Biogas Plant Market Trends

Growth Drivers

• Rising demand for renewable energy: Governments and companies across the globe are shifting from fossil fuels toward renewable energy sources in order to meet the national & international climate targets and reduce carbon emissions. This transition, in turn, increases demand in the biogas plant market since they generate clean energy from organic waste. In February 2025, AstraZeneca and Future Biogas announced that they have commissioned the Moor Bioenergy plant in Lincolnshire, which is the UK’s first unsubsidised biomethane facility that is dedicated to life sciences, supplying 100 GWh of renewable energy annually, and is enough to heat over 8,000 homes and offset 18,000 tonnes of CO₂ per year. The project demonstrates the commercial viability of large-scale, unsubsidized biogas projects, encouraging increased investment, the adoption of renewable energy solutions, and the expansion of the biogas sector.
• Sustainable waste management needs: The aspects of urbanization and industrialization are increasing organic waste volumes, wherein these biogas plants provide an efficient method to convert agricultural, municipal, and industrial waste into useful energy and reduce landfill usage. In October 2025, Clarke Energy announced the commissioning of its first-ever membrane-based biogas facility in India, located at a municipal solid waste anaerobic digestion site in Chennai, which will be managed by Srinivas Waste Management Services. It also mentioned that the plant processes biodegradable organic food waste into biogas and soil enhancer, thereby supporting the country’s SATAT bio-CNG initiative to promote renewable fuel from waste. Such projects represent how urban organic waste is being converted into clean energy and the circular economy, creating optimistic opportunities for players in the market.
• Agricultural sector adoption:  The large agricultural operations are major producers of organic residues, i.e., manure and crop waste, which makes biogas a natural fit for decentralized energy generation in rural and farming communities. Based on the government data from the Ministry of Housing & Urban Affairs, in November 2024, the Prime Minister inaugurated India’s first modern, self-sufficient gaushala at Laltipara, Gwalior in October 2024. It consists of a 100 TPD cattle-dung-based compressed biogas plant, which is developed with the Indian Oil Corporation. In addition, the facility converts cow dung and organic waste from local markets and households into 2 to 3 tons of bio-CNG and 10 to 15 tons of organic manure on a daily basis, thereby supporting sustainable energy use and organic farming and benefiting the biogas plant market.

Challenges

• Feedstock availability and supply chain issues: The aspect of reliable and consistent feedstock supply is a major operational challenge for the biogas plant market. The agricultural residues, animal manure, food waste, and organic municipal waste are often geographically dispersed, or poorly segregated, which poses an obstacle for transportation and storage of feedstock add logistical complexity and cost, especially for large-scale plants. Also, any type of variation in feedstock quality can negatively affect gas yield and plant efficiency, leading to unstable output. On the other hand, competition for organic waste from composting, animal feed, or other bioenergy uses can strain the supply. Therefore, without long-term feedstock contracts and efficient waste management systems, the plant operators face uncertainty, which affects both financial stability and scalability.
• Limited market awareness and public acceptance: The absence of proper awareness and misconceptions about biogas technology hampers biogas plant market growth. Also, communities may find biogas plants with foul odors and health risks, leading to public opposition. Similarly, the farmers and small businesses are not completely aware of the economic benefits, such as waste management savings and energy self-sufficiency, which in turn is limiting adoption in this field. In addition, limited understanding among financial institutions increases perceived investment risk. Therefore, the absence of adequate training and outreach programs hinders adoption, especially in rural areas. Improving public education, demonstrating successful projects, and highlighting environmental and economic benefits are highly essential to gaining social acceptance.