Biogases are a hidden solution to many of today’s energy security and sustainability challenges. They turn waste into sustainable, low-emissions fuels. The attraction of biogases lies in the integration of energy, environment, waste and emissions policies and targets. 

Biogas can be used directly as heat by households and industry, and to produce electricity. Biomethane, which is an upgraded form of biogas, is a locally sourced, drop-in substitute for natural gas.  

This report assesses the global potential and costs of developing biogas and biomethane using a first-of-a-kind geospatial analysis. It provides detailed country- and region-specific supply curves for over 30 types of feedstocks through careful mapping of feedstock density and proximity to infrastructure such as roads, electricity grids and gas pipelines. 

• Policy momentum for biogases has grown since the first landmark International Energy Agency (IEA) report in 2020, with more than 50 new policies introduced around the world. High natural gas prices during the height of the global energy crisis in 2022 strengthened interest in the potential for biogases, driving growth in biogas consumption. 

• Today’s sustainable production potential for biogases is nearly 1 000 bcme, equivalent to a quarter of global natural gas demand. By 2050, this increases to nearly 1 400 bcme with average costs falling by 20%, driven primarily by increased crop yields, technological learning effects and economies of scale. 
  

• 80% of the sustainable potential for producing biogases is in emerging market and developing economies, led by Brazil, China and India. The potential in India is larger than its natural gas consumption. The United States has the largest potential among advanced economies. The European Union uses the largest share – around 40% – of its sustainable potential, compared with less than 5% in India. 
  

• Biomethane production costs exhibit a wide range, with 90% of the potential being between USD 10 per gigajoule (GJ) and USD 30/GJ. Emerging market and developing economies in Asia typically have the lowest costs, with 40 bcme available at less than USD 10/GJ. Around 45 bcme of biomethane potential could be exploited in different parts of the world at a cost equal to or lower than prevailing wholesale natural gas prices. This is already more than 5 times the current biomethane production globally
  

• Valuing the positive externalities of biogas can help close the competitiveness gap with natural gas. For example, biogas helps to prevent environmental damage that can be caused by the dispersal of waste as well as avoiding methane emissions that would otherwise have occurred.   
  

• Concerted application of best practices for methane management is essential to underpin the environmental case for biogases. Evidence suggests that today’s biogas and biomethane plants emit methane emissions in a range between 2% and 5.5% of their output, far above average levels in the oil and gas industry. Practices such as closed digestate storage, combustion of off-gases during biogas upgrading processes, and leak detection and repair programmes are key.
  

• The main technologies used for biogas and biomethane production are mature, but innovative technologies or approaches could increase methane yields, improve energy efficiency and recovery at biogas plants, and integrate biogas production processes and waste streams with the production of other low-emissions fuels. For example, combining CO2 streams from biomethane production with hydrogen can generate synthetic fuels, and digestate can be converted to higher-value fertiliser products and biochar (a concentrated carbon-rich material)
  

• Biogas and biomethane are the fastest growing forms of bioenergy in the Stated Policies Scenario (STEPS) and in the Announced Pledges Scenario (APS). Driven by strong policy support, overall demand for biogases doubles between 2023 and 2035 in the STEPS and nearly quadruples in the APS.
  

• Making full use of biogas and biomethane production potential requires continued investment. In the STEPS, average annual investment in biogas and biomethane production rises to more than USD 15 billion by 2050 from a level around USD 2 billion today. This trend is accelerated in the APS, with annual investment reaching nearly USD 45 billion by 2050.
  

• The rise of biogases brings benefits for energy security, especially in fuel-importing regions. Biomethane production in the European Union already avoids the need to import around 15 thousand barrels per day (kb/d) of oil and 2 bcme of natural gas each year. By 2035, in the Announced Pledges Scenario, biogases avoid 50 kb/d and 7 bcme, respectively. It also reduces emissions, where producing and transporting biogases are done responsibly.