The United States dairy sector has made significant progress in renewable energy generation, with dairy biogas capture capacity nearly tripling since the end of 2020, according to new data released by the American Biogas Council (ABC). As of June 2026, 496 dairy farms across the country are capturing energy from manure through anaerobic digestion systems, converting waste into renewable natural gas (RNG) and renewable electricity. The expansion reflects growing investment in technologies that help farmers generate additional income while reducing greenhouse gas emissions.
The dairy biogas systems currently recycle manure from approximately 2.5 million dairy cows and put more than 16 billion gallons of manure to beneficial use annually. According to the ABC, these projects prevent nearly 1 million tonnes of methane emissions each year, while producing renewable energy, natural fertilizers and animal bedding products. In 2025 alone, 38 new dairy biogas projects came online, adding capacity to capture approximately 9 billion cubic feet (Bcf) of biogas annually.
The broader agricultural biogas sector has also expanded rapidly. Across all farm types, 631 farms now operate biogas systems, up from around 300 farms in 2020. These facilities collectively produce more than 61 million MMBtu of energy annually, representing a 166% increase compared to five years ago. Dairy farms account for 79% of all operational farm biogas systems, underscoring the dairy industry’s leading role in agricultural renewable energy production.
Investment in farm-based biogas infrastructure continues to accelerate. The ABC estimates that total capital investment in agricultural biogas systems has reached $6.4 billion, with 41 new farm systems commissioned during 2025 alone, representing approximately $835 million in additional investment. The industry has also shifted increasingly toward RNG production, with around two-thirds of systems now upgrading biogas for pipeline injection or transportation fuel use rather than generating electricity onsite.
Despite the rapid growth, substantial expansion potential remains. The ABC estimates that nearly 3,000 additional US dairy farms with herds of 500 or more cows could still support biogas capture systems, leaving roughly 86% of the sector’s potential capacity undeveloped. Industry leaders believe continued policy support and investment could significantly expand renewable energy generation while helping dairy farms improve sustainability, reduce methane emissions and diversify revenue streams. (Bioenergy Insight Magazine)
Source: Dairynews7x7 13 June, 2026 Read full story here
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