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| Biomass Solid FuelMarket |
Biomass solid fuel refers to renewable solid fuels that are derived from organic matter or biomass, including wood waste, agricultural residues, wood pellets, wood chips, and wood logs. Biomass solid fuels are widely used as an alternative to fossil fuels like coal, oil, and natural gas in power generation and heating applications. Some key advantages of biomass solid fuels are that they are renewable, carbon neutral, and help reduce emissions of greenhouse gases. The rising environmental concerns and stringent regulations regarding carbon emissions are driving the demand for cleaner and greener sources of energy. As a result, biomass solid fuels are gaining prominence as they can directly substitute coal in coal-fired power plants and industrial boilers.
The Global Biomass Solid Fuel Market is estimated to be valued at US$ 3.14 Bn in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Biomass Solid Fuel market are Sanofi, Pfizer,
GlaxoSmithKline, Merck, AstraZeneca, Johnson & Johnson, F. Hoffmann-La
Roche, Novartis, Cipla, Gilead Sciences.
These
players are focusing on expanding their production facilities and offering
innovative biomass solid fuels to meet the growing demand. The demand for Biomass
Solid Fuel Market Size is increasing owing to the rising deployment of
biomass power plants for grid-connected electricity and industrial process heat
generation. Countries across the world are investing heavily in biomass power
projects as it helps reduce dependence on fossil fuel imports.Technological
advancements in biomass pelletization and torrefaction processes have made
biomass fuels denser and more energy-efficient to transport and use. New
pretreatment methods are allowing the use of diverse biomass feedstocks and
decreasing transportation costs.
Market Trends
Pelletized biomass fuel is gaining traction as it has a higher energy density
and is easier to transport and handle compared to loose biomass. The global
pellet fuel market is expected to witness robust growth over the next decade.
Torrefied biomass is emerging as a viable alternative to coal owing to its
hydrophobic properties, grindability, and energy density close to low-rank
coals. Torrefaction improves biomass fuel properties without using any
chemicals.
Market Opportunities
Co-firing of biomass with coal in existing power plants provides a
cost-effective way to increase the use of renewable fuels. Most countries offer
incentives for co-firing to reduce greenhouse gas emissions.
Use of agricultural residues and energy crops as biomass fuel feedstocks can
help generate additional revenue for farmers. It also provides an effective way
of waste management of agricultural waste.
Impact of COVID-19 on Biomass Solid Fuel
Market Growth
The COVID-19 pandemic has significantly impacted the growth of the biomass
solid fuel market. During the initial outbreak in early 2020, lockdowns imposed
across various countries lead to a decline in industrial activities. This
adversely affected the demand for biomass solid fuel from end-use industries
such as power generation, thermal power plants, and biomass power plants.
Government restrictions on logistics and transportation also disrupted the
supply chain causing delays in biomass fuel delivery.
As the pandemic continued through 2021, supply chain disruptions and labor
shortages persisted impacting market growth. However, with increasing
vaccination rates globally, industrial activities have gradually recovered from
late 2021. This revived the demand from end-use sectors boosting the biomass
solid fuel market. Various initiatives by governments across nations to promote
renewable energy and reduce reliance on fossil fuels have also supported market
expansion during the pandemic.
The market is expected to grow steadily as industries resume normal operations.
However, potential future waves of COVID-19 may lead to volatile growth
patterns in the short-term. Market players need to focus on diversifying their
supplier networks and inventory management to mitigate supply chain risks.
Adopting advanced technologies can also help improve production efficiencies
and gain momentum in the post-pandemic environment.
In terms of value, the biomass solid fuel market is highly concentrated in
regions with large agricultural and forest areas including North America,
Europe, and Asia Pacific. Within North America, the United States holds the
largest share owing to abundant biomass reserves and supportive renewable
energy policies.
Major European countries dominating the regional market are Germany, Italy,
France, and the UK. Germany alone accounts for over 20% of the European market
value due to extensive use of biomass fuels for heating and combined heat and
power applications.
The Asia Pacific region has emerged as the fastest growing market for biomass
solid fuels in recent years. Countries such as China, India, and Japan have
witnessed rapid expansion driven by rapid industrialization, power sector
growth, and biomass energy promotion schemes.
Fastest Growing Regional Market for Biomass
Solid Fuel
The Asia Pacific region is projected to be the fastest growing regional market
for biomass solid fuels during the forecast period from 2024 to 2031. This can
be attributed to robust economic development, population growth, and government
incentives for renewable sources.
Countries like China, India, and Japan are deploying aggressive policies to
incorporate renewable power into their energy mix. This is driving substantial
investments in biomass-based electricity and heating across the industrial,
commercial, and residential sectors. Additionally, the large agriculture
industry in Asia Pacific supplies abundant agricultural residues leveraged as
biomass fuel.
Strong economic performance coupled with supportive renewable integration
targets provide long-term growth opportunities for biomass solid fuel
suppliers. If current growth trends continue, Asia Pacific has potential to
surpass Western markets and emerge as the dominant regional market.
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