Biomass Solid Fuel Market
The fuel obtained from materials such as sawdust, wood, crop residue, forest waste, and energy crops among others is known as biomass solid fuel. These can be used directly or can be processed into charcoal and briquettes. Biomass solid fuel is generally used for applications such as space heating & cooling, cooking, heat processing, and electricity generation among others.
The global biomass solid fuel market was valued nearly US$ 221.7 billion in terms of revenue in 2019 and is expected to exhibit a CAGR of 8.5% during the forecast period (2020 to 2027).
Drivers
There is substantial possibilities for high demand of biomass solid fuels to produce suitable energy resources such as gases, transportation fuels, and electricity. Besides, there is continuous demand for biomass for traditional uses as well. The investment in modernization and infrastructure for the production of bioenergy and biofuels is already taking place in many countries including the U.K., Germany, Finland, and Austria among others. Being a sustainable source of energy, biomass solid fuel has numerous environmental and social benefits, unlike fossil fuels. These factors are expected to drive the growth of the global biomass solid fuel market during the forecast period.
Market Opportunities
Bioenergy accounts for around 10% of the global energy demand. Conventional untreated biomass including charcoal, firewood, and animal dung accounts for the largest share in the available biomass solid fuel across the globe and it represents the leading source of energy for large population across the globe. Efficient and advanced conversion technologies now allow the extraction of biomass solid fuel from materials such as wood, crops, and waste materials. These materials are available in abundant amount on the earth. Companies are adopting bioenergy in place of fossil fuels as a source of energy, as in many cases, it can save up to 65% of the current fuel cost.
Market Restraints
Due to the high income opportunity, low maintenance, and low cost, farmers are nowadays inclining more towards the cultivation of energy crops, instead of food crops. This may lead to food insecurity, as population is growing at an alarming rate and it is difficult to transform food farming into cultivation of energy crops. Moreover, there is increasing threat of deforestation with unrestrained biomass production. These are the major factors, which are expected to hamper growth of the biomass solid fuel market during the forecast period.
Key Takeaways
On the basis of application, electricity generation segment held dominant position in the global biomass solid fuel market in 2019 with around 28.7% market share in terms of revenue, followed by space heating/cooling and heat processing applications.
Market Trends
The rising trend towards the industrial uses of bioenergy is growing rapidly. To achieve the European Union’s Renewable Resource Directive targets for 2020 and 2030, a number of biomass-fired CHP (combined heat and power) plants were commissioned during 2018. For instance, in Sandwich, U.K., a 27 MW capacity CHP plant was commissioned in 2018, which was fuelled by locally sourced wood. It began to deliver renewable power and heat to nearby Science Park, business, and around 50,000 households.
Global Biomass Solid Fuel Market - Impact of Coronavirus (Covid-19) Pandemic
The biomass solid fuel has witnessed low demand amid COVID-19 pandemic. Measures such as local/nationwide lockdowns, restrictions to movement has led to a significant challenge to the biomass solid fuel market. According to the World Bioenergy Association, there is a moderate to significant effect of pandemic on bioenergy business across the globe. Biomass solid fuels has provided on-demand and clean energy, and its role in meeting end-use of heating and electricity should be recognized as essential product in the times of crisis.
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.
Market Taxonomy
By Source
By Application
By End Use
By Region
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