Biogas Systems in Industry – an analysis of sectoral usage, sustainability, logistics and technology development

Jun 2025
Publications

A new report by IEA Bioenergy Task 37 (Energy from Biogas) provides an overview of biogas production and consumption patterns in ten countries that are members of the Task. The countries studied are Austria, Denmark, Finland, France, Germany, Ireland, Italy, Norway, Sweden, and the Netherlands.

Download the full report: Biogas Systems in Industry – an analysis of sectoral usage, sustainability, logistics and technology development

The analysis highlights the production sources, end uses, and industrial applications of biogas, offering insights into its role in decarbonisation efforts. Denmark is exemplified as a country that excels in biomethane grid injection, which can enable industries to adopt biogas systems through use of existing infrastructure and guarantees of origin. In contrast, Sweden can be characterised by a limited gas grid and a focus on biogas use in transportation. However, industrial biogas consumption in Sweden is growing at a significant rate, driven by sectors such as the Food, Beverage, and Tobacco production and Paper and Pulp production, in which both sectors could produce their own by-products/feedstock for biogas production. Comparisons between the ten countries analysed reveal diverse trends. Austria, Denmark, and Ireland have high industrial shares of biogas consumption, primarily for heat production. Sweden, France, and the Netherlands are also significant users, with notable growth in sectors such as Food, Beverage, and Tobacco. Biogas is heavily utilised in sectors with biodegradable by-products, such as Food, Beverage, and Tobacco, and Paper and Pulp. However, rising use in sectors without such by-products, like Chemicals and Petrochemicals, may indicate a growing reliance on externally sourced biogas.

Availability gas grid infrastructure vital for biogas uptake by industry

As demonstrated by the country specific analysis, the availability of gas grid infrastructure can be vital to biogas uptake in an industry context. In regions with limited access, alternative delivery options, such as virtual pipelines or physical biogas pipelines, enable decentralised energy solutions. Virtual pipelines, whereby biomethane is transported by truck, provide increased flexibility for biogas end-use, with mobile upgrading units offering shared investment opportunities. Coupling biogas plants with nearby industries can decarbonise operations but need to be strategically planned for effective deployment.

Integration of biorefineries within industry supports decarbonisation and resource efficiency

The integration of biorefineries within industry offers a transformative approach to decarbonisation by enabling the circular economy and maximising resource efficiency. Biogas systems are central to this model. Biorefineries convert biodegradable residues into high-value products such as bioenergy, biochemicals, and biomaterials while minimising waste and environmental impact. The model proposed in this report, based at an industry site, includes for production of hydrogen, CO₂, and volatile fatty acids from dark fermentation and biomethane from a methanogenic reactor. In a cascading approach, pyrolysis with production of biochar, and power-to-X technologies, are integrated to facilitate closed-loop practices which enable industries to diversify revenue streams and align with their corporate social responsibility. Innovative extensions of the biorefinery concept can also include for novel biogas upgrading methods, including for micro-algae production which may be of considerable economic value. Biorefineries are highly adaptable to industry-specific needs. By leveraging the flexibility and multifunctionality of biorefineries, industries can support decarbonisation while tapping into new economic opportunities and environmental benefits.
Power-to-X processes – will become more and more necessary and therefore more valuable. Especially the upcoming hydrogen strategies in several countries will open many new options for synergies, as can be seen from the multiple options to include renewable hydrogen in bioenergy value chains.
The broad use of bioenergy flexibility, i.e., positive and negative ancillary services and options for storage and transport within existing infrastructure, will depend on a suitable market design and for some period also on support schemes to anticipate for upcoming higher flexibility needs in the energy system and to allow the stakeholders to decide for the better investments.

Bioenergy
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