Biogas Is A Green Alternative To Natural Gas
It's fair to say that, when it comes to energy markets, we have experienced one of the most volatile periods of time in recent times. Companies in particular have struggled with the impact of rising energy costs. As we enter 2023, it's clear that a clean and sustainable approach is needed to help companies reduce their exposure to fossil fuel volatility.
One of the technologies that can help us with this objective is BioGas.
According to analysts, the size of the biogas market was valued at USD 24 billion in 2020 and USD 25 billion in 2021, respectively, and is estimated to grow to USD 37 billion by 2028. Factors such as the development of new technologies, as well as the optimization of advanced anaerobic digestion techniques and biogas improvement technologies, are strongly driving the growth of this industry. In addition to this, the global demand for biomethane as a fuel for transportation, electric power generation and heating is driving the biogas market. The growing knowledge about high-energy methane gas, which is an improved version of biogas, will create many opportunities. For example, purified biomethane has properties similar to those of natural gas since it acts as a highly efficient and environmentally friendly fuel, so it can replace natural gas in cars that use this fuel and be injected into the natural gas network. According to data from the International Renewable Energy Agency (IRENA), biogas as a fuel for vehicles can reduce greenhouse gas emissions by 60% to 80% compared to fossil fuels.
While it is true, there was a stoppage of bioenergy projects due to restrictions imposed on travel, work, industrial operations, logistics and transportation due to the COVID-19 pandemic. Another factor for the slowdown of this industry was the lack of availability of raw materials, components and technical support. But it's not all bad news, in Brazil, the National Bank for Economic and Social Development (BNDES) approved funding of USD 15.4 million for UISA Geo Biogás S/A to build an industrial unit for the production of biomethane and electricity from sugar cane waste in Nova Olympia (MT). In the first phase, this plant will produce up to 11.4 million Nm³/year of biogas and up to 32,000 MWh annually.
Nowadays, BioGas has found an important application in electricity generation, through the use of internal combustion engines, gas turbines, gas microturbines or on-site turbines. This, combined with electrical energy storage, can be an excellent solution to lower business costs and reduce congestion in distribution networks.
In Mexico, we must follow the example of the different countries (consolidated and emerging) that are betting on the use of biogas for the generation of electrical energy. Together, private industry, banks and the government need to invest in this technology and develop it to diversify generation sources, provide sustainable alternatives and achieve clean generation goals, thus providing a promising future for the biogas industry in Mexico and the world.
