Global Bioenergy Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Bioenergy Market Trends

Sustainable bioenergy, co-firing, next-gen biofuels, and supportive policies are driving market growth.

• There is a growing emphasis on ensuring that bioenergy production is sustainable and contributes positively to the circular economy, thus shaping new trends in the bioenergy market. 
• Bioenergy is increasingly being integrated into existing energy systems which includes co-firing biomass with coal in power plants and using biogas for electricity generation and heating.
• Technological advancements are enabling the production of next-generation biofuels, such as cellulosic ethanol, algae-based biofuels, and synthetic biology-derived fuels.
• Favourable government policies and incentives for bioenergy like mandates for renewable energy usage, subsidies for biofuel production, and carbon pricing mechanisms that make bioenergy more competitive with fossil fuels, are enhancing demand.

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Industry News

February 2024

Saunders International Limited (Saunders) entered into a Memorandum of Understanding (MoU) with Optimal Renewable Gas (ORG) to support the development of biomethane production facilities across Australia.

October 2023

Empresas Públicas de Medellín (EPM) initiated operations at the nation’s inaugural biomethane facility, marking a significant step in expanding its portfolio of clean energy sources.

Historical Market Analysis

Historically, hurdles such as high cost of producing bioenergy, fewer sources for feedstock and also competition with fossil fuels hampered the bioenergy demand. Major players invested in advanced cellulosic ethanol and algae-based biofuels to improve efficiencies in production. Companies also approached the governments to obtain conducive policies such as subsidies, mandates of renewable energy. Advanced conversion technologies that proved to be more competitive in terms of cost and feedstocks that are renewable also improved the competitiveness of the bio-energy market.

Opportunities in the Bioenergy Market

Opportunities include biofuels in transport, biogas projects, advanced biofuel technologies, and government incentives.

• Expansion of bioenergy applications in transportation, including the adoption of biofuels in aviation and shipping, thereby propelling the bioenergy market opportunities.
• Growing demand for biogas and waste-to-energy projects, particularly in urban and industrial waste management.
• Increasing investment in advanced biofuel technologies, such as algae-based and cellulosic ethanol, for higher efficiency.
• Rising government incentives, mandates, and carbon pricing mechanisms that make bioenergy more competitive with fossil fuels.

Market Dynamics

Technological advancements in next-generation biofuels, like cellulosic ethanol and algae-based fuels, drive market growth.

Technological advancements in the bioenergy sector are paving the way for the production of next-generation biofuels, which promise to overcome some of the limitations of first-generation biofuels derived primarily from food crops (such as corn and sugarcane for ethanol or vegetable oils for biodiesel) and are crucial factors in the bioenergy market development. Next-generation biofuels, including cellulosic ethanol, algae-based biofuels, and synthetic biology-derived fuels, are developed from non-food biomass sources and innovative processes. For example, cellulosic ethanol has the advantage of not competing with food crops for arable land and has a lower carbon footprint compared to first-generation biofuels.

TruAlt Bioenergy, a prominent player in the biofuel sector, made a strategic announcement in February 2024 regarding its future growth and commitment to renewable energy. The company has outlined plans to significantly boost its biofuel production capabilities, aiming to increase its daily production capacity by an additional 270,000 litres by the next financial year. By expanding its production capabilities, the company is making a substantial investment in the renewable energy sector.

Growth Drivers

Rising demand for biogas to drive the global demand for bioenergy.

The increasing shift towards renewables and other non-fossil fuel-based energy sources, such as solid biomass, biogas, and others, is a major contributor to the biogas market growth. During the projected period, factors such as rising energy demand, advances in bioenergy conversion technology, increased bioenergy investment, and decreasing electricity generation costs from bioenergy facilities are expected to drive the growth of the bioenergy market. The increasing concern about global warming and future energy security has resulted in increased energy protection initiatives, which is another critical growth driver for the biogas market.

Transportation is the backbone of any financial sector, and it is heavily reliant on oil, making it highly vulnerable to oil price fluctuations. Current economic conditions rely entirely on renewable energy sources to achieve long-term energy security while reducing their reliance on other countries to develop their economies. As a result, it is anticipated that renewable green programmes undertaken by certain governments would promote the use of bioenergy in a variety of sectors.

Market Restraints

Challenges include land use conflicts for biofuel crops and complexities in waste biomass logistics.

Two niche bioenergy market challenges are land use conflicts and waste biomass logistics. As demand for biofuels grows, competition for arable land between food crops and energy crops, such as switchgrass or algae, will create environmental and economic tensions. Waste biomass logistics, too-huge an obstacle-includes the price and complexity of sourcing, transporting, and processing organic waste materials. Effective collection and distribution networks, along with constant feedstock supply, will lower the processing and distributing costs of waste to bioenergy.

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Bioenergy Industry Segmentation

“Bioenergy Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

On the basis of type, the market can be divided into the following:

• Solid Biomass
• Biogas
• Renewable Waste
• Others

On the basis of technology, the market can be divided into the following:

• Gasification
• Fast Pyrolysis
• Fermentation
• Others

Based on region, the market can be segregated into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Bioenergy Market Share

By Type Analysis

Biogas and solid biomass lead, while renewable waste and algae-based biofuels gain traction.

With the flexibility and efficiency of converting organic waste into renewable energy, biogas is gaining significant market momentum in the global bioenergy market. As per bioenergy market analysis, governments are increasingly investing in biogas infrastructure as part of waste management and clean energy strategies. Solid biomass constitutes the largest share primarily due to its availability and utilisation in power generation and heating. Renewables waste is on the increase, especially in regions that are following a circular economy practice, while new technologies concerning other types of bioenergy, including algal biofuel, are gradually gaining attention as something to look out for in the near future.

