Biomass Power Generation Fuel market - Trends, Market Share, Industry Size, Growth, Opportunities

According to a new report from Intel Market Research, the global Biomass Power Generation Fuel market was valued at USD 1,011 million in 2024 and is projected to reach USD 2,044 million by 2031, growing at a CAGR of 10.7% during the forecast period (2025–2031). This growth is fueled by increasing global demand for renewable energy sources and government initiatives promoting sustainable power generation alternatives.

What is Biomass Power Generation Fuel?

Biomass power generation fuel encompasses organic materials such as wood chips, agricultural residues (straw), palm kernel shells, and municipal waste that are converted into energy through combustion, gasification, or anaerobic digestion. These processes generate heat or electricity while significantly reducing carbon footprints compared to fossil fuels. As a carbon-neutral energy source, biomass plays a crucial role in global decarbonization efforts and circular economy models.

The technology dominates renewable energy portfolios in several countries, with applications ranging from small-scale residential systems to industrial co-generation plants. Europe and North America currently lead adoption, while emerging economies are rapidly expanding their capacity to meet renewable energy targets.

📥 Download FREE Sample Report: Biomass Power Generation Fuel Market - View in Detailed Research Report

Key Market Drivers

1. Global Push for Renewable Energy Transition

The market is primarily driven by stringent environmental regulations and international commitments like the Paris Agreement. Over 130 countries have set net-zero targets, with biomass playing a pivotal role in national renewable energy mixes. The EU's Renewable Energy Directive III (RED III) mandates 42.5% renewable energy share by 2030, creating massive demand for sustainable biomass solutions.

2. Waste-to-Energy Momentum

Increasing waste management challenges have accelerated adoption of biomass technologies that utilize:

• Agricultural residues (rice husks, bagasse)
• Forestry byproducts (sawdust, bark)
• Municipal solid waste

Innovations in preprocessing and pelletization have enhanced fuel quality, enabling coal-to-biomass conversions in existing power plants without major infrastructure changes.

Market Challenges

While promising, the industry faces significant hurdles:

• Supply chain complexities: Seasonal availability and regional concentration of biomass resources create logistical challenges
• Technology limitations: Large-scale gasification plants require substantial capital investments (USD 100-300 million)
• Policy uncertainty: Changing sustainability criteria in key markets like the EU impact trade flows

Emerging Opportunities

The market is evolving through several transformative trends:

• Advanced biofuels: Second-generation ethanol and biodiesel production from non-food biomass
• Carbon credit programs: Growing monetization of emission reductions through carbon trading
• Biomass co-firing: Blending with coal to reduce emissions in existing power plants

Companies like Neste and ADM are investing heavily in advanced biorefineries, while European utilities are converting coal plants to run entirely on biomass pellets.

Regional Market Insights

• Europe: Leads in policy support and installed capacity, particularly in Scandinavia and the UK
• North America: Strong growth in wood pellet exports and domestic power generation
• Asia-Pacific: Emerging as the fastest-growing market, driven by Japan's feed-in tariffs and China's waste-to-energy initiatives

Market Segmentation

By Type

• Solid Biomass Fuel
• Biogas Fuel
• Liquid Biomass Fuel

By Application

• Residential
• Business
• Industry

Competitive Landscape

The market features a mix of energy majors and specialized biomass companies:

• Iwatani Corporation
• NISSIN BIO ENERGY
• DSNG (PT Dharma Satya Nusantara Tbk)
• BIO ENECO
• Palmline Bioenergy
• DEVOTION CORPORATION
• Groupe Avril
• Neste
• ADM
• Cargill

Recent developments include vertical integration strategies and long-term supply agreements with European utilities, particularly for wood pellets.

📘 Get Full Report Here: Biomass Power Generation Fuel Market - View in Detailed Research Report

About Intel Market Research

Intel Market Research is a leading provider of strategic intelligence, offering actionable insights in energy, power generation, and sustainable technologies. Our research capabilities include:

• Real-time competitive benchmarking
• Policy impact analysis
• Technology adoption forecasting
• Over 500+ energy sector reports annually

Trusted by Fortune 500 companies, our insights empower decision-makers to navigate the energy transition with confidence.

🌐 Website: https://www.intelmarketresearch.com 📞 International: +1 (332) 2424 294 📞 Asia-Pacific: +91 9169164321 🔗 LinkedIn: Follow Us