Waste-Derived Biogas: Global Markets for Anaerobic Digestion Equipment--Focus on Europe

This report provides an in-depth analysis of the European market for the anaerobic digestion equipment used to transform waste materials into sustainable energy. Includes forecasts through 2016

REPORT HIGHLIGHTS

THIS REPORT CONTAINS:

• The global market for Biogas plant equipments was worth $3 billion in 2010. By 2016, it is estimated at nearly $8.6 billion and rising at a 5-year compound annual growth rate (CAGR) of 19.4%.
• The market for biogas AD and LFG equipment in Europe is worth an estimated $2.4 billion in 2011, and predicted to be rising at a CAGR of 15.8% to 2016. At that growth rate, the market value will reach nearly $5 billion by 2016.
• Germany currently accounts for approximately half of Europe’s biogas-sourced electricity output. Its market is valued at $1.3 billion in 2011 and is forecast to reach nearly $3 billion by 2016, reflecting a CAGR of 17.3%.

REPORT SCOPE

INTRODUCTION

STUDY GOALS AND OBJECTIVES

Renewable, sustainable energy generation will be the fastest-growing energy sector over the next two decades. From 2010 to 2016, the market is projected to rise from $124 billion in 2010 to $217 billion in 2016. Price volatility, supply concerns, and the environmental aspects of fossil fuels are expected to accelerate the pace of all non-fossil fuel development. At this writing, the price of oil has hit highs of more than $100 per barrel on the world market, while U.S drivers are paying nearly $4 per gallon of gasoline. Renewable domestic energy supplies are seen as a means of overcoming these problems. Biogas, a clean fuel derived primarily from waste materials, is an important alternative to conventional fossil energy.

This BCC Research report provides an in-depth analysis of the world market for the anaerobic digestion equipment used to transform waste materials into sustainable energy. Although energy crops are utilized widely in Germany and some other countries for biogas production, this study will only cover gas recovered from wastes. The study also examines the equipment needed to collect landfill gas (LFG), biogas formed naturally at landfill sites.

Four waste types are evaluated as feed materials for the waste-to energy process: sewage, industrial wastewater, agricultural wastes (crop residuals and manure), and landfill gas. Three different end uses for the gas are also examined: municipal electricity production, on-site electricity (and heat) production, and transportation fuel.

The biogas industry is better developed in other parts of the world than in North America. In addition to the U.S. and Canada, this report will cover Europe, where the industry is best developed; Asia, where the largest number of plants are operating; Africa, where the anaerobic process is rapidly gaining popularity; and other world regions where biogas recovery is emerging.

REASONS FOR DOING THE STUDY

The need to responsibly dispose of mounting volumes of waste and the requirement to procure sustainable, secure energy supplies are two of the most important issues facing governments and industries around the globe. The production of energy from a number of waste streams (i.e., municipal and domestic sewage, industrial wastewater, landfills, livestock manure, and agricultural residues) is a process that addresses both of these challenges.

In the current waste-to-energy market, anaerobic digestion offers the most sustainable conversion process. Because the technology can be tailored to suit waste streams of all volumes, systems may be sized for use in households, commercial enterprises, utilities, and industry.

In this context, it is important to have an overview of the market and the drivers that support adoption of the best strategies by governments responsible for sustainable waste handling and energy supply solutions. It is also important for industry players and technology developers to understand current as well as future trends in order to strategize their investments. BCC has published reports that provide broad overviews of waste-to-energy markets. This is the first to focus exclusively on anaerobic digestion as an enabling technology.

INTENDED AUDIENCE

This study intended to useful to a broad audience. Because they stand to see the greatest profit from expansion of the biogas industry, manufacturers and suppliers of anaerobic digesters and providers of anaerobic digestion technology would likely benefit the most from the data contained in this study. Companies with plant components, ancillary equipment, and related products also might profit from the information collected here.

These include manufacturers and suppliers of biogas condensation and upgrading equipment and technology, biogas distributors, water and power engineering firms, suppliers of power plants and electricity generating equipment, environmental management firms, companies specializing in anaerobic digestion equipment and other water and wastewater treatment equipment, companies developing additives (chemicals, enzymes, etc.) to enhance gas production yields and process efficiencies.

SCOPE AND FORMAT OF REPORT

The scope of this report includes the market for biogas to energy for four different feed sources: municipal and domestic sewage, industrial wastewater, landfill gas, and agricultural wastes, a category that includes animal manures and crop residues. In countries where energy crops are co-digested with manure and other organic farm wastes, they are considered to be part of the market. The biogas market also is broken down by end use: municipal power generation, on-site heat and power production, and transportation applications.

