Biomass Power Generation Market By Feedstock Type (Agricultural Residues, Woody Biomass, Municipal Solid Waste, Others); By Technology (Combustion, Gasification, Anaerobic Digestion, Pyrolysis & Others); By Application (Electricity Generation, Combined Heat & Power, Off-Grid/Rural Electrification); By End User (Utilities & IPPs, Industrial Sector, Commercial & Residential, Community/Government); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Biomass Power Generation Market will expand steadily at a CAGR of 6.4% , valued at around USD 64.5 billion in 2024 , and projected to reach USD 93.8 billion by 2030 , confirms Strategic Market Research. Biomass-based generation, which converts organic materials like agricultural residues, forestry by-products, and organic waste into electricity and heat, is gaining strategic weight in global energy portfolios.

 

Why now? Governments are under mounting pressure to decarbonize power grids. Biomass is being positioned as a flexible, renewable option that not only reduces greenhouse gas emissions but also provides baseload capacity — something intermittent solar and wind can’t fully deliver on their own. Unlike wind and solar, biomass plants can operate 24/7 and often co-fire with coal, providing an easier transition path for utilities.

 

At the macro level, policy incentives, waste management pressures, and energy security strategies are converging. The EU’s Renewable Energy Directive, the U.S. Renewable Fuel Standard, and Japan’s subsidies for woody biomass are all reinforcing the market. At the same time, rapid growth in urban waste streams is creating abundant feedstock that would otherwise contribute to landfill methane emissions.

 

From a technology perspective, advancements in gasification, anaerobic digestion, and combined heat and power (CHP) units are widening biomass applications. Utilities are piloting torrefaction and pelletization technologies to improve fuel quality and logistics efficiency. In emerging economies, small-scale biomass plants are being deployed to electrify rural areas where grid extension isn’t economical.

 

The stakeholder map is diverse. Original equipment manufacturers (OEMs) are refining combustion and gasification systems. Utilities and independent power producers (IPPs) are increasingly integrating biomass into their renewable portfolios. Governments and multilateral agencies are shaping subsidies, feed-in tariffs, and carbon credit schemes. Investors are eyeing biomass as a hedge against fossil fuel volatility, especially in Asia-Pacific and Europe.

 

To be honest, biomass used to be the underdog of renewables, overshadowed by wind and solar. But its ability to deliver both base-load stability and circular-economy benefits is shifting perceptions. With carbon accounting now in boardrooms and landfill diversion on city agendas, biomass is no longer just an alternative fuel — it’s a cornerstone in the evolving clean energy mix.

 

Market Segmentation And Forecast Scope

The biomass power generation market breaks down across several dimensions — from feedstock type and conversion technology to end-use applications and regional adoption. Each segment highlights how players balance economics, emissions reduction, and supply chain resilience.

By Feedstock Type

• Agricultural Residues
  This includes crop straws, husks, shells, and animal manure. It’s the dominant feedstock in Asia, thanks to vast agricultural output. In 2024, it accounts for nearly 38% of global market share , though handling logistics and seasonality remain constraints.

• Woody Biomass
  Forestry residues, wood chips, and pellets are widely used in Europe and North America. Woody biomass is also the preferred option for co-firing with coal in utility-scale plants.

• Municipal Solid Waste (MSW)
  Urban waste streams are increasingly being harnessed for power generation. Rising landfill costs and methane regulations are pushing this segment forward.

• Others (Energy Crops, Industrial By-products)
  Dedicated energy crops like switchgrass and miscanthus, along with industrial by-products such as black liquor from paper mills, round out the category.

 

By Technology

• Combustion
  Still the most common method, where biomass is burned in boilers to produce steam and drive turbines. It dominates utility-scale installations due to its maturity.

• Gasification
  A growing segment, especially in Asia-Pacific. Gasification converts biomass into syngas, which can be used for both electricity and biofuels.

• Anaerobic Digestion
  Primarily used for wet organic waste like manure, sewage sludge, and food waste. Biogas plants are expanding in both developed and emerging economies.

• Pyrolysis and Others
  These newer technologies convert biomass into bio-oil or biochar, with applications in distributed generation and carbon sequestration.
   

Gasification is expected to be the fastest-growing technology between 2024 and 2030, driven by its dual role in clean power and biofuel production.

 

By Application

• Electricity Generation
  The largest application area, especially for grid-connected power plants.

