Landfill Gas Market Size, Share, & Industry Analysis, By Application (Electricity Generation, Heating, Combine Heat & Power, and Others) and Regional Forecast, 2024-2032

The global landfill gas (LFG) market was valued at USD 3.72 billion in 2023. The market size is projected to grow from USD 3.93 billion in 2024 to USD 6.64 billion by 2032, exhibiting a CAGR of 6.26% during the forecast period.

Rising awareness of the environment has significantly furnished the development of these gases across the globe. This gas is extracted as a byproduct of the decomposition of organic materials in landfills. LFG is used in power generation and cutting down atmospheric methane emissions. These gases consist of 50% methane and 50% carbon dioxide along with a minor fraction of several compounds and complex organic compounds. LFG is used in power generation as well as for piped gas. With the growing energy demand, it plays a significant role in fulfilling the demand-supply gap.

Several restrictions on travel, work, and industry due to COVID-19 hampered the global market. European countries such as Spain, the U.K., Italy, Germany, and France are the major shareholders of the global market. Conversely, these countries have undergone various regional and national shutdowns that have halted LFG operations. The impact of COVID-19 is proving to be a significant challenge for the renewable industry, resulting in shortage of raw material supply and impending job losses. Companies are dealing with several challenges in the energy & power industry due to the decline in electricity prices post the COVID-19 outbreak.

Landfill Gas Market Trends

Increasing Demand for Gases in Power Generation Sector Will Support Market Growth

The demand for these gases increases from the industrial and commercial sectors and can be utilized for power generation. The calorific value of LFG can be escalated by decreasing the amount of carbon dioxide, nitrogen, and oxygen content. Therefore, after a few treatments, it can be used for industrial and commercial purposes. LFG is directly used in boilers or infrared heaters where it can be used as a replacement to provide power for energy-intensive processes.

In addition, the hasty advancement in landfill power plants projects and mounting adoption of these gases to generate electric power across the region are anticipated to drive the landfill gas market growth. For instance, the Istanbul Metropolitan Municipality in 2020 completed the initial phase of the Seymen landfill gas energy facility -  a 20 MW system for the extraction of methane and for producing power.

Utilization of LFG Gases in Organic Waste Management to Favor Growth

Increasingly, states and municipalities are promoting biowaste prevention initiatives to keep biowaste away from landfills. In comparison, this has several advantages, including freeing up valuable landfill space, extending the life of the landfill, and reducing the amount of leachate produced. It can negatively impact LFG energy projects that rely on organic waste to produce LFG.

Landfill Gas Market Growth Factors

Growing Environmental Awareness is Fueling Sales of Gases Globally

Harmful gases in the surroundings can cause greenhouse gas emissions into the atmosphere. LFG protects the environment from these negative impacts and fulfills natural and cost-effective power sources. Growing awareness about the environment has led to increased government and private sector investments to construct such power plants. For instance, in 2021, Pittsburg-based RNG LLC launched LFG projects in Missouri and Virginia.

In November 2023, the ACT (Australian Capital Territory) Government is driving a circular economy by increasing landfill gas capture at the Mugga Lane landfill. This will reduce emissions and provide reliable renewable energy that could power up to 10,800 homes each year. This would be accomplished through the expansion of a partnership with Australian owned and operated clean energy engineering company LGI Limited that will deliver a landfill gas expansion project. The project, which would be constructed over the upcoming three years, will further improve the capabilities for capturing harmful methane emissions generated at Mugga Lane landfill and transforming it into reliable renewable energy for the ACT.

Growing Usage of Landfill Gas as Vehicle Fuel Will Provide an Opportunity for Market Growth

The growing petrol and diesel prices provide a significant opportunity for renewable and compressed natural gas alternatives. These gases can be upgraded to renewable natural gas through treatment processes by increasing their methane content and reducing carbon dioxide, oxygen, and nitrogen contents. Renewable Natural Gases (RNG) can be used in place of fossil natural gas, compressed natural gas, or liquefied natural gases. These gases can also be used in compressed natural gas vehicles without any modifications to the engine or fuel system.

RESTRAINING FACTORS

Essential Level of Moisture for Survival of Bacteria May Hinder Growth

Humidity is hampering the growth of the market. However, above a certain level, it is essential for bacteria to survive. Additionally, high facility cost to maintain optimal moisture content for organic waste decomposition is expected to hamper the market growth. The biological process associated with the formation of gas mixture is significantly influenced by moisture levels. In addition, LFG also pollutes soil and water, and methane gas produced during decomposition also causes several problems.

