The German biogas plants market plunged 80 per cent in 2008 pushed by the close succession of the global financial crisis, rising energy crops prices, and the revision of the German Renewable Energy law (EEG).

LONDON - 8 March, 2010 - The German biogas plants market plunged 80 per cent in 2008 pushed by the close succession of the global financial crisis, rising energy crops prices, and the revision of the German Renewable Energy law (EEG). However, because the German biogas market accounted for nearly 70 per cent (1 billion USD) of the global/European total in 2009, Germany will likely remain the key market arena for biogas plants in 2010.

New analysis from Frost & Sullivan finds that despite recent economic instability, the construction of larger plants producing natural gas continues to be highly lucrative for both farmers and financial investors in Germany, with over 30 new plants planned for 2010.

Other countries are starting to mimic German renewable energy policies. The US and the EU are already implementing policies that will grow the biogas market sector while targeting farmers as primary users, assuming regulatory conditions are favorable. For example, in a bid to reduce greenhouse gases, enhance the economic position of farmers, and generate interest in biogas plant production, the US government launched a campaign on the treatment of hazardous waste from livestock farms.

"The market for biogas plants is currently at a turning point and can grow at a CAGR of 8 or 24 per cent during the period 2010-2016," says Frost & Sullivan's Environment Senior Analyst Nuno Oscar Branco. "In Germany, the market will continue to grow, driven by the strong regulatory framework already in operation in the country. Therefore, if other European countries, together with the US and Canada, follow the German lead and implement a similar business environment that attracts farmers and investors, market growth will be limited only by the ability of the industry to meet demand." adds Branco.

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