• Combined Heat and Power (CHP)
  Gaining traction in industrial and district heating systems in Europe and parts of Asia.

• Off-Grid and Rural Electrification
  Critical in Africa and Southeast Asia, where biomass microgrids are enabling energy access.

 

By End User

• Utilities and IPPs
  Own the largest share, as biomass is increasingly used for meeting renewable portfolio standards.

• Industrial Sector
  Paper, cement, and chemical industries rely on biomass for both power and process heat.

• Commercial & Residential Users
  A smaller but rising segment, mainly through biogas plants and pellet-based heating systems.

 

By Region

• North America
  Strong in wood pellet exports and co-firing projects.

• Europe
  The most mature market, with biomass a cornerstone of the EU’s decarbonization roadmap.

• Asia-Pacific
  The fastest-growing region, led by China, India, and Japan.

• Latin America, Middle East & Africa (LAMEA)
  Emerging adoption, often linked to rural electrification and public-private partnerships.
   

Scope Note:
While feedstock and technology remain the core segmentation pillars, the commercial narrative is shifting. Utilities now assess biomass not just by cost per megawatt-hour, but by its contribution to carbon credits, waste diversion, and grid reliability . Vendors are responding with hybrid solutions that integrate biomass with solar or battery storage, expanding the definition of what a “biomass project” looks like.

 

Market Trends And Innovation Landscape

The biomass power generation sector is no longer just about burning agricultural waste or wood chips. It’s being reshaped by technology upgrades, policy incentives, and a push for cleaner and more efficient processes. Here’s what’s driving the innovation curve.

Hybridization with Solar and Storage

One of the strongest trends is the integration of biomass plants with solar PV and battery systems . Utilities in Asia and Europe are building hybrid facilities where solar handles daytime peaks, while biomass ensures night-time or cloudy-day stability. This hybrid model is attractive because it reduces reliance on fossil back-up and maximizes renewable uptime.

 

Gasification Scaling Up

Gasification has long been touted as a “next-gen” technology, but recent improvements in fluidized bed reactors and tar cracking systems are making it commercially viable. Japan and India, for example, are investing in medium-scale gasification plants tied to local agro - residues. These facilities are not just producing electricity, but also syngas for industrial fuel blending.

 

Waste-to-Energy Becomes Urban Policy

Municipal solid waste (MSW) is no longer seen only as a disposal problem. Cities from Singapore to Amsterdam are using waste-to-energy biomass plants to meet both waste diversion and climate goals. Policies that penalize landfill methane are accelerating this shift. Urban planners increasingly see biomass as part of a circular economy strategy — turning waste into value while cutting emissions.

 

Digitalization and AI in Biomass Plants

Operational optimization is becoming critical. AI-driven systems now monitor moisture content, feedstock variability, and combustion efficiency in real time . Predictive maintenance tools are also being deployed to cut downtime in older plants. Vendors are positioning digital overlays as a way to extend the life of assets and reduce operating costs.

 

Carbon-Negative Biomass

Carbon capture and storage (CCS) linked to biomass — often called BECCS (Bioenergy with Carbon Capture and Storage) — is gaining traction. Pilot projects in Europe and North America show that capturing CO2 from biomass combustion can deliver net-negative emissions. Investors are watching this closely, since it could play a pivotal role in meeting net-zero targets.

 

Pellets and Torrefaction

International trade in biomass pellets continues to expand, especially from North America to Europe and Asia. Torrefaction — a thermal treatment that increases energy density and makes pellets more hydrophobic — is being scaled up. This trend is easing logistics challenges and enabling co-firing at higher substitution rates in coal plants.

 

Distributed and Off-Grid Biomass

In Africa and parts of Southeast Asia, distributed biomass plants (100 kW–5 MW) are becoming central to rural electrification programs. These plants often use local agricultural residues and provide both electricity and heat for small industries. For communities, this is not just about power — it’s about enabling agro -processing, cold storage, and small-scale manufacturing.

 

Partnerships and R&D Collaborations

Technology vendors, utilities, and research institutes are forming partnerships to push biomass innovation. Examples include collaborations on algae-based biomass, lignin valorization , and integrated biorefineries. These efforts blur the line between power generation and biofuels, pointing toward a multi-output future for biomass facilities.

