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Biomass Energy Market Set to Skyrocket over Next Decade

  • Publish Date: Posted over 7 years ago

Analysis from GlobalData shows that biomass capacity is set to increase on a global scale over the coming decade - it's anticipated it will hit 165GW by 2025 from a current level of just 106GW. The consulting and research company believes that the world's bio-power market will experience this strong but steady growth thanks to advancing technologies, with energy capacity also set to grow by over 33pc from its current level of 106GW as of 2015.

As a result, the biomass sector will enjoy an annual growth rate of 4.4pc compounded during this period. Other drivers for the growth will be performance improvements of the technologies used for biomass power generation and reliability of the power source, supported by growing energy demand across the world and ongoing commitment to tackle climate change.

Government support is also expected to continue to support the market's growth, both in terms of mandates for renewable energy implementation and support such as production tax credits and subsidies to provide financial incentives.

Regulations that require ongoing reductions of carbon emissions will also continue to encourage energy users and developers to switch away from fossil fuels and seek out greener alternatives such as biomass. GlobalData noted that a number of firms are acting to create their own biopower facilities to handle waste on-site. Others are investing in composting facilities to indirectly support the industry's growth. 

The biggest markets are expected to continue to be the USA and Europe, with the UK's Drax plant continuing to be a worldwide leader. Some environmental groups will be disappointed with the projections, as biomass is seen as being a bridging energy source rather than a true 'green' energy. The EC has recently launched an investment programme of 5.8 million euros for small bio-based start-ups and businesses.