Synthetic Methanes - Global Strategic Business Report

The global market for Synthetic Methanes was valued at US$112.9 Million in 2024 and is projected to reach US$225.2 Million by 2030, growing at a CAGR of 12.2% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Synthetic Methanes market.

Global Synthetic Methanes Market - Key Trends & Drivers Summarized

Why Are Synthetic Methanes Emerging as a Decarbonization Lever Across Energy and Industrial Systems?

Synthetic methanes - also referred to as e-methane or renewable methane - are chemically identical to fossil-derived methane but produced using captured carbon dioxide and green hydrogen via methanation processes. These fuels are attracting increasing interest as part of broader decarbonization strategies in sectors where electrification is difficult or infrastructure is already built around natural gas. Synthetic methanes offer a drop-in replacement compatible with existing pipelines, storage facilities, and end-use equipment, enabling low-disruption transitions to low-carbon energy systems.

Their appeal is further reinforced by the ability to close the carbon loop: when produced using CO2 from industrial emissions or direct air capture (DAC), synthetic methane serves as a carbon-neutral energy carrier. This makes it valuable for hard-to-abate sectors such as long-haul transport, chemical manufacturing, and high-temperature industrial heating. As net-zero commitments become operational targets, synthetic methanes are gaining traction as versatile tools to reduce scope 1 and 2 emissions in both energy and industrial value chains.

How Are Production Technologies and Power-to-Gas Integration Advancing Commercial Viability?

The production of synthetic methane relies on power-to-gas (PtG) systems that convert renewable electricity into hydrogen through electrolysis, which is then combined with CO2 in catalytic or biological methanation reactors. Recent improvements in electrolyzer efficiency, catalyst durability, and heat integration are reducing energy losses and production costs - bringing synthetic methane closer to economic competitiveness with fossil natural gas and biomethane. Pilot projects in Europe and Asia are demonstrating technical scalability and grid compatibility under real-world conditions.

Integration with renewable energy sources is another key driver. Surplus solar and wind power can be stored as synthetic methane, which acts as a long-duration energy storage medium while also supporting grid balancing. By leveraging existing gas infrastructure, PtG systems using synthetic methane offer dual benefits of energy system flexibility and infrastructure reuse. As electrolyzer costs fall and renewable penetration rises, synthetic methane is positioned to play a pivotal role in seasonal storage and energy sector coupling.

Which End-Use Segments and Geographic Regions Are Pioneering Synthetic Methane Adoption?

Natural gas utilities, district heating providers, and heavy industrial users are among the early adopters exploring synthetic methane as a decarbonization pathway. Its compatibility with combined heat and power (CHP) systems, industrial boilers, and gas turbines enables substitution without retrofitting existing hardware. The transportation sector - especially maritime and heavy-duty vehicles - is also evaluating synthetic methane as a cleaner drop-in alternative to LNG and CNG, with lifecycle emissions benefits under renewable sourcing scenarios.

Europe leads the market in synthetic methane project deployment, with countries like Germany, Switzerland, and the Netherlands integrating it into national hydrogen strategies and PtG initiatives. Japan and South Korea are exploring synthetic methane imports to decarbonize gas grids while securing energy independence. North America, though still in early-stage development, is witnessing growing interest from gas utilities and hydrogen developers aiming to diversify their clean fuel portfolios. These regional dynamics are setting the foundation for global supply chain development and cross-border trade in synthetic fuels.

How Are Policy Frameworks, Carbon Pricing, and Renewable Energy Markets Shaping Demand Trajectories?

Government policies supporting renewable gas mandates, carbon-neutral fuel standards, and subsidies for PtG infrastructure are accelerating synthetic methane commercialization. The European Union’s Fit for 55 package and REPowerEU plan explicitly promote synthetic fuels as part of energy security and climate targets. Similarly, clean fuel standards in California and Canada offer credit-generating opportunities for low-carbon gas alternatives, incentivizing early investment in e-methane production facilities.

Carbon pricing is another crucial enabler. As the cost of emitting CO2 rises under emissions trading schemes (ETS) and carbon border adjustment mechanisms (CBAM), the relative attractiveness of synthetic methane improves. Renewable energy markets, including green power purchase agreements (PPAs) and guarantees of origin (GoOs), are facilitating traceable and verifiable low-carbon inputs for methane synthesis. As corporate buyers seek to decarbonize gas usage without operational overhaul, synthetic methane’s role as a flexible, certifiable solution is becoming increasingly strategic.

What Are the Factors Driving Growth in the Synthetic Methanes Market?

The synthetic methanes market is gaining momentum as a scalable, infrastructure-compatible solution to decarbonize gas-reliant sectors while enabling energy storage and sector coupling. Advancements in electrolyzer and methanation technologies, alignment with existing gas logistics, and growing support from climate policy frameworks are reinforcing its commercial prospects. As companies and governments confront carbon neutrality targets, synthetic methane offers an adaptable route to reduce emissions without overhauling established energy systems.

Going forward, the market’s growth will hinge on the ability to scale cost-effectively, secure renewable electricity inputs, and align with evolving carbon accounting standards. Whether synthetic methane can transition from pilot scale to mainstream adoption - while maintaining environmental integrity and economic viability - will determine its impact on shaping future low-carbon energy ecosystems globally.

Report Scope

The report analyzes the Synthetic Methanes market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Source (Direct Air Capture, Hydrogen & Carbon Dioxide); Application (Fuel, Hydrogen Transport Carrier, Industrial, Other Applications).

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Direct Air Capture Source segment, which is expected to reach US$142.9 Million by 2030 with a CAGR of a 10.6%. The Hydrogen & Carbon Dioxide Source segment is also set to grow at 15.4% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $30.8 Million in 2024, and China, forecasted to grow at an impressive 16.2% CAGR to reach $46.6 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Synthetic Methanes Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Synthetic Methanes Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Synthetic Methanes Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Air Liquide, BASF SE, Calysta Inc., CLARIANT, Dakota Gasification Company and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 37 companies featured in this Synthetic Methanes market report include:

• Air Liquide
• BASF SE
• Calysta Inc.
• CLARIANT
• Dakota Gasification Company
• Electrochaea GmbH
• ENGIE
• EnviTec Biogas AG
• GRTgaz
• IHI Corporation
• KADATEC s.r.o.
• MAN Energy Solutions
• Mitsubishi Corporation
• Osaka Gas Co., Ltd.
• Shell plc
• Synthesis Energy Systems, Inc.
• Terega
• TotalEnergies
• Tree Energy Solutions (TES)
• Turn2X

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What's Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry