Latin America Biomass Power Market Growth Prospects 2024-2032

Latin America Biomass Power Market Growth Prospects 2024-2032

Triton’s research report estimates that the Latin America biomass power market is expected to gain revenue at a CAGR of 6.10% during the forecast years 2024-2032.

The biomass power market in Latin America is experiencing notable growth, driven by the region’s abundant biomass resources, increasing energy demand, and supportive government policies promoting renewable energy. With a total biomass energy capacity of 24.3 GW in 2023, this region is focusing on sustainable energy solutions to address environmental concerns, reduce dependence on fossil fuels, and support rural development. The availability of agricultural residues, forestry by-products, and organic waste provides significant opportunities for biomass power generation. Technological advancements and investments in infrastructure are expected to further propel the biomass power market’s expansion.

Countries analyzed are Brazil, Mexico, Argentina, and Rest of Latin America.

Brazil holds the largest market share, achieving around $2338.25 million in 2023.

Brazil dominates with around 17.1 GW of solid biofuel capacity, largely from sugarcane bagasse used in co-generation power plants. In fact, the biogas sector is expanding rapidly, especially in Brazil, where installed biogas capacity reached 509 MW in 2023.

The country also has access to abundant biomass resources such as sugarcane bagasse, wood residues, and agricultural waste, which are widely used for energy generation.

Additionally, government support through policies like the National Biofuels Policy (RenovaBio) promotes bioenergy use and carbon emission reduction targets. Technological advancements, such as cogeneration and gasification technologies, are enhancing the efficiency and sustainability of biomass power generation.

Biomass Power Market Forecast for Mexico

Mexico’s government makes active efforts to diversify its energy mix and reduce greenhouse gas emissions, driving the adoption of biomass energy. The country’s Energy Transition Law and National Climate Change Strategy set targets for increasing renewable energy, including biomass, in its energy portfolio. Biomass resources, such as agricultural residues from crops like corn, sugarcane, and agave, provide ample feedstock for power generation in the country. Additionally, private sector investments are bolstering the Mexico biomass market, focusing on waste-to-energy projects and rural electrification initiatives.

The biomass power market is segmented based on technology, feedstock, and application. Based on feedstock, it is further classified into biogas, solid biomass, liquid biomass, and municipal solid waste. Biogas, produced through the anaerobic digestion of organic waste such as agricultural residues, food waste, and wastewater, is another critical feedstock in the biomass power market. It is a renewable and clean-burning fuel commonly used in gas engines and turbines to generate electricity, often paired with heat recovery systems to maximize energy efficiency.

Contender Analysis in the Biomass Power Market

ACCIONA SA is a prominent player in the biomass power market, particularly in Brazil and Latin America, which provides sustainable solutions for infrastructure and renewable energy projects. The company specializes in the design, construction, and management of renewable energy systems, including biomass power generation. With a strong commitment to environmental sustainability, it plays a key role in promoting the development of biomass energy.

ACCIONA Energía and Vidrala, a leading glass container design and manufacturing company, recently completed an innovative pilot project that repurposed biomass slag for the production of 18.3 million glass bottles.

The key entities in the reviewed market are Babcock & Wilcox Enterprises Inc, Enel Green Power SpA, Cemex SAB de CV, Drax Group PLC, and Envitec Biogas Ag.