WASHINGTON, Feb. 20 – Capital investment in U.S. biogas projects saw a significant 40% increase in 2024, according to a new report from the American Biogas Council (ABC). The industry also witnessed a 17% rise in the number of operational biogas facilities, spanning landfills, farms, and wastewater treatment plants. With nearly 2,500 facilities now capturing and utilizing biogas across the country, the sector continues its rapid expansion.

A major driver of this growth has been the shift toward renewable natural gas (RNG), which accounted for 95% of the 125 new projects launched in 2024. ABC attributes this trend to favorable policies supporting RNG production and the increasing demand for alternative fuels.

Biogas Industry Adapts to New Market Trends

The biogas sector has long been a cornerstone of sustainable energy, with its origins dating back to the first anaerobic digestion plant in 19th-century India. In the U.S., landfill gas capture became widespread in the 1990s through the Environmental Protection Agency’s Landfill Methane Outreach Program. Today, wastewater treatment plants house 47% of all biogas facilities, with agricultural digesters comprising 25%, landfills 23%, and food waste processors 5%.

Federal and state incentives have made biogas refinement more profitable than ever, accelerating the industry’s transition toward RNG production. While historically, 77% of biogas facilities generated electricity, last year saw the overwhelming majority of new projects opt for RNG production, capitalizing on federal Renewable Fuel Standard incentives and state clean fuel programs.

“The biogas industry is changing very quickly,” said Patrick Serfass, executive director of ABC, in a webinar discussing the findings.

Landfills Lag While Agricultural Digesters Surge

While landfills remain the largest contributors to U.S. biogas production, their growth rate has slowed. In 2024, 24 landfill-based projects came online, down slightly from 26 in 2023. Waste management firms have pointed to construction and permitting delays as obstacles to expansion. Despite this, landfills still account for 72% of total U.S. biogas production capacity due to their sheer volume of organic waste.

Conversely, the agricultural sector emerged as the fastest-growing segment, with a 24% increase in new digesters last year. The U.S. now hosts 615 farm-based digesters, a number expected to grow as investment continues to flow into the sector.

Food waste digestion remains a smaller but promising area for future expansion. Of the 114 standalone food waste processing facilities in operation, 52 handle post-consumer waste while the remainder focus on pre-consumer industrial waste. Industry experts predict rapid growth in this segment as food waste diversion initiatives expand.

“A lot of people in our industry are pretty bullish that the food waste systems will see much more significant growth in the coming years,” Serfass noted.

The Future of Biogas: Growth Potential and Policy Challenges

ABC projects that more than 15,000 additional sites across the U.S. could be developed for biogas capture and utilization. As a comparison, Germany already operates nearly 10,000 digesters, enabling some regions to drastically reduce reliance on petroleum-based fuels.

However, policy uncertainties remain a challenge for the sector. ABC has been advocating for regulatory frameworks that support continued industry growth, such as ensuring federal tax credits for biogas production remain intact. The organization is also pushing for policies that allow natural gas-fueled medium- and heavy-duty vehicles to compete with electric alternatives.

“Organic waste is everywhere; this is not an urban/rural or red/blue issue,” said Heather Dziedzic, vice president of policy at ABC. “This is nationwide.”

With investment surging and the market evolving, the biogas industry is poised for continued expansion, driving innovation and sustainability in the renewable energy sector.

Originally reported by Jacob Wallace in Construction Dive.