Biogas Upgrading Market Size, Share & Growth Forecast (2026-2031)

The Biogas Upgrading Market is forecast to grow at a CAGR of 12.1%, reaching USD 1,473.21 million in 2031 from USD 832.22 million in 2026.

Biogas upgrading is the technology used to upgrade raw biogas from agricultural waste, food waste, sewage sludge or landfill gas collected by anaerobic digestion to biomethane which is close in quality to natural gas. This upgraded output which can be compressed or liquefied and marketed as renewable natural gas (RNG) or bio-CNG/bio-LNG, can be directly fed into existing natural gas pipelines, or utilized as a vehicle fuel, providing biogas producers with markets and price premiums not available for power-only CHP systems.

There are four main upgrading technologies that are currently employed in commercial use. Water scrubbing, based on the varying solubility of CO2 and CH4 in water, is the largest share of installed technology with relatively low chemical input requirements and is quite mature. Pressure swing adsorption (PSA) is a method based on the selective pressure adsorption of CO2 by adsorbent materials, which is an alternative without any chemical treatment and is suitable for mid-scale installations.

Chemical scrubbing with the use of amine or other chemical solvents can produce high purity output; however, it comes with higher operating expenses of solvent regeneration. The fastest growing of the technologies is membrane separation, which separates methane and carbon dioxide by employing selective permeable membranes, and is rapidly increasing in terms of share for its energy efficiency and compact design and ability to be used in smaller, decentralized farm scale and wastewater treatment plant installations.

Market Dynamics

Market Drivers

• Binding regional targets, such as the EU's REPowerEU biomethane target of 35 billion cubic meters by 2030, are shrinking the timeframe for making investment decisions and helping to prioritize the development of upgrading projects over power-only biogas projects.

• The increasing pipeline injection and buildout of bio-CNG and bio-LNG enables bio-gas upgrading to address the growing need for biomethane as a low-carbon transport fuel, including in the marine and industrial sectors.

• Carbon credits and Guarantees of Origin (GOS) and Corporate Decarbonization Commitments (CDCs) are driving more carbon credit markets and new corporate decarbonization commitments, that will further enhance the project economics and speed up investments decisions for upgraded biomethane.

Market Restraints & Opportunities

• High capital costs and long payback periods continue to be the biggest limiting factor in spreading these technologies, especially among smaller agricultural and wastewater-treatment-plant operators considering upgrading investments versus power-only alternatives that have lower initial costs.

• However, commercialization of next-generation upgrading technologies, expansion of bio-CNG and bio-LNG infrastructure and growth of the adoption of these technologies in emerging markets and decentralized energy systems hold significant long-term opportunity, especially given the continued reduction of the capital cost for the smaller scale, farm-level deployment of membrane and hybrid upgrading systems.

Key Developments

• June 2026: On the occasion of World Environment Day, Maruti Suzuki India Limited, announced two biogas projects, reinforcing its commitment to building a clean energy ecosystem.

• April 2026: Evonik has signed a large-scale agreement to supply its SEPURAN® Green membranes and patented technology to MTC Orec Sdn Bhd (MTCO), a prominent biogas upgrading plant producer based in Malaysia. Co-owned and managed by VentureTECH, an entity funded by the Malaysian government, MTCO is a key designer and builder of biogas upgrading plants, with plans to further expand this renewable energy technology across Asia.

• March 2026: Greenlane Renewables Inc. announced its customer, Orizon Valorização de Resíduos S.A., a leading platform in integrated circular economy and energy transition solutions, today inaugurated its new biomethane plant at Ecoparque Jaboatão in Pernambuco, Brazil, featuring a complete biogas upgrading system supplied by Greenlane.

Market Segmentation

By Technology: Water Scrubbing

Water scrubbing represents the highest technology share as it is the most mature process, requiring relatively very low chemical input, and having a long commercial history in European and North American installations.

Greenlane Renewables offers biogas upgrading solutions, such as water scrubbing and membrane technologies, with a promising market opportunity in the North American agricultural biogas sector.

DMT International offers biogas upgrading solutions and engineering services for pipeline-injection and vehicle-fuel use in European and international markets.

By Technology: Membrane Separation

Membrane separation technology is the most rapidly expanding upgrading technology because of its ability to attract many smaller-scale and decentralized installations (such as on the farm) due to its compact size, low energy consumption and less need for handling chemicals.

Bright Renewables produces membrane-based and hybrid biogas upgrading systems which are suitable for compact and decentralized installation in agricultural and municipal facilities.

By End-Use Application: Grid Injection

One of the most significant end-use applications is the injection of biomethane into the existing natural gas pipeline system, which enables biomethane producers to use existing natural gas pipelines and benefit from price premiums based on renewable-gas guarantees of origin.

As low carbon fuel infrastructure increases, application growth is projected to be strong for growing adoption of bio-CNG and bio-LNG for heavy duty transport, marine and industrial fuel applications.

Regional Analysis

North America Market Analysis

North America is an important and expanding market, which is supported by more than 600 RNG production facilities that currently operate across the United States with high volumes of production in the states of California, Midwest, and the Mid-Atlantic, as well as emerging RNG production targets in the Canadian provinces of British Columbia and Ontario.

Europe Market Analysis

With the EU's REPowerEU biomethane ambition of 35 billion cubic meters by 2030 and the well-established feed-in and grid-injection infrastructure in Germany, France and Nordics, the region currently represents significant share of global revenue.

Asia-Pacific Market Analysis

Asia-Pacific is expanding as governments pursue waste-to-energy and renewable-gas policies to address urban organic waste volumes and energy security goals across China, India, Japan, and South Korea.

Middle East and Africa Market Analysis

The Middle East and Africa are seeing early-stage investment in biogas upgrading tied to circular-economy and renewable-energy diversification initiatives, led by the UAE and Saudi Arabia.

South America Market Analysis

South America represents an emerging market for biogas upgrading, with Brazil's agricultural waste volumes and expanding renewable-fuel policy support driving growing investment in upgrading capacity.

List of Companies

• Greenlane Renewables

• DMT International

• Bright Renewables

• EnviTec Biogas

• HoSt Holding

• PlanET Biogastechnik

• Ammongas

• Biofrigas Sweden

• Gasum

• WELTEC BIOPOWER

Competitive Landscape

Greenlane Renewables

Greenlane Renewables supplies biogas upgrading systems, including its GreenStream product line, to agricultural, landfill, and wastewater-treatment biogas producers, with strong recent commercial momentum in the North American dairy and agricultural segment.

DMT International

DMT International provides biogas upgrading equipment and engineering services supporting pipeline-injection and vehicle-fuel biomethane applications across European and international project deployments.

EnviTec Biogas

EnviTec Biogas designs, builds, and operates biogas and biomethane production facilities, combining anaerobic digestion expertise with upgrading technology integration for agricultural and municipal waste feedstocks.

Analyst View

The Biogas Upgrading market is shifting from a niche complement to power-only biogas plants into the primary value-creation layer of the biogas value chain, as binding renewable-gas mandates and transport-fuel demand redirect capital toward pipeline-quality biomethane production. Europe's REPowerEU target and North America's expanding RNG facility base are the two structural anchors of near-term growth, while membrane and hybrid technologies are steadily lowering the capital threshold for smaller-scale, decentralized deployment. Vendors that combine proven upgrading technology, flexible plant-capacity offerings, and strong positioning in both pipeline-injection and transport-fuel end markets are best positioned to lead the next phase of market growth.

Biogas Upgrading Market Scope: