Biomass Power Generation Market

The biomass power generation market size was valued at USD 91.3 billion in 2023 to reach USD 105.7 billion by 2028, it is expected to grow at a CAGR of 3.0 % during forecast period. Recently regions has witnessed a rapid growth in electricity demand in recent years due to the growing population, increase in per capita income, and growth in the use of biomass power with urbanization.

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Biomass Power Generation Market Dynamics

Driver: Government-led initiatives to boost bioenergy production

Government policies and initiatives have played a key role in bioenergy development. In China, ~62 national-level regulations and policies have played a vital role in the country’s biomass power generation between 2006 and 2021. Among these are “The Renewable Energy” Law of 2006, “Regulations on the Implementation of the Enterprise Income Tax Law” of 2007, “11th Five-Year Plan for the Development of Renewable Energy” of 2008, “Notice on Improving the Price Policies for Agroforestry Biomass Power Generation” of 2010, “12th Five-Year Plan for Biomass Energy Development” of 2012, “13th Five-Year Plan for Biomass Energy Development” of 2016, and the “Biomass Power Generation Project Construction Work Plan” of 2021. In August 2021, the National Energy Administration, Ministry of Finance, and National Development and Reform Commission jointly issued the “Biomass Power Generation Project Construction Work Plan.” This initiative led to USD 3.5 billion in financial support on behalf of the local and central governments to facilitate biomass power generation.

Restraint: Fluctuating and high costs of feedstocks

The cost of the feedstock is a significant variable factor in power generation. Consistent feedstock quality is required to achieve high production and the longest possible onstream time. Traditionally, biomass power generation plants receive the raw biomass materials directly and preprocess them into feedstock before turning them into products. A consistent just-in-time supply of raw biomass to the plants is not possible since various types of biomass materials, such as agricultural residues, energy crops, and logging residues, are collected in accordance with their growth cycles and optimal harvesting times. Alternatively, biomass materials are stored and sent to the plant as needed. Based on experience, it appears that this strategy has resulted in several logistical issues, biomass losses due to microbial decomposition or fire, and uneven feedstock quality due to variations in the properties of as-delivered biomass. These factors have led to a high increase in the cost of feedstock, low throughput, and low product yield.

Opportunities: Advancements in biomass power generation techniques

According to the global market for biomass power generation, there have been significant improvements in the methods used to produce biomass energy. The evolution of efficient harvesting and post-harvesting technologies has decreased biomass energy costs. There are many approaches to technologically advanced biomass energy conversion, such as using improved fuel processing technologies, increasing the effectiveness of biomass energy conversion technologies, and increasing the effectiveness of end-user technologies. In the field of renewable energy, complex operations are becoming mechanized. Automation improves efficiency, reduces waiting time, and boosts output. The operation of biomass power plants is enhanced by a web-based program called biomass co-firing assessment and services (BCAS), which incorporates the fundamental characteristics of combustion and mineral matter transformation. Such technical advancements are anticipated to significantly impact biomass power plant efficiency and propel market growth.

Challenges: Requirement for high initial investments

Although biomass power generation technologies will eventually become more efficient, the initial and equipment costs are expensive. Depending on the technology, location, and feedstock type, biomass power generation equipment might range in price and efficiency. Nearly two-thirds of the capital costs of biomass power generation systems go toward the prime mover, feedstock preparation, feedstock conversion technology, and handling equipment. When operating at full capacity, biomass power plants may provide at least double the plant load factor of solar and wind electricity combined. However, the operational expenditures are higher. The increase in the cost of generating biomass power can be a significant challenge to the growth of the global biomass power generation market.

Biomass power generation Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of Biomass power generation systems and components. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include ABB (Switzerland), Siemens (Germany), General Electric (US), Prysmian Group (Italy), Nexans (France), and Schneider Electric (France).

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The agriculture waste segment, by feedstock, is expected to be the second-largest market during the forecast period.

This report segments the biomass power generation market based on components into four types: agriculture waste, forest waste, animal waste and municipal waste. The agriculture waste segment is expected to be the second largest market during the forecast period. Agricultural wastes such as sugar crops, corn crops etc. have more energy efficiency than other wastes which can be utilized for the electricity generation.

By technology, the combustion segment is expected to be the largest during the forecast period

This report segments the biomass power generation market based on components into four segments: combustion, gasification, anaerobic digestion and pyrolysis. The combustion segment is expected to be the largest segment during the forecast period. Combustion is a conventional method used for the generation of electricity. Co-firing policies proposed by the government driving the combustion segment in market.

“Asia Pacific”: The fastest in the biomass power generation market”

Asia Pacific is expected to fastest growing region in the biomass power generation market between 2023–2028, followed by the Middle East and Africa, and Europe. Rising investments in the bioenergy projects to focus on the integration of renewable energy in the national grid are one of the key factors fostering the growth of the market in the Asia Pacific.

Key Market Players

The biomass power generation market is dominated by a few major players that have a wide regional presence. The major players in the market ENGIE (France), Babcock & Wilcox Enterprises, inc. (US), Xcel Energy Inc. (US), EPH (Czechia) and Ørsted A/S (Denmark). Between 2018 and 2022, Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the market.

Biomass Power Generation Market Report Scope

This research report categorizes the biomass power generation market by feedstock, technology, fuel and region.

On the basis of feedstock:

• Agriculture Waste
• Forest Waste
• Animal Waste
• Municipal Waste

On the basis of technology:

• Combustion
• Gasification
• Anaerobic Digestion
• Pyrolysis

On the basis of fuel:

• Solid Fuel
• Liquid Fuel
• Gaseous Fuel

On the basis of region:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In November 2022, ENGIE signed an agreement with Alier, a paper recycle specialist, to build and commission a new thermal energy generation plant from sustainable forest management in Roselló’s factory, specializing in manufacturing paper for the construction and packaging industries (Lleida).
• In March 2021, Salzburg AG signed an agreement with Valmet, a global developer and supplier of technologies, automation, and services for the pulp & paper and energy industries. Salzbrug AG ordered Valmet for the BioPower plant, which is biomass-based for electricity generation in Austria.
• In March 2021, Ørsted, Aker Carbon Capture, and Microsoft have signed a Memorandum of Understanding (MoU) to investigate strategies to help the development of carbon capture and storage at biomass-fired heat and power stations in Denmark.
• In April 2018, The University of Minnesota funds Xcel Energy Inc. to develop gasification for power generation technology from solid wastes.

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