IEA: Biogas and biomethane hold untapped global energy potential

A new report reveals that biogas and biomethane could meet up to one-quarter of today’s global natural gas demand using only sustainable raw materials.

As governments search for locally sourced solutions to enhance energy security and economic competitiveness, biogases—low-emission fuels made from organic waste—are gaining renewed momentum. This is the central message of the Outlook for Biogas and Biomethane, a new special report published today by the International Energy Agency (IEA).

Since 2020, over 50 new policies have been introduced worldwide to support biogas, reflecting growing recognition of its benefits. Biogas can be used directly for heating and electricity generation, while biomethane, a refined form of biogas, serves as a drop-in replacement for natural gas, requiring no major infrastructure changes.

The report highlights that the technologies and supply chains needed to produce biogas are mature, reliable, and score high on energy security metrics. Biogas and biomethane are typically produced close to where they are consumed, rely on mostly domestic materials, and offer rural communities new employment and income opportunities. Being dispatchable energy sources, they also help balance energy supply and demand.

In a first-of-its-kind spatial analysis covering over five million locations worldwide, the IEA found that biogas production could reach the equivalent of nearly one trillion cubic meters of natural gas per year—using only sustainable feedstocks like agricultural and food waste that don’t compete with food systems. This would equal around one-quarter of current global natural gas demand.

Despite this vast potential, less than 5% of sustainable raw materials are currently used for biogas and biomethane production. “This report and its pioneering analysis show that biogas and biomethane could play a much larger role in the global energy system,” said IEA Executive Director Fatih Birol. “The potential is particularly significant in emerging and developing economies, which account for nearly 80% of the sustainable feedstock supply. Our report outlines the additional measures policymakers can take to unlock this valuable energy source.”

However, several regulatory and economic barriers still hamper broader adoption. On average, biogas projects take two to five years to develop—sometimes up to seven years just to secure permits. While the underlying technologies are well-established, biomethane production remains more costly than natural gas in many markets. According to the IEA, achieving cost parity will require targeted policy support and carbon pricing mechanisms.

Nevertheless, the report concludes that biomethane production could be scaled up fivefold at costs equal to or lower than current wholesale gas prices. Competitiveness further improves when accounting for the many co-benefits, such as reducing methane emissions from agriculture and generating sustainable fertilizer as a by-product.

Alongside the report, the IEA has launched an interactive mapping tool that allows users to explore global biogas potential, as well as a series of factsheets detailing the types and volumes of available feedstocks in key regions.