3 billion dollars. That's how much U.S. investments in biogas grew over the past year. Not only is this an increase of 40% since 2023, but it is also a new record for the American biogas market. This is highlighted in a report by American Biogas Council, a leading trade organization that annually tracks U.S. biogas market developments.
There is still great potential for development in the U.S.
Biogas development is progressing rapidly in the U.S., but the industry still has some way to go before the industry gaining traction on the American market.
The majority of biogas plants in the United States are waste water plants, while the rest mostly handle waste from landfills. Danish biogas companies are progressively gaining traction in the U.S. as the landfill market is becoming saturated, and the demand for new solutions is growing.
Right now, biogas plants in the U.S. are primarily used to handle landfill waste, but the country’s massive size offers great potential for the growth of biogas in other sectors such as agriculture and wastewater.
I would say that we have built out 10 percent of the market right now. There are about 2500 operational biogas systems across all 50 states in the U.S., but we think that there are at least 24,000 potential new systems.
If the trade organization’s estimates are accurate, the current figures must increase almost ten times before reaching full potential.
The U.S. can learn from Denmark
The development is moving fast, but for the biogas industry to achieve its full potential in the United States, American Biogas Council is particularly looking towards Denmark for inspiration.
"Even though the Danish industry is much smaller than the U.S. industry, it is much more mature in terms of commercialization and how much organic material is being managed with biogas systems," says Patrick Serfass.
However, it is important to understand that the Danish and American markets are not comparable on all parameters. Denmark is particularly ahead when it comes to agriculture and food waste, and one of the key differences between the two countries, according to Patrick Serfass, is the mindset around organic waste handling.
"One of the things to learn from Denmark is the approach that it really doesn’t matter what the type of organic material is. What matters is that it gets recycled and that the project developer knows how much biogas it is going to produce," he says.
Willingness to cooperate across countries
In Denmark, biogas has been produced since the 1970s, and therefore, the Danish industry has many years of experience with all the different processes within biogas. According to American Biogas Council's assumption on the size of the full market, there is a large untapped potential in the United States, where Danish companies can contribute with their solutions and expertise.
There is a year-long tradition for innovation and cooperation within the Danish biogas industry, and that is seen as n advantage in the U.S. We have had a warm welcome, but you need to have a presence and be patient in order to enter the American market.
Although it can be a challenge to take the step from Denmark onto the other side of the Atlantic, Patrick Serfass has a specific piece of advice for Danish companies:
"I think having a physical presence in the US is a really important part of having business success in the biogas industry and to get your first project off the ground," he says.
Patrick Serfass has visited Denmark on several occasions to gain inspiration, experiencing the Danish biogas sector first-hand through his participation in delegations organized by the Trade Council.
The Trade Council helps build bridges between Denmark and the United States through their alliances – also within biogas. As part of the biogas alliance, Danish companies, such as GrainIt, receive help and guidance to bring their technologies into the American market.