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.
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.
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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.
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
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.
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
By Type
Solid Biomass Fuel
Biogas Fuel
Liquid Biomass Fuel
By Application
Residential
Business
Industry
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.
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Biomass Power Generation Fuel Market - View in Detailed Research Report
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