How Smarter Processes Drive Profitable Biogas Production

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The global biogas market is at a critical transition point. The International Energy Agency (IEA) projects that biogas and biomethane could meet an energy demand equivalent to 35 trillion cubic feet of natural gas. Over 50 new policy measures have been introduced worldwide since 2020 to support this growth.

But with many regions facing rising costs and operational challenges, future success hinges not just on regulatory support, but on how efficiently plants are run. Biogas operators that can optimise plant performance and fully leverage byproducts stand to build profitable, resilient businesses.

Companies such as HRS Heat Exchangers have long argued that for biogas to achieve its full global potential, operators must improve both the efficiency of the AD process and the downstream benefits of digestate in sustainable farming. It is therefore notable to see the IEA report confirm: “A relatively small share of the untapped potential for biogases is cost-competitive, but more can be unlocked if co-benefits are valued.”

The report also reflects a shared conviction in the industry: “There is significant potential and political will to increase biogas production and use in many parts of the world. However, a challenging economic outlook means that plants will need to operate at maximum levels of efficiency in order to deliver for developers, policy makers, energy consumers, and the environment.”

The Untapped Value of Digestate and Process Heat

For years, the focus in anaerobic digestion (AD) has been on biogas yield. But the digestate left behind after gas extraction is increasingly being seen as an important value stream.

Processed correctly, digestate can replace synthetic fertilisers, support healthier soils, and cut emissions associated with traditional fertiliser production. Advanced pasteurisation systems, which can be deployed pre- or post-digestion, allow operators to meet agricultural compliance standards while improving product quality.

Energy efficiency is critical in these systems. Designs using double-tube heat exchangers can achieve up to 70% heat regeneration, reducing energy demand and operating costs. By maintaining a continuous flow process, these systems also outperform legacy single-tank designs in both reliability and throughput.

HRS Heat Exchangers, with its global footprint and track record, is one example of how equipment providers can support this transition—offering both individual components (such as heat exchangers) and turnkey digestate treatment systems that align with the IEA’s vision for sector-wide progress.

Process Innovation: The Key to Operational Excellence

A common point of inefficiency in traditional AD systems lies in thermal management, particularly in digester heating. Many operators are now replacing outdated internal heating coils with external corrugated tube heat exchangers, which significantly improve energy efficiency and reduce maintenance overhead.

Heat recovery is another area where biogas operations can drive profitability. Capturing waste heat from exhaust gases and digestate streams supports more consistent process temperatures and reduces energy costs. When integrated with biogas dehumidification systems, heat recovery also protects critical equipment like CHP engines and boilers from corrosion and wear.

As the IEA report makes clear, biogas offers more than just renewable energy. Its role in sustainable waste management, emissions reduction, and circular agriculture is increasingly valued. For operators focused on optimising efficiency and fully valorising byproducts, the right technologies can unlock substantial new value streams—while helping to scale the global biogas opportunity.

Environment + Energy Leader