Techno-Economic Analysis of Biogas Upgrading via CO2 Methanation for Sustainable Biomethane Production

Abstract

The rising dependence on fossil fuels has intensified greenhouse gas emissions, necessitating the development of renewable energy alternatives. Biogas is a sustainable fuel source; however, its low energy density hinders direct commercial application. This study explores the potential of upgrading biogas to biomethane (Bio-CNG) via CO2 methanation, using Aspen Plus v14.0 simulations and techno-economic analysis. Equilibrium studies revealed that optimal conditions of 300–400 °C, 1–5 bar, and a H2/CO2 ratio of 4 achieve CO2 conversion above 99%, methane selectivity exceeding 92%, and near-complete suppression of CO formation. The developed process flowsheet delivered a methane-rich stream (>92% CH4 + H2) with high yield. Economic evaluation showed that at optimal conditions, the process achieves a positive net present value (NPV) of $12.2 million (1 bar) and $1.7 million (5 bar) and a payback period as low as 0.92 years (1 bar) or 5.6 years (5 bar), depending on the pressure scenario. These results demonstrate that biogas upgrading through CO2 methanation is not only technically feasible but also economically competitive, supporting its integration into existing energy systems and contributing to the transition toward renewable fuels.