Agriculture, Energy Transition, Natural Gas, Biofuel, Renewables, Emissions

February 17, 2025

Record 2024 brings US biogas facility count to nearly 2,500: American Biogas Council

Getting your Trinity Audio player ready...

HIGHLIGHTS

Landfill projects account for 70% of US biogas production

RNG is growing as an end-use for biogas

Agriculture, wastewater project count seen growing in coming years

The US biogas industry brought a record 125 new projects online in 2024, an increase of 17% compared to 2023, with wastewater projects capturing the lion's share with a growth of 147% on the year, according to a report from the American Biogas Council published Feb. 14.

US biogas production ended the year at 1.4 million standard cubic feet per minute. Historically, nearly 80% of US biogas production is used in electricity production, but renewable natural gas production has been growing swiftly in recent years on the back of California LCFS and Federal RFS incentives. Even so, 95% of the projects that came online in 2025 are expected to be used for RNG production, ABC said.

Biogas-to-RNG demand grew to some 40% of total production in 2024, up from around 10% in the 2010-2018 period.

"The biogas industry keeps hitting new growth records every year because, as an energy source, biogas just makes sense," said ABC Executive Director Patrick Serfass in a statement Feb. 14. "It provides much-needed clean electricity, cuts pollution and emissions from transportation, and provides heat-producing fuel for industries."

Landfill projects increasing

Landfill projects produce the majority of US biogas, accounting for over 70% of production capacity, ABC data showed. 24 new landfill-to-biogas conversion projects were opened in 2024, bringing the total to 580. And while most of the produced gas is used for electricity generation, RNG upgrading continues to grow as a demand pathway.

Given the large amount of untapped landfills in the US, market participants expect projects to continue to be financed in the coming years. Moreover, landfill-to-RNG projects are often less capital-intensive than other types, and provide consistent gas production within a predictable CI score range, a key factor in RINS and LCFS credit generation.

California, Illionis, and South Dakota were the three States with the most capital invested in landfill gas projects throughout the year, with over $850 million invested between them.

"470 landfills currently flare gas that could be captured," the ABC said. "The ABC estimates that more than 20,000 additional biogas projects could be built to convert this waste into valuable energy."

Platts' assessed landfill RNG prices closed the week ended Feb. 14 at $23.46/MMbtu, up 0.7% from the start of the year.

Other pathways poised for growth

Even as Landfill projects continue to grow apace, the sector as a whole is poised for significant growth, with agricultural and wastewater facilities expected to track higher in the coming years, ABC said.

Agriculture-derived biogas projects grew nearly fourfold compared to landfill facilities in 2024, with over 90 projects coming online.

"More than ever, farmers across the country are finding more efficient ways to utilize the manure their animals produce," ABC said.

Wastewater and food waste projects saw more tepid growth during the year, with food-waste registering a 0.5% increase on the year with three new facilities coming online. Expectations of growth remain however, with 16 projects under construction and set to come online in 2025.