Global Biomass Power Market (2025-2033)

Market Overview

The biomass power market is experiencing notable growth, propelled by the global shift towards renewable energy and the quest for carbon neutrality. Biomass energy, derived from organic materials like agricultural residues and wood pellets, offers a sustainable alternative to fossil fuels, contributing to reduced greenhouse gas emissions. For instance, the Ayebo Biomass Power Station in Ivory Coast utilizes palm oil waste to generate 46MW of electricity, showcasing the potential of biomass in transforming agricultural by-products into clean energy.

Technological advancements are enhancing the efficiency and feasibility of biomass power projects. In Canada, the UBC Biomass Research and Demonstration Facility integrates gasification and syngas conditioning systems with a Jenbacher engine, producing 2MW of electricity and 9,600 pounds of steam per hour. This facility exemplifies how innovative technologies can optimize biomass energy production, making it a viable option for institutional energy needs.

However, the expansion of the biomass power sector is accompanied by sustainability challenges. In Indonesia, escalating global demand for biomass has led to deforestation, as forests are cleared to produce wood pellets for export to countries like South Korea and Japan. This situation underscores the necessity for stringent regulations and responsible sourcing practices to ensure that biomass energy development does not compromise environmental integrity.

Market Dynamics and Growth Prospects

The global Biomass power market size reached US$81.89 Billion in 2023. MEA (Market Estimation Analysis) expects the market to reach US$152.91 Billion by 2033, exhibiting a growth rate (CAGR) of 6.62% during 2025-2033. In terms of volume, the market size reached 1079.06 Million MWh in 2023 and is expected to generate 2288.85 Million MWh by 2033, exhibiting a growth rate (CAGR) of 8.01% during 2025-2033.

The biomass power market is witnessing significant growth, driven by rising energy demand, government incentives for renewable energy, and increasing adoption of waste-to-energy solutions. Technological advancements in biomass gasification and combustion are enhancing efficiency and scalability. Additionally, stringent regulations on carbon emissions and the shift towards sustainable energy sources are fueling market expansion. The sector's growth prospects remain strong, with investments in advanced biofuels and decentralized biomass power plants shaping the future landscape.

Key Market Trends Shaping the Industry

Increased Focus on Sustainability and Carbon Neutrality

• Growing Demand for Renewable Energy: As the world accelerates its fight against climate change, the demand for renewable energy sources like biomass power is surging. Biomass is considered carbon-neutral since the CO2 emissions released during combustion are balanced by the carbon absorption of plants during their lifecycle.

• Sustainability Certification: Ensuring sustainable biomass sourcing is becoming crucial, with programs like the Sustainable Biomass Program (SBP) and Forest Stewardship Council (FSC) gaining prominence. These certifications help mitigate risks like deforestation and biodiversity loss, making biomass energy more environmentally responsible.

• Waste-to-Energy Projects: The utilization of agricultural residues, municipal solid waste (MSW), and industrial waste for biomass power generation is expanding. These initiatives support waste management, minimize landfill dependency, and significantly lower the carbon footprint associated with traditional waste disposal methods.

Technological Advancements and Efficiency Improvements

• Advanced Conversion Technologies: Cutting-edge biomass conversion technologies such as gasification, pyrolysis, and anaerobic digestion are revolutionizing the sector. These advancements enhance efficiency, making biogas, biofuels, and syngas viable substitutes for fossil fuels in electricity generation and industrial applications.

• Co-firing with Coal: Integrating biomass co-firing in coal power plants is an effective strategy to lower greenhouse gas emissions without requiring significant infrastructure changes. This approach ensures a cost-effective transition from coal to cleaner renewable energy.

• Digitalization and Smart Grid Integration: The adoption of digital technologies and smart grid solutions is optimizing biomass power plant operations. Advanced monitoring systems, predictive maintenance, and real-time data analytics are improving efficiency, reducing operational costs, and minimizing downtime.

Policy Support and Regulatory Frameworks

• Government Incentives and Subsidies: Governments worldwide are driving biomass power adoption through incentives, subsidies, and tax credits to meet renewable energy targets. These financial aids make biomass energy a competitive alternative to fossil fuel-based power.

• Renewable Energy Mandates: Stringent renewable portfolio standards (RPS) are being enforced globally, mandating utilities to generate a specific percentage of electricity from renewable sources, including biomass. This regulatory push is fueling investments in biomass power projects.

• Carbon Pricing and Emissions Trading: The implementation of carbon pricing mechanisms and emissions trading systems (ETS) is enhancing the competitiveness of biomass power. By monetizing carbon emissions, these policies encourage the transition to low-carbon energy solutions, further supporting global decarbonization goals.

Segmentation and Market Insights

MEA provides an estimation of each segment of the global Biomass power market, along with forecasts at the global, regional, and country levels from 2025-2033. Our excel has categorized the market based on feedstock, technology, and application.

• By Feedstock

  Biomass feedstocks encompass a variety of renewable organic materials used either directly as fuel or converted into other forms of energy. These feedstocks play a crucial role in bioenergy production, offering alternatives to fossil fuels and supporting a range of applications. The main types of feedstocks in biomass electricity are solid biomass, biogas, municipal solid waste, and liquid biomass.

  Solid biomass includes wood chips, pellets, and sawdust, commonly used for combustion and gasification to generate electricity and heat. Derived from forests, farms, and urban waste, it remains a major renewable energy source due to its low cost and availability.

  Liquid biomass includes ethanol and bio-oils, widely used for biodiesel production and hydrogen reforming. These biomass-derived fuels offer efficient transportability and enable distributed hydrogen production at fueling stations. Large-scale biofuel refineries near biomass sources reduce transportation costs and improve economies of scale in sustainable fuel production.

