How to Profit from Biogas Market Developments


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Biogas is increasingly viewed as a viable alternative to both traditional as well as other renewable forms of existing transportation fuel, from gasoline and diesel to ethanol and biodiesel. A company with the right expertise and timing can capture it’s share of the billions that are invested in the infrastructure in the coming years.

Where do the greatest market opportunities lie? Which technologies will be utilized in different regions? Which new players are entering the biogas market? The answers are all in this GIA white paper.

This presentation shows selected slides from a GIA white paper. To download the entire white paper that you are interested in, please visit

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How to Profit from Biogas Market Developments

  1. 1. How to Profit from Biogas Market Developments GIA Industries White Paper June 2010 Global Intelligence Alliance©2010. All rights reserved. Contact:
  2. 2. Table of contents This contains excerpts from GIA’s “How to Profit from Biogas Market Developments” White Paper. For the free white paper, please visit or email Executive Summary 5 Global Outlook 8 Market Characteristics – Europe 16 Market Characteristics – USA, Asia Pacific Not included here Conclusions Not included here Appendix Not included here 2
  3. 3. Introduction •  The global megatrends such as climate change are driving the increased adoption of renewable energy sources in general, whereas the price volatility, supply issues and environmental hazards of fossil fuel production are about to accelerate the pace in the investments of non-fossil fuels production in particular. •  Biogas, the most sustainable of biofuels, is in a starting point of an exponential market growth curve. •  This paper will cover the latest developments and future scenarios of the rapidly developing biogas business, starting with a global outlook and going through special market characteristics of Europe, USA and Asia Pacific.
  4. 4. Concepts and abbreviations Anaerobic Digestion Anaerobic metabolic processes caused through microbial enzymatic activities AD Anaerobic digester. An istallation to produce biogas with anaerobic digestion of organic material Biogas A combination of methane, CO2 and trace gases released during anaerobic digestion Distributed Generation Generating electricity from many small sources WWTF Wastewater treatment facility FIT Feed in tariffs 4
  5. 5. Executive Summary
  6. 6. Executive Summary A company with the right expertise and timing can capture it’s share of the billions that are invested in the infrastructure in the coming years Primary profiteers of biogas industry growth Under an optimistic •  Anaerobic digester providers, especially those in Asia today scenario, the 2 Billion •  Biogas condensation and upgrade technology developers EUR plant installations •  Centralized and specialized plants producing, utilizing and business to grow up to 25 distributing biogas Billion by 2020. Secondary profiteers Global suppliers to profit out •  Suppliers of power plants and process equipment of increased demand for •  Maintenance, service and certification businesses components, services and •  Companies specialized in environmental management chemicals •  Chemical companies developing the production yield and efficiency 6
  7. 7. Executive Summary As a global trend, the larger sites will improve the efficiency of power generation, profitability of biogas upgrade and the utilization of by-products “Laws similar to German model have lead to growth in other markets as well.” Andrea Horbelt, European Biogas Association The US market to European Asia will be the provide innovative companies and main growth area, applications and technologies will be installing basic sites new business the ones to watch on WWTF’s and models between 2010-2015 landfills “Price volatility of gas and oil will be the main drivers for the biogas industry; a sufficient price increase of gas and oil will make biogas profitable everywhere!” Kim Söderman, Finnish Biogas Association
  8. 8. Global Outlook
  9. 9. Global megatrends drive the biogas growth Biogas industry growth Unevitable end of Climate change Increased utilization fossil oil and gas of technology 9
  10. 10. Biogas – what’s in it for me? (1/2) A chance to reduce both organic methane and fossile CO2 in the atmosphere Global Greenhouse Gas Emissions CO2 from deforestation etc. 20 % Methane, key component of A chance to biogas is 21 times a more profit out of Methane powerful greenhouse gas than emissions trade 14 % carbon credits CO2 . During the incineration CO2 from fossil Nitrous and government fuels 57 % of biogas, methane is turned oxide 8 % subsidies into CO2 and water, thus Others 1% reducing the negative impact to the climate. Source: US Environmental Protection Agency 10
  11. 11. Biogas – what’s in it for me? (2/2) A chance to reduce both organic methane and fossile CO2 in the atmosphere Global Primary Energy Production Solid fossil fuels A ready-to-use, Due to the identical 25 % economically chemical composition Natural sustainable source (methane) upgraded biogas Gas of energy and a an be used as an alternative 23 % superior second Oil 37% to all existing natural gas generation Nuclear 6% applications transportation fuel! Renewables, hydro and other 9 % “Biogas has better yield per Ha than ethanol or biodiesel, making it the most sustainable of biofuels.” Source: US Environmental Protection Agency Kim Söderman, Finnish Biogas Association 11
  12. 12. Agriculture shows greatest potential in biogas 75 %* of the biogas potential is in the 17%* in municipal 8%* in sewage anaerobic digestion of agricultural crops, by- and industrial WWTF’s products and manure organic waste * The higher utilization rate of farmland as an energy resource could increase the share of manure, agricultural crops and by-products to 85%, leaving organic waste a 10% and WWTF’s a 5% share Source: Biomass Magazine, Global Water Intelligence, American Biogas Council, Frost And Sullivan, European Biomass Association, Eurostat, Iowa State University 12
  13. 13. Current bottleneck of improved biogas utilization is the cost of upgrade technologies Biogas Fed into existing upgrade into equivalent networks / used Agriculture with natural directly as a 75% Anaerobic gas transportation fuel Digestion WWTF 17% Combined heat & Landfill energy 8% Household use To date only 7% of the plants in Germany are feeding the gas directly in the existing natural gas network. 13
