Impact of COVID-19 on the Biomass Power MarketBiomass power is produced from renewable organic waste, including by-products from sugarcane crops, oil-rich algae, the timber industry, agricultural residue, woody plants, and industrial waste. The four biomass conversion technologies for energy production are liquefaction, gasification, direct combustion, and pyrolysis. The selection of technologies considerably depends upon the characteristics of the fuel, performance, and cost of the equipment available. There is an increased demand for biomass power owing to its cost-effectiveness and renewable nature. Also, rising concerns regarding the environmental impact of using fossil fuels are driving the growth of the biomass power market. The spread of COVID-19 has not only posed a threat to human lives but has also triggered a global economic recession. The partial or complete lockdowns in numerous countries have indirectly or directly impacted several industries, causing disruptions in vendor operations, supply chains, and product commercialization, among other activities.
Capital Investment by Majors and Selection Other Companies in New Projects In Biofuels, 2015-2019 (USD Billion)
The outbreak of COVID-19 has caused the temporary closure of manufacturing plants. The demand and supply for biomass power have been substantially impacted due to the outbreak of the COVID-19 pandemic. However, government authorities in several countries have continued to focus on the promotion of renewable and energy-efficient power generation technologies for the commercial, residential, and industrial sectors. Moreover, according to the International Renewable Energy Agency (IRENA), carbon emissions must reduce to over 9.5 gigatons (Gt) by 2050 to limit global warming to less than 2 degrees Celsius above pre-industrial temperatures. Hence, there is a need for the expansion of renewable energy and improving energy efficiency, which is projected to drive the demand for biomass power across the globe and boost the growth of the global biomass power market.
Source: Secondary Sources
Source: Primary Experts, Secondary Sources and MRFR Analysis