As per MRFR analysis, the UK Biogas Market Size was estimated at 744.6 (USD Million) in 2024.The UK Biogas Market Industry is expected to grow from 802.2(USD Million) in 2025 to 1,545 (USD Million) by 2035. The UK Biogas Market CAGR (growth rate) is expected to be around 6.139% during the forecast period (2025 - 2035).
Key UK Biogas Market Trends Highlighted
The UK Biogas Market has been experiencing significant growth driven by increasing government support for renewable energy. The UK government has set ambitious targets for reducing carbon emissions and enhancing energy security, which has resulted in favorable policies for biogas production. As part of its commitment to net-zero emissions by 2050, the UK promotes biogas as a valuable source of energy that utilizes organic waste materials.
The rising cost of traditional energy sources has also contributed to heightened interest in biogas, as it provides a more affordable and sustainable alternative. Opportunities for expansion in the UK Biogas Market mainly lie in developing new technologies and enhancing infrastructure for biogas plants.Innovations in anaerobic digestion technology and improvements in the efficiency of biogas production processes present a chance for businesses to increase output and reduce costs. Moreover, there is a growing focus on using biogas for transport fuels, which can help decarbonize the transport sector while tapping into a new revenue stream for biogas producers.
In recent times, collaborative projects among local authorities, businesses, and universities have emerged, emphasizing the importance of community engagement in biogas production. This trend reflects a shift towards decentralized energy solutions, enabling local communities to take control of their waste resources and transform them into clean energy.Overall, the UK Biogas Market is poised for future growth as it responds to the need for sustainable practices, renewable energy options, and community-driven initiatives.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
UK Biogas Market Drivers
Government Policies and Incentives
The UK government has been actively promoting the development of renewable energy sources, particularly biogas, to meet its ambitious carbon reduction targets. The UK's commitment to achieving net-zero greenhouse gas emissions by 2050 has led to various policies encouraging biogas production. For instance, the Renewable Energy Guarantees of Origin scheme allows biogas producers to certify their green energy, making it more attractive financially.
According to the Department for Business, Energy & Industrial Strategy, the total capacity of anaerobic digestion installations in the UK has increased by approximately 60% since 2014, with over 600 operational plants by the end of 2020.
This growth is primarily driven by fostering laws and funding policies like the Green Gas Support Scheme, which drives biomethane production for grid injection. This aggressive government posture is positively impacting the UK Biogas Market and shows further promise for sustained growth in market expansion.
Rising Demand for Renewable Energy
As global awareness of climate change and environmental issues continues to rise, there is an increasing demand for renewable energy solutions in the UK. Government reports indicate that renewable energy sources provided around 42% of the country's electricity in 2020, with biogas playing a critical role. The National Grid suggests that biomass and biogas generation are vital to balancing supply and demand while providing a stable energy source.
The demand for renewable energy is further supported by consumer preferences shifting towards greener alternatives, pushing industries to adopt biogas solutions.This growing inclination not only helps reduce greenhouse gas emissions but also prompts technological innovations in the biogas sector, contributing to the robust growth of the UK Biogas Market Industry.
Technological Advancements in Biogas Production
Innovations in biogas technology are significantly driving market growth within the UK. The advancement of anaerobic digestion processes and enhancements in feedstock conversion technologies have enabled higher efficiency and lower operational costs. Research and Development investments have led to the development of new biogas production methods, including improved microbial strains or dual-phase digesters.
A study conducted by the University of Cambridge shows that these innovations could increase biogas yield by up to 20% while reducing production costs.Consequently, increased efficiency and cost-effectiveness of biogas plants enhance the attractiveness of this renewable energy source, thereby expanding the UK Biogas Market Industry and its future prospects significantly.
Waste Management and Circular Economy Initiatives
The management of organic waste and the promotion of circular economy principles are pivotal drivers for the UK Biogas Market Industry. The UK has implemented strategies aimed at reducing food waste and optimizing waste management practices, leading to a greater focus on anaerobic digestion for waste treatment.
The Waste and Resources Action Programme (WRAP) reports that food waste amounts to approximately 1.4 million tonnes annually in the UK, highlighting a significant opportunity for biogas production from organic waste.Effective utilization of this waste not only decreases landfill use but also contributes to sustainable energy production, reinforcing the biogas sector's role in the circular economy. This growing emphasis on waste-to-energy solutions supports future market growth prospects in the UK Biogas Market.
UK Biogas Market Segment Insights
Biogas Market Application Insights
The UK Biogas Market, particularly in the Application segment, encompasses a diverse range of uses that highlight the versatility and importance of biogas in current energy and agricultural frameworks. Generated primarily from organic matter, biogas is increasingly recognized as a sustainable alternative to conventional fuels and energy sources. In the context of electricity generation, biogas technology has become significant in the UK's renewable energy initiatives, facilitating the country's transition towards greener energy sources and helping meet carbon reduction targets outlined in various government environmental policies.
