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Press Release: Biomass Solid Fuel Market to Surpass US$ 425.8 Billion by 2027
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Biomass is defined as the biologically degradable fraction of products, residues, and wastes from remains of animals and plants, and biological remains of household and industrial waste. Biomass is a renewable energy resource, which can be derived from the carbonaceous waste of human, animals and other industrial activities. It acts as a constant source of energy that can never be depleted.
Biomass solid fuels that are available today are made up of a large number of sources such as wood chips, peat moors, wheat straw, sawdust, palm oil residues, bark chips, and bagasse among others. All these biomass solid fuels are derived from agricultural byproducts, paper, sawmill residue, recycled materials, and animal farm litter among others.
The global biomass solid fuel market is projected to surpass US$ 425.8 billion by the end of 2027, in terms of revenue, exhibiting a CAGR of 8.5% during the forecast period (2020 to 2027).
Drivers
During the last decade, the use of biomass for sustainable energy production was preferred by scientists, investors, and policymakers to provide solutions to the continuously growing energy crisis and to reduce the environmental impact due to high greenhouse gas emission. Biomass solid fuel is expected to witness high demand to cater to the needs of multiple industries across the globe. Fossil fuels have dominated the global energy supply and have been doing so since the dawn of the industrial revolution. Oil, gas, and coal are the major source of energy globally, however, due to high depletion rate of fossil fuels, there is a need for better energy resource, which can safely replace fossil fuels and offer minimum carbon footprint.
The United States Department of Energy studied the impact of both fossil fuels and biomass solid fuels on global warming during the life-cycle of a power generation facility. It was found that using biofuel over coal, even when the carbon from burning coal is sequestered, leads to around 148% reduction in the global warming potential of a power plant. Biomass solid fuel is the most suitable replacement for fossil fuels. These factors are expected to drive growth of the global biomass solid fuel market during the forecast period. Besides, biomass solid fuel contributes to the largest share in the global bioenergy production.
The major advantage of biomass solid fuel is that no typical production process is necessary in most of the cases, as it is often available in an appropriate form need not to process further. It is available in the nature in their usual form. However, there is a problem with biomass such as wood chips and sawdust that they are inconvenient during transportation in normal form, therefore, it goes through a densifying process. Through this process, the biomass is compressed into a solid form by mixing it with bonding agents to hold it together for convenient storage, transport, and use. Densified biomass is generally stored in the form of pellets and bricks.
Among regions, Europe held dominant position in the global biomass solid fuel market in 2019 and accounted for around 34.0% market share in terms of revenue, followed by Asia Pacific and North America.
Figure 1. Global Biomass Solid Fuel Market, Revenue Share (%), By Region, 2019
Market Restraints
Although biomass solid fuel is an alternative to non-renewable energy resources, the use of biomass for direct burning has few disadvantages. The initial biomass is a sparse heterogeneous material that consists of pieces of various sizes with different calorific values. These features of biomass causes serious problems while burning solid biofuel in combusting chambers. For instance, the low bulk density of the biomass leads to reduced efficiency of the combustion. Although burning of biomass solid fuel does not emit enough carbon dioxide that would cause greenhouse effect, biofuels produce nitrous oxide on burning, which can cause greenhouse effect. These factors are expected to hamper growth of the market during the forecast period.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 221.7 Bn |
| Historical Data for: | 2016 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 8.5% | 2027 Value Projection: | US$ 425.8 Bn |
| Geographies covered: |
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| Companies covered: |
Svenska Cellulosa Aktiebolaget SCA, BTG Biomass Technology Group, Eni S.p.A., Fulcrum BioEnergy, SOCOTEC Group, Drax Biomass Inc., Aggregated Micro Power Holdings plc, PVM Environmental Products, VGrid Energy Systems, and Vattenfall AB |
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| Restraints & Challenges: |
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Market Opportunities
The emission of greenhouse gases such as carbon dioxide, methane and nitrous oxide among others, are continuously increasing due to rising industrial production in emerging economies. This is due to high investment costs involved in the adoption of green technologies and renewable resources. To mitigate the consumption of fossil fuels, solid biomass fuel can be used as one of the alternatives nowadays. According to VDEW- German Verband der Elektrizitaetswirtschaft, (German Electricity Association), the potential of available biomass in the world is equivalent to produce more than 150 billion mg per year, which is equivalent to 120 billion mg of coal. There is a huge potential to use this biomass solid fuel as a source of energy. However, 20-30% of available biomass is only suitable for use.