A discussion of the market by world region includes overviews of North America, Europe, Asia, Africa, and Latin America, and individual profiles for countries most active in each region. Present market status, biogas production potential, and policies and incentives that support the industry are given for each country. All market valuations and projections cover the years from 2000 to 2016. Market figures are based on the revenues derived from equipment sales and are projected in 2011 constant dollars (i.e., inflation is not computed into the projection figures). The revenue figures are derived from estimated revenues of the key players in a particular year.

A technology overview, presentation on the structure of the industry, and brief profiles for major participating companies also are included.

For the purposes of the report, biogas equipment will be limited to anaerobic digesters and the gas collection equipment needed in landfill gas recovery projects. The machinery used to transform the gas to electricity: reciprocating and other types of gas engines, turbine and microturbines, and fuel cells, are not included in the analysis. Systems for biogas upgrading also are not included in the study.

METHODOLOGY

Both primary and secondary research methodologies were used in preparing this study. A comprehensive literature, patent, and Internet search was undertaken and key industry players were queried. Research methodology was both quantitative and qualitative. Growth rates were calculated based on existing and proposed equipment sales during the forecast period. Key tables in the report present an overview of average capital costs for digesters of various sizes and for different applications. These figures then were multiplied by anticipated biogas recovery capacity additions during the survey period.

INFORMATION SOURCES

Information in this report was gleaned from many different sources. Securities and Exchange Commission (SEC) filings, annual reports, patent literature, business, scientific, and industry journals, government reports, census information, conference literature, patent documents, online resources, and industry participants have all been researched.

Table of Contents :

Chapter- 1: INTRODUCTION
STUDY GOALS AND OBJECTIVES
REASONS FOR DOING THE STUDY
INTENDED AUDIENCE
SCOPE AND FORMAT OF REPORT
METHODOLOGY
INFORMATION SOURCES
ANALYST CREDENTIALS
RELATED REPORTS
BCC ONLINE SERVICES
DISCLAIMER

Chapter- 2: EXECUTIVE SUMMARY 3
Table 0 : VALUE OF THE GLOBAL MARKET FOR BIOGAS AND LANDFILL GAS EQUIPMENT FOR WASTE-DERIVED ENERGY, THROUGH 2016
Figure 0 : VALUE OF THE GLOBAL MARKET FOR BIOGAS PLANT EQUIPMENT FOR WASTEWATER- AND BIOSOLIDS-DERIVED ENERGY, 2000–2016

Chapter- 3: OVERVIEW 30
BENEFITS
ADVANTAGES OF BIOGAS COMPARED TO OTHER FORMS OF RENEWABLE ENERGY
BARRIERS TO LARGE-SCALE BIOGAS PLANT DEPLOYMENT
BENEFITS OF SMALL-SCALE BIOGAS INSTALLATIONS
BARRIERS TO SMALL-SCALE BIOGAS INSTALLATIONS
GLOBAL BIOGAS PRODUCTION POTENTIAL
FACTORS INFLUENCING THE BIOGAS INDUSTRY
HISTORY OF BIOGAS
ANAEROBIC DIGESTION
FINANCIAL REQUIREMENTS AND COSTS

Chapter- 4: MARKET BY FEED SOURCE 14
AGRICULTURE
INDUSTRIAL WASTES
MUNICIPAL SEWAGE
LANDFILLS
MUNICIPAL WASTEWATER
INDUSTRIAL WASTEWATER
AGRICULTURAL WASTES
LANDFILL GAS

Chapter- 5: MARKET BY END USE 14
MUNICIPAL POWER GENERATION
ON-SITE HEAT AND POWER GENERATION
MOTIVE POWER
MARKET BY WORLD REGION
Table 16 : MARKET SIZE AND GROWTH FOR BIOGAS PRODUCTION EQUIPMENT BY WORLD REGION, THROUGH 2016
Figure 12 : MARKET SIZE AND GROWTH FOR BIOGAS PRODUCTION EQUIPMENT BY WORLD REGION, 2000–2016

Chapter- 6: BIOGAS IN EUROPE 83
GERMANY
U.K.
ITALY
FRANCE
SPAIN
BENELUX
SCANDINAVIA
OTHER COUNTRIES
EU-WIDE POLICIES THAT SUPPORT BIOGAS
EU POTENTIAL FOR BIOGAS PRODUCTION
PRODUCTION OF BIOGAS IN THE EU
COUNTRY PROFILES

