Green Gas Market

Green gas is produced through the transformation of organic matter by bacteria. Green gases include bio-propane, biomethane, and hydrogen which is an eco-friendly gas which can be used as an alternative for the fossil fuels reducing the carbon emissions. The green gas industry is very small, although it is generating growing amounts of interest in several countries for its potential to deliver clean energy to a wide array of end users, especially when this can be done using existing infrastructure.

Green gas market can be classified based on the type which includes biomethane, biopropane, and hydrogen. Biogas and biomethane are renewable gases which help abate emissions across the whole value chain. Biomethane is produced from biogas that is derived from organic matter such as human waste/sewage, food waste, distillery waste or agricultural materials. Biopropane is used to describe liquid petroleum gas (LPG) derived from production processes that use biomass as the feedstock. Hydrogen can be extracted from fossil fuels and biomass, from water, or from a mix of both. Natural gas is the primary source of hydrogen production. Green hydrogen which is the hydrogen generated by renewable energy or from low-carbon power.

Green gas, based on source, can be produced from agricultural waste, sewage sludge, energy crops, municipal waste, industrial waste, and others. Agricultural wastes can be defined as organic byproducts generated from the agricultural production process that have been discarded by humans. Tree barks, wood chips, and sewage sludge are promising biogenic waste materials for the production of green gas. Energy crops such as wood, grasses, and seaweed generates green gas from anaerobic digestion of organic biomass. Similarly, some industrial and municipal waste can be used as a raw material for production of green gas which can help in reducing the carbon emissions.

Green gas market is further classified based on process into fermentation, electrolysis and gasification. The fermentation is a process where green gases are produced from digestion of organic matter (biomass) in absence of oxygen. The gas obtained generally consists of 55-80% of methane and 20-40% of CO2, and with trace gases which include toxic hydrogen sulphide and nitrous oxide. Producing green hydrogen by electrolysis from renewable sources involves breaking down water molecules (H2O) into oxygen (O2) and hydrogen (H2). On the other hand, gasification is the process that converts biomass at high temperatures without combustion but with controlled amount of oxygen/ steam into carbon monoxide, hydrogen, and carbon dioxide.

Green gas market can also be classified based on end-user, into transportation, power, buildings, and others. Switching to biomethane as vehicle fuel can reduce greenhouse gas emissions in the transport sector between 60% to 80% compared to fossil-based fuels like gasoline and diesel. Green gas can simply be turned into electricity using a combustion engine, fuel cell, or gas turbine. This electricity can be used on-site or can be fed into the electricity grid. In buildings, hydrogen could be blended into existing natural gas networks, with the highest potential in multifamily and commercial buildings, particularly in dense cities while longer-term prospects could include the direct use of hydrogen in hydrogen boilers or fuel cells.

The global green gas market can be segmented into North America, South America, Europe, Asia Pacific, Middle East & Africa. North America is gaining its momentum in biogas systems to propel in the race of developing renewable energy capacities to fight against the climate change. For instance, according to the United States Environmental Protection Agency (EPA), there are 8,000 dairy and hog operations where biogas systems can be installed. But, out of which 250 are installed, this leaves a good scope for the region to develop biogas systems. On the other hand, Europe has designed a biogas action plan with its aims to achieve carbon neutral by 2030, the region has planned to integrate biogas in sectors such as electricity, transport, industry, agriculture and residential. In Asia Pacific, because of the increase in the per capita income of the people, has led to the growth of the transportation sector. The vast industrial sector in the Asia Pacific has great demand for green gas as it helps to reduce carbon emissions and would in turn help economies to reach the carbon neutrality targets. Similar trend is being observed in Middle East Africa and South America in-line with their carbon neutrality targets which is helping the green gas market to propel.

The major players in the green gas market are Planet Biogas Global GmbH (Germany), Envitec Biogas AG (Germany), VERBIO (US), SoCalGas (US), Future Biogas Ltd. (UK), Gasrec Ltd, (UK), Gazasia Ltd. (UK), Orbital (US).

Key Questions Addressed by the Report

Frequently Asked Questions (FAQs)

1. What is the current market size of the green gas market?
2. What are the major drivers and restraints for the green gas market?
3. Which is the largest segment during the forecasted period in the green gas market?
4. Which is the fastest-growing region during the forecasted period in the green gas market?
5. What are the trends that could be witnessed over the next five to ten years?
6. What will be the revenue pockets for the green gas market in the next five years?
7. Who are the top players operating in the market?