Landfill Gas Market Segmentation Analysis

By Application Analysis

Electricity Generation is expected to Dominate Market Due to Growing Industrialization

By application, the market is segmented into electricity generation, heating, combine heat & power, and others.

The electricity generation segment captured the largest market share and is projected to grow during the forecast period. This is attributed to the growing demand for uninterrupted power supply and increased adoption of renewable energy for power generation in developing economies. The expansion of transmission & distribution networks due to the surge in electricity demand is driving the development of the electricity generation segment.

REGIONAL INSIGHTS

Geographically, the landfill gas market is widespread across key regions, including North America, Europe, Asia Pacific, and the rest of the world.

As per our findings, Europe dominates the LFG market share during the forecast timeframe owing to shifting preference toward renewable energy resources in the region. Germany dominates the market and consists of one of the world's largest LFG industries. Due to the highly developed manufacturing infrastructure and advanced waste management solutions launched by some of the region's key players and government organizations. Highly efficient solutions for packaging waste, waste paper, and bio-waste help Germany's gas management.

Asia Pacific region will register significant growth during the forecast timeframe. In the region, China is considered one of the leading countries and fastest-growing LFG industries due to the rise in environmental concerns and investment in research and development (R & R&D) activities by the key companies. Some of the top landfills utilizing landfill gas for energy production in China are West New Territories Landfill, South East New Territories Landfill, and North East New Territories Landfill.

North America is projected to observe stable growth, with the U.S. leading the region's market. The advancement in manufacturing sectors and several initiatives taken by the government for efficient waste management is boosting the market’s growth. In the U.S., LFG is considered the third-largest source of methane emissions relating to humans. The growing per capita electricity consumption in North America forces the governments to generate power from LFG to provide a cost-effective, clean, and uninterrupted power supply. These factors propel the growth of landfill gas suppliers in the region.

List of Key Companies in Landfill Gas Market

Most of the industry players are majorly located in North America, Europe, and Asia Pacific. Covanta, SUEZ, Kohler Co., Aria Energy, Vectren, Pennon Group Plc, and Veolia provide services such as landfill gas extraction & monitoring, and mention landfill gas composition to increase their market shares.

List of Key Companies Profiled:

• Covanta Holding Corporation (U.S.)


• Veolia (France)


• Pennon Group Plc (U.K.)


• SUEZ SA (France)


• Kohler Co. (U.S.)


• Aria Energy Corp (U.S.)


• Shanghai Chengtou Holding Co. Ltd (China)


• Infinis Energy Plc (U.K.)


• EDL (Australia)


• Biffa (U.K.)


• Ameresco (U.S.)


• Vectren Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• October 2023 - Chinese municipal government investment arm Shanghai Chengtou Holding is expanding its capacity to convert kitchen waste into compost.


• December 2022- SUEZ and Waga Energy proposed a new Renewable Natural Gas (RNG) production unit at the Madaillan landfill. This project signifies SUEZ’s commitment to recovering biogas sourced from waste, an entirely green energy that is produced and distributed locally in a short cycle. This is the fifth unit to be commissioned jointly by SUEZ and Waga Energy.


• October 2021– Ramky Enviro set up new landfill gas to compressed biogas plants in India at the Hyderabad Integrated Municipal Solid Waste (HiMSW) site. Reportedly, it is among the first plants in the world and the largest in India to produce compressed biogas from landfill gas to be used as automotive fuel.  


• November 2021 - Covanta Holding Corporation, a world leader in sustainable waste and energy solutions, has announced the completion of its USD 5.3 billion acquisition by the EQT Infrastructure V fund, unveiling its strategy to become the most sustainable provider of waste solutions.


• October 2021 - Veolia brings on stream three new Thermoelectric Power Plants in Brazil located in Ipero, Metropolitan region of Sorocaba province of Santa Catarina, in three of its the sanitary landfills operated in the country. These units will produce 12,400 kW of renewable electricity from biogas produced by the decomposition of organic waste. Converting this previously unused biogas into energy contributes to better recovery of waste and strengthens the ecological impact of this activity.


• October 2020– The Veolia and Waga Energy S.A. launched the construction of WagaBox, a unit to recover biomethane from landfill waste. It has been installed at Claye-Soluily landfill in France to deliver 20,000 homes with renewable gas in Paris.

REPORT COVERAGE

The market research report offers qualitative and quantitative insights on this industry and a detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are advancements in technology for LFG by individual segments, and recent industry developments such as partnerships, mergers, and acquisitions. Also, the market analysis covers consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

REPORT SCOPE & SEGMENTATION