Chapter- 7: INDUSTRY STRUCTURE 43
COMPANY PROFILES

List of Tables

Summary Table : VALUE OF THE GLOBAL MARKET FOR BIOGAS AND LANDFILL GAS EQUIPMENT FOR WASTE-DERIVED ENERGY, THROUGH 2016
Table 1 : GLOBAL PRIMARY ENERGY PRODUCTION BY SOURCE, 2010
Table 2 : GLOBAL GREENHOUSE GAS EMISSIONS BY EMISSION TYPE
Table 3 : GLOBAL BIOGAS PRODUCTION POTENTIAL BY FEED SOURCE
Table 4 : SUITABLE FEEDSTOCKS FOR ANAEROBIC DIGESTION
Table 5 : TYPICAL COMPOSITION OF BIOGAS
Table 6 : MARKET BY FEED SOURCE, THROUGH 2016
Table 7 : INDUSTRIAL WASTE FEEDSTOCKS FOR ANAEROBIC DIGESTION: DRY MATTER CONTENT, ORGANIC DRY MATTER CONTENT, BIOGAS YIELD, AND METHANE CONTENT
Table 8 : ANIMAL WASTE FEEDSTOCKS FOR ANAEROBIC DIGESTIO: DRY MATTER CONTENT, ORGANIC DRY MATTER CONTENT, BIOGAS YIELD, AND METHANE CONTENT
Table 9 : PERFORMANCE PARAMETERS FOR MANURE-BASED BIOGAS PLANTS
Table 10 : ENGINEERING, EQUIPMENT AND CONSTRUCTION COSTS FOR MANURE-BASED BIOGAS PLANTS
Table 11 : TYPICAL COMPOSITION OF LANDFILL BIOGAS
Table 12 : MARKET SIZE AND GROWTH FOR BIOGAS PRODUCTION EQUIPMENT BY END USE, THROUGH 2016
Table 13 : EFFICIENCY COMPARISON OF ELECTRICITY ONLY PLANTS AND CHP PLANTS
Table 14 : GLOBAL GROWTH OF NGVS, 2000–2010
Table 15 : MARKET PENETRATION OF TOTAL VEHICLE FLEET IN COUNTRIES WITH A 1% OR GREATER NGV MARKET SHARE, 2010
Table 16 : MARKET SIZE AND GROWTH FOR BIOGAS PRODUCTION EQUIPMENT BY WORLD REGION, THROUGH 2016
Table 17 : MARKET SIZE AND GROWTH FOR BIOGAS PRODUCTION EQUIPMENT IN EUROPE, THROUGH 2016
Table 18 : SHARE OF THE EUROPEAN BIOGAS MARKET BY FEED SOURCE, 2010
Table 19 : EU AND NATIONAL RENEWABLE ENERGY TARGETS FOR 2020, AS OF 2010
Table 20 : BIOGAS PRODUCTION POTENTIAL BY TOP 15 BIOGAS PRODUCING COUNTRIES IN THE EU BY 2020
Table 21 : EXISTING AND FORECAST BIOGAS ELECTRICITY GENERATING CAPACITY IN THE EU, 2010-2020
Table 22 : ANNUAL SLUDGE PRODUCTION BY COUNTRY, 2010
Table 23 : CRUDE BIOGAS PRODUCTION IN THE EU BY COUNTRY, 2000 AND 2001
Table 24 : PRIMARY ENERGY PRODUCTION OF BIOGAS IN THE EU, 2006 AND 2007
Table 25 : GROSS ELECTRICITY PRODUCTION FROM BIOGAS IN THE EU, 2006 AND 2007
Table 26 : PRIMARY ENERGY PRODUCTION OF BIOGAS IN THE EU, 2008 AND 2009
