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Bio Power Market Trends

ID: MRFR//0983-CR | 128 Pages | Author: Anshula Mandaokar| March 2024

Global Bio Power Market Overview

Bio Power Market Size was valued at USD 91,985.11 million in 2022. The Bio Power Market industry is projected to grow from USD 96,680.49 million in 2023 to USD 1,42,703.07 million by 2030, exhibiting a compound annual growth rate (CAGR) of 5.72% during the forecast period (2023 - 2030). Bio power is a renewable source of energy which is derived from biological sources such as bio fuels, biomass, and organic waste. Bio power is a crucial component of the bioenergy sector, playing a pivotal role in the generation of renewable energy from organic materials. 

This process contributes to sustainable energy production and offers an environmentally friendly alternative to traditional fossil fuels. Various technologies are employed to generate bio power from biomass, including direct combustion, anaerobic digestion, landfill gas recovery, and thermal gasification. These methods enable the generation of electricity from organic materials such as agricultural residues, forestry waste, energy crops, and organic municipal waste.

Bio power technologies leverage solid biomass, liquid biofuels, municipal waste, industrial waste, and biogas as raw materials to produce bio energy. Solid biomass, derived from plant -based waste, are combusted to generate power, catering to residential, commercial, and industrial energy needs. Liquid biofuels, including biodiesel and other liquid-based biomass, are utilized as power sources for electricity generation, while biogas serves as a valuable resource for power production. The integration of bio power into the bio energy landscape not only facilitates the reduction of greenhouse gas emissions but also contributes to energy security and diversification. By tapping into the potential of biomass resources, bio power plays a vital role in the transition towards a more sustainable and eco-friendly energy mix, offering a renewable and reliable source of power for various applications.

Bio Power Market Overview

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Bio Power Market Trends

  • Rising need to control greenhouse gas emission.

Bio power technologies involve the conversion of renewable biomass fuels into electricity through processes similar to those used with fossil fuels. The rising global warming issues coupled with deteriorating climatic and environmental conditions due to the excess pollution owing to extensive greenhouse gas emissions have necessitated the development and adoption of clean and green energy. This has encouraged the use of bio power derived from biomass as a source of energy and power. The carbon in biomass is taken up by plants during photosynthesis. Modern bioenergy is a promising nearly emission-free fuel because when this biomass is used to generate electricity, the carbon is liberated during combustion and only returns to the environment. The development and deployment of new technologies are necessary as a result of the growing concerns about global warming and the deteriorating climatic and environmental conditions caused by the excess pollution as a result of significant greenhouse gas emissions. This increased need for renewable energy sources has pushed the use of bio power derived from biomass for energy and power generation, opening up lucrative market opportunities. It is projected that bio power, a source of clean and ecologically friendly energy, will grow dramatically over the course of the projection period. The market for bio power is also expanding owing to rising government initiatives to reduce carbon emissions, which are encouraging the production and consumption of biomass. This growing demand for clean and green energy across many industries is driving growth in the global market for bio power generation.

  • Depletion of energy resources driving the market growth

The depletion of natural energy resources and its impact on environmental quality is an urgent concern that demands immediate attention. With the global population on the rise, the demand for energy is escalating, which poses the risk of exhausting finite resources. As the population grows and technological advancements facilitate a more modern lifestyle, our reliance on natural resources for meeting energy needs has surged, resulting in a rapid depletion of these resources and a significant decline in environmental quality. The escalating energy consumption has made it increasingly challenging to meet our energy needs without resorting to imports. While energy imports, such as fossil fuels, can fuel economic growth, they can also pose environmental risks if not managed effectively. Furthermore, they can lead to higher energy prices, which may strain the budgets of many households. Additionally, a heavy reliance on energy imports can hamper economic growth due to the depletion of natural resources, potentially leading to economic decline and further strain on resources, exacerbating the environmental quality.

In 2022, the Organization of the Petroleum Exporting Countries (OPEC) reported that the world's proven oil reserves amounted to 1,564.44 billion barrels, with 79.5% (1,243.52 billion barrels) located in OPEC Member Countries, predominantly in the Middle East. These reserves are projected to last for 47 years. Additionally, the World Coal Association notes that there are approximately 1.1 trillion tons of coal globally, providing an estimated 132-year supply, with the largest reserves situated in the US, Russia, China, Australia, and India. Similarly, proven natural gas reserves totaled about 7,257 trillion cubic feet worldwide as of 2020, capable of sustaining between 90-120 years of supply. Consequently, to address the depletion of energy resources, there is a shift towards renewable and biomass-based energy sources, driving the demand for bio power.

  • Surging favorable regulations and initiatives by government and major market players expected to drive market forward in forecast period.

