Global Biomass Pellet Market Analysis 2024-2029 Focus on US, Canada, China, France

Global biomass pellet market

Dublin, June 28, 2024 (GLOBE NEWSWIRE) — The “Global Biomass Pellet Market: Analysis by Production, Consumption, Source (Wood Sawdust, Agricultural Residues, Industrial Waste, etc.), Application, Regional Size, Trends and Forecast to 2029” report has been added. ResearchAndMarkets.com Recruitment.

The global biomass pellets market was valued at USD 11.5 billion in 2023. The market value is expected to reach USD 16.07 billion by 2029. The market is expected to grow at a CAGR of around 6% during the forecast period, i.e., 2024-2029. Meanwhile, the production volume of the global biomass pellets market is expected to reach 66.2 million tonnes by 2029.

The market value of biomass pellets is expected to grow over the next few years due to several strengthening trends. Global efforts towards decarbonization are likely to intensify, as highlighted by international agreements such as the Paris Agreement, which could lead to more aggressive national policies promoting renewable energy. Furthermore, growing environmental awareness among consumers and businesses is expected to drive the demand for cleaner energy solutions, including biomass pellets.

In the competitive landscape of the biomass pellets market, players are adopting various strategies to expand their market share and gain competitive advantages. For example, in 2023, Enviva Inc. started breaking ground on the company’s upcoming Epes plant, which is being built in Sumter County, Alabama. In 2020, Enviva acquired over 300 acres of land in the Epes Industrial Park to build the company’s largest wood pellet production plant. In July 2022, the company began construction of the fully contracted Epes plant. The plant will have a nominal production capacity of 1.1 million tons per year and is expected to be operational by mid-2024, with production ramping up across the board by 2025.

Economic factors such as increasing cost competitiveness of biomass pellets due to economies of scale and continuous technological improvements will also play a key role. Additionally, the expansion of the biomass pellets market into emerging economies seeking sustainable and affordable energy solutions to support their growing energy demand is likely to contribute significantly to the market growth.

Europe accounted for the largest market share. In terms of value, Asia Pacific is expected to be the fastest growing region. The biomass pellets market is booming in the UK, owing to a strong policy framework aimed at reducing carbon emissions and promoting renewable energy. The UK government has implemented various initiatives such as the Renewable Heat Incentive (RHI) and Contract for Difference (CfD) schemes, which provide financial support to renewable energy projects, including biomass. These policies have encouraged the conversion of coal-fired power plants to biomass and the adoption of biomass heating systems in both the residential and commercial sectors. Moreover, the UK’s commitment to phase out coal by 2024 is accelerating the transition to biomass.

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China is heavily dependent on imported fossil fuels and faces energy security challenges. The growth of a domestic biomass pellet industry would reduce dependency on foreign sources and provide a more sustainable energy solution. As an example, the government has implemented policies to encourage the cultivation of energy crops specifically for biomass production, demonstrating its commitment to this alternative fuel source.

The United States boasts a thriving biomass pellet production industry, due to several key factors. First, the country has vast natural resources. The vast forests spread across the Southeast and Pacific Northwest provide a steady supply of wood residues such as sawdust and shavings, which are the perfect raw material for pellet production. Second, government support policies play a key role. Incentives such as tax credits for renewable energy production have encouraged companies to invest in biomass pellet facilities.

Market Segmentation Analysis:

By productionEconomic considerations play a key role in driving the production of biomass pellets. Rising costs and price fluctuations of fossil fuels have many industries and consumers seeking more stable and cost-effective energy alternatives. Biomass pellets have a relatively stable price structure due to their renewable and diverse sources of raw material.

Moreover, advances in pellet production technology have significantly reduced production costs. Innovations in biomass processing, pelletizing, and combustion technologies have improved the efficiency and quality of pellets, making them more competitive with traditional fuels. The scalability of pellet production has also improved, allowing producers to benefit from economies of scale, further reducing costs and making biomass pellets an economically viable energy source. The global biomass pellets market production is analyzed on the basis of the United States, Canada, Denmark, Vietnam, France, Poland, Sweden, Russia, Lithuania, Austria, and Rest of the World 11 countries.

By consumption: A confluence of environmental, economic and regulatory factors is driving an increase in biomass pellet consumption worldwide, primarily due to the growing recognition of the need to transition to sustainable energy sources to mitigate climate change. Biomass pellets are a renewable, low-carbon alternative to fossil fuels, making them an attractive option for reducing greenhouse gas emissions.

Governments across the globe are implementing policies and incentives to promote the use of renewable energy, which in turn is driving the adoption of biomass pellets in power generation, heating, and industrial applications. The global biomass pellets market consumption has also been analyzed based on the UK, South Korea, Japan, Germany, Denmark, Italy, France, Netherlands, Sweden, US, and Rest of the World 11 countries.

source: The report segments the biomass pellets market into four segments based on source: wood sawdust, agricultural residues, industrial waste, and others. Wood sawdust is the largest source of biomass pellets due to its abundance and favorable properties. The wood processing industry generates large amounts of sawdust as a by-product, making it an economically viable raw material. Sawdust is relatively easy to collect, transport, and process into pellets, and has high energy density and low moisture content, which improves combustion efficiency.

Meanwhile, agricultural residues are expected to be the fastest growing segment in the biomass pellets market due to the increasing focus on sustainable agricultural practices and waste management. This has led to increased interest in utilizing agricultural by-products for energy production. As agriculture generates large amounts of residues, converting these materials into biomass pellets provides an efficient way to generate renewable energy while managing waste.

By application: Moreover, the report categorizes the biomass pellets market on the basis of application as power generation, commercial and domestic heating, industrial heating, and others. The power generation segment accounted for the largest share of the market and is expected to be the fastest growing segment during the forecast period.

The market for biomass pellets for power generation is growing significantly due to increasing global efforts to reduce carbon emissions and transition to renewable energy sources. Biomass pellets can be co-fired with coal or used in dedicated biomass power plants to generate electricity, making them a viable alternative to coal in power plants. Biomass pellets have high energy density and relatively low moisture content, making them an efficient fuel for power generation.

Key attributes:

Market Trends

Drivers of growth

• Increasing pellet production capacity and number of plants

• Rising greenhouse gas emissions

• Increasing power generation from renewable energies

• Increasing number of ENplus and PFI certified factories

• Increasing transition from traditional to environmentally friendly energy sources

• Expanding into emerging markets

• Positive government initiatives and regulations

assignment

Market trend

• Integration into the circular economy

• Diversification of raw materials

• Participating in carbon trading and offset markets

• Increased use in industrial applications

• Innovation

Competitive Environment

• Global Biomass Pellet Market: Competitive Landscape

• US Biomass Pellet Market Players by Production Capacity

• Canadian Biomass Pellet Market Players by Capacity

• China Biomass Pellet Market Players by Production Capacity

• French biomass pellets market players by production capacity

Company profile: Business overview, business segments, business strategy

For more information on this report, please visit: https://www.researchandmarkets.com/r/cpyaum

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