There is huge opportunity for the energy companies to invest in the infrastructure to develop bioenergy to fulfil world energy requirement using solid biomass. Forest products are being used increasingly as a source of energy. For instance, in 2018, at La Coruña, Spain, a plan was proposed for the establishment of a new 50 MW biomass power plant, fueled by locally sourced forest waste. Biomass solid fuel offers lucrative opportunities not only for climate change mitigation but also for harnessing energy crops, waste, degraded lands, and co-farming, thus creating wealth and employment and increase energy dependence.
Figure 2. Global Biomass Solid Fuel Market – Opportunity Analysis
Market Trends
Continuous growth in the industrialization, and economic development, are leading to high consumption of fossil fuels. On the contrary, known fossil fuel reserves are limited and they are depleting at an alarming rate. Biomass solid fuel along with other renewable energy resources are expected to be the potential alternatives of fossil fuels. Nowadays, bagasse and other agricultural residues are commonly used to produce power and heat in Brazil, where demand for biomass solid fuel is rising. For instance, in Mexico, a biomass plant owned by Grupo Pias, which was commissioned in 2018 and is fueled by sugarcane residue, supply around 50 MW of steam and electricity to sugar mill and nearby bottling plants.
In India, NTPC, the country’s largest power producer, announced its intention to start its biomass co-firing using biomass pellets and briquettes made from crop residue, scrap lumber, and forest debris at all its thermal power stations.
Figure 3. Global Biomass Solid Fuel Market Revenue Share (%), By Source, 2019
On the basis of source, wood pellets segment held dominant position in the global biomass solid fuel market in 2019 with around 32.7% of market share in terms of revenue.
Key Development:
Global Biomass Solid Fuel Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 has seriously impacted the global market. All the industries have been impacted and had witnessed shut down of manufacturing operations. The countries across the globe have understood the critical importance of energy security and need for continuous supply of heat and electricity to end users. Wood chips, bagasse, and pellets, etc. are currently provide essential and on-demand energy. Governments across the globe are responding to the pandemic with recovery packages, it is important to understand the biggest threat faced by people, i.e. climate change. Renewable energy and bioenergy sources should be the central supports of government’s plans to stimulate economic growth and move towards the sustainable future.
Competitive Landscape
Key players operating in the global biomass solid fuel market include Svenska Cellulosa Aktiebolaget SCA, BTG Biomass Technology Group, Eni S.p.A., Fulcrum BioEnergy, SOCOTEC Group, Drax Biomass Inc., Aggregated Micro Power Holdings plc, PVM Environmental Products, VGrid Energy Systems, and Vattenfall AB.
Biomass solid fuel is defined as the solid organic matter, which can be used to generate energy and can be used as an alternative to fossil fuels. Biomass solid fuel is a renewable energy resource, which can be derived from the carbonaceous waste of human, animals or industrial activities.
Market Dynamics
The global biomass solid fuel market has witnessed significant growth in the recent past, owing to its various advantages such as, there is no typical production process necessary in most of the cases, as it is often available in an appropriate form and do not need to undergo any further processing. Due to the advancements in technology, biomass solid fuel is effectively used by various industries as a source of energy.
Major players in the global biomass solid fuel market are increasing their investments in research & development, innovative products and services, and marketing & promotional strategies to capitalize on emerging trends across the end user segments. This scenario is expected to fuel the market growth during the forecast period.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section.
* Browse 45 market data tables* and 30 figures* on "Global Biomass Solid Fuel Market” – global forecast to 2027
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