Canada Biomethane Market

Canada Biomethane Market Insights Forecasts to 2035

• The Canada Biomethane Market Size was estimated at USD 690.36 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 7.74% from 2025 to 2035
• The Canada Biomethane Market Size is Expected to Reach USD 1,567.22 Million by 2035

According to a research report published by Decision Advisor and Consulting, the Canada Biomethane Market is anticipated to reach USD 1,567.22 million by 2035, growing at a CAGR of 7.74% from 2025 to 2035. The primary drivers of market expansion are the development of innovative technologies and the increasing use of renewable energy across borders. This market's dominant position in the industry is due to the heightened focus on integrating clean energy sources into electrical networks.

Market Overview

The Canadian biomethane market is referred to as it is a segment of the renewable energy industry that devotes itself to the manufacturing, upgrading, distribution, and utilisation of biomethane (renewable natural gas, or RNG) that is generated from streams of organic waste like food waste, wastewater, forestry byproducts, and agricultural residues. Waste from plants and livestock sewage, manure, industrial waste, green waste, and other organic materials can be compressed or anaerobically respired to create biomethane, a natural gas. Biomethane is formed by extracting methane from biogas that has an elevated calorie content. Biomethane has the potential to be used in the power generation of the automobile sector and to reduce greenhouse gas emissions. Importantly, biomethane production does not involve additional costs because it uses identical structures to natural gas.

There are objectives for more than $1 billion in short-term investments in Canadian biogas and biomethane infrastructure. The government is focusing on helping farmers, municipalities, and industries join the clean energy transition. To stimulate capital investments, immediate expensing incentives for clean-energy properties, such as biogas and RNG equipment, have been restored. The joint Federal-Quebec commitment of more than $26 million to Énercycle's methane production and decomposition facility represents a notable recent investment. Over 1.2 million cubic meters of biomethane will be produced annually from the $75.7 million undertaking's processing of organic waste for injection into the regional gas pipeline. It is predicted to lower greenhouse gas emissions by more than 3,200 tonnes of CO2 equivalent per year.

Report Coverage

This research report categorises the market for the Canada biomethane market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Canada biomethane market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Canada biomethane market.

Driving Factors

The market for Canadian biomethane is driven by the rising use of renewable energy. The biomethane market is growing as a result of the increasing technological advancements with control over biomethane production, improved output quality, and lower energy consumption. Further, sophisticated digitalisation is possible through developments in digital monitoring, automation, and data analytics. Moreover, the increasing accessibility of these technologies, governments and businesses are investing more confidently in large-scale biomethane projects. Furthermore, biomethane can be more easily integrated into current energy systems due to insights and developments in storage and transportation infrastructure, which increases market revenue.

Restraining Factors

There are significant limitations on the Canadian biomethane market but mostly caused by logistical and regulatory challenges, as well as issues with economic viability. Moreover, the market is hampered by a patchwork of complicated and frequently inconsistent provincial regulations, which can result in protracted and unpredictable permitting periods. Lastly, logistical limitations exist, specifically the requirement to build infrastructure to effectively gather various, widely distributed feedstocks (such as sewage, manure, and crop residue), which slows down the market expansion.

Market Segmentation

The Canada Biomethane market share is classified into feedstock and production method.

• The municipal waste segment held a significant share in 2024 and is projected to grow at a rapid pace during the forecast period.

The Canada biomethane market is divided by feedstock into energy crops, animal manure, municipal waste, waste water sludge, and others. Among these, the municipal waste segment held a significant share in 2024 and is projected to grow at a rapid pace during the forecast period. This is due to growing urbanisation and the demand for sustainable waste management solutions; municipal waste represents a significant source segment in the biomethane market. Food scraps, garden waste, and biodegradable packaging are examples of organic fractions of municipal solid waste (OFMSW) that are converted to biogas through anaerobic digestion and subsequently upgraded to biomethane. By turning waste into renewable energy, this method not only lessens reliance on landfills and methane emissions but also advances the objectives of the circular economy.

