Biogenic CO₂: A new revenue stream for bioenergy facilities

Biogenic CO₂ is produced as a byproduct of bioenergy processes such as renewable natural gas (RNG) upgrading, bioethanol and biodiesel production. These facilities are already contributing to the energy supply by producing low-carbon fuels. However, the CO₂ released during these processes is often flared or vented, representing a missed commercial opportunity. 

Biogenic CO₂ is increasingly in demand across industries seeking low-carbon inputs for their own production processes. Whether used directly in food and beverage applications or indirectly as a feedstock for advanced renewable fuels, it offers a way to utilize existing carbon sources, support energy resilience and decarbonize operations without major infrastructure overhauls. For producers, it’s a chance to turn a byproduct into a business asset — and for consumers, it’s a pathway to cleaner supply chains.

Today, most food and beverage companies source CO₂ from commercial carbon dioxide production facilities. But this supply chain is carbon-intensive and increasingly under scrutiny. 

Biogenic CO₂ offers a renewable alternative that can be used for operating greenhouses (e.g., tomato and vegetable cultivation), in food packaging as an inert gas to extend shelf life or in bulk carbonated beverage processing. 

A timely market opportunity for renewable CO₂ 

To address these market needs, renewable energy facilities can capture, remove impurities, compress and liquefy biogenic CO₂ using relatively minor upgrades — typically involving adding compressors, some pre-treatment steps and refrigeration units and storage tanks. Using biogenic CO₂ production, the molecule is identical to other commercially produced CO₂, but with a lower carbon footprint and higher ESG value. 

In Europe and some other regions and countries such as South Africa, biogenic CO₂ is already being used in food and beverage industries, and North America is quickly catching up, with several active projects underway. This provides an immense opportunity for bio-energy producers to act now and become a part of this emerging industry and add a revenue stream to their business with only a slight modification to their existing facility.  

Considerations for facility modification and integration 

Facilities that act now can secure early-mover advantages. The first step is to establish an anchor client – a nearby company willing to purchase biogenic CO₂  – and determine the volume that they need to fulfill and the price that they are willing to pay. With that, we help energy companies build a business case to determine if it is commercially viable and then conduct a feasibility study on the upgraded infrastructure required. Not having an offtake agreement is the main bottleneck that we are seeing for these projects and is a vital first step in actualizing a commercially viable project. 

Incorporating biogenic CO₂ capture into an existing bioenergy or RNG facility is a strategic add-on that typically requires minimal disruption. The core infrastructure includes a compressor, cooling/refrigeration system, liquefaction unit, storage tanks and transport logistics (e.g., tube trailers). These upgrades consume electricity, so energy supply assessments and potential electrical infrastructure enhancements are key. We support our clients in evaluating CAPEX and OPEX, calculating levelized costs per ton of CO₂ and identifying regional off-takers to anchor demand. Environmental permitting is another consideration. Modifications may require amendments or new permits depending on jurisdiction, but often result in net emission reductions, improving the facility’s environmental profile. Our team also assesses business continuity, making sure upgrades can be implemented with minimal interruption through strategic design. Success depends on both producers willing to enable access and consumers ready to purchase renewable CO₂, making early engagement and feasibility planning essential. 

Key considerations for direct use:

• Certification for food or beverage grade CO₂ 

• Proximity to off-takers (typically within 250 km) 

• Business case based on market price (often $70–$150/ton) 

• Environmental permitting amendments 

• Assessing need for energy supply upgrades

Beyond direct use, biogenic CO₂ can be transformed into advanced biofuels — a pathway where we bring deep technical expertise. Ideal candidates include bioenergy facilities with existing RNG infrastructure, bioethanol / biodiesel producers and facilities near hydrogen sources or with capacity to generate it. 

How it works:

1. Capture biogenic CO₂ from an existing bioenergy facility

2. Generate hydrogen via electrolysis (powered by renewable electricity) or biomass gasification process

3. Combine CO₂ and hydrogen in a appropriate reactor with high-performance catalyst, depending on the final desired biofuel product 

4. Produce low carbon fuel products such as E-Mehtane, E-methanol or other e-fuels like e-methanol and e-sustainable aviation fuel (e-SAF) (sustainable aviation fuel).

For e-methane cases from an existing RNG facilities, this indirect pathway enables a 60% increase in RNG output. With modifications to standing infrastructure, this can be achieved and most of the operating costs over the course of the next ten years can be offset by tax credits in some cases. There are flexible offtake models that we help our clients explore including pipeline injection or CO₂ on-site storage and transport for offtake.

While direct use is increasingly common and something we help energy clients navigate every day, we also specialize in the indirect utilization space, offering:

• Subject matter specialists in hydrogen production, gas purification and downstream conversion expertise to value added e-fuels and bio-fuels 

• End-to-end engineering support from feasibility to commissioning 

• Advisory services to identify anchor clients, provide business case, estimate expenses and navigate permitting 

• Work with OEM to select modular systems for minimal disruption and scalable deployment

We’re currently supporting multiple E-Fuel projects across North America, including landfill-based initiatives in Texas and Oklahoma and SAF production in Canada. We help energy production companies assess feasibility, identify off-takers and design systems that turn CO₂ into a revenue stream. Reach out to explore how your facility can lead the next wave of carbon-smart innovation.