Transportation fuel is another critical application, as biogas can be processed into biomethane, a cleaner energy alternative for vehicles. This aligns well with the UK's ambitions to reduce greenhouse gas emissions from the transport sector, promoting the adoption of cleaner fuels and supporting the government’s commitment to achieve net-zero emissions by 2050.
Heating applications utilize biogas effectively in both residential and industrial settings, contributing to energy security while also addressing local heating needs. The ability to convert biogas into renewable heat demonstrates its multifaceted benefits, which include lowering dependency on fossil fuels and promoting energy efficiency.
Furthermore, the fertilizer production segment benefits from biogas as a byproduct of anaerobic digestion processes. The nutrient-rich digestate produced can be used as an organic fertilizer, supporting sustainable agriculture practices and enhancing soil health. This not only tackles waste management issues but also enhances agricultural productivity, underlining the importance of biogas in fostering a circular economy.
As regulatory support fortifies the UK Biogas Market, key trends indicate a growing emphasis on innovation and technology integration, enhancing the efficiency and economic viability of these applications. Current fiscal incentives and governmental support mechanisms stimulate market growth, opening avenues for investment and further research in the biogas arena. The increasing acceptance of biogas within the UK’s energy mix reflects both a cultural shift towards sustainability and practical responses to energy security challenges, ensuring that biogas remains an integral component of the country’s transition to a low-carbon economy.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Biogas Market Feedstock Insights
The Feedstock segment within the UK Biogas Market plays a crucial role in supporting sustainable energy production by converting organic waste materials into biogas. This segment comprises various sources such as Agricultural Waste, Municipal Solid Waste, Animal Manure, and Industrial Waste, each contributing significantly to the overall biogas production landscape.
Agricultural Waste, originating from crop production and processing, is abundant in the UK, making it a valuable resource for biogas facilities. Municipal Solid Waste provides a dual benefit of waste management and energy generation, as urbanization increases waste volume in cities.Animal Manure, produced from livestock operations, serves not only as a nutrient-rich feedstock but also helps reduce the environmental impact of animal farming. Industrial Waste, encompassing food processing and other industrial operations, presents an opportunity for resource recovery and valorization.
As the UK continues to focus on reducing greenhouse gas emissions and fostering a circular economy, the adoption of biogas technology utilizing these feedstocks fosters innovation and supports the transition to a low-carbon future, addressing energy demands while managing waste effectively.The market growth trends indicate that as environmental regulations tighten and renewable energy targets advance, the importance of feedstock in the UK Biogas Market will only increase, creating new avenues for investment and sustainability solutions.
Biogas Market Technology Insights
The Technology segment of the UK Biogas Market comprises various innovative approaches that significantly contribute to the market's growth. Among these, Anaerobic Digestion plays a crucial role as it efficiently converts organic waste into biogas while generating biofertilizers, enhancing agricultural productivity.
Meanwhile, Landfill Gas Recovery captures methane from landfills, preventing greenhouse gas emissions and promoting a cleaner environment. Gasification, on the other hand, demonstrates versatility by converting carbonaceous materials into syngas, which can be utilized for energy production or as chemical feedstock.
The UK government has been actively supporting technological advancements in the biogas sector to meet renewable energy targets and reduce carbon footprints. Overall, these technologies reflect the increasing emphasis on sustainable solutions, aligning with the UK's commitment to combat climate change and promote renewable energy sources, thereby driving market growth and encouraging further investment. The ongoing development and implementation of these technologies are also seen as pivotal opportunities for innovation within the UK Biogas Market industry.
Biogas Market Use Insights
The UK Biogas Market has a significant focus on the Endse segment, which plays a crucial role in driving adoption and facilitating energy solutions. Within this segment, distinct categories such as Residential, Commercial, and Industrial operate, each contributing uniquely to market dynamics. The Residential sector is increasingly prioritized as consumers seek sustainable energy sources, making it a pivotal player in the transition towards greener alternatives.
The Commercial segment utilizes biogas for various operational needs, supporting the drive for corporate sustainability and energy efficiency.Meanwhile, the Industrial sector dominates in high-demand applications, facilitating process energy generation and reducing carbon emissions. The importance of these categories highlights their interconnectedness with the overall UK energy strategy, aiming for stronger renewable energy sources and lower greenhouse gas emissions.
Various socio-economic factors further propel growth in the biogas market, with regulation and policy shifts favoring investments in these cleaner technologies, ultimately enhancing the UK Biogas Market revenue and bolstering long-term market growth.As these segments evolve, insights from emerging market trends reveal opportunities to enhance biogas technology adoption, benefiting sectors focused on energy transition and climate objectives.
UK Biogas Market Key Players and Competitive Insights
The UK Biogas Market has emerged as a vital component of the country's renewable energy sector, driven by increasing demand for sustainable energy solutions, government regulations to reduce carbon emissions, and advancements in waste management technologies. This market serves as a platform for various stakeholders, including energy producers, waste management firms, and technology providers, all vying for a stake in the rapidly evolving landscape. With an emphasis on reducing landfill waste and promoting energy recovery, the competition in the biogas sector has intensified.
