIE) showed a steady increase in the number of operational plants.

A recent EBA study revealed that while investor confidence remains strong, the pace of biomethane growth has slowed, highlighting the need for stronger policy direction to meet the REPowerEU targets.

Significant investments are being announced across the continent, particularly in countries like Spain, Denmark, the UK, and France.

Collaborations between waste producers and biogas plants are becoming more common, creating circular economy models where waste is converted into energy and other valuable co-products.

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𝗔𝗯𝗼𝘂𝘁 𝗧𝗿𝗮𝗻𝘀𝗽𝗮𝗿𝗲𝗻𝗰𝘆 𝗠𝗮𝗿𝗸𝗲𝘁 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵

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