Biogas is a “dirty” business because it has everything and anything to do with waste management. In other words, it turns biomass and organic matter, including dung and other types of waste that come from biological sources, into a sustainable source of energy. Dirty, yet lucrative, according to the latest economic studies, biogas is said to become a new frontier of economic progress for the sustainable energy industry.
According to a report from the World Biogas Association (WBA), biogas is growing at breakneck speed. The biogas industry grew at a pace of 19% over the last six years (2017–2022), reaching 445 terawatt hours (TWh) in 2022. Close to half of production came from Europe, and Germany alone accounted for 20%.
There are even more promising signs with the IEA’s Net Zero Scenario predicting a robust growth rate of 32% between 2023 and 2028 for the near future. This forecast is in line with the level of attraction to the industry globally, particularly in biomethane.
“This is a huge milestone for our industry. Not only does the IEA recognize the role our industry can play as a solution to the world’s current economic and environmental crises, but it also anticipates the sector growth rate to accelerate from 19% in 2017-2022 to 32% in 2023-2028,” Charlotte Morton OBE, WBA Chief Executive, said. “The Anaerobic Digestion (AD) sector is particularly well placed to help meet the Global Methane Pledge commitments made by over 150 countries since its launch in 2021. Our research has shown that fully deployed, the biogas and biomethane sector could deliver 50% of the pledge. The IEA’s forecasts and growing commitment from governments indicate that we are on the right path. The sector, however, requires strong policy support to realize multifaceted benefits of AD.”
From an emissions point of view, biogas can boost both rural economic development, since it relies on agricultural biomass for feedstock, and reduces emissions, particularly methane. “The industry celebrates the recognition being given to the biogas sector for its contribution towards a sustainable future and circular economies. Our research shows that when fully deployed Biogas could deliver 50% of the Global Methane Pledge. The role of anaerobic digestion in mitigating methane emissions from agriculture and livestock management, food waste management, and landfills and its impact on 9 of the 17 Sustainable Development Goals are increasingly being recognized. This is putting the sector in a strong position to rapidly produce a net cooling effect, as the world continues long-term CO2 reduction. However, extensive capital mobilization, both in terms of infrastructure and financial incentives and supporting policies is imperative to achieve the growth forecasts made and realize the full potential of the anaerobic digestion industry,” the report by World Biogas Association said.
The World Biogas Association further suggested in the report titled “IEA Forecasts 32% Growth in Coming Years for Biogas Sector” that a key enabler of the growing biogas industry is government policies that support its unlimited potential and yet it will take time for various countries to adapt to using biogas as one of the primary sources of energy. “Due to the diverse nature of the biogas and characteristics of energy systems, countries have significant variations in terms of usage. A large proportion in Europe and the USA are dedicated to heat and electricity closely followed by injection into natural gas grid and road transportation respectively. In comparison India and China see more use in residential, commercial, and public service.”
Job creation has witnessed a significant boost since the rise of the burgeoning biogas industry with the European Biogas Association forecasting production in southern Italy for example to reach 3.1 billion cubic meters of biomethane by 2030, and potential economic impacts estimated at €18-27 billion, possibly creating up to 8,000 new jobs in the sector.
An official report from the International Labour Organization “The economics of biogas” pointed out that on a wider global scale, this industry has the potential for even more job creation as it begins to diversify “The potential of biogas electricity from commercial dung is estimated at 5,000 MW, which could lead to the creation of 950,000 jobs. However, there will be repercussions on the labor market if changes are made to the current low productive use of dung cake making toward higher valued goods, such as electricity.”
Biogas is not only creating amazing opportunities in the energy sector by securing the needs of local markets with relatively simple technology. It has also demonstrated unlimited potential in waste management, a field that the entire developing world needs to focus on to create cleaner and safer urban environments for the next generation.
