Biomass Power Market: Getting ready for the Future

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Biomass Power Market Getting ready for the Future
For decades, the use of fossil fuels for power
generation globally severely dented the
environment, increasing CO2 emissions. This
shifted the focus on renewable energy sources,
thus favoring the adoption of biomass. Biomass
power refers to electricity generated from
organic matter, such as plants, agricultural
residue, animal waste, etc. It provides
significant environmental and consumer benefits,
by generating fewer emissions, improving
forest air quality, and offering reliable
electricity supply to complement intermittent
sources. As a result, the global biomass power
market is likely to grow, with CAGRs of 6.08 (in
revenue) and 6.51 (in volume) during the
forecast period from 2022 to 2028.
Applications Soar as Demand for Biomass Power
Heats Up Biomass power is used in
residential applications for cooking or
space heating. Whereas, industrial and
commercial entities utilize it for purposes like
hot water heating, space heating, and
electricity generation. Industrial leads the
application segment, accounting for the
largest revenue of 31.55 billion in
2021. Supportive Government Policies promote
Bioenergy Adoption
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• With a view to phase out coal-based power
  generation as a sustainable development measure,
  governments across the world are turning to
  bioenergy (obtained by burning biomass).
  For instance, in India, the Ministry of New and
  Renewable Energy launched a scheme in 2019
  offering financial aid for biomass power
  projects.
• Whereas, in the United States, the number of
  biomass power plants increased from nearly 485 in
  2003 to more than 760 in 2016. This has been
  possible due to the governments favorable
  policies and initiatives, such as the Rural
  Energy for America Program.
• The European Market shows Promising Trends
• Policies in the European Union (EU) encourage the
  use of biomass for energy production. The New EU
  Forest Strategy for 2030, which aims at improving
  the multifunctionality of forests, promotes the
  use of forest waste as a biomass source to ensure
  environmental benefits. It also sets the vision
  and concrete actions required to increase the
  quantity and quality of European forests by
  focusing on their protection, restoration, and
  sustainable management.
• Further, Sweden-based Vattenfall AB, a key market
  player, is a founding member of the Sustainable
  Biomass Program (SBP). The SBP is a certification
  scheme designed with the objective of developing
  and maintaining an industry standard to ensure
  that solid biomass used for power generation
  complies with biomass legality and sustainability
  regulations in EU countries.
• Based on the idea that the carbon produced by
  burning solid biomass would be reabsorbed during
  the tree development process, biomass is
  considered carbon-neutral under EU laws. Solid
  biomass feedstock is most frequently
  converted to energy by using combustion
  technology. Combustion leads the technology
  segment in the Europe biomass power market,
  accounting for the largest revenue of 21.85
  billion in 2021.
• Besides this, the markets in Japan and Argentina
  are also poised for growth, as their governments
  invite bids from market players to establish
  biomass power plants under various programs, thus
  creating a supportive environment.
• Top Players Growth Strategies Intensify
  Competitive Rivalry
• The presence of leading companies, such as
  General Electric, Ramboll Group, Mitsubishi
  Heavy Industries Ltd, and Veolia
  Environnement SA, with global repute and
  technical expertise, has enhanced the level of
  competition in the market. Several top players
  have made strides by securing contracts to help
  them expand their footprints into newer
  territories.
• For instance, the Dangjin plant in Chungnam,
  South Korea, is Asias largest biomass power
  plant, with a 105 MW electricity generation
  capacity. The demanding process of power
  generation at the plant is accomplished using the
  Valmet DNA technology by Valmet Oyj.

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Future Prospects Bumpy Road Ahead? Solar and
wind energy are renewable energy sources used as
substitutes for biomass power. Due to increased
RD as well as the provision of financial
incentives for their use, they are considered
viable options, with high demand. This has
significantly impacted the market share of
biomass power in the global energy mix, and is a
key challenge in the path of growth. However,
solar and wind are intermittent energy sources,
and cannot ensure continuous power supply. The
capability of biomass power to thus supply
electricity round-the-clock is expected to aid
its adoption and lower the threat of
substitutes. Another key advantage of
biomass over alternatives is its versatility. By
pyrolysis, it can be converted into biochar,
which improves soil quality and also reduces
GHG emissions by sequestering carbon. These
benefits indicate the massive growth potential
of the biomass power market. FAQs Q 1) Which
are the main segments considered in the biomass
power market report? Application, Feedstock, and
Technology are the key segments considered in the
market report. Q 2) What are the market
estimations in terms of revenue and volume? The
global biomass power market is estimated to
be valued at 111.07 billion in revenue
and 10448.15 million MWh in volume by 2028.