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Biogas Market to Witness Steady Growth During the Forecast Period 2020-2030

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5/17/2022

Biogas Market to Witness Steady Growth During the Forecast Period 2020-2030

Climate Change Influencing Adoption of Biogas to Prevent Future Coronavirus-like Outbreaks

Climate change is predicted to influence the occurrence of future coronavirus-like situations. This has led to increased emphasis on the adoption of biogas. Companies in the biogas market are capitalizing on this opportunity, as they are becoming aware about combined impacts of rapid demographics, and societal and technological changes. There is a growing awareness about events such as the World Biogas eFestival, which was organized by the World Biogas Association in May 2020.

Companies in the biogas market are unlocking growth opportunities in developing countries where a significant percentage of the population still relies on traditional firewood for domestic purposes such as cooking fuel. Nepal’s biogas plant, Gandaki Urja Pvt. Ltd., is gaining recognition for distributing compressed biogas to customers in Pokhra.

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High Capital Investment, Explosion Risks Affect Market Growth

The biogas market is estimated to advance at a robust CAGR of 9% during the forecast period. However, the implementation of biogas is met with high capital investment for purchasing and installing biodigester. Stakeholders also need to comply with stringent safety and emission regulations, since the biodigester appears to be at explosion risk. As such, biogas is considered as a safe technology, and the concentration of methane is much less as compared to the LPG (Liquefied Petroleum Gas).

Companies in the biogas market are targeting rural communities to set up plants, as biogas helps in effective management of growing biomass volumes.

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Funding from Public Authorities Encouraging Private Sector Investors to Expand Business

The biogas market is predicted to cross valuation of US$ 10.6 Bn by the end of 2030. Startups and companies are taking keen interest to understand financing and business models for biogas. Funding from public authorities is encouraging private sector investors to have a natural interest in investing in new plants, owing to promising potentials of a profitable economic framework.

It has been found that biogas plants that treat municipal bio-waste are more expensive to run as compared to agricultural biogas plants, since the municipal waste is contaminated with plastics and must be cleared prior to anaerobic digestion. Hence, companies in the biogas market are seeking finance from public authorities with a combination of revenue for the treatment of waste and a revenue for the sale of renewable gas or renewable electricity & heat.

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Multi-gas Measuring Probes Optimize Process of Biomass Conversion

Responding to waste management issues and achieving low greenhouse gas (GHG) emissions are challenging. Companies in the biogas market are taking advantage of this opportunity to develop instruments that contribute to a circular economy. Vaisala Oyj- a Finland-based company that develops environmental and industrial measurement, is gaining recognition for its Vaisala MGP261, which is a multi-gas probe for measuring methane, carbon dioxide, and humidity in demanding environments.

Companies in the biogas market are boosting their R&D capabilities to develop instruments that optimize and monitor the entire process of biomass conversion by responding to changes in gas composition and humidity.

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