Governments are providing a range of incentives that reduce the costs of various components necessary for electricity generation from biomass, thereby stimulating the bio power market. Consequently, the biomass industry is presented with numerous opportunities due to favorable government regulations and policies associated with sustainable energy initiatives and the reduction of carbon footprints. The market for bio power derived from biomass is expanding due to increased government support through various subsidies and policies. For example, the Ministry of New & Renewable Energy of India has announced the National Bioenergy Programme for the period of 01.04.2021 to 31.03.2026, with an outlay of Rs.858 crore under Phase-I, of which Rs. 158 crores are allocated for the biomass program.

Moreover, new government regulations are being developed to promote sustainable power generation in response to growing concerns about climate change and increasing greenhouse gas emissions resulting from the combustion of fossil fuels such as coal and oil. The rapid growth of investments in renewable energy and biomass production capacity is expected to drive the bio power market during the forecast period. According to biomass electricity market data, a significant number of power production companies are investing in renewable energy sources, particularly in the US and European countries. Additionally, according to the European Commission, the biomass energy constitutes around 60% of the total renewable energy used in Europe. Furthermore, major economies including the US, the UK, and Germany are supporting the biomass power generation market by providing tax incentives and financial support. In these countries, regulatory frameworks and financing initiatives play a crucial role in encouraging utilities and power producers to transition to environmentally friendly biomass for bio power production. Investments in biomass power generation are also increasing in countries such as India, Indonesia, Australia, and Poland.

For instance, according to the International Energy Agency (IEA) in 2021, investments in renewable energy for new power generation capacity constitute for 70% of all energy investment globally, with the majority of the funds directed towards the power and end-use sectors rather than traditional fossil fuel production. Additionally, the National Biogas and Manure Management Programme (NBMMP) of the Ministry of New and Renewable Energy of India offers financial assistance for the construction of family-style biogas plants, primarily for rural and semi-urban households. The program, operated by the Khadi and Village Industries Commission (KVIC), Biogas Development and Training Centres (BDTCS), and state nodal departments/agencies, provides subsidies of up to Rs. 17,000 ($230) for the construction of biogas plants. Companies in the biomass electricity market are developing innovative techniques to produce electric power through new hybrid biogas plants by combining biogas with other renewable energy sources like solar energy, reducing the cost of operation and the time required to manage farm waste.

In line with this, the renewable energy firm Green Genius opened a new biogas power plant in Belarus in 2020, aiming to eliminate the odor from pig farms while producing green electricity and converting organic waste into odorless liquid fertilizer. Green Genius is developing renewable energy (solar and biogas) projects in six European markets: Lithuania, Poland, Ukraine, Belarus, Spain, and Italy.

Furthermore, the use of biomass reduces the costs associated with power generation, and government agencies are continuously working to increase its use globally in order to mitigate the environmental impact of global warming. As numerous countries seek alternatives to conventional energy sources, biomass energy is gaining prominence across all industrial sectors. This trend is contributing to diversifying the world's energy supply and reducing dependency on petroleum-related companies and sectors. Moreover, the use of energy from biomass reduces a nation's reliance on the export of crude oil, benefiting nations with limited or no reserves. Developed and emerging nations' governments are encouraging landowners and producers to generate biomass feedstock, as bioenergy and biofuel sourced from local feedstock are contributing to the rapid expansion of bio power production on a large scale. Therefore, during the anticipated period, all of these factors will contribute to the growth of the Bio Power Market.

Bio Power Market Insights

Bio Power by Technology Insights

The Bio Power Market segmentation, based on technology the market has been segmented as direct combustion, cofiring & gasification, anaerobic digestion, pyrolysis, and landfill gas. Among these, the direct combustion segment dominated the global market with the largest revenue share of 53.98% in 2022 and is projected to dominate the Bio Power Market revenue through the projected period.

Direct combustion involves burning the biomass in a boiler to heat water, then running the resulting steam through a turbine. It is the most common method for converting biomass to useful energy. All biomass can be burned directly for heating buildings and water, for providing industrial process heat, and for generating electricity in steam turbines. Biomass is burned in a boiler to produce high-pressure steam. This steam flows over a series of turbine blades, causing them to rotate. The rotation of the turbine drives a generator, producing electricity. Biomass can also serve as substitute for a portion of coal in an existing power plant furnace in a process called co-firing (combusting two different types of materials at the same time). Generally, direct combustion is carried out inside a furnace, steam turbine, or boiler at a temperature range of 800–1000°C. The cost of energy production from direct combustion is slightly higher as compared to pyrolysis and gasification due to the need of pretreatment of biomass, such as dehydrating, cutting, and crushing, before introducing into the combustion chamber.

Bio Power by End-User Insights

Based on plant type, the Bio Power Market is segmented as residential, commercial, and industrial. The industrial segment dominated the Bio Power Market with the largest market revenue share of 35.78% in 2022 and is also projected to dominate the Bio Power Market revenue through the projected period.

Combined heat and power, also known as cogeneration, is a highly efficient and environmentally beneficial plant type commonly integrated into district heating systems. CHP plants simultaneously The industrial sector employs bio power by integrating biomass-derived energy sources, such as biofuels or biogas, to meet energy needs. This sustainable approach reduces reliance on conventional fossil fuels, curbing environmental impact. Bio power in industries supports cleaner production processes, lowers carbon footprints, and contributes to a more eco-friendly and responsible energy paradigm.

