IEA report shows renewable gases could supply 20% of today’s natural gas demand using existing resources
As nations seek to accelerate the shift to cleaner energy sources, a new report from the International Energy Agency (IEA) positions biogas and biomethane as overlooked tools with substantial global upside. These renewable gases, produced from organic waste, could help meet climate targets while improving energy resilience, rural development, and environmental outcomes.
In its Outlook for Biogas and Biomethane report, the IEA identifies a clear opportunity: global production could be increased more than fourfold using feedstocks already available today. If realised, that output could supply the equivalent of 20% of current global natural gas consumption without competing with food production or requiring major land use changes.
The findings highlight how these mature technologies, long deployed in agricultural and waste management settings, are poised for scaled deployment with the right investment and policy frameworks.
A Scalable, Ready-to-Use Energy Resource
Biogas is produced through the natural decomposition of organic matter in anaerobic digesters, while biomethane is an upgraded version of biogas that can be used interchangeably with fossil natural gas in pipelines, heating systems, and vehicles. Both are derived from materials such as animal manure, agricultural residues, food scraps, and wastewater—resources that are available across nearly all regions.
According to the IEA, these feedstocks are not only abundant but sustainable. The majority of biogas and biomethane potential comes from organic waste that would otherwise generate methane emissions if left unmanaged.
The agency estimates that if all available sustainable feedstocks were tapped, biogas and biomethane could displace 1,000 billion cubic meters (bcm) of natural gas each year equivalent to a fifth of global consumption.
Environmental and Economic Gains
The IEA report stresses that biogas and biomethane deliver multiple benefits beyond emissions reduction:
- Methane mitigation: Capturing methane from waste cuts short-term climate pollutants with higher warming potential than CO₂.
- Rural economic growth: Projects based on local feedstocks can generate income and jobs in agricultural regions, where energy infrastructure is often limited.
- Energy security: Countries can reduce dependency on imported fossil fuels by developing domestic sources of renewable gas.
- Circular economy: Organic waste becomes a resource, closing the loop between food systems, farming, and energy.
In developing countries, biogas also offers clean cooking alternatives that reduce reliance on wood and charcoal, improving household air quality and health outcomes.
The report underscores the cost-effectiveness of biogas, especially in waste management systems where its production overlaps with existing infrastructure. In many rural contexts, digesters already used for sanitation or animal waste management can be upgraded to generate electricity or heat.
Deployment Remains Uneven
Despite the advantages, the IEA notes that biogas and biomethane remain underutilized. Current production is concentrated in a few regions, primarily Europe, China, and North America. The report attributes this to a combination of policy gaps, limited financing, and insufficient integration with national energy planning.
In Europe, countries such as Germany, Denmark, and Italy have led in scaling biogas as part of broader renewable energy strategies. China’s government has supported biomethane development for rural energy access, while in the U.S., both public and private initiatives have expanded biogas use in agricultural and landfill settings.
However, many countries have yet to adopt structured pathways for incorporating these gases into national targets, leaving large volumes of methane emissions unmanaged and potential energy sources untapped.
The Role of Policy and Infrastructure
The IEA calls for stronger policy frameworks to unlock the full potential of these gases. This includes:
- Feed-in tariffs and subsidies that reduce upfront project risk
- Inclusion in renewable energy targets, particularly for sectors like transport and heating
- Support for gas grid injection, enabling biomethane to flow into existing infrastructure
- Financing mechanisms that support distributed projects in rural and peri-urban areas
Investment in upgrading and purification technology is also critical. While biogas is easy to produce, converting it to grid-quality biomethane requires additional processing. The IEA notes that advances in membrane separation and pressure swing absorption are making this more economically viable at smaller scales.
Governments and utilities are also encouraged to invest in training programs, standardization, and data collection, helping de-risk projects and improve investor confidence.
Decarbonising Hard-to-Abate Sectors
One of the strongest cases for biomethane lies in its compatibility with hard-to-decarbonise sectors, such as heavy transport, high-temperature industry, and backup power generation. Unlike solar or wind, biomethane can be stored, transported, and used on demand.
The IEA emphasizes that industries reliant on gas-fired furnaces or processes such as; chemicals, ceramics, and cement could benefit from switching to biomethane without needing extensive retrofits.
Similarly, biogas can complement electrification strategies by offering dispatchable, distributed generation, particularly in rural regions with limited grid reliability.
A Global Opportunity with Local Roots
Realising the full potential of biogas and biomethane will require coordinated efforts across energy, waste, agriculture, and environmental sectors. The IEA’s findings point to a global opportunity that is also deeply local. Each project relies on feedstock availability, community support, and policy alignment.
With global energy markets shifting rapidly, renewable gases offer a stable, flexible option that aligns with both climate targets and economic development goals. In a world increasingly focused on reducing emissions without sacrificing growth, these resources could become valuable bridges in the transition.
Conclusion
While the spotlight has often been on solar, wind, and hydrogen, the IEA report suggests that biogas and biomethane may be just as important especially for countries looking to decarbonise existing gas systems, reduce waste emissions, and support regional economies.
“Unlocking their full potential would be a win for the economy, energy security and the climate,”
the report concludes. With mature technology and strong regional benefits, renewable gases are well-positioned to become key building blocks in the energy systems of the future.