Table 27 : GROSS ELECTRICITY PRODUCTION FROM BIOGAS IN THE EU, 2008 AND 2009
Table 28 : BIOGAS PRODUCTION PER INHABITANT BY COUNTRY, 2007 AND 2009
Table 29 : AUSTRIAN FITS FOR ELECTRICITY FROM BIOGAS
Table 30 : BIOGAS PRODUCTION PLANTS IN DENMARK BY FEED SOURCE, 2010
Table 31 : BIOGAS PRODUCTION IN DENMARK BY FEED MATERIAL TYPE, 2000-2010
Table 32 : BIOGAS PRODUCTION PLANTS IN FINLAND BY FEED SOURCE, 2010
Table 33 : BIOGAS PRODUCTION POTENTIAL IN FINLAND BY 2015
Table 34 : BIOGAS PLANTS IN FRANCE BY FEED SOURCE, 2010
Table 35 : PROPOSED FEED-IN TARIFFS IN FRANCE
Table 36 : GERMAN BIOGAS PLANTS BY WASTE TYPE, 2010
Table 37 : BIOGAS PLANTS IN GERMANY, 1992–2010
Table 38 : GERMAN FEED IN TARIFFS FOR BIOGAS ENERGY
Table 39 : BIOGAS PRODUCTION POTENTIAL IN HUNGARY BY FEED SOURCE
Table 40 : BIOGAS PLANTS IN IRELAND BY TYPE, 2010
Table 41 : BIOGAS AND METHANE POTENTIAL FROM FARM SLURRIES AND SLAUGHTER WASTES IN IRELAND, 2010 AND 2020
Table 42 : FEED-IN TARIFFS FOR BIOGAS SUPPORT IRELAND
Table 43 : BIOGAS PRODUCTION IN ITALY BY FEED SOURCE, 2010
Table 44 : BIOGAS PRODUCTION POTENTIAL IN ITALY BY FEED SOURCE
Table 45 : ITALIAN FEED-IN TARIFFS FOR BIOGAS PRODUCTION
Table 46 : BIOGAS PRODUCTION POTENTIAL IN LATVIA BY FEED SOURCE
Table 47 : DUTCH PRICE SUPPORTS FOR BIOGAS PRODUCTION
Table 48 : END USE OF BIOGAS IN NORWAY, 2010
Table 49 : POTENTIAL ENERGY PRODUCTION IN NORWAY BY WASTE RESOURCES AND BY-PRODUCTS
Table 50 : BIOGAS PRODUCTION PLANTS IN POLAND BY FEED SOURCE AND END USE, 2010
Table 51 : BIOGAS PRODUCTION IN SLOVENIA BY FEED SOURCE, 2009
Table 52 : BIOGAS PRODUCTION POTENTIAL IN SPAIN BY FEED SOURCE
Table 53 : BIOGAS PRODUCTION IN SWEDEN BY FEED SOURCE, 2010
Table 54 : END USES FOR BIOGAS IN SWEDEN, 2010
Table 55 : NATURAL GAS/BIOGAS FILLING STATIONS IN SWEDEN, 1995–2010
Table 56 : AMOUNTS OF VEHICLE GAS SOLD, 1995–2009
Table 57 : BIOGAS PRODUCTION PLANTS IN THE U.K. BY FEED SOURCE, 2009
Table 58 : BIOGAS CAPACITY IN THE U.K., OPERATIONAL, IN-BUILD, AND IN PLANNING STAGES, 2010
Table 59 : TOTAL METHANE PRODUCTION FROM AD IN THE U.K., 2010
Table 60 : BIOGAS PRODUCTION POTENTIAL IN THE U.K.
Table 61 : ENERGY PRODUCED UNDER ROCS IN THE U.K., 2005-2009