• The anaerobic digestion segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR over the forecast period.

The Canada biomethane market is differentiated by production method into fermentation, gasification, and anaerobic digestion. Among these, the anaerobic digestion segment dominated the market in 2024 and is anticipated to grow at a substantial CAGR over the forecast period. This segmental growth is propelled by its extensive use as a productive and economical method of generating renewable gas. This technology uses microbial activity to produce energy-rich methane from organic waste materials like food waste, animal manure, and agricultural residues. Also, providing subsidies and tax breaks to promote waste-to-energy projects, governments and regulatory agencies have further sped up the adoption of this technology.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the Canada biomethane market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Greenlane Renewables
• Waga Energy Canada.
• StormFisher Hydrogen & RNG    
• EverGen Infrastructure Corp.
• Others

Recent Developments:

• In September 2025, Greenlane Renewables Inc. announced $7.9 million in new purchase orders for its proprietary biogas desulfurization equipment from three repeat customers. The orders were secured through its wholly-owned subsidiary Airdep S.r.l., reinforcing Greenlane’s position as a global leader in renewable natural gas (RNG) technology. The production of renewable natural gas (RNG), also known as biomethane, will be aided by these unit sales.
• In July 2025, Hydron Energy Inc. announced its first commercial contract for a biomethane Renewable Natural Gas (RNG) plant in Eastern Ontario, Canada. The project will deploy Hydron’s INTRUPTor-Mid biogas upgrading system, marking a major milestone in commercialising its breakthrough technology.
• In April 2024, BIOGEST America Inc. signed a Letter of Intent (LOI) to jointly develop and finance its first Renewable Natural Gas (RNG) project in Canada, located in Saint-Nazaire d’Acton, Quebec. The project will use BIOGEST’s PowerRing technology to produce 105,000 MMBTU of RNG (≈350 Nm³/h) and integrate biochar production, marking a milestone in Canada’s green gas sector.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Canada, regional, and country levels from 2020 to 2035. Decision Advisor has segmented the Canada Biomethane Market based on the below-mentioned segments:

Canada Biomethane Market, By Feedstock

• Energy Crops
• Animal Manure
• Municipal Waste
• Waste Water Sludge
• Other

Canada Biomethane Market, By Process

• Fermentation
• Gasification
• Anaerobic Digestion

FAQ

Q: What was the size of the Canada biomethane market in 2024?

A: The Canadian biomethane market size was approximately USD 690.36 million in 2024.

Q: What is the expected market size and growth through 2035?

A: The market is projected to reach USD 1,567.22 million by 2035, growing at a CAGR of about 7.74% during 2025-2035.

Q: What are the key drivers of growth in the Canadian biomethane market?

A: Growth drivers include expanding renewable energy adoption, technological advancements improving biomethane production efficiency and quality, increasing digitalisation with monitoring and automation, and government investments supporting large-scale biomethane infrastructure projects.

Q: What are the major feedstock segments?

A: The market is segmented by feedstock into energy crops, animal manure, municipal waste, wastewater sludge, and others. Municipal waste held a significant share in 2024 and is expected to grow rapidly due to urbanisation and demand for sustainable waste management.

Q: What production methods are prevalent?

A: The leading production methods are fermentation, gasification, and anaerobic digestion. Anaerobic digestion dominated in 2024 due to its cost-effectiveness and widespread adoption.

Q: What are some recent developments in the Canadian biomethane market?

A: In July 2024, Zone-Éco and Waga Energy launched a biomethane production unit in Quebec with CAD 12.4 million in government support, producing enough renewable gas for about 1,750 households and preventing over 5,500 tons of CO? emissions annually. In 2025, Greenlane Renewables and Hydron Energy announced significant contracts and projects furthering biomethane production technology commercialisation.

Q: What challenges does the market face?

A: Challenges include complex and inconsistent provincial regulations, logistical difficulties in feedstock collection, and economic viability concerns due to infrastructure requirements.