Biomass Power Generation Market

The global Biomass Power Generation Market is valued at USD 90.9 Billion in 2023 and is projected to reach a value of USD 119.75 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 3.1% between 2024 and 2032.

Key highlights of Biomass Power Generation Market

• Europe dominated the market in 2023, obtaining the largest revenue share of 38.1%
• Asia Pacific region will witness remarkable growth during the forecast period
• The Combustion segment dominated the Biomass Power Generation market with the largest market share of 89.2% in 2023
• Solid Fuel segment dominated the Biomass Power Generation market with a significant market share of 86.1% in 2023
• Technological advancements are improving efficiency and reducing costs in biomass power generation, making it increasingly competitive. Innovations in conversion technologies like gasification and pyrolysis are driving down the levelized cost of electricity, positioning biomass as a viable alternative to fossil fuels in the Biomass Power Generation market

Biomass Power Generation Market: Regional Overview

Europe Dominated Sales with a 38.1% share in 2023. Europe dominated the Biomass Power Generation market due to various factors, including robust regulatory frameworks promoting the adoption of renewable energy, awareness of environmental issues and the demand for clean energy solutions, favorable government incentives and subsidies, and a strong emphasis on sustainability and climate change mitigation. For instance, The European Union has set ambitious goals to achieve carbon neutrality by 2050, aligning with its commitments under the Paris Agreement. European countries have committed to reducing carbon emissions and achieving their renewable energy targets by investing heavily in the infrastructure required to produce power from biomass.

U.S. Biomass Power Generation Market Overview

The U.S. Biomass Power Generation market, valued at USD 10.81 Billion in 2023 to USD 13.87 Billion in 2032, is anticipated to grow at a CAGR of 2.8% from 2024 to 2032. Biomass power has made significant improvements to the country's renewable energy portfolio, particularly in light of growing environmental consciousness and regulatory pressure for reducing carbon emissions. Utilizing a diverse range of biomass feedstocks, including agricultural residues/waste, wood waste, and dedicated energy crops, the U.S. biomass power sector continues to expand its presence. The United States holds a leading position in the Biomass Power Generation market due to the availability of biomass resources available throughout the nation and advancements achieved with biomass conversion technology. For instance, by 2022, 4,930 trillion British thermal units (TBtu), or 5% of the energy consumed in the United States, came from biomass. The market is further stimulated by government support in the form of mandates and incentives, which encourage investment in biomass power projects and innovation in sustainable energy solutions.

The global Biomass Power Generation market can be categorized as Feedstock, Technology, Fuel, and Region.

Biomass Power Generation Market: Technology Overview

In 2023, the Combustion segment dominated the Biomass Power Generation market with the largest share, accounting for 89.2%. The Biomass Power Generation market, segmented by Technology, includes Combustion, Gasification, Anaerobic Digestion, and Pyrolysis. This segment involves the combustion of biomass feedstocks, such as wood chips, agricultural residues, and municipal waste, to generate heat and electricity. Combustion technologies, including biomass boilers and steam turbines, have been widely adopted for their reliability, scalability, and relatively mature development compared to emerging technologies like gasification and pyrolysis. The dominance of the Combustion segment underscores its established position as a critical technology for biomass power generation, offering efficient and cost-effective solutions reaches energy demands while reducing greenhouse gas emissions.

Biomass Power Generation Market: Fuel Overview

In 2023, significant revenue of 86.1% was generated by Biomass Power Generation for Solid Fuel. The Fuel segment is bifurcated into Solid Fuel, Liquid Fuel, Gaseous Fuel. The solid biomass feedstocks include wood pellets, wood chips, and agricultural residues, which are widely utilized for their availability, cost-effectiveness, and ease of integration into existing power generation infrastructure. Solid fuels undergo combustion or other conversion processes to generate heat and electricity, making them a preferred choice for biomass power projects globally. The significant revenue generated by Solid Fuel underscores its pivotal role in driving the expansion and sustainability of the biomass power generation sector.

Key Trends

• There's a global shift towards sustainable energy sources like Biomass, derived from organic materials such as wood, agricultural residues, and municipal waste, is considered renewable because it can be replenished relatively quickly. Consumers, governments, corporations are moving towards renewable energy alternatives to reduce carbon emissions,
• There's a growing demand for alternative energy sources like biomass because they can use a variety of feedstocks, such as forestry waste, specific energy crops, and agricultural wastes, biomass power plants are flexible and adaptive to many regional settings. Because of its adaptability and renewable nature, biomass is becoming more widely used by communities, businesses, and utilities looking for greener energy sources.
• There's a growing trend towards decentralized and distributed energy systems, where power generation occurs closer to the point of consumption. Biomass power generation lends itself well to this trend due to the availability of diverse biomass resources in various regions. By using feedstocks that are sourced locally, localized biomass power plants can lower transmission losses, increase energy security, and boost rural economies.

