Biomass Power Market Is Anticipated To Witness High Growth Owing To Increasing Demand For Renewable Energy Sources

Biomass Power Market

The biomass power market comprises technologies that generate electricity and heat from burning biomass fuel sources such as wood, wood waste, straw, and energy crops. Biomass power is one of the renewable sources of energy, and it is considered carbon-neutral, depending on the fuel source. The benefits of biomass power include low emission of pollutants and greenhouse gases relative to fossil fuel combustion. The biomass power is considered a sustainable energy source since biomass fuel is replenished within a relatively short period through photosynthesis.

The rising demand for clean and renewable energy sources to reduce dependency on fossil fuels is propelling the Biomass Power Market Size Biomass power can help countries meet their renewable energy targets as it can be easily integrated into existing infrastructure and provide firm capacity to the grid. Moreover, biomass is available in both solid and gaseous forms, allowing power generation using combustion technologies as well as anaerobic digestion for biogas production.

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 from 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 players are focusing on capacity expansion through partnerships, mergers, and acquisitions.

The key opportunities in the Biomass Power Market Analysis include increased investments in co-firing biomass with coal and increasing applications of biomass gasification technologies. Many countries in Asia Pacific and Europe are offering attractive feed-in-tariffs and tax incentives to boost the deployment of biomass power projects.

Globally, countries like the U.S., U.K., China, Germany, India, and Japan are expanding their biomass power capacities significantly. International organizations are also supporting the transfer of biomass power technologies to developing nations through funding and knowledge-sharing. International collaborations will further drive the global expansion of the biomass power market during the forecast period.

Market Drivers

Increasing government support in the form of incentives, mandates, and concessional loans to promote renewable energy deployment is a key driver of the biomass power market. Many countries have set ambitious renewable energy targets and are offering lucrative incentives to help generate power from biomass and reduce carbon emissions. Rising energy demand worldwide is also driving the market as biomass offers a local and sustainable alternative to fossil fuel-based power generation.

Market Restraints

High capital costs for constructing biomass power plants and sourcing biomass fuel are a major restraint. The seasonal availability of biomass fuel also leads to logistical challenges. Additionally, biomass combustion may release gaseous pollutants if combustion conditions are not appropriately controlled. This could negatively impact the market growth if strict emission norms are not complied with.

Segment Analysis

The biomass power market can be segmented based on type into solid biomass, biogas and municipal solid waste. The solid biomass segment currently dominates the market as technologies to utilize solid biomass such as wood pellets, agricultural residue and energy crops to generate power are more developed compared to other sources. Solid biomass is considered a more reliable and cost-effective source of biomass for electricity generation and is expected to continue its dominance over the forecast period.

Global Analysis

Regionally, the market is currently led by Europe. Countries such as Germany, Sweden and Denmark have established biomass power generation policies and incentives in place and have extensive district heating networks that allow for efficient combined heat and power generation from biomass. Supported by the widespread availability of solid biomass within the region, Europe is projected to continue capturing the largest share of the global biomass power market during the forecast period. The Asia Pacific region is anticipated to grow the fastest due to rising efforts to increase the share of renewables in the overall energy mix and ongoing investments in biomass power projects, especially in China and India.

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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)