Unleashing the Potential of Biogas and Biomethane: A Sustainable Energy Breakthrough

NW Gas Association likes to share research by independent organizations from around the world that highlight trends and innovations demonstrating the vital role natural gas plays in our energy future.  Below is a summary of the International Energy Agency's (IEA) latest Outlook for Biogas and Biomethane, published in May 2025.  You can find the report online here: https://www.iea.org/reports/outlook-for-biogas-and-biomethane.

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As the world navigates the twin crises of climate change and energy insecurity, biogases—biogas and upgraded biomethane—are emerging as unsung heroes in the global clean energy transition. The International Energy Agency's (IEA) latest Outlook for Biogas and Biomethane, published in May 2025, presents groundbreaking geospatial analysis, revealing that the sustainable production potential for these gases could cover a quarter of today's global natural gas demand. 

1. Turning Waste into Low-Carbon Energy Biogas, derived from anaerobic digestion of organic residues, can directly fuel heating, electricity generation, and even cleaner cooking. Meanwhile, biomethane—biogas upgraded to pipeline-quality gas—offers a true drop-in substitute for fossil natural gas. This transformation embodies core principles of the circular economy: reducing waste, lowering methane emissions, and improving resource efficiency.

2. Enormous, Untapped Feedstock Resources The IEA's analysis maps over 30 feedstock types—ranging from crop residues, manure, and municipal waste to woody biomass—across more than five million global locations. Emerging economies like Brazil, China, and India account for roughly 80% of this sustainable potential, with India alone capable of meeting its entire natural gas needs via biogas. Among advanced economies, the U.S. leads in feedstock availability.

3. Rising Policy Momentum Since the IEA's 2020 biogas outlook, more than 50 supportive policies have been implemented worldwide. The energy shock of 2022—spurred by elevated natural gas prices—propelled further policy interest and adoption. Consequently, sustainable biogas potential is projected to rise nearly 40% by 2050 while production costs drop by 20%, falling into a competitive range of USD 10–30 per GJ.

4. Pathways to 2050: STEPS vs. SDS The IEA lays out two future scenarios: the Stated Policies Scenario (STEPS), based on current policy trends, and the Sustainable Development Scenario (SDS), aligned with Paris-aligned goals. Both forecast significant increases in biogas use for power, heat, industry, transport, and buildings. In SDS, flexible, low‑carbon biomethane supports renewable electricity growth while enabling clean cooking access—especially in rural areas without reliable grid connections.

5. Environmental Integrity is Paramount The report emphasizes the need to minimize methane leakage across production and upgrading stages. Best practices—such as covered digesters, leak detection systems, and combustion of excess off-gas—are essential. Regulatory frameworks like the EU Renewable Energy Directive and California’s Low‑Carbon Fuel Standard play a key role in ensuring environmental performance.

6. Infrastructure & Investment Needs To fully capitalize on biogas potential, robust gas infrastructure and financing are vital. Presently, global investment in low-emission gas averages just USD 3 billion per year—well short of meeting future demand.

The IEA’s Outlook for Biogas and Biomethane paints a compelling picture: these gases offer a win-win—clean energy, waste valorization, and local economic development. With nearly 1,400 bcme of affordable, sustainable potential by 2050, strategic policy and investment could transform biogases into a cornerstone of global decarbonization efforts. Realizing this promise hinges on aligning infrastructure deployment, regulatory incentives, environmental safeguards, and capital flows. In doing so, biogas and biomethane could move from the shadows to a leading role in the sustainable energy future.