Global Biogas Plants Market to Reach $8.98 Billion by 2017

The Global Biogas Plants Market is to Reach $8.98 Billion by 2017, according to New Report by Global Industry Analysts, Inc. -

Biogas is a clean gas obtained from biomass, a renewable energy resource derived from food processing wastes, sewage treatment sludge, as well as animal and human excreta. Narrowing cost differential between fossil fuels based electricity generation and biogas energy in recent years has further augmented interest in renewable resources. Today, biogas competes on par with petroleum-based fuels in terms of performance, cost, and other additional benefits such as reduce greenhouse gas (GHG) emissions.

Biogas is primarily used as a fuel for cooking and lighting purposes in various countries, whilst a key motivating factor for development of liquid biofuels is to replace petroleum fuels. Advances in biotechnology, molecular science, and microbiology contributed to enhancements in biogas yields production, which led to the development of commercial biogas plant. Biogas plants can convert energy crops, organic industrial and municipal solid waste, and manure, into efficient fertilizer and reduce the odors associated with traditional manure management. In terms of both consumption and production of biogas, Europe is ahead of the other nations mainly due to increased government regulation for environment friendly initiatives. Although, Europe dominates biogas production, the trend is also catching up fast in countries like Japan, Australia, New Zealand and the US. The Asia-Pacific biogas plants market is displaying strong appetite for growth, thanks to the continuous infrastructure development and business expansion in the region, especially in the emerging markets such as China and India.

The recent worldwide economic recession has not had much impact on the global biogas plants market, as the prospects for such emerging renewable energy technology are stored for future. The growing clamor over cleaner and environmental friendly energy technologies is offering new market opportunities for alternative energy solutions such as biogas. However, biogas plant market is resilient and not immune from the business cycle. Recent turmoil in the global credit markets, and substantial reductions in asset value across business enterprises and households resulted in reduced energy requirements and difficulties in obtaining finance for biogas and other renewable energy projects. This coupled with poorly performing foreign markets and high substrate prices that reached its peak in September 2008, scuttled all previously set targets. At the same time, the cost of natural gas delivered to electric power plants declined in 2009 to nearly half the 2008 level and that coupled with significant expansions of pipelines capacity had cast downward pressure on biogas prices. Government stimulus packages proved to be the silver lining from the downturn in the global economy. Various government policies, in terms of subsidies, incentives and investments by the biopower companies shielded the biogas plants market from the devastating effect of crisis.

As stated by the new market research report, Europe and United States accounts for a lion's share of the global biogas
plants market. Biogas plants market is primarily localized in Europe, with Germany accounting for a major share of the global production and consumption, while the UK, Italy and Spain represent other significant regional markets. While the continued difficult economic scenario is a factor to consider, the industry trends bear out an optimistic assessment, as fundamental market drivers for renewable technologies continue to remain strong. Innovations will continue in processes and feedstocks, while companies, government, and academic institutions pour in funds and expertise to support research and development in the field of renewables.