High potential usage of bio-methane in automotive and power generation sector is significant factor influencing the growth of global biomethane market. The high production effectiveness of bio-methane production is another important factor that adds to benefit of the market growth. This attribute makes it possible for bio-methane to be used as an alternative fuel for heat generation from combined heat, power and electricity production. The developing countries are merely focusing more on renewable and cleaner fuels for production of energy. Production method of bio-methane involves natural breaking down of organic matter in anaerobic surroundings to generate biogas, which can be further purified to form bio-methane. Secondary gas can be used as a vehicle fuel as well as it can also be penetrated into the main gas network to produce green energy.
On the basis of region, global biomethane market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Europe holds largest share of global biomethane market owing to higher rate of adoption of bio-methane as an alternative fuel. In European countries, favorable laws and financial assistance programs for production of bio-methane are also beneficial for growth of biomethane market in the coming year. In addition, most of biogas in the European region is used as a fuel for generation of electricity, or combined heat and power plants, attaining toward the maximum use of heat, and to improve the economics of the biogas plants. Furthermore, in 2017, UK based player Veolia has been assigned for designing and operations of waste to energy-based combine heat and power plant.
In Asia Pacific region, China is the major contributor to regional biomethane market owing to growth of automotive industry. Moreover, in 2016, According to Grantham Research Institute on Climate Change and the Environment, China announced the thirteenth five-year plan (2016-2020) which incorporates on 3,150 large-scale methane and 172 latest waste to energy projects, which incorporates an investment of about USD 7.3 billion. In India, biomethane market offers substantial scope owing to various government initiatives and intensive demand growth. Moreover, in 2017, government has reduced the countervailing duty and basic customs duty charge on balance of systems prepared in biogas, by-product hydrogen and bio-methane.
The global biomethane market is segmented by feedstock, application and production method.
On the basis of feedstock, market is segmented into organic household waste, animal manure, energy crops, agricultural waste, sewage sludge, industrial food processing waste, and others. Among these, agricultural waste is widely used feedstock in the market. Agricultural waste has largest anthropogenic sources of methane present in the atmosphere. These wastes in digesters can turn into biogas as renewable energy, containing at least 50% of methane.
On the basis of application, market is segmented into automotive, power generation and others. The automotive sector is projected to account for major share of the global biomethane market, as automotive sector is accountable for considerable volume of greenhouse gas emissions. Moreover, bio-methane can be used as an automotive fuel which will directly benefit the atmosphere in terms of reduced emissions. Power generation sector is growing substantially owing to distributed generation technology, increase in electricity demand, and global energy security concern.
On the basis of production method, market is segmented into gasification and fermentation. Among these, gasification accounts as a leading production method in the biomethane market owing to environmental benefits, such that it eliminates contact of decaying organic matter in the atmosphere.
Global Biomethane Market Segmentation
By Production method