  Biogas is produced via anaerobic digestion of organic waste, generating methane-rich fuel for electricity, heating, and transportation. Key feedstocks include animal manure, crop residues, food waste, sewage sludge, and wastewater. China leads in biogas plant installations, with 100,000+ facilities, while Germany produces 87 TWh/year, the highest among IEA Bioenergy Task 37 members.

  Municipal Solid Waste (MSW) bioenergy transforms household and commercial waste—including paper, plastics, textiles, and food scraps—into renewable energy. MSW-to-energy reduces landfill waste and recovers energy-rich materials for biogas, biofuels, and power generation. Sorted MSW feedstocks provide organic residues, enabling sustainable waste-to-energy solutions worldwide.

• By Technology

  Biomass power technologies convert renewable biomass fuels into heat and electricity through burning, bacterial decay, or conversion to gas or liquid fuel. The primary technologies in the biomass power market are combustion, anaerobic digestion, gasification, co-firing & CHP (Combined Heat and Power), and Landfill Gas (LFG).

  Biomass combustion burns solid fuels in boilers to generate high-pressure steam, driving steam turbines for electricity production. It remains the dominant biomass energy technology, accounting for 80-90% of global biomass power generation due to its efficiency and scalability.

  Anaerobic digestion (AD) breaks down organic waste in an oxygen-free environment, producing biogas rich in methane and CO2. Feedstocks include food waste, manure, and sewage sludge, with 100 tons of food waste generating energy for up to 1,400 homes annually.

  Gasification converts solid biomass into syngas (carbon monoxide & hydrogen) through high-temperature processing with limited oxygen. Syngas powers boilers or gas turbines, offering faster energy conversion than anaerobic digestion. A related process, pyrolysis, produces bio-oil, a renewable diesel alternative.

  Co-firing blends biomass with coal in power plants, reducing carbon emissions while using existing infrastructure. Combined Heat and Power (CHP) or cogeneration boosts efficiency, producing electricity and heat simultaneously. Biomass-fired CHP plants generate renewable heat, power, and bioCO2, with carbon capture integration.

  Landfill gas (LFG), composed of 50% methane, is a byproduct of waste decomposition in landfills. Captured LFG reduces methane emissions and serves as a renewable energy source for power generation.

• By Application

  Biomass energy is used in various applications, including electricity generation, heating, and as a fuel for transportation. It is converted into energy through direct combustion, thermochemical conversion, chemical conversion, and biological conversion. Biomass can be burned directly for heat or converted to liquid and gaseous fuels through multiple processes.

  The industrial sector is the largest consumer of biomass energy in the U.S., using 2,225 TBtu in 2023 (45% of total biomass energy consumption). Wood products and paper industries rely on biomass-fired CHP plants for process heat and on-site power generation.

  The commercial sector uses biomass heating systems and renewable natural gas (RNG) from waste landfills and sewage treatment facilities. In 2023, commercial biomass consumption reached 185 TBtu (4% of total use). Pellet and wood chip boilers power large-scale commercial heating systems.

  The residential sector primarily uses wood biomass for space heating and cooking, consuming 450 TBtu in 2023 (9% of total biomass energy use). Fireplaces, pellet stoves, and wood-burning appliances remain popular heating solutions in U.S. homes.

Get Accurate Forecasts and Data

Our meticulously designed Excel sheet provides detailed forecasts and estimations for the biomass power market. With segmentation across feedstock, technology, application, and region, our data enables businesses to identify opportunities, analyze trends, and strategize effectively in this dynamic market.

Regional Market Highlights

The North American biomass power market is led by the U.S., driven by rising environmental concerns and supportive renewable energy policies. Several states, including California, Florida, and New York, have set renewable energy targets, boosting biomass adoption as part of their clean energy transition.

Europe’s biomass power sector is expanding as the EU phases out coal and accelerates its carbon neutrality goals under the Paris Agreement. Germany remains a leader in biomass power installations, while the EU's push for sustainable energy continues to increase demand for solid biomass and bioenergy solutions.

The Asia-Pacific biomass market is experiencing rapid growth, fueled by energy diversification efforts in China, Japan, Thailand, and India. Countries like China are reducing coal dependence, shifting towards renewable energy sources, and expanding bioenergy capacity to curb carbon emissions and promote sustainability.

Latin America holds significant untapped potential in biomass energy, supported by favorable climates, vast land availability, and strong agricultural output. Nations like Brazil, Chile, and Mexico lead in renewable energy adoption, integrating biomass power into their broader clean energy mix.

The Middle East & Africa’s biomass market is expanding due to diverse biomass feedstocks, including agricultural residues and organic waste. Saudi Arabia is at the forefront, leveraging bioenergy for energy diversification and reducing carbon emissions, aligning with its sustainability initiatives.

SEGMENTS COVERED

By Feedstock

• Solid Biomass

• Liquid Biomass

• Biogas

• Municipal Solid Waste

By Technology

• Combustion

• Anaerobic Digestion

• Gasification

• Co-firing & CHP

• Landfill Gas (LFG)

By Application

• Industrial

• Commercial

• Residential

By Region

• North America

  • The United States

  • Canada

• Europe

  • Germany

  • The United Kingdom

  • France

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Poland

  • Belgium

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Thailand

  • Singapore

  • Rest of Asia-Pacific

• Latin America

  • Brazil

  • Mexico

  • Argentina

  • Rest of Latin America

• Middle East and Africa

  • Saudi Arabia

  • Turkey

  • United Arab Emirates (UAE)

  • South Africa

  • Rest of Middle East and Africa