Market Analysis by Technology

Gasification, pyrolysis, fermentation, and emerging technologies are driving increased global bioenergy demand.

Increased demand for bioenergy is due to developments in key technologies, such as the gasification of biomass that produces clean energy without much waste and emissions. Fast pyrolysis is increasingly popular in converting biomass into bio-oil for better storage and transportation. As per bioenergy industry analysis, fermentation technology has facilitated large-scale production of biofuels, particularly ethanol, from organic materials. New technologies that include algae-based biofuels, hydrothermal liquefaction, and others are gradually increasing the feedstock base, improving the production of bioenergy, and helping to meet global renewable energy targets.

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Bioenergy Market Regional Insights

North America Bioenergy Market Opportunities

The North America bioenergy market presents significant opportunities in renewable energy production, particularly in the areas of biofuels and biogas. The United States Renewable Fuel Standard (RFS) and Canada's Clean Energy Programs incentivize the development of sustainable bioenergy solutions. For example, POET LLC, one of the largest biofuel producers in the United States, is expanding its bioethanol production using advanced feedstocks like cellulosic materials. Additionally, the growing waste-to-energy sector in Canada presents opportunities for biogas generation and waste management solutions.

Europe Bioenergy Market Dynamics

The Europe bioenergy industry is influenced by stringent environmental regulations, with the EU's Renewable Energy Directive driving the transition to cleaner energy. Strong government incentives, such as subsidies for biofuel production and waste-to-energy projects, foster growth. Countries like Germany and Sweden are leading bioenergy innovations, focusing on advanced biofuels and biogas. Additionally, Europe is seeing a rise in sustainable feedstock sourcing and circular economy practices, ensuring long-term bioenergy sustainability.

Asia Pacific Bioenergy Market Trends

Carbon capture is emerging as a key trend in the Asia Pacific bioenergy market, with companies integrating carbon capture and utilisation (CCU) technologies into biofuel production. This innovation aims to reduce the carbon footprint of bioenergy by capturing CO2 emissions and repurposing them for other industrial uses. For example, China National Petroleum Corporation (CNPC) is incorporating CCU in its bioethanol facilities, not only improving sustainability but also aligning with stricter environmental regulations and enhancing the long-term viability of bioenergy solutions in the region.

Latin America Bioenergy Market Insights

The Latin America bioenergy market is expanding due to government support for renewable energy initiatives, such as Brazil's Proinfa program, which promotes bioenergy projects. Countries like Brazil and Argentina lead in bioethanol and biodiesel production, driven by agricultural feedstocks like sugarcane and soybeans. Additionally, policies incentivizing sustainable energy and waste-to-energy projects are fostering growth, while regional energy security concerns push for diversification from fossil fuels to renewable sources.

Middle East and Africa Bioenergy Market Drivers

The Middle East and Africa market for bioenergy is driven by increasing energy demand, government initiatives to diversify energy sources, and a push for sustainable development. Countries like Saudi Arabia and the UAE are investing in renewable energy projects, including biofuels and biogas, to reduce dependence on oil. Additionally, Africa's growing population and industrialization are spurring demand for clean energy solutions, while waste-to-energy projects in nations like South Africa contribute to both energy generation and waste management solutions.

Competitive Landscape

Global bioenergy market players are focusing on increasing renewable energy production, enhancing sustainability, and decreasing carbon content. The companies are working to develop the latest technologies for the conversion of organic waste to biofuels, biomethane, and other renewable energy-based products. Bioenergy companies are also studying the bio-based production routes with higher operational capacities, investments in waste-to-energy systems, that could help reduce the rapidly growing global demand for energy to support environmental goals and reduce dependence on fossil fuels.

Key Market Players

Key industry leaders in this market are:

Mitsubishi Heavy Industries Ltd

Founded in 1884 and headquartered in Tokyo, Japan, Mitsubishi Heavy Industries Ltd specialises in the manufacturing and supply of heavy machinery, shipbuilding, and aerospace components. The company plays a key role in various industries, providing advanced engineering solutions for a wide range of sectors, including energy, transportation, and aerospace.

MVV Energie AG

Established in 1873 and based in Mannheim, Germany, MVV Energie AG is focused on energy production and distribution, waste management, and water services. The company is committed to providing sustainable energy solutions and managing resources efficiently through its comprehensive portfolio of energy and environmental services.

A2A S.p.A.

Founded in 1898 in Brescia, Italy, A2A S.p.A. is involved in the production and distribution of electricity and gas, waste management, and integrated water cycle management. The company operates with a focus on sustainability and innovation, providing essential services that contribute to the environmental and economic well-being of the regions it serves.

Hitachi Zosen Corporation

Founded in 1881 and headquartered in Osaka, Japan, Hitachi Zosen Corporation is renowned for the design and construction of environmental systems, industrial plants, and precision machinery. The company is a leader in creating solutions for waste management, water treatment, and industrial applications, with a strong emphasis on environmental sustainability and technological innovation.

Other major players are BTG Biomass Technology Group BV, and Babcock & Wilcox Enterprises, Inc., among others. Market players in the bioenergy sector are engaging in a wide range of activities to drive innovation, expand market share, and address the growing demand for renewable energy.

Recent Developments

February 2024

TruAlt, one of the leading biofuel companies, announced plans to increase its production capacity by 270,000 litres per day by the next financial year.

February 2024

The City of Long Beach began undergoing a transformation in its waste management approach by partnering with Bioenergy Devco to build a facility dedicated to recycling organic materials.