6 Biogas Trends to Watch in 2025

2025 is poised to be a year of significant development in the global biogas industry. Governments, companies, and citizens worldwide are showing more interest in the economic and environmental potential of this renewable fuel source.

Biogas technology, production, infrastructure development, and support from public and private organizations have steadily increased for over a decade. However, a combination of separate but closely related advancements shows promise of accelerating progress rapidly.

Though biogas and its applications get less of a spotlight than more well-known green energy sources, it’s no less essential to achieving a net-zero future.

Continue on to see the top six trends energy experts are watching in 2025.

1. Expansion of Biomethane Production

No matter how you measure it, biomethane production is on the rise.

Biomethane—also known as renewable natural gas (RNG)—is the refined form of raw biogas. It’s chemically identical to methane sourced from fossil fuels, allowing it to be injected into existing natural gas infrastructure.

The European Union (EU) and its member countries have made strides in advancing biomethane production. Of the EU countries, France is expected to surpass Germany and become the top biomethane producer worldwide in 2025.

The most recent report from the European Biogas Association (EBA) counts 1,510 biomethane plants across Europe, with overall biogas production having soared to 234 terawatt hours (TWh) or 22 billion cubic meters (BCM). This promising growth trend is still on the rise.

Closer to home, American Biogas Council Executive Director Patrick Serfass shared in a February press briefing, “We are seeing accelerated growth in new facilities, in biogas capacity, and likewise in investments, with 2024 being a record-breaking year with 125 new facilities.”

Experts expect these trends toward increased biomethane production to improve the energy source’s availability and spur further investments.

2. Growth in the Biogas Market

The above-mentioned production growth trends can partly be attributed to massive investment, innovation, and market expansion. Data aggregators and biogas associations lend data insights to measure these trends.

The Business Research Company’s biogas plant market forecast for 2025-2034 estimates the industry’s current global value at $4.2 billion—predicting an increase to $4.64 billion in 2025 and $7.05 billion by 2029.

The International Energy Agency (IEA) makes similarly optimistic predictions. One model estimates a biogas sector growth rate of up to 32% (from 2023 to 2028), citing consistent year-over-year growth trends.

The American Biogas Council reports that the thousands of biogas production sites across every state represent $37.5 billion in capital investment. These investments grew the national biogas industry by 40% from 2023-2024, and there’s still abundant potential for further growth. The council identified over 15,000 American farms and waste management facilities ripe for new developments, with the benefits of full capitalization including:

• 103 billion kWh of electricity production annually.
• Eliminating emissions equal to 117 million passenger vehicles.
• Catalyzing $45 billion in investments and 374,000 short-term jobs for construction.

With proof-of-concept firmly established and considerable room to grow, the question isn’t if the market will expand but by how much.

3. Advances in Biogas Upgrading Technology

Biogas industry growth is partially driven by recent innovation and expansion in upgrading technology—the equipment that refines raw biogas into pipeline-quality RNG.

Depending on the process referenced, recent advancements have boosted biomethane yield by 25-190%. These system-efficiency improvements will also improve the cost-efficiency of biomethane and accelerate its roll-out.

The current star of biogas upgrading for the foreseeable future is absorption (introducing solutions that remove contaminants while leaving methane behind). Other notable mentions include cryogenic separation, vacuum pressure swing adsorption (VPSA), and membrane separation.

According to BCC Research, “The global market for biogas upgrading equipment is estimated to increase from $1.4 billion in 2022 to $3.8 billion by 2027,” a compound annual growth rate of 21.1%.

Besides the economic growth potential, biogas upgrading technology is crucial for the renewable energy source to achieve wider-scale adoption. While raw biogas can be used for heat or electricity in some systems, its impurities must be removed to fulfill all natural gas use cases. In short, biogas upgrading is a foundational segment of the industry.

Major recent shows of support for continued technological advancement include:

• India’s 2023 G20 Summit emphasizing biogas upgrading and proposing a biofuel alliance.
• Increased popularity of the “circular economy” concept for converting waste into value.
• Many countries experimenting successfully with biogas capture in waste management.

