Synthetic Natural Gas Market Size, Share, and Industry Analysis By Technology (Anaerobic Digestion & Fermentation, Thermal Gasification, Power-to-gas, and Others), By Application (Transportation, Power Generation, Industrial, and Others), and Regional Forecast till 2032

The global synthetic natural gas (SNG) market is witnessing significant growth due to increasing demand for cleaner energy sources, which is driving investments in SNG production, as it can serve as a more environmentally friendly alternative to traditional fossil fuels. Additionally, advancements in technology are improving the efficiency of SNG production processes, making it more economically viable.

• For instance, a report from the International Energy Agency (IEA) suggests that the global SNG production could reach 1,200 terajoules per day by 2025, driven by advancements in carbon capture and utilization technologies.

Synthetic Natural Gas Market Driver

Sustainability Goals and Innovation Drive the Demand for Synthetic Natural Gas

The synthetic natural gas (SNG) market is experiencing significant growth due to the global shift toward decarbonization and cleaner energy solutions. Stricter emission regulations and government initiatives, such as the European Union's Green Deal, which targets a 55% reduction in greenhouse gas emissions by 2030, are fueling interest in the adoption of SNG as a sustainable alternative. Consequently, many companies are actively exploring SNG projects, further boosting the market expansion.

• In June 2023, Total Energies and Belgian startup Tree Energy Solutions (TES) announced plans to work together to build a synthetic natural gas plant in the U.S. The plant uses green hydrogen and carbon dioxide to produce a methane-like gas that can be burned as fuel. The project is anticipated to produce 100,000 to 200,000 tons of synthetic natural gas (e-NG) per year.

Synthetic Natural Gas Market Restraint

High Production and Synthesis Cost of Natural Gas

The high cost of production compared to conventional natural gas is one of the key challenges faced by the synthetic natural gas market. The processes involved in generating SNG, such as gasification and methanation, can be capital-intensive and require significant technological investment. This can make SNG less competitive, especially in regions with abundant and low-cost natural gas resources. Additionally, fluctuating prices for raw materials and the need for advanced infrastructure can further hinder market adoption and growth.

Synthetic Natural Gas Market Opportunity

Increasing Focus on Carbon Capture and Utilization (CCU) Technologies

With increasing initiatives of industries striving to meet stringent emissions targets, integrating SNG production with CCU provides a sustainable pathway to reduce greenhouse gas emissions. This enhances the environmental benefits of SNG and attracts investments and government support. Furthermore, the potential to use renewable energy sources in SNG production aligns with global trends toward decarbonization, creating new market avenues and partnerships in the energy sector.

• In 2023, Chevron launched a pilot project that combines SNG production with carbon capture, demonstrating the viability of this approach. These developments reflect a growing trend in the energy sector to leverage SNG as a solution for decarbonization while advancing innovation.

Segmentation

By Technology	By Application	By Geography
Anaerobic Digestion & Fermentation Thermal Gasification Power-to-gas Others	Transportation Power Generation Industrial Others	North America (U.S. and Canada) Europe (Germany, U.K., France, Italy, Spain, Russia, and the Rest of Europe) Asia Pacific (China, India, Japan, Australia, Southeast Asia, and the Rest of Asia Pacific) Latin America (Mexico, Brazil, and the Rest of Latin America) Middle East & Africa (GCC, South Africa, and the Rest of Middle East & Africa)

Key Insights

The report covers the following key insights:

• Recent Advancements in the Synthetic Natural Gas Market


• Key Industry Trends


• Regulatory Landscape for Synthetic Natural Gas Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

Analysis by Technology

Based on technology, the market is divided into anaerobic digestion & fermentation, thermal gasification, power-to-gas, and others.

The thermal gasification segment is currently leading the synthetic natural gas (SNG) market due to its scalability and ability to convert a wide range of feedstocks, including biomass and waste, into gas efficiently. Additionally, it aligns well with global sustainability goals by providing a method to repurpose waste materials, addressing both energy needs and waste management issues.

Analysis by Application

Based on application, the market is fragmented into transportation, power generation, industrial, and others.

The transportation segment is currently leading the market for synthetic natural gas (SNG), driven by the increasing focus on reducing greenhouse gas emissions and the push for cleaner fuel alternatives in the transportation sector. SNG can be used as a direct replacement for conventional natural gas in vehicles, particularly in heavy-duty and long-haul transportation, where reducing emissions is critical. The availability of existing natural gas infrastructure also facilitates the adoption of SNG, making it easier to integrate into current systems.

Regional Analysis

Based on region, the market has been studied across North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

North America is expected to become the fastest-growing region for the synthetic natural gas market in the coming years. The North American natural gas sector has been thriving over the past decade, and its outlook remains optimistic.

• According to the U.S. Department of Energy, U.S. LNG exports continue to grow and are projected to account for more than 55% of total U.S. exports by 2030, according to the 2019 Energy Outlook.

The Europe market is expected to increase its market share during the forecast period owing to favorable policies and technological development, and industrial support and excess electricity storage will become increasingly important to ensure an uninterrupted energy supply.

• In 2022, the EU-funded Electro Gas project developed an innovative electrolysis-based technology to convert wind and solar electricity into storable synthetic natural gas that is highly efficient and environmentally friendly.

The Asia Pacific market is expected to grow during the forecast period as the role of natural gas in power generation has increased due to its availability, flexibility, and lower carbon dioxide emissions than coal and oil. However, natural gas emissions still need to be significantly reduced to meet international climate goals.

Key Players Covered

The global synthetic natural gas market is increasingly competitive and characterized by a diverse range of players. The report includes the profiles of the following key players:

• Basin Electric Power Cooperative (U.S.)


• Air Liquide (France)


• EnviTec Biogas AG (Germany)


• Verbio SE (Germany)


• Kinder Morgan (U.S.)


• MAN Energy Solutions (Germany)


• National Gas Company (Egypt)


• Algas-SDI (U.S.)


• Total Energies (France)


• Uhde (Germany)


• KADATEC Ltd. (Canada)

Key Industry Developments

• In April 2024, Air Liquide announced that it would continue to expand its biomethane, also known as renewable natural gas (RNG) production capacity in the U.S. by building two new production facilities. These facilities are located in Center Township, Pennsylvania, and Holland Township, Michigan, and they process dairy farms.


• In March 2024, Electrochaea and Erik Thun AB signed a contract to start negotiations on the off-take of e-methane to be produced by Electrochaea’s subsidiary BioCAT Roslev Aps in Denmark for usage as maritime fuel in the vessels operated by Erik Thun AB.