Solid Biomass Feedstock Market

[217 Pages Report] The global solid biomass feedstock market in terms of revenue was estimated to be worth $26.6 billion in 2024 and is poised to reach $36.2 billion by 2029, growing at a CAGR of 6.3% from 2024 to 2029. Stringent environmental regulations to reduce carbon emissions and increasing demand for biofuels across various countries are few of the factors accelerating the growth of solid biomass feedstock market.

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Solid Biomass Feedstock Market Dynamics

Driver: Growing demand for biofuels

The demand for low-emission fuels, including biofuels, is increasing due to stringent carbon emission regulations in various regions. According to the IEA, biofuel demand is expected to rise by 30% from 2023 to 2028, with total demand projected to reach 200 billion liters by 2028. This increase is primarily driven by emerging economies like Brazil, Indonesia, and India.

Furthermore, the increasing awareness of the impact of carbon emissions on climate change is driving the use of biofuels. According to the IEA, demand for renewable diesel is expected to triple between 2020 and 2026. Countries such as India, the US, and others, are promoting the use of biofuels. For example, India aims to achieve a 20% ethanol blending rate by 2025, contributing to the global growth in ethanol demand. Similarly, Indonesia plans to mandate a 40% blending rate for biodiesel in 2022, fostering the expansion of biodiesel. In the US, the Biomass Crop Assistance Program provides financial support to landowners and operators engaged in the production and delivery of biomass feedstock crops intended for advanced biofuel production facilities.

As the demand for biofuels grows, the demand for solid biomass feedstock will also increase in the future.

Restraint: Complexities associated with pre treatment of solid biomass

Solid biomass feedstock needs to undergo pretreatment processes like drying and densification before it can be used. These processes are necessary to improve the characteristics of the biomass, but they also have some drawbacks such as high processing costs, process complexity, and low processing efficiency.

The drying process is used to reduce the moisture content from feedstock, which enhances combustion efficiency and prevents fungal growth. Drying can also prevent decomposition and the loss of material. This is especially important for wood chips because of their size and moisture content. However, the drying process has challenges like being an energy-intensive process, particularly in conventional methods like mechanical dryers. The energy-intensive nature of the drying process can also lead to increased carbon emissions.

Various densifying processes like torrefaction, pelletization, briquetting, and carbonization are used to remove moisture from the biomass, resulting in a decrease in mass and an accumulation of energy per unit of mass. However, high temperatures and pressures applied in the densification process, especially in pelletization, can cause the degradation of certain biomass materials. Such complexities tend to restrain market growth for solid biomass feedstock.

Opportunities: Growing emphasis on Waste management

The management of waste has become increasingly difficult due to the rapid growth in population, urbanization, and industrialization. According to the United Nations Environmental Programme (UNEP), 11.2 billion tons of solid waste are collected worldwide every year. Waste is a growing problem in both developed and developing countries, and traditional methods such as open dumps, landfilling, and stubble burning are often used to manage agricultural and municipal waste. However, these practices contribute to environmental pollution and pose a serious threat to human health.

Instead of poorly managing waste, it could be used to generate renewable energy and reduce the environmental impact. This can be achieved by aligning waste management practices with the use of solid biomass feedstock. This approach not only tackles waste-related challenges but also plays a significant role in shifting toward cleaner and more sustainable sources of energy.

Challenges: Challenges associated with logistics and supply chain management

Biomass feedstock is an important part of achieving sustainability. However, there are significant challenges related to its logistics and supply chain management. These challenges include the fact that each species has distinct characteristics and technology performance can be uncertain. In addition, transportation and logistics can be complex due to the low energy density and irregular shape of biomass feedstock, resulting in increased costs. Furthermore, biomass feedstock is prone to deterioration when stored, making it difficult to handle and store without proper pre-treatment. The quality of biomass feedstock may also vary depending on factors such as the type of feedstock, harvesting method, and storage conditions. Maintaining consistent quality across the entire supply chain is a challenge that can affect the efficiency of biomass conversion processes.

