As policy makers look for opportunities to simultaneously bolster energy security and economic competitiveness, biogases – locally produced, low-emissions fuels created from organic waste – are seeing fresh momentum, according to a new IEA special report.
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The Outlook for Biogases and Biomethane, out today, finds that over 50 new policies have been introduced to support biogases since 2020 as countries increasingly recognise their benefits. Biogas can be used directly as heat by households and industry and to produce electricity, while biomethane – which is an upgraded form of biogas – has many advantages as a drop-in substitute for natural gas.
The technologies and supply chains required to produce biogases are mature and well known, and they score highly on energy security metrics, the report finds. Biogas and biomethane are produced close to where they are consumed, most of the materials needed tend to be sourced nationally, and they can help provide employment and income for rural communities. Additionally, biogases are dispatchable sources of power, which can help balance supply and demand, and biomethane can be used without any major modifications to existing gas infrastructure.
To understand the full potential for biogases globally, the IEA conducted a first-of-its-kind spatial analysis of over 5 million locations worldwide. It found that biogas production could reach the equivalent of nearly 1 trillion cubic metres of natural gas each year from feedstocks that can be considered sustainable – such as wastes and residues that can be processed with existing technologies and do not compete with food systems, for instance. This volume corresponds to a quarter of the world’s annual demand for natural gas today.
However, biogas and biomethane still play a relatively minor role in the global energy mix. While human activities generate billions of tonnes of organic waste annually, less than 5% of potential sustainable feedstock is currently being used for biogas and biomethane production.
"This report and its innovative analysis make clear that biogas and biomethane could play a much larger role in the world energy system – especially at a time when energy security and local production are top of mind for many governments," said IEA Executive Director Fatih Birol. "The potential is particularly significant in emerging and developing economies, which are home to almost 80% of feedstocks that could be used to sustainably produce biogases. Our report highlights the additional actions that can allow policy makers to make full use of this valuable energy resource."
Numerous regulatory and economic barriers hold back biogas uptake today. On average, it takes two to five years to develop a project in the sector, but in some cases, it can take up to seven years just to secure the necessary permits. And although the underlying technologies have been around for years, biomethane production costs remain significantly above those for natural gas in many markets. According to the report, achieving widespread cost competitiveness would require targeted policy support or carbon dioxide (CO2) pricing, for example.
Even so, the report’s analysis finds that five times the current level of biomethane production globally could be developed at a cost equal to or lower than prevailing wholesale natural gas prices. And the competitiveness of biogases greatly improves when policies recognise the numerous co-benefits, such as avoided methane emissions from the agricultural sector and byproducts from production that can be used as sustainable fertiliser.
Alongside the report – which builds upon previous IEA analysis on this topic published in 2020 – the IEA has released an interactive mapping tool that allows users to visualise the potential of biogases globally, as well as a series of fact sheets showing the types and quantities of feedstocks available in key regions.
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