List of Figures

Summary Figure : VALUE OF THE GLOBAL MARKET FOR BIOGAS PLANT EQUIPMENT FOR WASTEWATER- AND BIOSOLIDS-DERIVED ENERGY, 2000–2016
Figure 1 : GLOBAL PRIMARY ENERGY PRODUCTION BY SOURCE, 2010
Figure 2 : GLOBAL GREENHOUSE GAS EMISSIONS BY EMISSION TYPE
Figure 3 : GLOBAL BIOGAS PRODUCTION POTENTIAL BY FEED SOURCE
Figure 4 : TYPICAL COMPOSITION OF BIOGAS
Figure 5 : THE BIOGAS VALUE CHAIN
Figure 6 : MARKET BY FEED SOURCE, 2000–2016
Figure 7 : TYPICAL COMPOSITION OF LANDFILL BIOGAS
Figure 8 : MARKET SIZE AND GROWTH FOR BIOGAS PRODUCTION EQUIPMENT BY END USE, 2000–2016
Figure 9 : EFFICIENCY COMPARISON OF ELECTRICITY ONLY PLANTS AND CHP PLANTS
Figure 10 : GLOBAL GROWTH OF NGVS, 2000–2010
Figure 11 : MARKET PENETRATION OF TOTAL VEHICLE FLEET IN COUNTRIES WITH A 1% OR GREATER NGV MARKET SHARE, 2010
Figure 12 : MARKET SIZE AND GROWTH FOR BIOGAS PRODUCTION EQUIPMENT BY WORLD REGION, 2000–2016
Figure 13 : MARKET SIZE AND GROWTH FOR BIOGAS PRODUCTION EQUIPMENT IN EUROPE, 2000–2016
Figure 14 : SHARE OF THE EUROPEAN BIOGAS MARKET BY FEED SOURCE, 2010
Figure 15 : EU AND NATIONAL RENEWABLE ENERGY TARGETS FOR 2020, AS OF 2010
Figure 16 : BIOGAS PRODUCTION POTENTIAL BY TOP 15 BIOGAS PRODUCING COUNTRIES IN THE EU BY 2020
Figure 17 : ANNUAL SLUDGE PRODUCTION BY COUNTRY, 2010
Figure 18 : CRUDE BIOGAS PRODUCTION IN THE EU BY COUNTRY, 2000 AND 2001
Figure 19 : PRIMARY ENERGY PRODUCTION OF BIOGAS IN THE EU, 2006 AND 2007
Figure 20 : GROSS ELECTRICITY PRODUCTION FROM BIOGAS IN THE EU, 2006 AND 2007
Figure 21 : PRIMARY ENERGY PRODUCTION OF BIOGAS IN THE EU, 2008 AND 2009
Figure 22 : GROSS ELECTRICITY PRODUCTION FROM BIOGAS IN THE EU, 2008 AND 2009
Figure 23 : BIOGAS PRODUCTION PER INHABITANT BY COUNTRY, 2007 AND 2009
Figure 24 : BIOGAS PRODUCTION PLANTS IN DENMARK BY FEED SOURCE, 2010
Figure 25 : BIOGAS PRODUCTION IN DENMARK BY FEED MATERIAL TYPE, 2000-2010
Figure 26 : BIOGAS PRODUCTION PLANTS IN FINLAND BY FEED SOURCE, 2010
Figure 27 : BIOGAS PRODUCTION POTENTIAL IN FINLAND BY 2015
Figure 28 : BIOGAS PLANTS IN FRANCE BY FEED SOURCE, 2010
Figure 29 : GERMAN BIOGAS PLANTS BY WASTE TYPE, 2010
Figure 30 : BIOGAS PLANTS IN GERMANY, 1992–2010
Figure 31 : BIOGAS PRODUCTION POTENTIAL IN HUNGARY BY FEED SOURCE
Figure 32 : BIOGAS PLANTS IN IRELAND BY TYPE, 2010
Figure 33 : BIOGAS AND METHANE POTENTIAL FROM FARM SLURRIES AND SLAUGHTER WASTES IN IRELAND, 2020
Figure 34 : BIOGAS PRODUCTION IN ITALY BY FEED SOURCE, 2010
Figure 35 : BIOGAS PRODUCTION POTENTIAL IN ITALY BY FEED SOURCE
Figure 36 : BIOGAS PRODUCTION POTENTIAL IN LATVIA BY FEED SOURCE
Figure 37 : END USE OF BIOGAS IN NORWAY, 2010
Figure 38 : POTENTIAL ENERGY PRODUCTION IN NORWAY BY WASTE RESOURCES AND BY-PRODUCTS
Figure 39 : BIOGAS PRODUCTION PLANTS IN POLAND BY FEED SOURCE AND END USE, 2010
Figure 40 : BIOGAS PRODUCTION IN SLOVENIA BY FEED SOURCE, 2009
Figure 41 : BIOGAS PRODUCTION POTENTIAL IN SPAIN BY FEED SOURCE
Figure 42 : BIOGAS PRODUCTION IN SWEDEN BY FEED SOURCE, 2010
Figure 43 : END USES FOR BIOGAS IN SWEDEN, 2010
Figure 44 : NATURAL GAS/BIOGAS FILLING STATIONS IN SWEDEN, 1995–2010
Figure 45 : AMOUNTS OF VEHICLE GAS SOLD, 1995–2009
Figure 46 : BIOGAS PRODUCTION PLANTS IN THE U.K. BY FEED SOURCE, 2009
Figure 47 : BIOGAS CAPACITY IN THE U.K., OPERATIONAL, UNDER CONSTRUCTION, AND IN PLANNING STAGES, 2010
Figure 48 : TOTAL METHANE PRODUCTION FROM AD IN THE U.K. BY FEED SOURCE, 2010
Figure 49 : BIOGAS PRODUCTION POTENTIAL IN THE U.K. BY FEED SOURCE