Introduction
The World Biogas Summit is an annual global event co-located with the World Biogas Expo and the AD and Biogas Industry Awards. The event is held in Birmingham, United Kingdom to bring together policy makers, industry leaders, experts, and decision-makers in the biogas industry from around the world. This year, over 2200 delegates came together on 10-11 July to discuss, learn and cooperate on actions to scale up investments, promote smart policies and innovative technologies, and foster strategic partnerships in the biogas (and ancillary) industries.
During the two days, the summit provided a platform to the biogas industry to discuss financing the industry, innovation, the role of leadership in encouraging growth and provide an update on the market within various jurisdictions. The WBA utilised the opportunity to provide an update on the flagship #MakingBiogasHappen (MBH) Programme that envisions development of a Global Biogas Regulatory Framework building upon best practices, and the International AD Certification Scheme.
The global event was opened by the Chief Executive of WBA, Charlotte Morton OBE, followed by an inaugural address by Mr. Pankaj Jain, Secretary, Ministry of Petroleum and Natural Gas (MoPNG), Government of India, and Ms. Jo Tyndall, Director of the Environmental Directorate at the Organization for Economic Co-operation and Development (OECD). Mr Pankaj Jain commended the work being done by the WBA and partners to promote biogas industry globally and encouraged them to work closely with the Global Biofuels Alliance aligned with its mandate and agenda to promote global uptake of biofuels. Mr. Jain also highlighted the fact India has big ambitions to increase both large and small scale biogas adoption in this decade. For instance, Sustainable Alternative Towards Affordable Transportation scheme was launched by the MoPNG to set up 5000 CBG plants in India by 2030. India has about 105 large scale CBG plants operational at present, with another 150 plants in the pipeline and over 800 letters of intent have been received. Ms. Jo Tyndall reiterated that OECD stands for “better policies for better life” and highlighted the fact OECD has accorded priority to the biogas industry as a crucial pathway to achieve Net Zero and create a circular economy.
Biogas – It’s Happening
Global biogas markets are growing fast, including higher growth rate in the emerging economies. Europe remains the dominant market with over 50% of the market share however, the movers and shakers in the sector are now also across the world including Asia and South America. Global biogas production is expected to grow at a rate of 32% in 2023-2028.
Countries are looking to expedite biogas and biomethane production to reduce dependency on imported natural gas and manage growing human-induced waste. 70% of world’s waste ends up in dumps and landfills which is the third largest source of global emissions. Proper waste management has the potential to reduce warming by 0.6 degrees.
Renewables have increased globally but most countries lack dedicated measures for renewable heat and fuels. Biogas needs to replicate success stories seen in other renewable electricity sources to grow in line with methane emissions reductions targets.
#MakingBiogasHappen programme
The WBA’s flagship #MakingBiogasHappen (MBH) programme has been initiated to create the standardised Global Biogas Regulatory Framework of best practice guidance for policy makers as well as the International AD Certification Scheme (ADCS International). Industry has recognised as a crucial need for harmonised regulations internationally to support project proponents. Countries such as Italy has seen a significant growth recently because of early food waste segregation practices and shorter permitting timelines. Permitting timelines for biogas projects are not compatible with the required scaling up of the sector. Along with our partners, we at WBA are making strides towards expediting permitting process which is crucial to growing our sector. We encourage our fellow biogas industry participants to join our drafting of the framework and certification scheme. Please reach out to us using contact details provided below.
Global Biofuels Alliance meeting
The Global Biofuels Alliance (GBA) was formed in September 2023 and comprises of 19 countries and 12 international organisations. This alliance will leverage international cooperation to accelerate the global transition to sustainable energy and encouraging biofuels such as biogas. The GBA endeavours to realise the potential of biogas to meet 16-22% of electricity needs globally, replace approx. 7% of inorganic fertilisers and contribute to social benefits in terms of 10-15 million jobs, improved air quality and gender equality.
At the World Biogas Summit, Mr Pankaj Jain, Secretary, MoPNG, spoke on India’s ambitions in the context of the GBA alongside biogas as a priority theme. During the session, the panel established that the GBA can help by incentivising biofertilisers, clarifying how biomethane can take part in carbon markets, encouraging jurisdiction to adopt biogas production targets, and retaining gas grid infrastructure. Moreover, working on education and knowledge sharing exercises can help gain social license to operate and avoid the steep learning countries in the newer markets.
Biogas in Europe and North America
Europe has been pioneering ambitious targets and regulations for biogas and biomethane. There is a call for the ambition to continue in the short and long term and set up an integrated European market for biomethane. Industry is researching and refining the technologies further so that more energy can be extracted from waste, it can be distributed efficiently, and better bio fertilizer can be made available for agriculture.
Corporate reporting systems such as the GHG Protocol need to enable the use of biomethane certificates. As in previous years, biogas is continuing to provide a diversified source of income for ancillary sectors like agriculture in Europe and North America.
Keynote: Biogas in global energy and climate efforts
Ms. Rachel Kyte, former Special Representative of the Secretary-General of the United Nations for Sustainable Energy, delivered stark facts on climate urgency including this being the 13th month in a row of record hot temperatures and increasing risks of crop failures, heat waves & water stress. 2.5 billion people globally do not have access to clean cooking and 2.2 billion live with intermittent access to energy. For biogas to contribute to climate change mitigation, regulatory consistency is important in getting in investment for renewables and economic measures need to be adjusted to alleviate financial stress in developing countries. Fossil fuels continue to get subsidies. This is the time to make moves to avoid the costs in the future social, environmental and economic plights.
