U.S. Biogas Industry Sees Strong Growth with $2 Billion Investment in 2025

The Facts -

U.S. Biogas Industry Sees Significant Growth in 2025

New data from the American Biogas Council (ABC) highlights a robust year for the biogas sector in the United States. With the launch of 70 new biogas projects in 2025, investments exceeded $2 billion, bringing the total number of facilities capturing biogas from organic waste to nearly 2,600 across the country.

The industry's biogas capture capacity expanded by 7.5% last year, reaching an annual output of 780.7 billion cubic feet (Bcf), or approximately 1.5 million standard cubic feet per minute (scfm). These projects utilize organic waste sources such as manure, wastewater, and food waste, converting them into renewable natural gas (RNG), electricity, heat, and fertilizer.

Currently, these biogas facilities produce sufficient energy to supply 5.2 million homes annually, helping manage waste from various sources including farms and food processing. Additionally, the nutrient-rich fertilizer produced enhances soil quality, boosting organic matter and micronutrients for improved agricultural yields.

Biogas offers a promising reduction in carbon footprint, with a carbon intensity 50% to 700% lower than traditional fossil fuels, thereby benefiting both climate goals and domestic energy needs. Patrick Serfass, ABC Executive Director, stated, “Biogas continues to prove its value as a practical, scalable solution for America’s energy and waste challenges.”

Landfill Gas Dominates Biogas Capture

Landfill gas (LFG) projects remain a significant contributor to U.S. biogas capture, making up 72% of the total despite being fewer in number than farm or wastewater systems. In 2025, the industry welcomed 20 new LFG projects, amounting to $912 million in investments. These projects boosted LFG production capacity by 8% to 559 billion cubic feet (Bcf) annually.

While recent LFG projects are increasingly aimed at upgrading biogas to RNG, electricity generation is still the predominant application in the sector.

Agricultural and Food Waste Sectors on the Rise

Agricultural biogas projects led new developments in 2025, with 40 new farm-based initiatives resulting from an $835 million investment. Methane capture in agriculture increased by 11% to 99 Bcf annually, supporting the production of renewable energy and natural fertilizer.

The food waste segment saw significant investment growth, doubling from the previous year to $325 million. This surge led to an 18% increase in biogas capture, now standing at 28 Bcf annually. The sector is gaining momentum as more municipalities aim to divert organic waste from landfills.

Meanwhile, the wastewater sector, with 1,232 operational systems, remains the largest by site count, though growth has slowed due to its mature status.

RNG and Electricity Production

Of the new projects in 2025, 68 were focused on upgrading biogas to RNG for vehicle fuel, resulting in 659 facilities now producing RNG. Total RNG production saw a 24% increase, equivalent to enough energy to fuel 8.2 million vehicles.

Despite the rise in RNG, the majority of biogas is still used for renewable electricity, accounting for 75% of projects and 55% of output, emphasizing its role as a reliable energy source.

State Investments in Biogas

Biogas projects spread across every U.S. state, reflecting widespread organic waste challenges. Seven states—Texas, California, Illinois, Idaho, Washington, Wisconsin, and Florida—led the nation with over $100 million each in new project investments, stimulating local economies and enhancing waste management infrastructure.

Potential for Growth

The U.S. produces significant amounts of organic waste annually, representing an untapped energy source. With over 470 landfill sites capable of capturing biogas, the ABC suggests that 17,000 additional systems could provide up to 25 gigawatts of renewable electricity. This development could create approximately 900,000 short-term construction jobs and 45,000 permanent jobs.

The biogas industry continues to offer strong potential for transforming waste into economic growth, providing clean power and advancing sustainable solutions nationwide.

About the American Biogas Council

The American Biogas Council advocates for the biogas industry, promoting the conversion of organic waste into clean energy and fertilizer. For more information, visit AmericanBiogasCouncil.org.

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