As we face growing energy demands and the urgent need to address waste sustainably, anaerobic digestion stands out as a proven solution with transformative potential. By leveraging insights from Europe, fostering collaboration at the state and local levels, and embracing the principles of tailored, community-focused solutions, the U.S. has the opportunity to unlock the full potential of this technology.
By Michael Woodward
As we move into 2025, the waste management industry stands at a crossroads. The interplay between growing global energy demands, the pressing need for sustainable waste solutions, and the evolving regulatory landscape creates both opportunities and challenges for municipalities, businesses, and policymakers alike. One technology poised to address these challenges is anaerobic digestion (AD)鈥攁 proven method for converting organic waste into renewable energy while offering comprehensive waste management benefits.
According to the January 2024, Renewables 2023 report from the International Energy Agency (IEA), the biogas sector grew at a rate of 19 percent from 2017 to 2022. Influential factors likely included governmental urgency to combat climate change, the supply chain vulnerabilities laid bare by pandemic and wars, and increased policy change around the world to address energy security. At that time, IEA鈥檚 Net Zero scenario forecast a 32 percent growth rate for biogas 2023 to 2028, demonstrating that government, municipalities, investors, and businesses are all embracing biogas as an alternative energy source.
In recent years, additional drivers of renewable natural gas (RNG) have emerged, which will likely increase in 2025. Industries such as artificial intelligence (AI) and cryptocurrency mining, and the related expansion of data centers, are placing an unprecedented strain on the energy infrastructure. These new drivers create new potential problems for communities already working to address waste, energy infrastructure, and climate change, amid a policy landscape that is still in development and flux. The IEA鈥檚 2024 Electricity forecast, also issued January 2024, projected these new drivers will cumulatively double global energy demand from 2023 to 2026. As a result, the technology sector is exploring innovative solutions, from nuclear and carbon capture to RNG, to meet these growing needs without exacerbating environmental impacts.
Factors in Anaerobic Digestion Adoption
As companies and municipalities look to address the sprint toward increased energy demand with maintaining energy security and decreasing carbon emissions, anaerobic digestion is set for expansion in the American market. AD is a reliable, safe, and efficient process that converts organic waste into renewable energy, making use of the immense amount of food waste generated year after year, with an estimated 53 percent of all waste disposed of through land application, landfills, and incineration. Food waste is estimated to be responsible for 11 percent of methane emissions generated from landfills鈥攁n amount equivalent to the emissions of about 3.4 million vehicles. While AD is a means of producing energy, it is also a food waste management strategy that can reduce landfill overload, decrease water pollution, and promote local economic growth and development.
AD processes vary, but generally use naturally occurring microorganisms in a well-monitored and enclosed industrial setting, where they are combined with organic materials that are then broken down into methane gas via fermentation. Essentially, methane is captured for use as electricity or RNG, as opposed to being emitted into the atmosphere during the breakdown process in a landfill or other waste facility. By diverting food waste from landfills, AD helps reduce methane emissions, water pollution, and soil contamination while promoting local economic development. The feedstock for AD facilities typically comes from commercial food producers, offering them a sustainable way to manage waste while meeting climate policies and reducing environmental impacts.
Advantages for Waste Management
In addition to the projected growth of domestic supply due to both demand and an interest in reducing reliance on foreign energy sources, the U.S. is seeing energy, climate change, and waste management policy increasingly directed by state legislation. A recent report from Deloitte explains that state policies are likely to influence the growth of both renewable energy and data centers in the coming years. State-level targets will play a crucial role in driving commitments, as the local grid mix often limits clean energy sourcing options. Currently, 17 U.S. jurisdictions have statutory 100 percent clean energy mandates for utilities, with compliance deadlines beginning in 2032.
Effective collaboration among policymakers, commercial food producers, haulers, and organics recyclers is essential for achieving optimal economic and environmental results. Direct communication and truly being part of the communities served will be an important factor in local adoption of AD. The composition of feedstock, soil characteristics, and infrastructure needs vary, necessitating tailored solutions that align with local conditions. AD鈥檚 potential in fostering economic growth makes it compatible with green job development programs and local infrastructure initiative, and the myriad advantages it offers local communities could help drive the market forward, especially as state measures shore up to cover possible policy changes at the national level.
Learning from Europe
The success of anaerobic digestion in Europe offers valuable insights for fostering greater adoption in the US. Countries such as Denmark and Germany have embraced AD as part of their national waste management and energy strategies. In Germany, biogas plants supply approximately 5 percent of the country鈥檚 energy, supported by robust policies and incentives. Denmark鈥攚here there has been a ban on organic waste in landfills for more than 20 years鈥攈as leveraged AD to manage agricultural food waste and also to achieve significant progress toward carbon neutrality. It is estimated 34 percent of the country鈥檚 natural gas supply currently comes from anaerobic digestion, and this will likely increase to help support Denmark鈥檚 national target of a 70 percent reduction in emissions by 2030. These examples highlight how government support, private sector investment, and public awareness can work together to scale AD technology and integrate it into our next-generation infrastructure.
As we face growing energy demands and the urgent need to address waste sustainably, anaerobic digestion stands out as a proven solution with transformative potential. By leveraging insights from Europe, fostering collaboration at the state and local levels, and embracing the principles of tailored, community-focused solutions, the U.S. has the opportunity to unlock the full potential of this technology.
The path forward is clear: adopting anaerobic digestion more widely will not only reduce greenhouse gas emissions and alleviate pressure on landfills, but also position communities to thrive in an era of increasing energy and environmental challenges. In 2025 and beyond, anaerobic digestion will play a pivotal role in building a cleaner, more resilient future. | WA
Michael Woodward is a seasoned energy executive with more than 20 years of experience in natural gas infrastructure, excelling in finance, marketing, and business development across public and private sectors. Notably, he played a key role in the negotiation of a $250 million revenue guarantee contract and the $885 million sale of Meritage Midstream to Western Midstream. Previously recognized as one of Hart Energy Oil and Gas Investor鈥檚 鈥�40 under 40,鈥� Michael brings proven leadership, strategic expertise, and a commitment to sustainable energy solutions as President of Bioenergy Devco.
Headquartered in Annapolis, MD, Bioenergy Devco is a global leader in the design, engineering, construction, financing, and operation of advanced anaerobic digester systems. Its proven technology harnesses naturally occurring biological processes and provides scalable solutions to help communities and businesses transform their organic waste. Through its wholly owned subsidiary, BTS Biogas Srl, Bioenergy Devco has built over 250 facilities and currently manages more than 150 organics recycling and clean energy generation facilities worldwide. For more information, visit .
Sources
www.iea.org/reports/renewables-2023
www2.deloitte.com/us/en/insights/industry/renewable-energy/renewable-energy-industry-outlook.html
www.farmersjournal.ie/more/climate-and-environment/denmark-heads-for-100-biomethane-by-2030-740055