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  • What are the Key Growth Opportunities in European Anaerobic Digestion and Biogas Production?
    The European Union’s green taxonomy has put the spotlight on long-term investments in the sustainability of renewable natural gas (RNG) production

    Overview

    Several European countries, including Germany, the United Kingdom, and Denmark, are at the forefront of leveraging the potential of biogas produced through the anaerobic digestion (AD) of energy crops, agricultural waste, organic waste, and sewage sludge. Subsidies and incentives are the key growth drivers. As part of its Net Zero by 2050 Strategy, the European Union (EU) has legislated, or introduced, policies to improve the share of renewables in the energy and transportation sectors. The Renewable Energy Directive II (RED II) has set a target of a 32% renewables share in the final energy consumption by 2030 and a 14% renewables share in the energy mix for the transport sector.

    • Other directives, such as the Landfill Directive, aim to reduce the landfilling of waste to 10% of the total waste generated, encouraging the recycling and reuse and the diversion of organic waste to AD or composting.

    • The Global Methane Pledge, led by the EU and the United States, targets methane emission reduction by 30%. All the above policies, targets, and directives drive new investments into AD and biogas production.

    • Fresh impetus for even faster growth came through the REPowerEU plan that was implemented as a response to reduce dependence on imported fossil fuels, especially from Russia, due to the Russo-Ukrainian War.

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