Premium Insights

The demand for biomass as a cleaner alternative to fossil fuels is driven by the growing emphasis on sustainability around the world and the shift towards renewable energy sources as a result of regulatory and environmental concerns. Technological developments in biomass conversion processes, such pyrolysis and gasification, increase cost-effectiveness and efficiency, increasing the competitiveness of biomass power production. Biomass is favored in the movement toward decentralized energy systems because it is readily available locally and has the possibility for distributed generation, which lowers transmission losses and improves energy security. Furthermore, strategic alliances and collaborations between governments, energy firms, and academic institutions, investment and innovation in biomass power projects are encouraged, propelling the market's expansion on a global scale. For instance, in December 2022, Wärtsilä's adaptable 94 M.W. power plant in Dresden will be prepared to aid in Germany's energy transformation.

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Market Dynamics

Government-led initiatives play a pivotal role in propelling the Biomass Power Generation market forward

As nations strive to transition towards cleaner and more sustainable energy sources, policymakers enact various measures to promote the development and utilization of bioenergy. These programs frequently consist of grants, subsidies, tax breaks, and legal requirements designed to encourage funding for biomass power plants. Governments encourage industry players to allocate resources towards research, development, and deployment efforts in the bioenergy sector by creating a policy climate that is supportive. For instance, in July 2023, ABB automated the Wakayama Gobo biomass power plant in Japan, supplying 50 MW of energy for 110,000 households annually. This marks their ninth contract with TOYO Engineering Corporation and utilizes ABB Ability™ Symphony® Plus. The project supports Japan's goal to increase renewable energy, with ABB's solutions aiding in optimization and efficiency.

One of the primary challenges facing the Biomass Power Generation market is the fluctuating and often high costs associated with sourcing feedstocks

The availability and pricing of biomass feedstocks affects a wide variety of resources like forestry waste, energy crops, and agricultural wastes. Factors such as weather conditions, agricultural practices, competing uses for biomass, and transportation logistics all influence the cost dynamics of feedstocks. As a result, the economic viability and investment appeal of biomass power generation projects may be impacted by the unpredictability of feedstock prices. Feedstock transportation causes extra costs, which raises the total cost burden for biomass power companies.

Technological developments in biomass power generation offer encouraging prospects to improve the bioenergy production process's environmental sustainability, economic viability, and efficiency

Novel methods of converting biomass, such as gasification, pyrolysis, anaerobic digestion, and integrated biorefineries, are constantly being investigated by researchers and businesses. With the least amount of waste and pollution possible, these technologies seek to maximize the conversion of biomass into heat, power, and other useful goods. In order to maximize energy output and reduce environmental effect, ongoing research efforts are also concentrated on enhancing feedstock pretreatment techniques, combustion processes, and emissions control systems.

Competitive Landscape

The competitive landscape of the Biomass Power Generation is characterized by a diverse array of key players striving to capitalize on renewable energy opportunities. In an effort to diversify their offering of low-carbon energy options, well-known energy corporations like ABB, General Electric, and Siemens participate in biomass power projects by utilizing their resources and knowledge. Subsidies and regulations shape market entry barriers and operating strategies, while government policies and incentives further impact the competitive dynamics. Competition is getting more intense as demand for sustainable energy sources develops, which prompts strategic alliances and mergers to strengthen market positions and promote industry expansion in the biomass power generating sector.

The key players in the global Biomass Power Generation market include - ABB, Siemens, General Electric, Prysmian Group, Nexans, Mitsubishi Heavy Industries, Ltd., Suez, Ramboll Group A/S, Orsted A/S, Ameresco, Veolia, Vattenfall, Schneider Electric. among others.

Recent Market Developments

• In October 2022, ALIER is pushing towards net ZERO emissions by 2025, committing to renewable energies to decarbonize its Roselló factory, avoiding nearly 91,000 tons of CO2 annually. ENGIE, a global leader in low-carbon energy, will assist for 15 years, cutting the plant's natural gas usage by 97% using forest biomass for steam production, making it one of Spain's largest self-sufficient biomass plants for factory thermal energy.
• In December 2022, G.E. is about to commission its first two 300 MW pumped storage units at the Jinzhai hydropower complex in China.
• In November 2022, With an emphasis on energy efficiency and renewable energy, Ameresco, Inc. (NYSE: AMRC), a leading integrator of sustainable technologies, announced today that it has acquired a wind farm in West County Cork, Ireland. This three-turbine system aims to generate five megawatts of sustainable energy. Technology firm Wärtsilä and EDF Renewables U.K. and Ireland have signed a contract to build a new grid-scale energy storage plant in Sundon, Bedfordshire, U.K. The 50 MW/100 MWh project will facilitate the U.K.'s transition to net zero energy and help the change to a decarbonized electrical system. It is a component of a new Energy Superhub that will be built in the area.