South Korea Biomass Power Market Forecast 2024-2032

South Korea Biomass Power Market Forecast 2024-2032

The South Korea biomass power market is predicted to progress with a CAGR of 5.31% over the forecasting years of 2024 to 2032, reaching a revenue of $2829.41 million by 2032. In terms of volume, the market was valued at 27.33 million MWh in 2023 and is set to reach 49.18 million MWh by 2032, growing with a CAGR of 6.83% during the forecasted period.

MARKET INSIGHTS

The South Korea biomass power market is set to experience significant growth over the projection period, driven by rising energy demand, supportive government policies, and commitments to renewable energy goals. Aligning with this, the South Korean government has implemented a Renewable Portfolio Standard (RPS) that mandates power companies to increase the proportion of renewables in their energy mix. This standard, which was at 12.5% in 2022, is expected to rise progressively to 25% by 2026. The country is also targeting a 40% reduction in greenhouse gas emissions by 2030 and aims to achieve carbon neutrality by 2050.

Biomass energy, alongside solar and wind, plays a crucial role in this strategy. The RPS incentivizes the use of biomass through Renewable Energy Credits (RECs), encouraging power producers to co-fire biomass with coal to gradually transition to cleaner energy sources. Biomass feedstocks in South Korea include agricultural and forestry residues, as well as imported wood pellets, though there has been a push to utilize more domestic woody biomass. Collectively, these factors are set to play a significant role in boosting the biomass power market growth in South Korea during the forecast years.

SEGMENTATION ANALYSIS

The South Korea biomass power market is segmented into feedstock, technology, and application. The technology segment is further divided into combustion, anaerobic digestion, gasification, co-firing and CHP, and landfill gas (LFG).

Co-firing and combined heat and power (CHP) is a significant technology segment in the South Korea biomass power market. Co-firing involves burning biomass along with coal or other fossil fuels in existing power plants, allowing for the gradual integration of biomass into the energy mix without the need for entirely new infrastructure. This method reduces greenhouse gas emissions by substituting a portion of fossil fuels with renewable biomass feedstocks.

Combined heat and power (CHP), also known as cogeneration, is the simultaneous production of electricity and heat from a single fuel source, such as biomass. CHP systems are highly efficient, capturing and utilizing heat that would otherwise be wasted in electricity generation. In South Korea, CHP systems are widely adopted in industrial facilities, commercial buildings, and district heating systems, enhancing energy efficiency and reducing overall energy costs.

COMPETITIVE INSIGHTS

Major companies operating in the South Korea biomass power market include Enel Green Power, JFE Engineering Corporation, Siemens Energy AG, etc.

JFE Engineering Corporation, headquartered in Yokohama, Japan, is a prominent engineering and manufacturing company specializing in environmental solutions, energy systems, urban infrastructure, and industrial machinery. The company has a substantial presence in the biomass power market, focusing on the development and construction of waste-to-energy and biomass power plants. JFE Engineering leverages its expertise in advanced combustion technologies, such as gasification and Combined Heat and Power (CHP) systems, to efficiently convert various biomass feedstocks and waste materials into renewable energy.

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