Investment in New U.S. Biogas Systems Exceeds $2 Billion in 2025, Continuing Strong Industry Growth

WASHINGTON, DC, UNITED STATES, February 24, 2026 /EINPresswire.com/ — New data released today by the American Biogas Council (ABC) shows that 2025 was another strong year for the U.S. biogas industry. In the 12 months ending December 2025, 70 new biogas projects came online, representing more than $2 billion in new, domestic, recycling infrastructure and pushing the total number of U.S. systems capturing biogas from organic waste to nearly 2,600 facilities nationwide.

Industry-wide biogas capture capacity increased by 7.5% in 2025, reaching 780.7 billion cubic feet (Bcf) per year—approximately 1.5 million standard cubic feet per minute (scfm).

Biogas projects convert manure, wastewater, food waste, and captured landfill gas into renewable natural gas (RNG), renewable electricity, heat, and natural fertilizer. Collectively, these systems provide a reliable source of dispatchable renewable energy available 24 hours a day, 365 days a year.

Today’s nearly 2,600 biogas facilities produce enough energy to power 5.2 million homes for a year. delivering American-made fuel and electricity while managing waste from farms, wastewater, and food processing. These biogas facilities also produce nutrient-rich fertilizer, which is proven to increase organic matter, carbon, and micronutrients in soil for improved crop yields.

Because biogas projects capture methane that would otherwise be emitted to the atmosphere, biogas can have a carbon intensity 50% to 700% lower than fossil fuels, delivering significant climate benefits while simultaneously meeting domestic energy needs and managing waste from farms, cities, and industries.

“Biogas continues to prove its value as a practical, scalable solution for America’s energy and waste challenges,” said ABC Executive Director Patrick Serfass. “In an era of rising energy demand, increasing interest in domestic manufacturing and the drive for energy dominance, biogas delivers the reliable, around-the-clock energy source America needs while reducing transportation pollution, improving our soil and food supply, and turning waste into valuable products.”

LANDFILL GAS REMAINS THE WORKHORSE OF U.S. BIOGAS CAPTURE

Landfill gas (LFG) projects, which capture the biogas produced as organic material decomposes in landfills, continue to represent the majority of U.S. biogas captured. Despite comprising fewer facilities than farm-based and wastewater systems, LFG facilities account for 72% of all biogas captured nationwide. In 2025, the industry added 20 new landfill gas capture projects, bringing the total number of LFG facilities to 599, and representing $912 million in investment, or 43% of total capital that biogas developers invested in 2025 projects. LFG production capacity increased by 8% to 559 billion cubic feet (Bcf) per year.

While many newer landfill projects are designed to upgrade biogas to RNG, electricity generation remains the dominant end use across the sector and the biogas industry as a whole.

AGRICULTURE LEADS NEW CONSTRUCTION WHILE FARM OUTPUT CONTINUES TO GROW

Agriculture once again led the industry in new methane capture in 2025. Forty new farm-based biogas projects came online, the culmination of $835 million in investment in rural and exurban communities. The amount of methane-rich gas captured overall on farms increased by 11% to 99 Bcf per year.
Farm biogas systems continue to play a significant role in managing manure more sustainably while producing renewable energy and natural fertilizer. As in recent years, most of 2025’s new agricultural projects were built to convert their captured biogas to RNG, reflecting ongoing demand to reduce carbon emissions in transportation fuels.

FOOD WASTE SECTOR SEES SIGNIFICANT ADDITIONAL INVESTMENT; WASTEWATER REMAINS LARGEST BY SITE COUNT

Food-waste-only biogas projects also experienced a notable surge in 2025. Investment in the sector more than doubled compared to the prior year, reaching $325 million and driving an 18% increase in biogas capture to 28 Bcf annually. While still the smallest sector by project count, food waste systems are gaining momentum each year as more municipalities seek solutions to divert organic waste like food waste from landfills. In addition to the 124 food-waste-only biogas projects in the U.S., about 200 agriculture and wastewater facilities also recycle food waste together with manure or biosolids.

The wastewater sector remains the largest by number of facilities, with 1,232 operational systems—nearly half of all U.S. biogas sites. Growth in the sector was modest in 2025, reflecting its maturity and long history. The oldest biogas facilities in the country, dating back to the 1920s, and operating for more than 100 years, are located at wastewater treatment plants.

RNG CONTINUES TO EXPAND RAPIDLY, BUT ELECTRICITY PRODUCTION STILL DOMINATES BIOGAS USE

Of the 70 new biogas projects that came online in 2025, 68 were designed to upgrade biogas to RNG for use as vehicle fuel. As a result, 659 U.S. facilities now supply captured biogas for RNG production.

Total RNG production rose 24% in 2025 to 225.6 million MMBtu—enough energy to fuel about 8.2 million vehicles.

Despite this growth, renewable electricity remains the backbone of the U.S. biogas industry. Approximately 75% of biogas projects and 55% of total biogas output are used to generate renewable power, underscoring the popularity of biogas-produced, reliable, renewable, ready electricity.

STATE-LEVEL GROWTH

Biogas projects operate in every U.S. state, reflecting that organic waste is produced and poses a challenge wherever there are people or animals. Seven states each attracted more than $100 million in capital investment from biogas projects that came online in 2025: Texas, California, Illinois, Idaho, Washington, Wisconsin, and Florida. These states led the nation in new project spending strengthening local economies, supporting job creation, and advancing recycling and waste management infrastructure.

MOST U.S. WASTE REMAINS AN UNTAPPED DOMESTIC ENERGY SOURCE THAT WOULD CREATE GOOD JOBS, AND HEALTHIER FOOD

Each year the U.S. produces more than 120 million dry tons of farm animal manure, 12 million dry tons of wastewater biosolids, and sends more than 24 million dry tons of inedible food waste to landfills. In addition, more than 470 landfills currently flare gas that could be captured and used.

The ABC estimates that more than 17,000 additional biogas systems could be built nationwide, with the potential to produce up to 25 gigawatts of always-available renewable electricity. These projects could create approximately 900,000 short-term construction jobs and 45,000 permanent operations jobs, while strengthening domestic energy production and reducing emissions.

The biogas industry represents a powerful opportunity to transform waste into economic growth—capturing methane, producing home-grown energy and fertilizer, and delivering clean, reliable power for American communities around the clock.

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About the American Biogas Council

The American Biogas Council is the voice of the U.S. biogas industry, representing all companies working to recycle organic waste into clean, locally made energy and fertilizer. Biogas systems recycle waste, food scraps, manure, and wastewater, keeping communities safe and clean, and supporting local economies. The ABC’s mission is to maximize the economic and environmental benefits of biogas while advancing sustainable solutions for energy, agriculture, and waste management. Learn more at AmericanBiogasCouncil.org.

Melissa Bailey
American Biogas Council
+1 310-465-5647
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