Global biogas production in 2025: Key insights from the latest IEA report

As the world accelerates its shift toward sustainable power, biogas and biomethane are emerging as essential solutions to decarbonise energy systems while recycling organic waste.  

The latest International Energy Agency (IEA) report confirms a strong trend towards anaerobic digestion, a technology that is now industrially mature and offers significant environmental and economic benefits. 

Anaerobic digestion, a proven technology with multiple benefits 

Anaerobic digestion is a reliable, well-mastered technology that integrates seamlessly into existing gas infrastructures. Beyond producing renewable energy, anaerobic digestion generates digestate, a high-quality organic residue that serves as a natural fertiliser, significantly reducing reliance on chemical alternatives. 

Moreover, biogas production plays a key role in reducing greenhouse gas emissions by capturing methane that would otherwise be released by: 

      • Livestock manure 

      • Organic waste in landfills 

      • Wastewater treatment sludge 

These sources account for half of all human methane emissions. By capturing this gas, we prevent the release of CH₄ into the atmosphere. This gas has a global warming potential 80 times higher than CO₂ over a 20-year period.  

Furthermore, biofuels derived from anaerobic digestion serve as a direct substitute for fossil fuels, thereby reducing the carbon footprint of the transport sector. 

An unexplored global potential 

Currently, global biogas production stands at approximately 40 billion m³ per year, with 10 billion m³ of biomethane injected into national grids. This represents just 0.2% of global natural gas demand. 

However, the anaerobic digestion potential is staggering: an estimated 1,000 billion m³ per year could be produced, meeting one-quarter of the world’s total gas demand.  

At present, barely 5% of this potential is being exploited. 

Europe leads the way 

Since 2020, over fifty public support policies supporting the development of biogas have been implemented in Europe. These are largely driven by the need to reduce dependence on Russian fossil fuels and strengthen local energy security. 

     • Europe is the world’s leading biogas producer. 

     • Germany dominates the European market. 

     • Denmark is a pioneer, already covering 40% of its gas demand through biomethane. 

The United States, China and India are also stepping up their efforts.  

While Europe and the US currently represent 60% of demand, 80% of future potential lies in emerging markets, specifically Brazil, China, and India.  

Globally, biogas industry represents over €100 billion in investment and nearly 200 000 jobs, predominantly in rural areas. These regions are playing a key role in the energy transition by leveraging a local, circular resource that generates significant economic value.

Overcoming Barriers: innovation and support 

Despite its potential, biomethane production costs can be up to five times higher than those of fossil gas. This is often due to long and complex administrative procedures (sometimes taking up to seven years for large-scale plants) and high operational costs related to feedstock supply. 

Public policy has a key role to play in overcoming these obstacles: 

      • Strengthening carbon taxation on fossil fuels 

      • Providing subsidies for biomethane production 

This is exactly why Arkeale develops modular micro anaerobic digestion solutions that are easy to deploy and economically viable, even on a small scale. 

Thanks to its accessible and low-tech design, the BioCapsule® ensures lower operational costs. It enables you to achieve energy autonomy by using your own waste feedstock.  

Our expert teams design, assemble, and install the BioCapsule® on-site in record time, allowing you to reach energy autonomy as soon as possible.