Biogas and Biomethane: A Green Alternative That Could Meet 25% of Global Gas Demand

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International Energy Agency (IEA) Highlights Untapped Energy Potential in Organic Waste

The International Energy Agency (IEA) is drawing attention to the untapped energy potential hidden in organic waste. The agency’s latest report shows that biogas and its refined form—biomethane—could meet as much as one-quarter of the world’s natural gas demand. This represents not only a major opportunity for a sustainable energy transition but also a real boost to energy security, particularly in developing countries.

Back to the Roots: Biogas in the Spotlight of Policymakers
Since 2020, governments around the world have introduced more than 50 new regulations supporting the development of the biogas market. These policies aim not only to increase local renewable energy production but also to stimulate regional economies. Biogas can be used directly for heat and electricity generation, while biomethane—once purified—can fully replace natural gas without the need to upgrade existing infrastructure.

The IEA emphasizes that biogas technologies are mature and can be implemented through short, local supply chains. This translates into lower logistics costs, greater resilience to disruptions, and additional development opportunities for rural areas and small communities. Importantly, biogas is a dispatchable energy source—it can be produced and used when needed, which supports the stability of power systems.

A Trillion Cubic Meters of Energy from Waste
As part of the report, the IEA spatially analyzed more than 5 million locations worldwide. The conclusions are clear: the global potential for biogas production from sustainable sources—such as agricultural waste, municipal waste, and food scraps—reaches up to 1 trillion cubic meters annually, equivalent to 25% of global natural gas consumption.

However, we currently utilize only a fraction of this potential—less than 5% of available resources. Furthermore, 80% of the global biogas potential lies in developing countries, which often struggle with access to clean, stable energy. For these regions, the development of biogas could be a key component of their local energy transition.

Barriers to Overcome
Despite the promising outlook, the biogas sector still faces challenges. The investment process can be lengthy—obtaining necessary permits takes between 2 to 5 years, sometimes even longer. Additionally, the cost of producing biomethane is still higher than that of natural gas, especially without public support.

However, the IEA notes that a fivefold increase in global biomethane production is achievable at costs comparable to wholesale gas prices—particularly when environmental benefits are factored in, such as reduced methane emissions from agriculture and the use of digestate residues as fertilizer.

Source: iea.org

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