Scaling Investments and Financing
Biogas has been attractive to investors as it is a mature technology, investment remain at manageable scale and Internal Rate of Return (IRR) are significantly higher than onshore wind or solar. investors typically look for IRRs in the early teens to make AD projects attractive. The growing investor interest is driven by AD’s potential for decarbonisation and circular economy. Operators need ensure long term feedstock contracts and digestate as a revenue source to provide added certainty to investors. However, planning and environmental permits and hard to treat feedstocks remain a challenge to making projects bankable.
CEOs Forum with Indian Oil
My Shrikanth Vaidya, Chairman of Indian Oil, sat down with Charlotte Morton to have a detailed conversation about the role of biofuels in sustainable transportation in India. The Indian Government is providing subsidies in the form of the SATAT scheme for speedy uptake of biogas and biomethane plants. Although the potential for biogas is very high in India, AD plants are mainly concentrated in the north. Co-products such as digestate in some CBG plants are providing more revenue than biogas as organic farming becomes more appealing in India.
Women in Biogas
As with the energy sector more widely, women in the biogas industry are under-represented. During the Summit, experts spoke on a panel about creating a more equitable and diverse workforce with women playing a leadership role within the biogas industry. The WBA presented analysis of two surveys specifically examining the composition, role and experiences of women in this sector, providing valuable insights into gender-related issues and opportunities. WBA’s survey showed that while there are improved efforts in fostering women in the industry, there is more to be done for furthering the cause. The WBA is making strides to foster growth and knowledge sharing within the industry. WBA’s Women in Biogas Working Group aims to increase visibility and support for women in this growing field of renewable energy. A call was made to those in attendance to join us in this endeavour. The WBA will also work on fostering the benefits and importance of adopting cleaner cooking methods, empowering women in the rural areas. The session called for interested parties to sign up for a Mentorship Programme.
Drivers for Market Demand for Biomethane
Government support and corporate ambition for climate action has seen growth in many biomethane markets such as India while Brazil is driven by the necessity to meet its natural gas consumption needs. Similarly, the price of biomethane is driven by type of feedstock and certification schemes. Developing markets such as Brazil are experiencing a growing need for gas infrastructure improvements to drive market demand for biomethane. In Brazil, biomethane production is primarily for self-consumption and heat, with only six units injecting into the grid. Infrastructure challenges, such as unconnected pipelines and poor road conditions, hinder transport. India’s biomethane sector faces its own challenges, with organic matter often not used as a feedstock for digestion.
Sustainable & Smart Cities
Majority of the world’s population live in cities so the importance of creating sustainable cities is more necessary than ever. Methane is one of the most harming greenhouse gases with a warming potential 86x higher than carbon dioxide over 20 years, and cities contribute largely to methane emissions through human-induced waste (35% of cities emissions are from wastes). Investment in biogas projects across the world has led to social and environmental outcomes while addressing the huge need for diversion of municipal waste from landfills and dumps. UNIDO and C40 cities showed case studies such as the GEF-UNIDO Sustainable Cities Impact Programme (SCIAP) initiative that has 5 pilot projects in India already providing benefits to communities. 38% of waste goes into uncontrolled waste disposals. To accelerate circular economies in cities, private-public partnerships were flagged to attract private sector financing for the necessary infrastructure.
This session determined the need for waste characterisation data for planning operations and policy levers to support collection and diversion of organic wastes from landfills.
Biogas in Emerging Markets
Biogas holds significant potential in emerging markets like Brazil, India, Indonesia, China and South Africa due to their abundant organic waste resources, baseload energy demands, and the need for sustainable waste management solution. Brazil averaged a growth of 21% in the last 21 years and 32% just in 2022-23 despite lack of government support. Newer markets such as South Africa are focusing on enhancing training, technical assistance and outreach programs to initiate the biogas industry expansion.
World Biogas Expo and Engine Room
Complementing the Summit and Expo was the Engine Room that provided two days of exemplary educational sessions about operation and maintenance of an AD plant with a variety of show cases that showed the world the considerations to ensure correct operation, management and efficiency. The sessions provided an overview of the most up to date technologies, and the importance of standardization for a resilient biogas industry. The WBA staff introduced various innovative and ambitious projects to ensure the growth of the industry. The technical vision to guarantee the future of the biogas industry with all the elements adjacent to it was showcased.
Attendees gained an overview of the possibilities to monetise the biogas industry with considerations on multiple fronts (from subsides to opportunities to maximise the sustainability and the financial outputs).
The industry has seen the need and routes to get the right people into the industry, with transferable skills between legacy energy industries and biogas. The need to understand the requirements of support mechanisms in designing the plants and businesses around the world. We discussed how both limiting factors can be addressed using AI to support the optimization and operation plants, support decision making and reduce the amount of specialist experience needed for new recruits.
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Last but not least, the two-day programme also included the AD and Biogas Industry Awards, where prominent players in the industry were acclaimed for their innovation, perseverance and excellence. Read more about the 12 award winners here.
What next?
The WBA Congress series was launched last year with the India Biogas Congress held in New Delhi in September 2023. This year, the event returns to New Delhi on 23 – 24 October 2024 with bigger ambitions and more collaborators. The WBA will also deliver the first Brazil Congress in Foz do Iguaçu-PR on 1 October 2024, aligned with the G20 energy meetings.
To bring the biogas agenda further to the global forefront, WBA will have a presence and run discussions at COP 29 in Baku, Azerbaijan 11-22 November 2024.
Reminder: the MBH consultation commences in September 2024. Expertise and learnings from the industry are requested at this stage. Please reach out to MBH Team directly at MBH.contact@worldbiogasassociation.org to ask about participating. Or you can fill out the contact form here and a member of the MBH Team will get in contact with you.