  14. 14. Global players to aim at technology and services to secure profit & positive image Reproducable technologies and services for Drivers and constraints locally operating biogas producers: •  Improvement of solid waste and sewage •  Climate change treatment processes •  The end of fossil oil and gas •  Process development of anaerobic digestion •  Increased utilization of technology •  Technolology for the production of heat and energy out of biogas •  Lack of long term subsidies •  Upgrade of biogas to suit existing natural gas •  ”Food to energy” in applications developing countries •  Installations to extract chemicals such as CO2 •  “No in my backyard” effect •  Condensation of upgraded biogas into liquid biogas 14
  15. 15. With many potential routes to market, where do companies target limited resources? Raw Upstream Biogas Biogas Downstream End User Materials Logistics Production Upgrade Logistics Improvement of solid Process development of Technology for the waste and sewage anaerobic digestion: production of heat and 1 treatment processes: 2 3 energy out of biogas: Where does it take place Is there a technology jump What size of power plants today? in sight? is required? Upgrade of biogas to suit Installations to extract Condensation of existing natural gas chemicals such as CO2: upgraded biogas into 4 applications: 5 6 liquid biogas: Will there be biogas Is this a business Who to profit out of higher refineries? opportunity? energy concentration? 15
  16. 16. Market Characteristics Europe
  17. 17. The EU-wide targets to fight the climate change and the existing infrastructure boost the business •  A target to reduce greenhouse gases by •  Arable land available 20% by 2020 also for non-food plants •  Transportation fuels Biogas capacity need to be blended with worth over 2 •  High tech industry renewables at an modern nuclear players in energy, accelerated rate power plants chemistry and automotive industry •  The initiatives are implemented through •  A well-established national legislation natural gas network EU Targets Infrastructure 17
  18. 18. Germany, the biogas market leader, runs half of Europe’s 9,000 biogas plants •  Most of the gas is currently produced by independent Key outcomes of the German model farmers out of biomass 1.  Process know-how & global players in the •  A feed-in tariff (FIT) ensures a biogas plant installations market eg. Envitec reasonable payback time for Biogas, Schmack Biogas and Biogas Nord investments (4-5 years) 2.  The rural areas have a new source of •  Existing natural gas network income and jobs as the profitability of the accepts upgraded biogas agriculture in general is decreasing 3.  Other European countries are starting to •  Larger, more centralized copy the German model sites are being built •  Biogas as a transportation fuel is tax free Source: Biomass Magazine 18
  19. 19. Subsidies and country-specific strategies Sweden: Innovation FIT’s exist in most EU countries - their •  Community buses efficiency is rated 7 times higher to increasingly using biogas other government support •  Liquid biogas to enable long distance + Second generation biofuels such as transportation •  Technologies to extract chemicals out of biogas ethanol and biodiesel are blended with fossil fuels. The existing fuel distribution infrastructure supports Poland today is liquid fuels over gas. “Germany in 1990” •  Limited biogas production •  Excessive food production and wealthy resources of arable land The utilization of biogas as a •  Good infrastructure and an existing transportation fuel is neglected natural gas network in place •  A need to find alternatives for imported natural gas Source: Biocycle, Biomass Magazine 19
  20. 20. A bright future for European high tech players The market in Europe to The scope in the More countries business to shift from grow at a two-digit rate. adopt biogas in power generation to transportation gas and chemicals The main growth will take place in refinery projects and >1MW power plants. Price of fossil fuels Plants grow and increases while biogas centralize upgrade gets cheaper The share of exports will increase from the current 10 -15%. Development of New players equipment, enter market enzymes, chemicals and know-how Source: Global Water Intelligence, Helmut Kaiser Consultancy 20
  21. 21. Country trends highlighted by industry experts “There’s a biogas boom in the UK. Poland and Ukraine (non-EU) are showing growth. Swedish market is interesting due to innovations. “Italy is a possible growing market in Germany potentially to replace 10-20% of regards of biogas utilization in natural gas with biogas.” transportation, Sweden as well – Jukka Rintala, Jyväskylä University City buses running on natural gas. UK, France, Spain & Italy adopting parts of the German model.” Andrea Horbelt, European Biogas Association “Poland has lot’s of plans and potential but so far not that much action. Denmark and Norway are rising, so is Sweden, at a high level.” Kim Söderman, Finnish Biogas Association Source: GIA Survey 21
  22. 22. Thank You for Your Attention These slides are excerpts from Contact Us the GIA White Paper: “How to Profit from Biogas Market For additional information about the Developments”. Global Intelligence Alliance and our services, please send email to or log on Download the entire White Paper to the GIA website for the contact information of the GIA company for Free nearest to you. The report has been published under the GIA White Paper series at
  23. 23. About GIA
  24. 24. GIA is a strategic market Intelligence and advisory group Global Intelligence Alliance (GIA) was formed in 1995 when a team of market intelligence specialists, management consultants, industry analysts and technology experts came together to build a powerful suite of customized solutions ranging from outsourced market monitoring services and software, to strategic analysis and advisory. Today, we are the preferred partner for organizations seeking to understand, compete and grow in international markets. Our industry expertise and coverage of over 100 countries enables our customers to make better informed decisions worldwide.
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