Biomass Power Generation Market By Feedstock (Agricultural Waste, Forestry Waste, Industrial Waste, Urban Waste), By Technology (Direct Combustion, Gasification, Anaerobic Digestion), By Application (Power Generation, Heat Production), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Biomass Power Generation Market was valued at USD 50.3 billion in 2023 and will surpass USD 80.1 billion by 2030; growing at a CAGR of 6.9% during 2024 - 2030.

The biomass power generation market is poised for significant growth as industries and governments increasingly shift towards sustainable and renewable energy sources. Biomass power generation utilizes organic materials such as agricultural, forestry, and industrial waste to produce electricity and heat. This market is driven by the growing demand for clean energy solutions that reduce greenhouse gas emissions and provide a renewable alternative to fossil fuels. Biomass is a key element in the global transition to a more sustainable energy future, offering a reliable, carbon-neutral energy source that contributes to both energy security and environmental goals.

The increasing focus on reducing reliance on coal and natural gas has further stimulated the growth of biomass power generation technologies. Innovations in biomass conversion technologies such as direct combustion, gasification, and anaerobic digestion are making biomass power generation more efficient and cost-effective. Governments around the world are also implementing policies that incentivize the use of renewable energy sources, further driving the demand for biomass-based power generation systems.

Agricultural Waste Feedstock Is Largest Due to Availability and Sustainability

The Agricultural Waste feedstock segment is the largest in the biomass power generation market, driven by the abundant availability of organic materials and the growing emphasis on waste-to-energy solutions. Agricultural waste includes materials such as crop residues, corn stalks, rice husks, and other by-products from farming activities. These materials are abundant in agricultural regions, making them an ideal source of feedstock for biomass power generation. Using agricultural waste not only reduces the environmental impact of waste disposal but also provides a sustainable and renewable energy source that contributes to the reduction of greenhouse gas emissions.

Agricultural waste is also highly favorable because it can be converted into energy through several processes, such as direct combustion, gasification, and anaerobic digestion. The conversion of agricultural waste into bioenergy reduces the reliance on fossil fuels while offering a viable solution for managing large quantities of waste. As the global agricultural sector continues to expand and more focus is placed on sustainable farming practices, the use of agricultural waste in biomass power generation is expected to remain a dominant and growing segment.

Gasification Technology Is Fastest Growing Due to Efficiency and Versatility

Gasification technology is the fastest-growing segment in the biomass power generation market, primarily due to its efficiency and versatility. Gasification involves the partial combustion of biomass to produce a syngas, which can then be used to generate electricity or heat. This process is more efficient than direct combustion, as it allows for greater control over the energy produced and reduces emissions. The versatility of gasification technology also enables the use of a wide range of feedstocks, including agricultural, forestry, and urban waste, making it suitable for different geographical regions and industries.

Gasification offers several benefits, including higher energy conversion efficiency, lower emissions, and the potential to produce biofuels in addition to electricity and heat. The growing demand for cleaner and more efficient biomass power generation technologies is driving the rapid adoption of gasification, particularly in regions with abundant biomass resources. As governments and industries seek to meet renewable energy targets and reduce carbon footprints, gasification is expected to play a critical role in the future development of the biomass power generation market.

Power Generation Application Is Largest Due to Increasing Energy Demand

The Power Generation application segment is the largest in the biomass power generation market, driven by the increasing demand for clean and reliable energy sources. Biomass power generation provides a renewable and sustainable alternative to traditional fossil fuels, helping to meet global energy needs while reducing carbon emissions. Biomass power plants use organic materials to generate electricity, which is then supplied to national grids or used for localized energy production. The growing global focus on renewable energy sources and the need to transition away from coal and natural gas are key factors driving the demand for biomass power generation.

Biomass-based power generation also offers energy security benefits by diversifying the energy mix and reducing dependence on imported fuels. As the world shifts towards cleaner energy sources, biomass power generation is expected to play an increasingly significant role in meeting the energy needs of both developing and developed economies. With the continued development of advanced conversion technologies and growing policy support, the power generation application of biomass is expected to dominate the market.

North America Is Largest Region Due to Technological Advancements and Policy Support

North America is the largest region in the biomass power generation market, driven by technological advancements, a supportive policy environment, and significant investments in renewable energy infrastructure. The United States and Canada have been leaders in adopting biomass-based power generation solutions, with a focus on both agricultural and forestry waste feedstocks. The North American region has seen significant growth in the deployment of biomass power plants, particularly in rural areas where agricultural waste is abundant.

Government incentives and policies promoting the use of renewable energy, including biomass, have also played a crucial role in driving market growth in North America. In addition, technological innovations in biomass conversion processes such as gasification and anaerobic digestion have made biomass power generation more efficient and cost-effective. The continued growth of the renewable energy sector and the region's commitment to reducing carbon emissions position North America as the largest market for biomass power generation.

Leading Companies and Competitive Landscape

The biomass power generation market is competitive, with key players such as Siemens AG, GE Power, Mitsubishi Heavy Industries, and Andritz Group leading the way in the development and deployment of biomass power generation technologies. These companies focus on improving the efficiency and sustainability of biomass power plants through innovations in combustion, gasification, and other conversion technologies.

The competitive landscape also includes companies like Enviva Partners, a leading producer of wood pellets used in biomass power plants, and Veolia North America, which provides biomass-to-energy solutions. Many of these companies are forming strategic partnerships with energy providers, government agencies, and research institutions to expand their market presence and improve the performance of biomass power generation systems. As the demand for renewable energy sources continues to rise, competition in the biomass power generation market is expected to intensify, with companies striving to lead the way in sustainable energy solutions.

Recent Developments:

• In November 2024, Veolia Environment announced a new biomass power generation project in the U.S. aimed at converting waste wood into renewable electricity for local communities.
• In October 2024, GE Power launched a new biomass-based combined heat and power (CHP) system designed for industrial applications, offering improved efficiency and reduced emissions.
• In September 2024, Covanta Holding Corporation signed an agreement with a European utility company to co-develop a large-scale biomass-to-energy facility in Spain.
• In August 2024, Iberdrola SA expanded its biomass power capacity with the inauguration of a new plant in the UK, powered by forest residues and agricultural waste.
• In July 2024, Siemens Energy secured a contract for the supply of biomass gasification technology to a new power plant in Asia, designed to utilize agricultural waste.

List of Leading Companies:

• Veolia Environment
• DONG Energy (Ørsted)
• Enel Green Power
• Siemens Energy
• GE Power
• SUEZ Recycling & Recovery
• Covanta Holding Corporation
• NextEra Energy, Inc.
• Biomass Power Ltd.
• Vattenfall AB
• Abengoa
• Iberdrola SA
• Babcock & Wilcox Enterprises, Inc.
• MGT Power Ltd.
• FES (Future Energy Solutions)

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