Asia-Pacific biomethane market poised for growth, BCG report says
Thursday, April 16 2026 - 10:51 PM WIB
By Romel S. Gurky
The Asia-Pacific region is emerging as a major growth area for biomethane, supported by abundant feedstock and rising demand for low-carbon fuels, according to a report by Boston Consulting Group released this month.
The report, titled “Asia-Pacific is the new frontier of biomethane investment,” said the region holds an estimated 300–800 terawatt hours (TWh) of biomethane opportunity in the near term, with potential to expand significantly over the next two decades.
According to the report’s executive summary, biomethane demand in the region could grow at an annual rate of about 37% through 2030, reaching 40–100 TWh, before expanding further to 300–750 TWh by 2040.
The study highlights Asia-Pacific’s large feedstock base, estimated at around 2,500 TWh, including agricultural and palm-based residues, as a key driver of growth.
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Key markets identified include China, India, Indonesia, Malaysia, Thailand, Japan and Singapore, with Southeast Asia positioned as a potential export hub due to feedstock availability but limited domestic demand.
The report also notes that biomethane production costs in the region are relatively competitive, ranging between $29 and $75 per megawatt hour, compared with higher costs in Europe.
However, the report cautions that growth will depend on policy support, infrastructure development and the establishment of long-term offtake agreements.
Challenges cited include limited gas infrastructure, fragmented regulations and the need for stronger incentives to improve project bankability.
Despite these constraints, the consultancy said the region offers early-mover opportunities for developers, investors and offtakers seeking to secure long-term supply and participate in energy transition efforts.
Editing by Alexander Ginting