Technical Report

Biogas Systems in Industry: An analysis of sectoral usage, sustainability, logistics and technology development

February 2025

Executive Summary

Biogas is renewable energy source offering dual benefits of sustainability and energy security, within a bioeconomy system. Its integration into industrial sectors supports decarbonisation of energy supply and fosters a circular economy approach, using wastes and residues to diversify energy sources, and transition away from fossil fuel use. The deployment of biogas systems is pertinent to industry sectors generating their own process by-products, such as in the food and beverage sector. System implementation can lead to emissions reductions, cost savings, and improved energy independence in sectors with high energy demands. Industries adopting biogas systems can enhance their sustainability credentials and align with key climate policies such as the EU Green Deal, REPowerEU, and the Renewable Energy Directive. Current challenges to the adoption of biogas in industry, include a stable feedstock supply, proximity to gas infrastructure, and logistics for biogas transport.

Greenhouse gas (GHG) emissions generated from industry may be categorised into Scope 1, Scope 2, and Scope 3 emissions. Scope 1 emissions are direct emissions from an organisation’s operations, including fuel combustion and fugitive process emissions. Scope 2 emissions arise indirectly from purchased energy such as electricity or heating and are reported using both market-based and location-based methods. Scope 3 emissions encompass all other indirect emissions, spanning categories like purchased goods, transportation, and waste. In this report, three configurations for biogas integration in industry are proposed to promote sustainability by enabling emissions reductions: 1. industry-owned biogas plants, 2. industry partnerships with external biogas plants, and 3. the use of biomethane from the gas grid through guarantees of origin. The different configurations can have distinct implications in terms of their potential to reduce the emissions in each Scope. The reduction of emissions can be quite nuanced given the variable configurations, and the minimisation of fugitive emissions can often be critical to ensuring system sustainability.

This report provides an overview of biogas production and consumption patterns in ten countries that are members of IEA Bioenergy Task 37. The countries studied are Austria, Denmark, Finland, France, Germany, Ireland, Italy, Norway, Sweden, and the Netherlands. 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.

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.

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.