Biomass pellets companies contribute to the renewable energy sector by manufacturing pellets from organic materials such as wood, agricultural residues, and other biomass sources. These pellets serve as a sustainable and efficient fuel source for heating and power generation. These companies play a vital role in the transition towards cleaner and greener energy solutions, providing a renewable alternative to traditional fossil fuels.
The biomass pellets market is heating up, driven by rising concerns over climate change and the depletion of fossil fuels. These renewable fuel alternatives are made from compressed organic materials like wood residues, agricultural waste, and energy crops, and offer attractive options for residential and industrial heating applications. As the market expands, the competitive landscape is becoming increasingly dynamic, with established players and new entrants vying for market share.
Strategies for Success in the Biomass Pellets Market:
Factors Influencing Market Share:
List of the Key Companies in the Biomass Pellets market include
Recent Developments:
July 2023: Drax Group, a major European biomass energy company, acquires a pellet producer in Canada, strengthening its North American presence.
August 2023: The US Department of Energy awards grants to support research and development of advanced biomass pellet technologies.
September 2023: The UK government announces plans to phase out coal-fired power plants and replace them with cleaner alternatives, including biomass pellets.
October 2023: A new study highlights the potential of sustainable biomass pellet production from agricultural residues, opening up new avenues for feedstock sourcing.
November 2023: Major pellet producers in Europe form a consortium to collaborate on research and development projects aimed at improving pellet quality and reducing production costs.
December 2023: The European Commission approves a new set of sustainability criteria for biomass fuels, including stricter limits on greenhouse gas emissions.
Biomass Pellets Market Size was valued at USD 6.5 Billion in 2022. The Biomass Pellets market industry is projected to grow from USD 6.9 Billion in 2023 to USD 10.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.50% during the forecast period (2024 - 2032). Due to their high burning efficiency, low moisture content, and decreased density, wood pellets are in great demand across a variety of end uses sectors, contributing to the growing need for renewable energy, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Given the advantages provided by biomass, biomass pellets are a significant source of energy. In addition to being renewable and carbon neutral, biomass pellets are also easily accessible. These factors have led to numerous programs and subsidies being granted by most governments. These programs and financial aid encourage the use of energy made from biomass, such as biomass pellets. In North America, for instance, the Biomass Thermal Utilization Act (BTU Act) of 2019 aims to acknowledge and promote the economic and environmental advantages of fuels and energy sources derived from biomass. This law offers home and business applications using clean wood heating systems a 15% to 30% rebate.
In India, the Biomass Power and Cogeneration initiative was put into place by the Ministry of New and Renewable Energy. This project's main goal is to encourage the usage of biomass pellets. It also encourages the production of energy using conventional fuels like coal. In India, among other places, this effort is used for cogeneration in sugar refineries and thermal power plants. The establishment of biomass power and bagasse cogeneration projects is facilitated by loans and advantageous subsidies from the Indian Renewable Energy Development Agency (IREDA). It is anticipated that these policies will promote the use of biomass pellets.
Demand for renewable energy sources has increased significantly, which is one of the main drivers fueling market expansion. Because of this, many businesses in the electricity sector are moving toward using these pellets. Regulatory agencies and international organizations from all over the world are concentrating on the adoption of rigorous environmental restrictions in response to growing worries about warming. As a result, biomass pellets are emerging as one of the crucial effective options that might aid in lessening the dependence on fossil fuels. In addition, these pellets are considered a viable option for reducing emissions of greenhouse gases. Thus, driving the Biomass Pellets market revenue.
The Biomass Pellets market segmentation, based on Source, includes industrial waste & co-product, agriculture residue, food waste, energy crops, virgin lumber, and others. During the anticipated period, the agricultural residue segment is anticipated to continue to rule the market as it did in 2022. Agriculture has a large GDP contribution in nations like Brazil, India, and others. In these nations, crop residue is abundant and widely available. The manufacturing of biomass pellets uses this surplus. Pellets made from agricultural waste, or biomass, are becoming more popular.
The Biomass Pellets market segmentation, based on Type, includes wood pellets, agri pellets, torrefied pellets, and others. In 2022, the wood pellets category led the world market for biomass pellets. One of the main causes impacting the unavoidable increase in the growth rate is the growing demand for wood pellets in the residential and commercial heating sectors, which is compelling producers to create them in large quantities.
