by The biomass power market is a rapidly expanding sector globally. Biomass power involves generating electricity from sources such as wood, agricultural waste, food waste, energy crops, and organic municipal solid waste. It provides a renewable source of energy that helps reduce dependency on fossil fuels. The global biomass power industry is expanding owing to factors such as government support and incentives for renewable power, growing emphasis on decreasing carbon emissions from conventional power sources, and availability of agricultural and forest waste for power generation.
The Global biomass power Market is estimated to be valued at US$ 198.30 Bn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the biomass power market are Mitsubishi Heavy Industries, Ltd., Suez, Xcel Energy Inc., Ramboll Group A/S, Babcock & Wilcox Enterprises, Inc., Orsted A/S, Ameresco, General Electric, Veolia, Vattenfall, Dalkia EnviTec Biogas AG, Weltec Biopower GMBH, Drax Group PLC (UK), Enviva LP, Sodra, MVV Energie AG, Helius Energy PLC, Alstom SA, and Vattenfall AB. These key players are focusing on expanding their biomass power generation capacity and geographic presence.
The key opportunities in the Biomass Power Market Size include decreasing technology costs, growing demand for renewable power from commercial and industrial sectors, and potential of biomass power generation from urban and municipal waste. Recent technological advancements such as gasification and pyrolysis are helping improve the efficiency of biomass power plants.
Advancements in combustion and gasification technologies have improved the combustion process and air pollution control in biomass power plants. New integrated biomass gasification combined cycle (IGCC) technologies provide higher electrical efficiencies compared to conventional systems. Waste-to-energy plants adopt advanced combustion and emissions control technologies to generate power from municipal solid waste in an environment-friendly manner.
Market Drivers:
Rising power demand from commercial and industrial sectors globally is driving the need for renewable sources of energy such as biomass. Government policies promoting usage of renewables through incentives and mandates also encourage biomass power production. Further, biomass power generation helps reduce dependence on imported fuels. The growing agricultural and forestry waste that can be utilized for power generation acts as a key driver for the market.
Current Challenges in Biomass Power Market
The Biomass Power Market Size And Trends is facing several challenges currently. Biomass as a fuel source faces issues related to its intermittent availability. Seasonal changes impact the supply of agricultural residues and wood waste that are commonly used biomass fuels. High capital investment requirements for setting up biomass power plants are another major challenge. Biomass power projects involve large upfront costs for plant installation, fuel handling and pre-processing equipment. High transportation and logistics costs associated with procuring and transporting biomass fuels from diverse locations also increases the manufacturing cost of biomass power. Emissions regulations around particulate matter and pollutants from biomass combustion present technical compliance challenges for industry players.
SWOT Analysis
Strength: Renewable and carbon neutral nature of biomass makes it sustainable alternative to fossil fuels. Established fuel supply chain and technological expertise in biomass combustion available.
Weakness: Intermittent fuel supply impacts plant load factor. Higher costs compared to coal due to scattered fuel sources and processing needs.
Opportunity: Supportive policy incentives and targets for renewable power capacity additions across regions. Potential to utilize agriculture and forest waste as fuel sources.
Threats: Stringent emission norms may impact technology choice. Subsidy cuts can undermine project economics.
Geographical Regions
In terms of value, the biomass power market is currently concentrated in Europe and North America. Major European countries like Germany, UK, Italy and France account for a bulk of the global installed biomass power capacity. In North America, the US is a dominant market backed by supportive federal and state level incentives.
The Asia Pacific region is projected to be the fastest growing market for biomass power during the forecast period. Countries like China, India and Japan are augmenting their renewable energy targets which is driving new project investments in biomass power. Abundant biomass resources from agricultural and food processing industries present opportunities to establish localized biomass power projects across APAC nations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
