Research Identified High Costs for Biogas Energy
A 2026 study highlighted significant cost disparities between biogas and other renewable energy sources.
Updated on Sept. 26, 2026 in Organic Food
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Researchers published an analysis in 2026 showing that while wind and solar costs plummeted by 70% to 90% over the last decade, bioenergy costs stagnated. The findings suggest that biogas projects struggle with recurring feedstock procurement expenses, unlike the capital-heavy models of wind and solar.
Why it matters
The analysis reveals that biogas economics are tethered to continuous operational costs, limiting its scalability compared to more efficient renewables. Transitioning funding toward waste management and grid flexibility may offer a more viable path forward for existing infrastructure.
In 2024 Germany, biogas costs ranged from 20.2 to 32.5 euro cents per kilowatt-hour, while wind and solar costs were significantly lower at 4.1 to 10.3 euro cents. Additionally, biodigester installation accounts for 20% to 40% of total production costs.
The details
Biogas plants require consistent sourcing and processing of feedstock to generate electricity, which drives up ongoing expenses. Projects often rely on a mix of biomethane certificates, capital grants, and agricultural subsidies to remain operational, especially as European Union subsidies fell from 83 billion to 61 billion euros between 2021 and 2023.
Timeline
2021-2023: EU renewable energy subsidies decreased.
2024: Biogas and renewable energy cost data were recorded in Germany.
2026: Engineering Environment published the research perspective.
Culture Shift
The study marks a departure from historical reliance on crop-based energy production by emphasizing the potential for manure-based waste management. This signals a pivot toward prioritizing environmental pathogen inactivation over simple electricity generation.
The findings suggest that as subsidies dry up, households may see shifts in how local agricultural land is utilized for energy versus food production. Readers should monitor potential changes in regional waste-to-energy initiatives that could impact local utility costs or municipal waste processing.
The takeaway
While biogas currently faces economic hurdles, full manure utilization could still mitigate 1,000 million tonnes of carbon dioxide equivalent annually. Repurposing these plants for pathogen inactivation in livestock waste may prove more valuable than their original energy-focused roles.
Further reading
Find more analysis on the intersection of agriculture and energy on our Organic Food page.
Source note: This article includes information reported by The Electricity Hub.
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