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Renewable energy solutions are increasingly recognized as essential tools for tackling environmental concerns. Among the various sources of renewable energy, biogas has emerged as a promising clean energy solution, helping to meet the growing global demand for sustainable power.
In fact, the biogas plant market size is expected to see rapid growth in the next few years, potentially reaching $7.05 billion in 2029 at a compound annual growth rate of 11%. Infrastructure development, circular economy strategies, and a greater focus on waste management all contribute to this growth.
While the advantages of biogas are numerous, it also presents a few challenges that are worth considering.
Keep reading to explore in greater detail the benefits of biogas production, the disadvantages, and the future of biogas.
Key Takeaways
- Farms, food-related companies, and municipalities that convert food waste into energy can divert waste from landfills, promote circular waste strategies, and reduce their environmental footprint—all while advancing their sustainability goals.
- Biogas contributes to a more diversified and resilient energy grid. Once refined into renewable natural gas, it can be injected into existing natural gas pipelines or used directly onsite, enhancing energy security in both rural and urban areas.
- Facilities that generate their own biogas—such as wastewater plants, food processors, and farms—can use their own organic waste to power their equipment, thereby reducing operational costs.
- By converting food waste into biogas and digestate, anaerobic digestion helps neutralize odors and harmful pathogens, making waste handling safer and more manageable—especially for agricultural and food production sites.
The Advantages of Biogas
From waste reduction to energy diversification and lower energy costs, the benefits of biogas are numerous:
1. Renewable and Sustainable Energy Source
Biogas is produced by the breakdown of organic matter such as food waste, agricultural waste, and sewage sludge in a process called anaerobic digestion. The energy potential of biogas production from food waste is huge; with just 100 tons of food waste per day, anaerobic digestion can generate enough energy to power 800 to 1,400 homes each year, thereby reducing dependence on finite fossil fuels.
2. Waste Reduction and Resource Recovery
One of the main benefits of biogas is its role in managing organic waste. By converting food waste into energy, farms, food-related companies, and municipalities alike can divert food from landfills. This not only supports the development of more circular waste strategies but also helps these establishments reduce their environmental footprint and achieve their sustainability goals.
3. Significant Greenhouse Gas Emission Reduction
When used in place of fossil fuels, biogas significantly cuts carbon dioxide and methane emissions. This is extremely important, as food waste in the US generates greenhouse gas emissions equivalent to those of over 50 million gas-powered passenger vehicles. That said, one of the most significant advantages of biogas systems is their ability to capture methane before it enters the atmosphere, thereby reducing greenhouse gas emissions.
4. Energy Diversification and Grid Resilience
Biogas contributes to a more diversified and resilient energy grid. Once refined into renewable natural gas, it can be injected into existing natural gas pipelines or used directly onsite, enhancing energy security in both rural and urban areas. Because biogas can be stored and dispatched when needed, it provides a reliable backup during peak demand or disruptions.
5. Versatile Applications: Heat, Power, Fuel
Biogas can generate electricity, fuel cooking and heating, or be compressed to be used as fuel. That said, flexibility is one of the most notable biogas advantages, enabling it to be used across various industries. This versatility makes it a valuable resource for both urban energy systems and rural applications alike.
6. Digestate: A Valuable Agricultural Byproduct
Anaerobic digestion of food waste produces digestate—a nutrient-rich byproduct left at the end of the process. Digestate is rich in nutrients like nitrogen, phosphorus, and potassium, making it an effective fertilizer that promotes soil health, reduces the need for chemical fertilizers, and supports sustainable farming practices.
7. Lower Energy Costs for Producers
While biogas production requires an initial investment, its potential to lower energy costs offers long-term financial benefits. This is because facilities that generate their own biogas—such as wastewater plants, food processors, and farms—can use their own organic waste to power their equipment, thereby reducing operational costs.
8. Rural Economic Development and Job Creation
Biogas plants, especially in agricultural areas, stimulate local economies by creating jobs in engineering, construction, operations, logistics, and maintenance. On a global scale, renewable energy employment reached 12.7 million in 2021, with liquid biofuels, solid biomass, and biogas accounting for a combined 3.44 million of those jobs.
9. Reduced Odors and Pathogens in Waste Handling
By converting food waste into biogas and digestate, anaerobic digestion helps neutralize odors and harmful pathogens in organic waste. As a result, one of the advantages of biogas technology is its role in making waste handling safer and more manageable, especially for agricultural and food production sites.
10. Eligibility for Carbon Credits and Green Incentives
Did you know that biogas systems often qualify for government subsidies, green energy credits, or carbon offset programs? These incentives are great for organizations and municipalities, as they can help them improve ROI while supporting sustainability goals.