With all trends pointing to continued growth in the biogas industry, upgrading technology is expected to play a pivotal role in the market’s development.

4. Increased Use of Biogas in Transportation

Trends show biofuel use increasing across transportation sectors in regions where it’s available.

Biofuel plays a critical role in decarbonizing transportation due to limited low-emission alternatives. With the same characteristics as non-renewable natural gas, biogas is capable of abating less sustainable sources of CNG and LNG fuel.

If current biofuel growth trends continue, the IEA expects global demand to “expand 38 billion litres over 2023-2028, a near 30% increase from the last five-year period.”

Note that demand is strongly skewed based on availability. The majority of biofuel is concentrated in a relatively small collection of countries. However, as biofuel production, technology, and infrastructure expand, its effects will ripple throughout neighboring economies.

Experts expect biogas to become even more widely used as its price continues its steady drop—which is expected to quicken following the aforementioned increases in production, market size, and technological efficiency. As costs fall, more public and private entities alike will have more financially feasible access to biogas solutions.

5. Stronger Policy and Government Incentives

Climate-invested governments around the world are pushing noticeably harder for biogas development. Among the EU, a flurry of new policies have been implemented following the Renewable Energy Directive, a legally binding agreement to achieve 32% renewable energy by 2030. This directive required member countries to submit National Energy and Climate Plans (NECPs) on how they plan to reach this milestone, spurring even more new policies.

Though the Renewable Energy Directive kicked off some years ago, many of the EU’s biogas advancements in 2025 are the direct result of this international agreement.

China and India have also independently pledged goals to transition from fossil fuels to sustainable biogas alternatives. Though they’ve taken different approaches, both countries show notable progress.

For example, India’s Ministry of Petroleum and Natural Gas recently mandated mixing biogas with conventional natural gas. Meanwhile, China has implemented various green energy subsidies and tax incentives.

The U.S. has seen a number of recent federal and state policies forwarding biogas implementation nationwide, including:

• the federal renewable fuel standard (RFS) program.
• expansions of renewable energy incentives to include biogas.
• the Department of Energy (DOE) Net Zero Energy Building policy.
• the California Air Resources Board’s Low Carbon Fuel Standard.

This regulatory support is crucial for quickening the transition to net-zero energy by incentivizing further investments.

6. Integration with Renewable Energy Grids

As all the aforementioned progress continues rolling out, one of biogas’ most exciting prospects is its integration into energy systems of all sizes. Biogas production is highly scalable and can be implemented by individual farms and industrial plants or entire municipalities.

Expect to see growing uses of biogas in combined heat and power (CHP) systems in 2025. These high-efficiency solutions can capture the heat produced through the biogas treatment process for localized heat and energy production.

At the government level, the most popular biogas solutions are those that redirect and convert waste into biofuel. Common examples include landfill methane capture and agricultural/industrial waste treatment. These systems convert pollutants into energy using anaerobic digestion—the natural process that produces biogas.

With a digester, any source of methane emissions or biodegradable compounds is feedstock. Digesters also produce nutrient-digestate that can be used for fertilizer. These innovative systems are popular solutions for converting waste into value, completing the circular economy.

The rise in power-to-gas projects will also give biogas a central role in stabilizing sustainable power grids. One of the major downfalls of green energies like solar and wind is their intermittent nature combined with the challenges of electric energy storage.

These flexible biogas applications mean that rural and urban communities alike can benefit from biogas transitions. Besides enjoying clean and affordable energy, these systems also reduce odors and improve air quality locally.

While biogas is independently useful, its synergies with other energy systems is what makes it a key trend in 2025 and beyond.

The Future of Biogas is Here

Humanity’s active harnessing of biogas dates back hundreds of years, but 2025 is shaping up to be a monumental year for upscaling efforts. Countries, companies, and people around the world are rallying behind biogas as a core piece in the net-zero energy puzzle.

If you’re ready to make your own sustainability shift, accessible solutions are within your reach!

FASTECH is the leader in end-to-end biogas infrastructure solutions—with expertise in engineering, procurement, construction, and maintenance (EPC+M) and all the compliance in between.

If you’re ready to step into a sustainable future, your consultation is just a click away.