 

Bottom line: The innovation story here is about flexibility. Biomass is evolving from a single-use combustion feedstock into a multi-dimensional energy resource — capable of providing baseload power, integrating with other renewables, supporting carbon-negative systems, and enabling circular economy practices. That’s why governments and investors are beginning to treat biomass as more than “niche renewables” — it’s emerging as a cornerstone in diversified energy transition plans.

 

Regional Landscape And Adoption Outlook

Adoption of biomass power varies widely across regions, shaped by feedstock availability, policy frameworks, and energy priorities. While Europe sets the pace on regulatory maturity, Asia-Pacific is quickly becoming the largest market by volume. Let’s break it down.

North America

The U.S. and Canada remain strong in woody biomass and pellet production , with the U.S. also acting as a major exporter to Europe and Asia. Domestic deployment is more modest compared to Europe, but co-firing in coal plants and regional waste-to-energy projects are growing. Policy support comes through Renewable Portfolio Standards (RPS) at the state level, along with tax credits. Canada, with its forestry sector, is focusing on sustainable wood residue utilization. However, competition from cheap natural gas has historically slowed biomass adoption in North America, though decarbonization mandates are shifting the narrative.

 

Europe

Europe is the most mature biomass power market , supported by the EU’s Renewable Energy Directive and aggressive carbon-reduction goals. Countries like the UK, Germany, and the Netherlands lead in co-firing and dedicated biomass plants, with Scandinavian nations advancing combined heat and power (CHP) projects. The pellet import market is particularly strong, with large shipments coming from North America. What sets Europe apart is the integration of biomass into district heating systems — biomass is not just a power source, but a key tool in building low-carbon urban infrastructure .

 

Asia-Pacific

Asia-Pacific is the fastest-growing region , thanks to abundant agricultural residues and growing power demand. China and India dominate in terms of installed capacity, with both countries pushing rural biomass projects to reduce dependence on coal. Japan and South Korea are heavily reliant on imported wood pellets to diversify their energy mix after scaling back nuclear. Southeast Asia, meanwhile, is seeing small- and medium-scale biomass plants emerge, often fueled by palm oil waste, rice husks, or sugarcane bagasse. The region’s growth story is tied to resource abundance — but also to the need for decentralized power solutions in rural areas.

 

Latin America

Latin America’s biomass capacity is underpinned by sugarcane bagasse in Brazil, which powers large-scale cogeneration facilities linked to sugar and ethanol plants. Mexico is gradually increasing biomass investments, tied to agricultural waste utilization. While adoption is slower elsewhere, resource potential in Argentina and Colombia is significant. The main driver here is industry-linked biomass, where power plants are co-located with agro-industrial facilities.

 

Middle East & Africa (MEA)

MEA is at an earlier stage of adoption. In Africa, small biomass plants are being deployed for off-grid rural electrification , often using agricultural residues or animal waste. South Africa is piloting larger projects tied to its renewable energy auctions. In the Middle East, biomass adoption is limited due to feedstock scarcity, though waste-to-energy projects are emerging in the UAE and Saudi Arabia. For many African economies, biomass is less about large grid integration and more about providing community-level energy access .

 

Regional Dynamics at a Glance

• Europe leads in policy maturity and large-scale deployment.

• Asia-Pacific leads in growth rate and feedstock abundance.

• North America is an export powerhouse but still developing domestic capacity.

• Latin America builds around sugarcane and agro -industry waste.

• MEA remains nascent, with potential strongest in distributed power.

The takeaway: Biomass adoption is not one-size-fits-all. Europe treats it as a policy tool for decarbonization, Asia sees it as an energy security and rural electrification strategy, while Latin America and Africa link it directly to agricultural economies. For investors, this means opportunities look different in each region — from pellet exports to rural mini-grids to carbon-negative industrial CHP.

 

End-User Dynamics And Use Case

Biomass power isn’t a one-size market. Different end users adopt it for different reasons — some for compliance, others for cost savings, and some for sheer necessity where grid alternatives don’t exist. Understanding these dynamics helps explain why the same technology looks like a policy tool in Europe, an industrial fuel in Latin America, and a lifeline in Africa.

Utilities and Independent Power Producers (IPPs)

For large utilities, biomass is a compliance-driven investment. Many are under pressure to meet renewable portfolio standards or carbon reduction targets . Co-firing biomass with coal allows them to extend the life of existing power plants while lowering their emissions footprint. Utilities in the UK, Japan, and South Korea are among the heaviest users of imported pellets. The value proposition here is grid stability — biomass offers baseload renewable energy, which intermittent solar and wind can’t provide alone.

