Biomass Electricity Market Definition And Segments
Biomass electricity refers to the electricity generated by a process that involves the burning of biomass for the generation of product gas or syngas for the production of electricity. Producer gas is a combustible gas mixture of carbon monoxide, hydrogen, carbon dioxide, methane, and nitrogen. The gasification process uses heat, pressure, and partial combustion, which takes place when the air supply (O2) is inadequate for the combustion of biomass.
The main types of feedstocks in biomass electricity are solid biomass, biogas, municipal solid waste, and liquid biomass. Solid biomass, also known as feedstock, consists of solid or compacted organic materials in the form of pellets that discharge stored energy through combustion and burning. The different technologies include anaerobic digestion, combustion, co-firing, gasification, landfill gas, and others. They are used by various sectors such as households, industrial sectors, government sectors, and others.
The biomass electricity market covered in this report is segmented –
1) By Feedstock: Solid Biomass, Biogas, Municipal Solid Waste, Liquid Biomass
2) By Technology: Anaerobic Digestion, Combustion, Co-Firing, Gasification, Landfill Gas
3) By End-User: Households, Industrial Sector, Government Sector, Other End Users
The biomass electricity market size has grown strongly in recent years. It will grow from $44.8 billion in 2023 to $48.52 billion in 2024 at a compound annual growth rate (CAGR) of 8.3%. The growth in the historic period can be attributed to emerging markets growth, government incentives, low-interest rate environment, and high environment impact of conventional power generation sources.
The biomass electricity market size is expected to see strong growth in the next few years. It will grow to $64.81 billion in 2028 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to the global population growth and urbanization, rising investment for renewable power generation, focus on reducing foreign oil dependence, and alternative sources of power generation. Major trends in the forecast period include adopting bioenergy carbon capture and storage processes to reduce emissions, transitioning conventional boilers to increase efficiency and reduce carbon emissions, adopting anaerobic digestion plants to reduce emissions, investing and innovating new waste-to-energy technologies, focusing on offering services through digital marketplaces and investing in artificial intelligence technologies to enhance biomass preprocessing.
Government Support Fuels Biomass Electricity Market Growth
The increasing government support through various government subsidies and policies is driving the growth of the biomass electricity market. Due to the growing concerns about climate change and the rising levels of greenhouse gases in the atmosphere resulting from the burning of fossil fuels such as coal and oil, new government policies are being framed to encourage sustainable power generation. For instance, in India, the Ministry of new and renewable energy under its National Biogas and Manure Management Programme (NBMMP) provides subsidies for setting up family-type biogas plants mainly for rural and semi-urban households. The program is implemented by the State Nodal Departments/State Nodal Agencies and Khadi and Village Industries Commission (KVIC), Biogas Development and Training Centers (BDTCs) and involves subsidies of up to Rs. 17,000 ($230) for setting up biogas plants.
Effect Of Energy Sector Investments On Biomass Electricity Growth
The rising investment in the energy sector is expected to propel the growth of the biomass electricity market going forward. The energy sector refers to the portion of the economy that is involved in the production, generation, distribution, and consumption of various forms of energy. Increased investment in the energy sector benefits biomass energy by promoting the development and expansion of sustainable biomass projects, leading to greater renewable energy production and reduced reliance on fossil fuels. For instance, in 2022, according to a report by the International Energy Agency, a France-based intergovernmental organization, world energy investment is set to rise over 8% in 2022 against 2021 to reach a total of $2.4 trillion. Therefore, rising investment in the energy sector is driving the growth of the biomass electricity market.
