Global Biomass Power Market Growth Prospects 2024-2032

Global Biomass Power Market Growth Prospects 2024-2032

According to Triton Market Research’s report, the Global Biomass Power Market is likely to grow with a CAGR of 6.50% in the forecast period 2024-2032.

BIOMASS POWER MARKET ANALYSIS

The biomass power market involves generating electricity and heat from organic materials known as biomass, which includes plant and animal waste, agricultural residues, forestry by-products, and even algae. As a renewable and sustainable energy source, biomass power plays a crucial role in reducing greenhouse gas emissions and dependence on fossil fuels. The global biomass power market is experiencing significant growth, driven by increasing demand for clean energy solutions, supportive government policies, and advancements in biomass conversion technologies.

Biomass power plants utilize various feedstocks and technologies to convert organic materials into energy, providing a versatile and reliable energy source. The integration of biomass power into existing energy systems enhances energy security and contributes to the diversification of the energy mix. Thus, the biomass power market size is projected to expand substantially as industries and governments worldwide invest in sustainable energy solutions to meet environmental targets and reduce carbon footprints.

BIOMASS POWER MARKET PERFORMANCE – DRIVERS, CHALLENGES, AND OPPORTUNITIES

Regulations and Policy Changes Supporting Market Growth

Supportive regulatory frameworks and government incentives are driving the biomass power market forward. Governments around the world are implementing various policies, subsidies, and incentives to accelerate the adoption of bioenergy, recognizing its potential to reduce greenhouse gas emissions, enhance energy security, and stimulate economic growth.

The government in the US actively promotes bioenergy through initiatives led by the Department of Energy (DOE). The Renewable Fuel Standard (RFS) mandates the blending of specific volumes of renewable fuels like ethanol and biodiesel with conventional transportation fuels. This policy not only fosters the adoption of bioenergy but also aims to reduce dependence on imported oil, lower greenhouse gas emissions, and support rural economies by creating jobs in biomass production and processing. Additionally, the DOE funds research and development in advanced biofuels and biopower technologies, encouraging innovation and technological advancements in the biomass sector.

Similarly, the European Union has established the Renewable Energy Directive II (RED II), a comprehensive policy framework that sets binding targets for renewable energy usage across member states. RED II mandates that at least 32% of the EU’s total energy consumption must come from renewable sources by 2030, with specific targets allocated for biofuels and biomass production. The directive emphasizes sustainability by enforcing strict criteria to ensure that bioenergy development does not negatively impact the environment. Financial incentives, such as feed-in tariffs and subsidies, are provided to support biomass power projects, making investments in this sector more attractive.

Competition from Other Industries in Procuring Feedstock Supply

A significant challenge facing the biomass power market is the competition for feedstock supply from other industries such as agriculture, forestry, and bio-based products. Limited availability of high-quality biomass feedstock can lead to increased costs and supply chain complexities. Hence, developing sustainable feedstock management practices and exploring alternative biomass sources, like algal biomass and organic waste, are essential to overcoming this challenge and ensuring a consistent supply for biomass power plants.

Integration with Other Renewable Energy Systems

An opportunity for the market players is the integration of biomass energy with other renewable energy systems. By combining biomass power with intermittent sources such as solar and wind, energy providers can enhance grid stability and ensure a continuous supply of electricity. Biomass power plants can also operate as a reliable baseload or be ramped up during periods when solar or wind output is low, effectively balancing energy supply and demand. This integrated approach maximizes the utilization of renewable resources, reduces dependence on fossil fuels, and supports a more resilient and sustainable energy infrastructure.

GLOBAL BIOMASS POWER MARKET SEGMENTATION

Market by Feedstock:

• Solid Biomass
• Liquid Biomass
• Biogas
• Municipal Solid Waste

Solid biomass is the most traditional and widely utilized form of biomass feedstock in the biomass power industry. It encompasses plant-based materials such as agricultural residues (like crop stalks, straw, and husks), forestry by-products (such as wood chips, sawdust, and bark), and purpose-grown energy crops like switchgrass, miscanthus, and willow. Solid biomass is mainly used in combustion processes, where it is burned in controlled environments to produce heat and electricity.

Market by Technology:

• Combustion
• Anaerobic Digestion
• Gasification
• Co-firing & Combined Heat and Power (CHP)
• Landfill Gas (LFG)

Market by Application:

• Industrial
• Commercial
• Residential

The industrial sector dominates the biomass power market, utilizing biomass energy for large-scale power generation and process heating. Several industries such as manufacturing, agriculture, and utilities utilize biomass power for process heating, electricity generation, and waste management. Biomass power plants convert organic materials like agricultural residues, wood waste, and municipal solid waste into energy, reducing dependency on fossil fuels and minimizing environmental impact.

MARKET BY REGION:

North America: United States and Canada

Europe: Germany, United Kingdom, France, Spain, Italy, and Rest of Europe

Asia-Pacific: China, Japan, India, South Korea, ASEAN Countries, Australia & New Zealand, and Rest of Asia-Pacific

Latin America: Brazil, Mexico, Argentina, and Rest of Latin America

Middle East and Africa: South Africa, Turkey, Saudi Arabia, United Arab Emirates, and Rest of Middle East & Africa

KEY BIOMASS POWER COMPANIES INSIGHTS

The companies’ insights help dive into data about the key players in the biomass power market. The strategic initiatives for each of the companies considered have been covered in detail. Some of the key strategic initiatives are:

Product Launches & Developments (2022): DRAX Group Plc

Drax submitted plans to build the world’s largest Bioenergy with Carbon Capture and Storage (BECCS) project at its North Yorkshire power station. This multi-billion-pound initiative aims to permanently remove at least 8 million tonnes of CO₂ annually once operational. The construction is expected to commence in 2024.