European Anaerobic Digestion (AD) and Biogas Production Growth Opportunities

Several European countries, including Germany, the United Kingdom, and Denmark, are at the forefront of leveraging the potential of biogas produced through the anaerobic digestion (AD) of energy crops, agricultural waste, organic waste, and sewage sludge. Subsidies and incentives are the key growth drivers. As part of its Net Zero by 2050 Strategy, the EU has legislated, or introduced, policies to improve the share of renewables in the energy and transportation sectors. The Renewable Energy Directive II (RED II) has set a target of a 32% renewables share in the final energy consumption by 2030 and a 14% renewables share in the energy mix for the transport sector. Other directives, such as the Landfill Directive, aim to reduce the landfilling of waste to 10% of the total waste generated, encouraging the recycling and reuse and the diversion of organic waste to AD or composting. The Global Methane Pledge, led by the EU and the United States, targets methane emission reduction by 30%. All the above policies, targets, and directives drive new investments into AD and biogas production.

Fresh impetus for even faster growth came through the REPowerEU plan that was implemented as a response to reduce dependence on imported fossil fuels, especially from Russia, due to the Russo-Ukrainian War. The plan has set an ambitious target of increasing the current production of biomethane to 35 bcm by 2030. The disruption in gas prices that has impacted the economy has further reinforced the need for biogas as a reliable alternative to fossil fuel-based natural gas. Most countries have set individual targets to increase the local production of biogas. In the past, energy crops were used as feedstock due to their biogas yield, but now, organic waste and agricultural waste (including livestock manure) are considered more sustainable; they facilitate a circular economy and are highly reliable sources due to their ready availability. The growth in the production of biogas is expected to decrease the cost of production by up to 20% during the forecast period. The market is set to grow to $53.69 billion by 2030 at a compound annual growth rate (CAGR) of 8.8% from 2021 to 2030.

The geographic scope of the study is as follows:

The United Kingdom; Germany; France; Denmark; Italy; and RoE (Nordics (Sweden, Finland, and Norway); Benelux (Belgium, the Netherlands, and Luxembourg); Ireland; Iberia; the Alpine countries (Austria and Switzerland); Greece; Poland; the Czech Republic; Slovakia; Latvia; Lithuania; Bulgaria; Estonia; Moldova; Hungary; and Romania)

The study does not include Russia, Ukraine, Belarus, Turkey, Bosnia and Herzegovina, Albania, Serbia, Croatia, and the Caucasus countries.

Key Issues Addressed:

• The study answers these key questions:
• What is the current market situation and what is the forecast market growth rate?
• Which factors are influencing market growth, and to what extent are they likely to have an impact?
• Which companies offer AD technology/equipment solutions, and who are the leading turnkey solution providers in Europe?
• What are the key growth opportunities, and what recommendations does Frost & Sullivan propose to AD and biogas production companies to leverage these opportunities?