Major companies operating in the biomass electricity market report are Drax Group, EPH, Engie, EDF, Iberdrola, Acciona SA, RWE, Ørsted A/S, CEZ, Babcock and Wilcox, GGE Power, EnviTec Biogas AG, First Biogas International AG, Shenzhen Puxin Science & Technology Co. Ltd., Mingshuo Environment Technology Group Co. Ltd., Clarke Energy, Seko Industries Srl, HC Energy, Agraferm Technologies AG, LMS Energy, Drax Power Limited, EDF Energy, E. ON UK, Centria Reti Gas, GASAG, Enagás, Italgas, Eni Gas & Power, Cadent Gas Ltd., Enercon, Nordez, Repower, Siemens, Wartsila Corporation, Suez Water, ACCIONA S.A., Ramboll, Graanul Invest Group, NaftoGaz Group, Iogen Corporation, Renewable Energy Group, Pond Technologies, Bio-Enpower Inc., Ag-West Bio, Airscience Technologies Inc. (Biogas), Ameresco Inc., Enviva Partners LP, N-Viro International Corporation, SolaGen Incorporated, FSE Energy Inc., BioDrill, Biomass Thermal Energy Council (BTEC), Taylor Biomass Energy LLC (TBE), American Biocarbon LLC., W2E, Carbon Green, Geradora de Energia Eletrica Alegrete, Liberty Green Renewables LLC, Usina Mandu, Brasil Biomassa e Energia Renovavel, Bem Brasil Alimentos Ltda., Ali Yaqoob Trading Co. L.L.C, Al Rahib Trading Co. LLC, Siemens LLC, Areva T & D, City Power Johannesburg (Pty) Ltd., Vuselela Energy (Pty) Ltd., Sonangol Group
Alternative Energy Sources Pose Competition For Biomass Electricity
The growing competition from alternative energy sources such as solar, wind, and geothermal is expected to limit the biomass electricity market. Unlike wind power plants, biogas plants are affected by cold climates. The digesters in a biogas plant require heat energy to maintain a constant biogas supply. The optimal temperature for bacteria to digest the waste product is around 37°C. At temperatures below 37°C, the digesters require additional heat energy to maintain a constant biogas supply. Solar and wind energy plants use raw resources that are available in abundance, whereas biogas production is only possible in rural areas where raw materials such as agricultural waste, manure, green waste, or food waste are in constant supply. Thus, the popularity and ease of maintaining alternative energy sources such as solar, wind, and geothermal restrain the growth of the biomass electricity market.
Innovative Approaches In Biomass Electricity Generation
Companies in the biomass electricity market are developing new methods to produce electric power through new hybrid biogas plants by combining biogas with other forms of renewable energy sources such as solar energy. The combination of solar energy with biogas reduces the operating cost and effort required to deal with the waste products from the farms. Following suit, in August 2023, a new biogas power plant was launched in Sagamihara, Japan, which produces annually 1.9 million Nm3 biogas from pig feed waste and food waste using anaerobic digestion. The plant applies a combined heat and power (CHP) system to generate electricity and heat, which is supplied to the grid and used for the plant's operations.
Strategic Partnerships Driving Biomass Electric Market
Major companies operating in the biomass electricity market are adopting a strategic partnership approach to construct biomass power plants. Strategic partnerships refer to a process in which companies leverage each other's strengths and resources to achieve mutual benefits and success. For instance, in April 2022, the Asian Development Bank (ADB), a Philippines-based private regional banking company, partnered with SAEL Industries Limited, an India-based agriculture industry company. With this partnership, both companies aim to develop and fund the construction of five 14.9-megawatt biomass power plants in the state of Rajasthan. The power plants will use agricultural residues as feedstock and generate 544 gigawatt-hours of energy annually, which could help avoid up to 487,200 metric tons of carbon dioxide annually. The project aims to repurpose agricultural residue, protect the environment, and increase the income of local farmers through the sale of agricultural residue.
ReGenerate Energy Holdings Acquired Albany Green Energy
In 2021, ReGenerate Energy Holdings, LLC., a US-based company focusing on environmental sustainability in renewable energy, acquired Albany Green Energy. Through the acquisition, ReGenerate Energy Holdings, LLC would continue building and expanding a bioenergy business. Albany Green Energy is a US-based biomass heat-and-power facility that uses woody biomass from mill residue, forestry waste, recycling, and agricultural waste sources to provide 50 megawatts of electricity to Georgia Power.
Western Europe was the largest region in the biomass electricity market in 2023. Asia-Pacific was the second-largest region in the global biomass market analysis. The regions covered in the biomass electricity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the biomass electricity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain
The biomass electricity market includes revenues earned by entities by wood and agricultural products, landfill gas and biogas, and alcohol fuels like Ethanol or Biodiesel. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The biomass electricity market research report is one of a series of new reports from The Business Research Company that provides biomass electricity market statistics, including biomass electricity industry global market size, regional shares, competitors with a biomass electricity market share, detailed biomass electricity market segments, market trends and opportunities, and any further data you may need to thrive in the biomass electricity industry. This biomass electricity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.