Anaerobic digestion (AD) has moved firmly into the mainstream. Once viewed primarily as a waste‑treatment solution, the sector is now recognised as a critical enabler of energy security, circular economy principles, and net‑zero Anaerobic digestion (AD) has moved firmly into the mainstream. Once viewed primarily as a waste‑treatment solution, the sector is now recognised as a critical enabler of energy security, circular economy principles, and net‑zero delivery. Over the past 12–18 months, policy developments, investment momentum and technology integration have reinforced AD’s role across the UK and Europe. Here’s a snapshot of the most important industry news shaping the sector today.
Strong Policy Signals Are Driving Market Confidence
In the UK, government policy continues to underpin anaerobic digestion and biomethane deployment. The Green Gas Support Scheme (GGSS) has been extended to March 2028, providing vital revenue certainty for new biomethane‑to‑grid projects and safeguarding the development pipeline. Alongside this, biomethane remains eligible under the Renewable Transport Fuel Obligation (RTFO), supporting demand in hard‑to‑decarbonise transport sectors.
More recently, industry attention has focused on the potential inclusion of grid‑injected biomethane within the UK Emissions Trading Scheme (UK ETS). In late 2025, the Anaerobic Digestion & Bioresources Association (ADBA) confirmed that government officials are actively assessing options for recognising biomethane’s net‑zero value in carbon accounting frameworks, with a policy consultation expected during the 2025/26 financial year. If implemented, this would significantly strengthen long‑term investment signals for developers and gas offtakers alike.
Meanwhile, the introduction of England’s Simpler Recycling regulations for workplaces in March 2025 is already increasing organic waste diversion. A high‑profile example is Greater Anglia, which diverted more than 104,000 kg of food waste to anaerobic digestion in the year to March 2026, more than quadrupling the previous year’s total. This trend is expected to accelerate as separate food‑waste collections become standard practice.
Biomethane Investment Is Accelerating Across Europe
Across Europe, biomethane development is gathering pace at an unprecedented scale. According to the European Biogas Association’s Third Biomethane Investment Outlook, total committed investment reached €28.4 billion by mid‑2025, with funding expected to deliver 7.3 bcm of new biomethane capacity per year by 2030.
The UK features prominently among the top destination markets for planned investments, alongside Spain, Denmark and France. Nearly 900 new biomethane plants are expected to enter operation across Europe within five years, illustrating growing confidence in AD as a long‑term infrastructure asset.
At the same time, analysis from consultancy Sia shows that despite strong fundamentals, the UK still has substantial untapped potential. Only 23% of available AD feedstock is currently being utilised, and fewer than one in ten UK biogas plants upgrade gas to biomethane, signalling significant headroom for growth if regulatory alignment improves.
AD Is Benefiting from Energy Security and Climate Priorities
The International Energy Agency (IEA) reports that global biogas and biomethane production is expected to grow by 22% between 2025 and 2030, driven primarily by biomethane’s ability to displace fossil gas using existing infrastructure. In the EU alone, biomethane production rose 14% year‑on‑year in 2024, highlighting accelerating momentum.
Geopolitical instability, volatile gas markets and renewed focus on methane emissions reduction have all contributed to AD’s rising profile. Unlike imported fossil fuels, biogas is domestically produced, resilient, and closely aligned with waste, agricultural and rural economic strategies.
Technology and Business Models Continue to Mature
The sector is also evolving technologically. Operators are increasingly deploying advanced feedstock pre‑treatment, real‑time monitoring and biogas upgrading solutions, improving yields and operational reliability. At a market level, the global anaerobic digestion sector was valued at approximately USD 18 billion in 2025, with forecasts suggesting it could more than double by the early 2030s as adoption spreads across municipal, agricultural and industrial waste streams.
In the US, capital investment in new biogas infrastructure exceeded $2 billion in 2025, demonstrating that AD growth is not confined to Europe and is supported by strong investor appetite globally.
Looking Ahead
Anaerobic digestion is no longer just a waste solution—it is a strategic asset. With clearer policy frameworks, rising biomethane demand, and increasing food‑waste segregation, the industry is well positioned for sustained expansion. The coming years will be defined by how effectively regulators, developers and end‑users align around market mechanisms that fully recognise AD’s environmental and energy‑system value.
For businesses across energy, waste, agriculture and infrastructure, anaerobic digestion represents one of the most credible, scalable pathways to deliver net zero while strengthening domestic resilience.
