The biomass power market overview discusses the advantages of biomass as a renewable energy source for power generation. Biomass power plants utilize various organic materials such as wood, agricultural residue and food waste to produce electricity through combustion. Biomass offers a carbon neutral alternative to fossil fuels and helps reduce dependence on non-renewable energy sources. It also aids in waste management by utilizing various organic wastes.
The global biomass power market is estimated to be valued at US$ 139.30 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 include 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 to cater to the growing demand for renewable energy sources.
The increasing concerns about climate change and stringent regulations to reduce carbon emissions are propelling the growth of the global Biomass Power Market Trends Many countries are offering incentives and tax benefits to biomass plant developers and owners to encourage the production of electricity from biomass. The demand for biomass power is high across industries, utilities, and commercial establishments that aim to achieve their sustainability targets.
Several power companies and independent power producers are actively engaged in commissioning new biomass power projects across Europe, North America, and Asia Pacific. Countries like the US, UK, Germany, China, and India are leading the global biomass power generation due to supportive government policies and investment in clean energy infrastructure. The rising focus on waste-to-energy technologies will further drive the global expansion of the biomass power market during the forecast period.
Market key trends
One Biomass Power Market Size And Trends Biomass CHP plants generate both electricity and useful heat from a single source of fuel such as biomass. This helps improve the overall efficiency of biomass power plants. CHP technologies offer energy savings of up to 40% compared to separate heat and power generation making biomass power generation more cost-effective. Most future biomass power capacity additions are expected to incorporate CHP systems.
Porter's Analysis
Threat of new entrants: Low capital requirements and availability of raw biomass feedstock reduces barriers to entry in the biomass power market. However, established players have economies of scale and access to better technology.
Bargaining power of buyers: Large utility companies and industrial consumers have significant bargaining power over independent power producers in the biomass power market due to the ability to choose from a variety of renewable energy sources.
Bargaining power of suppliers: Biomass feedstock suppliers such as agriculture and forestry industry players have moderate bargaining power due to limited substitutes for biomass. However, established players sign long term supply agreements to secure feedstock.
Threat of new substitutes: Technologies such as wind and solar power pose a significant threat given advantages such as lower levelized cost of energy and increasingly strict environmental regulations.
Competitive rivalry: The biomass power market sees intense competition due to large number of regional and global players. Companies compete on technology, efficiency andsecure long term contracts to utilize full capacity.
Geographical Regions
In terms of value, the Asia Pacific region currently accounts for the largest share in the global biomass power market owing to significant biomass resources and government support for renewable energy in countries such as China and India.
The Middle East and Africa region is expected to witness the fastest growth during the forecast period due to ongoing power generation expansion projects based on abundantly available agricultural and forest waste in countries such as Egypt, South Africa and UAE. Countries are increasingly adopting biomass co-firing with coal and standalone power plants to meet growing demand.
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