Companies are not only competing on technological edge but also on operational efficiency, project development capabilities, and strategic partnerships that enhance their market reach.Waste2Tricity boasts a significant presence within the UK biogas market, primarily focusing on the conversion of waste into energy through anaerobic digestion processes. Its innovative approaches have positioned the company as a leader in waste-derived energy production, effectively optimizing processes to improve efficiency and output.
One of the company's strengths lies in its robust alliances with local authorities and waste management entities, enabling it to secure valuable waste feedstock for biogas production. Furthermore, Waste2Tricity's commitment to sustainability and environmental stewardship resonates well with clients and stakeholders, solidifying its reputation within the sector.
The company continues to explore growth opportunities, aiming to expand its operational footprint across the UK through strategic collaborations that enhance its technology and market penetration.Severn Trent Green Power is another significant player in the UK's biogas market, specializing in the generation of green energy from organic waste and wastewater treatment.
The company is well-regarded for its integrated approach, which encompasses a range of services including anaerobic digestion, landfill gas utilization, and energy generation from sewage treatment. Severn Trent Green Power has established an extensive network of anaerobic digestion plants across the UK, positioning it as a vital partner for local authorities and businesses looking to manage waste sustainably. One of the core strengths of the company is its commitment to innovation, demonstrated through investments in advanced biogas technologies and operational efficiency improvements.
Additionally, Severn Trent Green Power has engaged in strategic mergers and acquisitions that not only broaden its service offerings but also enhance its competitiveness in the market. These moves have solidified its position as a leader in the biogas sector while enabling the company to leverage synergies across its operations.
Key Companies in the UK Biogas Market Include
UK Biogas Market Industry Developments
In recent months, the UK Biogas Market has witnessed significant developments. Companies such as Waste2Tricity and Severn Trent Green Power are expanding their waste-to-energy projects, contributing to the increasing capacity of the biogas sector.
Ceres Media's strategic partnerships have enhanced biogas production efficiency, while Eden Renewables has made strides in deploying new technology to optimize energy yield from organic waste. In the area of mergers and acquisitions, Biffa's acquisition of a waste management firm in March 2023 is a noteworthy development, reinforcing its position in the biogas sector.
Additionally, Cambridgeshire Biogas has announced collaborations with local councils to bolster local energy production from agricultural waste. Market valuations have shown a positive trend, with Biogen and Agrivert experiencing notable growth due to heightened demand for renewable energy.
Over the past few years, governmental support for the biogas industry, including grants and incentives, aligns with the UK's target to reach net zero emissions by 2050. The rising focus on sustainability has propelled companies like Vivergo and Bio Construct to innovate in biogas technologies, positioning them competitively in the evolving market landscape.
UK Biogas Market Segmentation Insights
Biogas Market Application Outlook
Biogas Market Feedstock Outlook
Biogas Market Technology Outlook
Biogas Market End Use Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 744.6(USD Million) |
| MARKET SIZE 2024 | 802.2(USD Million) |
| MARKET SIZE 2035 | 1545.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 6.139% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Waste2Tricity, Severn Trent Green Power, Ceres Media, Eden Renewables, Valorga, Biffa, Cambridgeshire Biogas, Refood, SUEZ Recycling and Recovery UK, Vivergo, Bio Construct, Biogen, Ferm Energy, Agrivert, Greenergy |
| SEGMENTS COVERED | Application, Feedstock, Technology, End Use |
| KEY MARKET OPPORTUNITIES | Increasing government support initiatives, Growing demand for renewable energy, Expansion of agricultural biogas plants, Innovations in biogas technology, Collaborations with waste management sectors |
| KEY MARKET DYNAMICS | Government support and incentives, Rising energy demand, Technological advancements in digestion, Strong agricultural sector collaboration, Environmental sustainability pressures |
| COUNTRIES COVERED | UK |
Frequently Asked Questions (FAQ) :
The UK Biogas Market is expected to be valued at 802.2 million USD in 2024.
By 2035, the UK Biogas Market is projected to reach a valuation of 1545.0 million USD.
The UK Biogas Market is expected to exhibit a CAGR of 6.139% from 2025 to 2035.
Electricity Generation is anticipated to hold the largest market share in the UK Biogas Market.
The Electricity Generation segment of the UK Biogas Market is expected to be valued at 600.0 million USD in 2035.
The Transportation Fuel segment of the UK Biogas Market is valued at 180.0 million USD in 2024.
Major players in the UK Biogas Market include Waste2Tricity, Severn Trent Green Power, and Ceres Media.
The Heating Applications segment is projected to reach 400.0 million USD by 2035.
The UK Biogas Market may face challenges related to regulatory changes and competition from other renewable energy sources.
There are growth opportunities in expanding applications for biogas, particularly in transportation and electricity generation.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
Get in Touch
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
