Co-Digestion Facility Market Report 2026

The co-digestion facility market size has grown strongly in recent years. It will grow from $4.03 billion in 2025 to $4.35 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to growth in municipal waste generation, increasing landfill diversion regulations, expansion of renewable energy initiatives, rising awareness of bioenergy benefits, early adoption of anaerobic digestion technologies.

The co-digestion facility market size is expected to see strong growth in the next few years. It will grow to $5.99 billion by 2030 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to tightening global carbon emission reduction targets, increasing demand for renewable biogas energy, expansion of circular economy policies, rising investment in sustainable waste management infrastructure, growing adoption of decentralized energy systems. Major trends in the forecast period include integration of multi-feedstock anaerobic digestion systems for higher biogas yield, expansion of decentralized waste-to-energy co-digestion plants, increasing adoption of advanced pretreatment technologies for organic waste optimization, rising use of nutrient recovery systems from digestate for circular agriculture, growing deployment of modular and scalable co-digestion infrastructure in urban waste management.

The growing demand for renewable energy is anticipated to propel the growth of the co-digestion facility market coming years. Renewable energy refers to energy generated from naturally replenishing sources such as sunlight, wind, water, biomass, and geothermal heat, offering sustainable and environmentally friendly alternatives to conventional fuels. The demand for renewable energy is increasing due to rising environmental concerns and the need to reduce greenhouse gas emissions, supporting the transition toward cleaner and more sustainable energy systems. Co-digestion facilities contribute to renewable energy generation by converting multiple organic waste streams into biogas through anaerobic digestion, improving resource efficiency while producing sustainable energy. For instance, in June 2025, according to the Department of Climate Change, Energy, the Environment, and Water, an Australia-based government agency, renewable energy sources generated approximately 102,403 GWh, accounting for 36% of Australia’s total electricity production, an increase of one percentage point compared to 2023. Therefore, the growing demand for renewable energy is driving the growth of the co-digestion facility market.

Leading companies operating in the co-digestion facility market are prioritizing the establishment of long-term biogas procurement agreements to improve project viability, secure stable revenue streams, and speed up the deployment of integrated waste-to-energy solutions. Biogas procurement contracts are agreements in which utilities or energy providers commit to purchasing renewable natural gas produced from organic waste and wastewater treatment processes, supporting sustainable energy generation and waste management. For example, in March 2026, Anaergia Inc., a Canada-based renewable energy company, secured California’s first biogas procurement contract linked to wastewater infrastructure. The project involves upgrading biogas generated from wastewater and organic waste streams into renewable natural gas, which will be supplied to utilities, thereby promoting co-digestion practices, reducing greenhouse gas emissions, and supporting the transition toward circular economy-based energy systems.

In March 2025, EnviTec Biogas AG, a Germany-based provider of co-digestion facility solutions, entered into a partnership with SJI Renewable Energy Ventures to expand renewable natural gas production by utilizing anaerobic digestion of organic waste streams. Through this collaboration, both companies will jointly develop and operate large-scale anaerobic (co-digestion) facilities that transform dairy manure and other organic waste into biogas, improving sustainable energy generation and efficiency in waste management. SJI Renewable Energy Ventures is a US-based clean energy developer specializing in converting organic waste into renewable natural gas.

Major companies operating in the co-digestion facility market are Veolia Environnement S. A., Xylem Inc., Kanadevia Inova AG, EnviTec Biogas AG, HoSt B. V., Anaergia Inc., Eggersmann Gruppe GmbH & Co. KG, WELTEC BIOPOWER GmbH, Thöni Industriebetriebe GmbH, DVO Inc., Cambrian Innovation Inc., Paques B. V., BTA International GmbH, BIOFerm Energy Systems Inc., PlanET Biogas Global GmbH, SEaB Energy Limited, Bright Biomethane B. V., Viessmann Group, Naskeo Environnement S. A. S., Fluence Corporation Limited.

North America was the dominating region in the co-digestion facility market in 2025. Asia Pacific is expected to be the rapidly expanding region during the forecast period. The regions covered in the co-digestion facility market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the co-digestion facility market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The co-digestion facility market consists of revenues earned by entities by providing services such as waste pre-treatment and feedstock blending, biogas upgrading and purification, digestate processing and nutrient recovery, and energy generation and grid injection. The market value includes the value of related goods sold by the service provider or included within the service offering. The co-digestion facility market also includes sales of compressed biomethane (CBM), renewable natural gas (RNG), organic soil conditioner, and liquid biofertilizer. 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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