Some Disadvantages of Biogas
While the advantages of biogas are clear, we also have to discuss the disadvantages to make informed decisions about its implementation.
The disadvantages of biogas production include:
1. High Initial Capital Investment
Building a biogas system requires a substantial initial capital investment, especially when it involves gas upgrading systems or electricity generation. Small companies or those with limited resources may not be prepared to make this investment. However, there are waste management companies that businesses can partner with to avoid these initial investment costs.
2. Technical and Operational Complexity
Various factors—such as feedstock mix, temperature, and gas output—must be carefully monitored in an anaerobic digestion system to ensure regulatory compliance, protect public health, and maintain operational efficiency. However, many companies lack the expertise to manage these elements effectively, making guidance from industry professionals essential.
3. Feedstock Availability and Logistics
Long-term and on-site feedstock availability is an essential condition for running bioenergy production facilities and is often the primary cause for the discontinuation or even breakdown of the regular operation of such plants. That said, to maintain steady and successful gas production, companies must consider whether they have a sufficient supply of organic waste.
4. Limited Public Awareness and Policy Support
Increased awareness is one of the first steps toward more widespread adoption. However, biogas still receives low visibility compared to solar or wind, and in many regions, lacks dedicated government incentives. A national survey in Australia, for example, found that lower levels of awareness of biogas were linked to lower social acceptance, highlighting the need to raise public understanding of this renewable energy source.
5. Odor Management and Safety Concerns
While one of the advantages of biogas technology is its ability to reduce odors in organic waste management, a poorly managed biogas system can also produce unpleasant odors. Companies must know how to properly store feedstock and handle digestate to ensure public health and effective odor management.
Biogas Industry Challenges
What challenges are currently limiting the widespread adoption of biogas production?
Let’s take a look:
- Policy and Regulatory Uncertainty: The biogas industry often depends on local, state, or federal incentives, which can vary widely or be discontinued without warning. A recent report identifies the lack of a stable energy policy and the absence of a long-term strategy for the development of renewable energy as key issues, creating uncertainty about the future of the biogas sector.
- Competition with Other Renewables: Biogas must compete in the energy market, where sources like solar and wind often receive greater attention and funding from governments and investors. Even though biogas offers unique benefits like organic waste management and base-load power, this competition often results in it being overshadowed.
- Technology Scaling and R&D Needs: While the advantages of biogas technology are well established, there’s still a lack of research and development in this sector, meaning scaling it efficiently remains a challenge. Smaller digesters may lack access to advanced gas upgrading or automation tools, and many systems still rely on legacy infrastructure.
- Public Awareness and Market Education: As mentioned, limited public awareness remains a major challenge for biogas production, often leading to underinvestment in the sector. Many stakeholders, from municipalities to food manufacturers, may not fully understand how biogas fits into their waste and energy strategy.
The Future of Biogas
The future of biogas is promising, with the global biogas market size expected to grow from USD 140.89 billion in 2025 to USD 191.19 billion by 2032. This growth is driven by several key factors.
To start, biogas and biomethane are increasingly being recognized for their role in decarbonizing parts of the energy system that low-carbon electricity cannot reach. This, in turn, has drawn the attention of governments, helping them better recognize the importance of biogas.
As a result of growing attention from governments, we can expect to see even more policies and market incentives to promote biogas development, including feed-in tariffs, renewable energy certificates, tax incentives, and grants.
Biogas adoption may also rise as more companies and governments turn to it as a solution for achieving their sustainability goals. For instance, the U.S. has set a goal to cut food loss and waste in half by the year 2030, which may encourage the use of biogas production to create biomethane from dairy waste and improve waste disposal in the food industry.
And lastly, new technologies are set to play a major part in the future of biogas production by enhancing efficiency and reducing costs. To read more about emerging technologies for biogas production, read this interesting review here.
Conclusion
The advantages of biogas are numerous: businesses and municipalities that adopt biogas technology can reduce emissions, manage waste more effectively, and diversify their energy mix while contributing to broader environmental and economic resilience. What’s not to love?
At Shapiro, we’re strong supporters of biogas production. We’re currently involved in two major projects, the Kingsbury bioenergy complex and the Linden renewable energy project, both of which we supply feedstock for their anaerobic digesters.
By supporting these projects, we help companies turn food waste into energy, thereby helping them reduce their environmental footprint and achieve their sustainability goals.
If you’re interested in exploring renewable energy solutions, our team will create a custom solution that makes waste management easier than ever.
Contact us today to learn more about our solutions.
Baily Ramsey, an accomplished marketing specialist, brings a unique blend of anthropological insight and marketing finesse to the digital landscape. Specializing in educational content creation, she creates content for various industries, with a particular interest in environmental initiatives.
