Biomethane Market Report 2026

The biomethane market size has grown strongly in recent years. It will grow from $4.04 billion in 2025 to $4.27 billion in 2026 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to availability of organic waste, anaerobic digestion adoption, government renewable gas incentives, landfill gas recovery projects, agricultural waste management.

The biomethane market size is expected to see strong growth in the next few years. It will grow to $5.33 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to decarbonization targets, demand for renewable transport fuels, expansion of gas grid infrastructure, investments in bioenergy projects, stricter emission regulations. Major trends in the forecast period include rising use of biomethane as vehicle fuel, expansion of grid injection projects, growing adoption in industrial heating, increased utilization of agricultural waste feedstock, focus on carbon neutral energy solutions.

The growing preference for clean and green fuels is expected to drive the expansion of the biomethane market in the coming years. Clean and green fuels are environmentally friendly and sustainable energy sources that emit minimal pollutants or greenhouse gases during production and use. Demand for these fuels is rising as they offer a sustainable alternative to conventional fossil fuels. Biomethane, as a clean energy source, provides multiple benefits aligned with environmental sustainability, economic growth, and social well-being. For example, in June 2025, the U.S. Energy Information Administration (EIA) reported that renewable energy consumption increased by 5% to reach a record 8.6 quadrillion British thermal units (quads) in 2024, largely driven by growth in biofuels, wind, and solar. Therefore, the increasing preference for clean and green fuels is fueling the growth of the biomethane market.

Key players within the biomethane market are intensifying their focus on establishing new biomethane production facilities to enhance profitability and market presence. Biomethane production facilities are installations engineered for the generation of biomethane, a renewable natural gas derived from organic materials, typically through processes such as anaerobic digestion or other biological methods. For example, in September 2023, CycleO Group Limited, a UK-based biomethane production company, unveiled the first biomethane plant with ammonia stripping in Spain. This facility is designed to convert manure into sustainable ammonium nitrate and sulfate, serving as viable fertilizers. With a maximum production capacity of 15,000 MWh per year, this plant represents CycleØ's second operational installation in Spain and the company's inaugural fully developed, owned, built, and operated facility in the country. The implementation of this plant is poised to mitigate nitrate pollution and emissions at the local farm, thereby showcasing the commitment of biomethane producers towards environmental stewardship and sustainable development.

In September 2023, Engie SA, a utility company based in France, successfully acquired Ixora Energy Ltd. for an undisclosed sum. This strategic move enhances ENGIE's biomethane presence in Europe, incorporating three new production units located in Devon and Somerset. Together, these units contribute to the generation of approximately 160 GWh per year of biomethane. Ixora Energy Ltd., headquartered in the UK, specializes in biomethane production. The acquisition aligns with ENGIE's commitment to expanding its sustainable energy portfolio and strengthening its position in the biomethane sector.

Major companies operating in the biomethane market are E.ON SE, Air Liquide S.A, The Southern California Gas Company, VERBIO SE, Société Générale de Surveillance, Veolia Group, Envitec Biogas AG, Orbital Gas Systems, Future Biogas Ltd., Green Gas International, ETW Energietechnik GmbH, Biokraft International AB, Gasrec Ltd, PlanET Biogas Global GmbH, CNG Services Ltd., Biogas Products Ltd., Nature Energy, Landwärme GmbH, AB HOLDING SPA, ENVO Group, Cryon Purr, Schmack Carbotech GmbH.

Europe was the largest region in the biomethane market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the biomethane market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biomethane market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biomethane market consists of sales of biogasoline, bio-compressed natural gas (bio-CNG), and fertilizer. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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