 

Industrial Sector

Industries with high process heat requirements — like pulp and paper, sugar, cement, and chemicals — are major adopters. Biomass offers a dual role: power for operations and steam/heat for manufacturing. In Brazil, sugarcane mills routinely use bagasse for both electricity and process heat, sometimes selling excess power back to the grid. This makes biomass less of an add-on and more of a core industrial energy strategy .

 

Commercial and Residential Users

This is a smaller slice, but growing. Pellet-based heating systems are increasingly popular in Europe for residential and small commercial buildings. In developing regions, small-scale biogas digesters are common in rural households, turning animal waste into cooking fuel and small amounts of electricity. While these don’t match the scale of utility projects, they represent a meaningful bottom-up demand pattern.

 

Government and Community Projects

In emerging markets, governments often fund or co-sponsor biomass mini-grids to extend power access. These projects are designed less for profitability and more for social and developmental impact . Communities benefit not only from electricity but also from waste management, reduced indoor air pollution, and new economic activity tied to reliable energy access.

 

Use Case Highlight

A district heating project in Denmark demonstrates how biomass can deliver both climate and economic impact. The municipality replaced an aging coal-fired CHP plant with a biomass- fueled combined heat and power system , running primarily on wood pellets and agricultural residues.

The results were striking:

• The plant achieved over 90% efficiency , since captured heat was redistributed for local households and businesses.

• Local farmers gained a new revenue stream by supplying crop residues as feedstock.

• The city reduced annual CO2 emissions by more than 200,000 tons compared to coal.

• Energy costs for residents stabilized, since biomass feedstock prices were less volatile than global coal and gas markets.

This case highlights a broader theme: biomass succeeds where its value extends beyond electricity. When it creates community benefits — cleaner air, stable energy prices, and circular-economy linkages — adoption accelerates.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• In 2023 , Ørsted inaugurated a large-scale biomass-fired CHP plant in Denmark, designed to use sustainable wood pellets and straw, reducing reliance on coal.

• Japan expanded subsidies in 2024 for biomass co-firing projects, with utilities like JERA importing record volumes of wood pellets from North America.

• India launched a government-backed initiative in late 2023 to co-fire agricultural stubble in thermal plants, aiming to reduce crop-burning air pollution and cut coal dependence.

• Germany piloted BECCS (Bioenergy with Carbon Capture and Storage) at a biomass plant in 2024, demonstrating potential for carbon-negative power generation.

• Brazil scaled its sugarcane bagasse cogeneration capacity in 2024, with several new integrated biorefineries combining ethanol, power, and bio-based chemicals.

 

Opportunities

• Carbon-Negative Pathways : Growing momentum around BECCS could position biomass as a central player in global net-zero strategies.

• Rural Electrification : Off-grid biomass mini-grids in Africa and Southeast Asia present significant white space for impact-driven investments.

• Waste Management Integration : Urban waste-to-energy biomass plants address landfill diversion, providing dual value streams for municipalities.

 

Restraints

• Feedstock Supply and Logistics : Transporting bulky residues over long distances remains costly and inefficient.

• High Capital Costs : Advanced biomass technologies (gasification, BECCS) require significant upfront investment, limiting adoption in cost-sensitive markets.

• Policy Uncertainty : Shifts in subsidy schemes, especially in Europe and Asia, can disrupt project pipelines and investor confidence.
   

To be honest, the market isn’t short on demand signals — it’s constrained by execution. The challenge is making biomass economically viable at scale while keeping feedstock sustainable and logistics streamlined. Regions that solve this equation fastest will become biomass leaders.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 64.5 Billion
Revenue Forecast in 2030	USD 93.8 Billion
Overall Growth Rate	CAGR of 6.4% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Feedstock Type, By Technology, By Application, By End User, By Region
By Feedstock Type	Agricultural Residues, Woody Biomass, Municipal Solid Waste, Others
By Technology	Combustion, Gasification, Anaerobic Digestion, Pyrolysis & Others
By Application	Electricity Generation, Combined Heat & Power (CHP), Off-Grid/Rural
By End User	Utilities & IPPs, Industrial Sector, Commercial & Residential, Community/ Government
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, UK, Germany, France, China, India, Japan, Brazil, South Africa, etc.
Market Drivers	- Push for carbon-negative power (BECCS) - Rising demand for rural electrification - Waste management integration with energy systems
Customization Option	Available upon request