Germany holds strong biogas lead

The German biogas market accounted for nearly 70% of the global/European total in 2009.

Estimates put its worth at $1 billion (€735 million). The German market fell 80% in 2008, however, pushed by the close succession of the global financial crisis, rising energy crops prices, and the revision of the German Renewable Energy law (EEG).

New analysis from Frost & Sullivan finds that despite recent economic instability, the construction of larger plants producing natural gas continues to be highly lucrative for both farmers and financial investors in Germany, with over 30 new plants planned for 2010.

Elsewhere the US and the EU are already implementing policies that will grow the biogas market sector while targeting farmers as primary users, assuming regulatory conditions are favourable.

‘The market for biogas plants is currently at a turning point and can grow at a CAGR of 8 or 24 per cent during the period 2010-2016,’ Frost & Sullivan's environment senior analyst Nuno Oscar Branco comments. ‘In Germany, the market will continue to grow, driven by the strong regulatory framework already in operation in the country. Therefore, if other European countries, together with the US and Canada, follow the German lead and implement a similar business environment that attracts farmers and investors, market growth will be limited only by the ability of the industry to meet demand.

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