Biomass Heating Plant Market Size, Share, & COVID-19 Impact Analysis, By Type (Combustion and Gasification), By Application (Power Generation and Heat Distribution), and Regional Forecast, 2024-2032

A biomass heating plant is a facility that generates heat or electricity by burning organic material that is derived from plants, animals, or household waste. Biomass materials are commonly used in sawdust, wood chips, agricultural residues, and dedicated energy crops. Biomass heating plants are well known as they emit less carbon dioxide and are generally installed in areas such as hospitals, commercial buildings, universities, farms, and others. There is an increase in stringent government regulations along with a rise in environmental awareness. Wood and wood residue is the largest biomass as an energy source. The heating plants use various technologies, such as gasification, to produce heat for electricity generation and industrial processes.  

• For instance, Drax Power Station was a coal-fired power plant that has transformed into a biomass power plant. As of April 2023, it has officially converted all coal-fired generating units to biomass power plants. Their main aim is to reach zero-carbon energy shortly.  

When burned, coal, a fossil fuel releases a tremendous amount of carbon dioxide and greenhouse gases, which harm the environment; therefore, there is an increase in the adoption of biomass heating plants as it is considered a perfect substitute for coal. Moreover, the global rise in population will increase the energy and power demand which will most likely increase the demand for biomass heating plants.

The initial investment in biomass heating plants is very high compared to traditional heating and requires more fuel storage space, which can restrict market growth. The raw materials supply chain is inefficient, delaying the heating process. Moreover, immense substitutes such as sustainable energy sources contribute to the market growth affecting biomass heating systems.

IMPACT OF COVID- 19 ON THE GLOBAL BIOMASS HEATING PLANT MARKET

The COVID-19 pandemic’s lockdown and social distancing restrictions had a negative impact on the biomass heating plant market. The supply chain was disrupted, delaying the projects and creating a labor shortage, making the demand for biomass plants fall. As the global biomass heating plants rely on imports of their raw materials, it impacted the industry drastically. Growing concerns about the spread of the pandemic among livestock and increasing consumer awareness about the consumption of these products from the farm led the manufacturers to pull out of the business.     

SEGMENTATION

KEY INSIGHTS

The report will cover the following key insights:

• Recent advancements in the biomass heating plant market


• Key industry trends


• Regulatory landscape for the biomass heating plant market


• Key industry developments


• Impact of COVID–19 on the market

ANALYSIS BY TYPE

Based on technology, the market is segmented into combustion and gasification. Combustion is expected to dominate the market primarily due to its wide adoption and relatively lower capital costs than other methods. Combustion systems have proved efficient by converting biomass feedstock into heat and electricity. It’s a well-established technology with a robust supply chain for biomass fuels, which makes it a reliable option.

ANALYSIS BY APPLICATION

Based on application, the market is segmented into power generation and heat distribution, where the heat distribution segment is expected to dominate the market owing to its wide use of biomass heating systems in residential and commercial projects. These plants use the thermal energy generated from biomass combustion for direct heating applications. Power generation is the second largest growing segment, as biomass heating plants can be designed to generate electricity. Biomass power plants also contribute to renewable energy generation and can also help reduce carbon emissions.

REGIONAL ANALYSIS

The global biomass heating plant market is divided into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. North America is expected to dominate the market due to the increasing adoption of renewable sources for energy generation and to reduce carbon emissions. North America has implemented policies and regulations that promote using renewable energy sources, including biomass. Governments have granted policies and schemes and provided tax benefits to encourage the development of biomass heating plants. Asia Pacific is another fastest growing economy in biomass heating plants due to the rising urbanization and industrialization and increase in the adoption of green energies, especially in countries such as China, India, and Japan. Moreover, the population in these countries is increasing at a fast pace. Europe is also expected to increase as Germany, Finland, and Austria are adopting biomass heating plants at a fast pace.

KEY PLAYERS COVERED

The report includes profiles of key players such as Drax Energy Solutions, DONG Energy, COMSA, Aker Solutions, E. ON, Aalborg Industries, SUEZ, ABANTIA GROUP, Alstom, and BAXI.    

KEY INDUSTRY DEVELOPMENTS:

• January 2022 - UCED Group announced its acquisition of EC Biowatt, one of the largest biomass plants in the Czech Republic, to strengthen its biomass heating plant segment by improving research and development.


• May 2021 - ALTRI SGPS announced that its subsidiary GREENVOLT reached an agreement to acquire Tilbury Green Power Holdings, which is the owner of a renewable biomass power plant that has a net design capacity of 43.6 MW located in the port of Tilbury, England.


• April 2020 - Amer Foster agreed on a deal with Technicas Reunidas and Samsung to supply a steam generator for Tees Renewable Energy Plant in Teesside, which includes a 299 MWe baseload. This will improve the biomass heating plant equipment for efficient functioning.


• February 2019 - ThyssenKrupp announced that it had signed an agreement with Babcock & Wilcox Volund to minimize pollution and to expand the potential technology of biomass boilers in India.