On June 4, 2025, the American Biogas Council, a national trade association representing the U.S. biogas industry, released new data analyzing each state’s untapped potential to generate renewable energy by diverting organic waste (e.g., manure, food waste, and wastewater sludge) to anaerobic digesters, which trap the gas generated by the decomposition of that waste (i.e., biogas) for conversion into energy. The process also generates nutrient-rich organic fertilizer which can be used at commercial scale in lieu of synthetic products.
“America’s biogas producers not only create reliable energy and natural fertilizer from material that would otherwise be wasted, they [also] provide real economic benefits and help ensure clean water and air,” said Patrick Serfass, Executive Director of the Council. “But we need more systems built. For the billions of tons of waste… the nation produces each year… the U.S. has too few biogas systems to manage it. This new data reveals the immense benefit that building more biogas systems would bring.”
According to the Council’s findings, 2,500 such facilities are in operation domestically, and 17,000 more could be developed. The Council estimates that realizing that potential would enable biogas developers to generate 255 billion kilowatt hours of renewable electricity per year – roughly the amount of electricity consumed by 24 million homes (the equivalent of nearly all Texas and California households combined). Completing 17,000 new biogas projects could also supply an amount of fuel equivalent to that consumed by 40 million vehicles annually (the equivalent of nearly all passenger vehicles in California, Texas, Florida, New York, and Pennsylvania combined).
Per the Council’s data, California led states in biogas production potential, with capacity to increase in-state biogas production by over 410 billion cubic feet annually. In terms of sheer number of potential projects, as opposed to their potential output, Iowa led the county with nearly 2,900 potential projects available (which, if developed, could generate roughly 2.8 billion kilowatt hours of electricity – enough to power over 20% of homes in that state).
The Council’s report emphasized the environmental benefits of ramped-up biogas production, also, comparing the projects’ anticipated greenhouse gas emission reduction to roughly 11 million acres of forest (or approximately half the forested area of Washington state). Employment rates would benefit, also – if fully developed, the U.S. biogas industry could provide as many as 900,000 short-term construction jobs and as many as 45,000 permanent positions.
Converting domestic biogas potential to reality would require an estimated $450 billion in capital investments to fund the development, construction, and operation of biogas projects nationwide, which would in turn be fueled by annual domestic generation of 20 million tons of livestock manure, 12 million tons of wastewater sludge, and 74 million tons of surplus food (including 24 million tons of inedible food scraps that would otherwise be landfilled).
Some of that funding has been put into action already – the domestic biogas industry is growing faster than ever – but opportunities remain at an estimated 11,200 livestock farms, 3,750 wastewater plants, 730 landfills, and 1,370 stand-alone food waste systems. Developing those opportunities could mean material environmental benefits, increased U.S. employment opportunities, and considerable financial upside for developers and investors.