Bioenergy is defined as the material which is produced by photosynthesis and it is used a feedstock in the manufacturing of fuels and substitutes for petrochemical & other energy intensive products. According to United Nations, sustainable energy is defined as energy that meets the needs of the present without compromising the ability of future generations to meet their own needs. The bioenergy comes from two different sources – primary bioenergy which uses farmland or forests to produce biomass, and the other is biomass residue which is generated as a by-product of food or wood products. According to the International Energy Agency, bioenergy is expected to contribute between 25 to 33% to the global primary energy supply in 2050. Sustainability in bioenergy can be obtained by employing sustainable forest management, landscape planning, using waste & organic residues, reducing losses in food supply chain, and restoring degraded or marginal lands. Promotion of multi-functional land uses is expected to provide sufficient food & animal feed as well as biomass for energy.

MARKET DYNAMICS

Increasing electricity generation from biomass for reducing fossil fuel demand in the electricity sector is expected to drive growth of sustainable bioenergy market during the forecast period. For instance, according to the World Bioenergy Association, in 2017, 596 Terawatt Hour (TWh) of biopower was produced globally, which was an increase of 25TWh from 2016.

Countries across the globe are framing new policies to make energy systems secure and sustainable in order to reduce their greenhouse gas (GHG) emissions. This is expected to increase demand for sustainable bioenergy during the forecast period. In 2015, the European Union (EU) Member States passed a new policy framework for climate and energy, including targets for the period between 2020 and 2030. The targets include reducing the EU’s GHG emissions by 40% relative to emissions in 2005 and ensuring at least 27% of the EU’s energy will come from renewable sources.

Focus on developing new technologies to produce bioenergy in sustainable ways is expected to drive the market growth during the forecast period. For instance, in February 2019, National Renewable Energy Laboratory (NREL) partnered with BHP (mining, metals and Petroleum Company) to develop sustainable ways to clean up mining impacts and develop feedstock for biofuels. NREL will use BHP’s closed uranium mine sites in New Mexico, U.S. as a test bed to grow biomass and produce biofuels while simultaneously restoring soil and water. 

However, the major factors challenging the growth of the market are concerns regarding food security, risk of higher carbon emissions or lower biodiversity owing to bioenergy expansion, achieving economic competitiveness, and providing high quality & affordable energy services.

MARKET OUTLOOK

Among regions, Asia Pacific is expected to be the fastest-growing region in the sustainable bioenergy market during the forecast period owing to increasing demand for biofuels. Due to availability of limited resources, most of the countries depend on imports for their crude supply. This has shifted focus of these countries toward biofuel production in order to reduce dependency on imports. According to International Energy Agency, China’s biofuel production in 2019 was around 3 Mtoe (Millions of tonnes of oil equivalent) and is expected to grow at a rate of 15.3% between 2019 and 2025.

KEY PLAYERS

Major players operating in the sustainable bioenergy market are Archer Daniels Midland Company, Bp Plc., Cargill, Incorporated, Deinove SAS, Enerkem, Honeywell UOP, Novozymes A/S, Oleon N.V., Renmatix,Inc., and Valero Energy Corporation.

Players operating in the market are focusing on various growth strategies such as product development in order to expand their market presence. For instance, in February 2020, Novozymes A/S launched a new yeast technology, Innova Fit, which will help ethanol manufacturers to break bottlenecks while increasing plant efficiency. The yeast provides ethanol plants flexibility in achieving operational targets, maximizing inputs, and achieving production targets without losing ethanol yield. The new product offers the most holistic, advanced, and sustainable approach for ethanol production.

MARKET TAXONOMY

On the basis of source, the sustainable bioenergy market is segmented into:

  • Bioenergy Crops
  • Agricultural Residues
  • Post-consumer Waste
  • Animal Waste
  • Forestry Products

On the basis of product type, the sustainable bioenergy market is segmented into:

  • Bioethanol
  • Biodiesel
  • Biogas
  • Hydrocarbon Biofuel
  • Others

On the basis of application, the sustainable bioenergy market is segmented into:

  • Power & Heat Generation
  • Residential & Commercial Buildings
  • Manufacturing Industry
  • Transportation Fuel

On the basis of region, the sustainable bioenergy market is segmented into:

  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Australia
    • South Korea
    • Rest of Asia Pacific
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Russia
    • Rest of the Europe
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Middle East
    • GCC
    • Israel
    • Rest of Middle East
  • Africa
    • North Africa
    • Central Africa
    • South Africa
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