Biogas to Hydrogen Market Report 2026

The biogas to hydrogen market size has grown rapidly in recent years. It will grow from $1.75 billion in 2025 to $1.97 billion in 2026 at a compound annual growth rate (CAGR) of 12.6%. The growth in the historic period can be attributed to expansion of biogas production infrastructure, availability of organic waste feedstocks, early adoption of steam methane reforming systems, initial investments in renewable gas technologies, development of anaerobic digestion facilities.

The biogas to hydrogen market size is expected to see rapid growth in the next few years. It will grow to $3.14 billion in 2030 at a compound annual growth rate (CAGR) of 12.4%. The growth in the forecast period can be attributed to increasing demand for low-carbon hydrogen, rising investments in hydrogen infrastructure, expansion of decarbonization initiatives, growing adoption of hydrogen in transport and industry, advancements in reforming catalyst technologies. Major trends in the forecast period include increasing deployment of biogas reforming systems, rising adoption of renewable hydrogen production pathways, growing integration of advanced reforming technologies, expansion of distributed hydrogen generation facilities, enhanced focus on feedstock flexibility.

Rising demand for wastewater treatment solutions is expected to drive the growth of the biogas-to-hydrogen market in the coming years. These solutions involve technological and infrastructure processes that remove contaminants from used water to make it safe for reuse or environmentally safe discharge. The need for wastewater treatment solutions is increasing as rapid urbanization and industrial expansion significantly raise the volume of municipal and industrial wastewater that must be managed and disposed of safely, posing major public health and environmental challenges. The biogas-to-hydrogen process helps meet this growing demand by converting methane-rich biogas, a by-product of anaerobic digestion in wastewater treatment plants, into high-value, clean hydrogen fuel, effectively transforming waste into a recoverable resource. For example, in 2024, the United Nations Sustainable Development reported that 3.4 billion people still lacked access to safely managed sanitation services, highlighting a substantial, unmet need for expanded treatment infrastructure capable of producing biogas feedstocks. Consequently, the increasing demand for wastewater treatment solutions is fueling the growth of the biogas-to-hydrogen market.

Leading companies in the biogas-to-hydrogen market are emphasizing technological innovations in clean carbon-negative hydrogen production to secure a competitive edge. Clean carbon-negative hydrogen is generated from renewable or waste-derived biogas, with processes that permanently capture or utilize carbon, resulting in net-negative greenhouse gas emissions. For instance, in April 2025, Utility and Ghena, a U.S.-based clean hydrogen technology firm, launched its H2GEN reactor system for biogas-to-hydrogen conversion. This system allows direct hydrogen generation from biogas without prior upgrading, offers modular scalability, and achieves verified negative carbon-intensity outputs for mobility applications in South Korea. These advancements accelerate the transition to climate-positive hydrogen production, support decarbonization strategies, and enhance circular economy integration, although commercialization and lifecycle validation of the technology remain key challenges.

In February 2023, Shell plc, a U.K.-based oil and gas company, acquired Nature Energy Biogas A/S for an undisclosed amount. This acquisition strengthens Shell’s position in the renewable natural gas (RNG) sector and expands its integrated RNG value chain globally. Nature Energy Biogas A/S, based in Denmark, produces hydrogen from biogas using agricultural, industrial, and household waste feedstocks, offering renewable energy alternatives to fossil fuels.

Major companies operating in the biogas to hydrogen market are Air Liquide SA, Air Products and Chemicals Inc, Linde plc, Siemens Energy AG, Thyssenkrupp AG, Xebec Adsorption Inc, Hitachi Zosen Inova AG, ENGIE SA, Shell plc, Bioenergy DevCo, Greenlane Renewables Inc, EnviTec Biogas AG, Nel ASA, ITM Power plc, McPhy Energy SA, Plug Power Inc, Snam S.pA, BASF SE, Green Hydrogen Systems A/S, Ballard Power Systems Inc.

North America was the largest region in the biogas-to-hydrogen market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the biogas to hydrogen market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the biogas to hydrogen market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The biogas to hydrogen market consists of sales of electrolyzers, fuel cells, gas compressors, hydrogen pipelines, and reforming catalysts. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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