Bio Power Regional Insights

Based on Region, the bio power market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Asia Pacific bio power market held the maximum market share of 43.10% in 2022 and is also expected to account for a significant revenue share during the forecast period.

The Bio power market in the Asia Pacific region has experienced significant growth, driven by increasing awareness of environmental sustainability and the rise in the demand for cleaner energy sources. Governments across the region are actively promoting bioenergy projects, fostering a favorable regulatory environment. Investments in biomass and biogas technologies have surged, supported by technological advancements and the rising need for energy security. The dynamic combination of favorable policies, technological innovation, and a growing commitment to green energy solutions positions the Asia Pacific Bio power market as a robust and expanding sector, contributing substantially to the region's sustainable energy transition.

Bio Power Key Market Players & Competitive Insights

The Bio Power Market is characterized by the presence of many regional and local players. The market is competitive, with all the players continually competing to gain a larger market share. To stay competitive, market players engage in various strategies, including new product launches, partnerships, mergers and acquisitions, and expansion into new markets. They invest in research and development to enhance product performance, improve efficiency, and meet evolving customer demands. Moreover, players focus on building strong distribution networks and establishing long-term relationships with customers to ensure a steady market presence.

The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services.

Drax Group:Drax Group is a leading renewable energy company that generates renewable energy. The company produces sustainable biomass and sells renewable electricity to commercial customers. It is the UK's primary source of renewable energy. The company operates its business in sustainable biomass, hydroelectric, and pumped hydro storage assets. The business portfolio of the company is flexible, low-carbon, and renewable UK power assets that provide the energy grid with dispatchable, renewable power and system support services. Drax Group has four generation facilities in England and Scotland. In addition, the company maintains a global bioenergy supply business with 13 manufacturing facilities in the United States and Canada, producing compressed wood pellets for its usage as well as customers in 38 locations across Europe and Asia.

BP PLC:BP PLC, an integrated oil and gas company, has a diverse range of operations that include exploration, production, transportation, refining, and marketing of oil, natural gas, and petroleum products. The company’s operations can be categorized into three segments: upstream, downstream, and Rosneft. The upstream segment focuses on exploration, development, and production of oil and natural gas. The downstream segment involves refining, manufacturing, marketing, and trading of crude oil, petroleum, petrochemical products, and related services. The Rosneft segment represents BP's equity investment in Rosneft, a Russian oil company. Moreover, BP PLC has also made efforts to expand its presence in renewable energy, including bio power. For instance, the company has announced a major expansion in renewable energy by combining its Brazilian biofuels and bio power businesses with Bunge, creating BP Bunge Bioenergia. This venture aims to be a world-scale, highly-efficient producer of sugarcane ethanol in Brazil, contributing to BP's biofuels business. Furthermore, the company has its operations worldwide including Europe, Asia Pacific, Americas, and Africa & Middle East.

Bio Power Industry Developments

July 2022:Drax and MOL Drybulk collaborated to create wind power technologies that will cut biomass shipping emissions by one-fifth. MOL's Wind Challenger hard sail technology will be used on new vessels, with the first ship scheduled as early as 2025. The program is part of Drax's plans to use bioenergy with carbon capture and storage (BECCS) to cut supply chain emissions and achieve carbon negative by 2030.   

July 2023:BP PLC is strengthening its investment in bioenergy by partnering with US biofuels developer WasteFuel. In a move to support the development of a global network of plants, BP has invested USD 10 million in WasteFuel. The objective of this collaboration is to convert municipal and agricultural waste into bio-methanol, a biofuel that has the potential to play a crucial role in decarbonizing challenging sectors such as shipping.

Key Companies in the Bio Power Market include.

  • Drax Group

  • BP PLC

  • Leo Group

  • Statkraft AS

  • Ørsted A/S

  • Afry AB

  • Thachang Green Energy Public Company Limited

  • Oulun Energia

  • Hyogo Pulp Co., Ltd.

  • Erex Group

  • Other Key Players

Bio Power Market Segmentation

Bio Power Technology Outlook

  • Direct Combustion

  • Cofiring & Gasification

  • Anaerobic Digestion

  • Pyrolysis

  • Landfill Gas

Bio Power End-User Outlook

  • Industrial

  • Commercial

  • Residential

Bio Power Market Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Russia

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • India

    • Japan

    • South Korea

    • Rest of Asia-Pacific

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Rest of Latin America

  • Middle East & Africa

    • GCC Countries

    • South Africa

    • Rest of Middle East & Africa

Analyst Review:

  • This report delves into the current trends, challenges, and advancements within the bio power sector, highlighting the increasing focus on sustainable energy sources. With a growing emphasis on reducing carbon footprints and transitioning towards cleaner energy alternatives, bio power emerges as a key player in the global energy mix.

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