The Biomass Pellets market segmentation, based on application, includes power generation, industrial heating, residential heating, and others. The biomass pellets market was dominated by the power generation sector in 2022. As demand increases as a result of factors like urbanization, industrialisation, and population development, governments around the world are striving to switch to biomass power generation. As rural electrification makes it possible for decentralized energy generation, which is predicted to drive the market during the forecasted period, demand for biomass gasifiers is rising.
Figure 1: Biomass Pellets Market, by Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe Biomass Pellets market dominated this market in 2022 (45.80%). For the purpose of generating electricity, Europe is the top consuming region for wood pellets. Due to government incentives for using renewable energy sources, it is predicted that demand for biomass pellets would rise throughout the projection period. Further, the German Biomass Pellets market held the largest market share, and the U.K Biomass Pellets market was the fastest growing market in the European region
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: BIOMASS PELLETS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America Biomass Pellets Market is expected to register significant growth from 2023 to 2032. Due to the increasing number of power plants in the area, it is anticipated that the need for biomass pellets used to fuel power plants for the production of electricity will increase significantly. Further, the U.S. Biomass Pellets market held the largest market share, and the Canada Biomass Pellets market was the fastest growing market in the North America region.
The Asia Pacific Biomass Pellets market, accounted for the healthy market share in 2022. In the east and in the province of Guangdong, China has outlawed the use of coal-fired boilers. Additionally, market expansion is predicted to be fueled by the low cost of pellets in the aforementioned regions. Moreover, China’s Biomass Pellets market held the largest market share, and the Indian Biomass Pellets market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Biomass Pellets market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Biomass Pellets industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Biomass Pellets industry to benefit clients and increase the market sector. In recent years, the Biomass Pellets industry has offered some of the most significant advantages to medicine. Major players in the Biomass Pellets market, including Drax Group Plc, Enviva, German Pellets GmbH, AS Graanul Invest, Pinnacle Renewable Energy Inc, Lignetics, Zilkha Biomass Energy, Fram Fuels, Abellon CleanEnergy Limited, Ecostan, JP Green Fuels, The Westervelt Company, Inc, Forest Energy Corporation, and New England Wood Pellet, are attempting to increase market demand by investing in research and development operations.
Previously known as Enviva Partners LP, Enviva Inc (Enviva) is a provider of utility-grade wood pellets. The business collects wood fiber from natural resources and transforms it into a transportable form. Wood pellets and wood chips, which are processed forms of woody biomass fuels, make up its products. The corporation runs large-scale manufacturing facilities in the US Mid-Atlantic and Gulf Coast regions. In order to ship and sell wood pellets to power plants in the UK and Europe, Enviva also has access to rivers and railroads. Additionally, it offers terminaling services to owners of other bulk commodities as well as to producers of wood pellets outside of its own operation. The US city of Bethesda, Maryland, is home to Enviva's headquarters. Enviva, Inc. and J-Power, a Tokyo-based utility, agreed into a long-term partnership in November 2021 for the large-scale supply of sustainable wood biomass from Enviva's production facilities in the Southeast of the United States to J-Power's coal-fired power plants in Japan.
The company A.P. Moller - Maersk AS (APMM) offers logistics and transportation services. Through its subsidiaries and affiliates, it runs ports and shipping containers. The business provides intermodal transportation and transports dry goods, refrigerated freight, special cargo, as well as sells secondhand containers. Maersk Line, Damco, APM Terminals, Svitzer, Twill, Sealand, Hamburg Sud, Alianca, Maersk Container Industry, and Maersk Training are some of APMM's principal brands. Additionally, the business produces dry and chilled containers. APMM provides services to the manufacturing, shipbuilding, retail, and logistics sectors. In addition to Asia-Pacific, the corporation is present in North America, the Middle East, Europe, and Africa. Copenhagen, Denmark serves as the home office for APMM. The largest geothermal heating plant in the EU will be developed and run by A.P. Moller Holding's Innargi geothermal heating company near Aarhus, Denmark. The arrangement is for 30 years.
February 2022: The SAMARTH program was started by the Indian government. This program has been introduced to encourage the use of biomass in thermal coal power plants. The effort aims to cut down on stubble burning and air pollution.
April 2022: Twin Track wood pellet technology was introduced by CPM. The goal of the new technology is to increase the effectiveness of wood pellet mills.
Biomass Pellets Market Highlights:
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