Solid Biomass Feedstock Market Ecosystem

In this market, prominent companies stand out as well-established and financially stable providers of solid biomass feedstock With years of experience, these companies boast a diverse product portfolio, cutting-edge technologies, and robust global sales and marketing networks. Their proven track record in the industry positions them as reliable and trusted partners for customers seeking solid biomass feedstock. These companies have demonstrated their ability to adapt to market dynamics and consistently deliver high-quality products and services, making them leaders in meeting the demands of the oil and gas sector. Prominent companies in this market include Stora Enso (Finland), Drax Group plc (UK), Segezha Group (UK), Enviva Inc. (US), Lignetics, Inc. (US),

The agriculture waste segment, by source, is expected to be the second largest market during the forecast period.

This report segments the market based on source into different types: agriculture waste, forest waste, animal waste, and municipal waste. The agriculture waste segment is expected to be hold the second largest share during the forecast period. Agriculture biomass feedstock has the potential to meet the growing demand for bioenergy due to its availability in abundance and cheap prices. Crop land is one third of the agricultural land which can generate a significant amount of biomass feedstock.

Also, the agricultural sector possesses established systems for cultivating, harvesting, and transporting crops which drives the growth of the solid biomass feedstock market.

By application, biomethane is expected to be the second largest during the forecast period.

This report segments the solid biomass feedstock market based on application into four segments: electricity, heat, biofuels, and biomethane. The biomethane segment is expected to be the second largest during the forecast period. Biomethane is a renewable fuel option, offering a cleaner alternative to traditional fossil fuels. Additionally, its compatibility with current natural gas infrastructure enables seamless integration into various sectors like transportation, heating, and power generation, without necessitating significant modifications.

“Asia Pacific: The largest region in the solid biomass feedstock market.”

Asia Pacific is expected to be the largest region in the solid biomass feedstock market between 2024–2029. Asia Pacific has been leading the market. Urbanization and population growth have resulted in the need for higher energy demand, which has propelled the solid biomass feedstock across the region. Asia Pacific countries like India, Vietnam, and Indonesia rely on agriculture as a significant component of their economies. India ranks as one of the world's largest energy consumers, heavily reliant on fossil fuels, with a significant portion sourced through imports. The shift towards clean energy drives the growth of the solid biomass feedstock market in the region.  The regional market is experiencing growth due to the presence of solid biomass feedstock  providers like Supreme Industries (India), Shree Industries (India) and JP Green Fuels (India) also contribute to the market's development by creating opportunities for bioenergy  projects.

Key Market Players

The market is dominated by a few major players that have a wide regional presence. The major players in the solid biomass feedstock market include Drax Group plc (Europe), Enviva Inc. (US), Arbaflame (Norway), REDAL (Lithuania), and Ecostrat Inc. (Canada). Between 2018 and 2023, Strategies such as new product launches, contracts, agreements, acquisitions, and expansions are followed by these companies to capture a larger share of the market.

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Scope of the Report

This research report categorizes the market based on type, source, application, end user, and region.

On the basis of source, the solid biomass feedstock market has been segmented as follows:

• Agriculture Waste
• Forest Waste
• Animal Waste
• Municipal Waste

On the basis of type, the market has been segmented as follows:

• Chips
• Pellets
• Briquettes
• Others

On the basis of application, the solid biomass feedstock market has been segmented as follows:

• Electricity
• Heat
• Biofuels
• Biomethane

On the basis of end user, the market has been segmented as follows:

• Residential & Commercial
• Industrial
• Utilities

On the basis of region, the solid biomass feedstock market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In January 2024, Drax Group plc and Molpus Woodlands Group unveiled a fresh agreement, granting Drax Group plc an option to acquire sustainably procured woody biomass for powering its bioenergy operations with carbon capture and storage (BECCS) in the US Southeast. Drax will be able to annually access a maximum of USD 1 million worth green tons of sustainably procured fiber through a prolonged fiber supply arrangement. This supply will serve as the foundation for Drax's BECCS initiatives in the area, aimed at producing renewable baseload power to bolster US energy autonomy while effectively eliminating carbon dioxide from the atmosphere.
• In March 2023, The terms of this agreement are anticipated to encompass assurances that electricity-only plants currently receiving subsidies will maintain their support, ensuring Enviva's existing off-take contracts remain unaffected; sustained financial backing for electricity-only facilities employing Bioenergy Energy Carbon Capture and Storage (BECCS), crucial for achieving Net Zero and a primary concern for numerous European power providers; and continued financial support for various other applications of woody biomass, bolstering Enviva's growth prospects in combined heat and power, challenging sectors, and biofuels..

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