The total consumer price estimates for biomass in the United States in 2022 reached 4.02 U.S. dollars per million British thermal units. In 2014, the consumer price estimate for biomass reached a peak of around 4.16 U.S. dollars per million British thermal units.

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The biomass power generation market share is expected to increase by 32.94 gigawatts from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 4.64%.

This biomass power generation market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers biomass power generation market segmentation by market landscape (solid biomass, biogas, municipal solid waste, and liquid biomass) and geography (APAC, Europe, North America, MEA, and South America). The biomass power generation market report also offers information on several market vendors, including Acciona SA, Ameresco Inc., Andritz AG, Babcock and Wilcox Enterprises Inc., E.ON UK plc., General Electric Co., John Wood Group Plc, Thermax Ltd., Valmet Oyj, and Vattenfall AB among others.

What will the Biomass Power Generation Market Size be During the Forecast Period?

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Biomass Power Generation Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The growing need for cleaner energy is notably driving the biomass power generation market growth, although factors such as increased project and feedstock costs may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the biomass power generation industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Biomass Power Generation Market Driver

One of the key factors driving growth in the biomass power generation market is the growing need for cleaner energy. The burning of fossil fuels such as oil and coal has been a major contributor to the rising levels of GHGs in the atmosphere and the resulting climate change. This challenge can be addressed by replacing fossil fuels with renewable energy resources, such as biomass, geothermal, solar power, wind power, and hydropower, in power generation. The increasing energy demand, clean energy initiatives, and subsidies granted for power generation using sustainable sources promote the use of renewable energy sources. Governments of various countries are undertaking several initiatives to mitigate GHG emissions. Many countries are shifting their focus from conventional fuels to renewables to reduce the emission of hazardous gases that affect the environment. Biomass is a renewable energy source and is more abundant than fossil fuels. The harvest of biomass crops, which can be later used as renewable energy resources, can balance the CO2 content released into the atmosphere as these crops absorb the released CO2 for their growth. The continuous use of cleaner biomass energy and fuels can help control the emission of GHGs and CO2, which would minimize the effects of global warming.

Key Biomass Power Generation Market Trend

The advances in technology is another factor supporting the biomass power generation market share growth. The global biomass power generation market is witnessing considerable advancements in the practices involved in biomass energy production. The production costs of biomass energy have been reduced due to the development of enhanced harvesting and post-harvesting technologies. Biomass energy conversion can be technologically improved using multiple ways, such as employing enhanced fuel processing technologies, enhancing the efficiency of biomass energy conversion technologies, and improving the efficiency of end-user technologies. Complex tasks in the renewable energy sector are increasingly automated. Automation optimizes performance, saves time, and increases productivity. An online-based software known as biomass co-firing assessment and services (BCAS) has emerged, which integrates the basic properties of combustion and mineral matter transformation and improves biomass power plant operations. Such technological advances are expected to have a profound effect on the efficiency of biomass power plants and are expected to drive market growth.

Key Biomass Power Generation Market Challenge

The increased project and feedstock costs will be a major challenge for the biomass power generation market during the forecast period. Though biomass power-generation technologies will become more efficient in the long term, the initial investments and the cost of equipment are high. The cost and efficiency of biomass power generation equipment vary according to the technology, region, and nature of the feedstock. The prime mover, feedstock preparation, feedstock conversion technology, and handling machinery account for almost two-

The woody biomass fuel market is experiencing robust growth, driven by increasing concerns about climate change and the need for sustainable energy sources. The market's size in 2025 is estimated at $15 billion, projecting a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033. This expansion is fueled by several key factors: the rising demand for renewable energy in power generation, particularly in regions with established biomass infrastructure; the increasing adoption of biomass heating solutions in residential and commercial sectors, especially in Europe and North America where stringent emission regulations are pushing the transition from fossil fuels; and ongoing technological advancements improving biomass fuel efficiency and reducing emissions. The bulk biomass briquette segment currently holds a significant market share, but biomass pellet production is growing rapidly due to its superior handling and combustion characteristics. Major players like Enviva, German Pellets, and Drax Biomass are investing heavily in expanding production capacity and optimizing supply chains to meet the growing demand. Geographic distribution reveals strong performance in North America and Europe, while Asia-Pacific is poised for substantial growth, driven by increasing industrialization and government support for renewable energy initiatives. However, the market faces certain restraints. The fluctuating prices of wood raw materials and transportation costs represent significant challenges. Furthermore, ensuring sustainable and responsible sourcing of wood biomass is crucial to mitigate environmental concerns surrounding deforestation and biodiversity loss. Stricter regulations on emissions and sustainability practices are also influencing market dynamics, pushing companies towards improved production technologies and certification schemes. Despite these challenges, the long-term outlook for the woody biomass fuel market remains positive, driven by its significant role in achieving global decarbonization goals and providing a reliable alternative to fossil fuels. Future growth will be shaped by technological advancements that enhance efficiency and reduce emissions, alongside robust regulatory frameworks that support sustainable practices.

The statistic displays a projection of the average price of biomass feedstocks in the United States, from 2017 to 2040. In 2022, the potential forestry, agricultural, and waste biomass resources are projected to be priced at about **** U.S. dollars per dry ton.

The data shall contain the price of glossy, oatmeal, ornamental, fur, sorrel, scalp, residual straw, short rotation and permanent grassland, broken down according to the main soil climatic units on which the crops are grown. The data are processed as of 2010.

An economic analysis of producing Fischer–Tropsch (FT) liquid fuel such as diesel from crop residue is presented. The process is thermochemical based involving fast pyrolysis and autothermal reforming (ATR) followed by FT synthesis. A spreadsheet for estimating economics is presented, which is simple to use and transparent in its input parameters and its output. Plant sizes of 2000, 10 000, and 35 000 dry metric tons (t) per day were calculated at 8% return on capital to require sales prices (exclusive of tax) of $3.30, $2.40, and $2.06 per gallon (gal), respectively. U.S. tax would add another ∼$0.50/gallon. A biomass feed stock cost of $61.20/dry t was assumed. Capital cost for the 2000 dry t/day plant is estimated to be $M231. These estimates, of course, must be regarded as rough, but they suggest that even without the benefit of imposed regulations liquid fuel derived from biomass could be competitive at current price levels. Sale of char produced in the pyrolysis step for soil amendment as a byproduct at $500/t, had a significantly favorable impact on the economics, reducing diesel price by $0.35/gal. Like the heavy influence of the cost of crude oil on current fuel price, the cost of biomass is the largest single contributor to the final price of biomass derived fuel and becomes more so as plant capacity increases. This suggests the need to improve methods of biomass gathering and delivery. For each $10/dry t increase in the price of biomass the sales price of the FT fuel is estimated to increase by $0.20/gal. It is estimated that pyrolyzer collectives 25 miles square (mi2) on a side would reduce diesel price by $0.12/gal, as compared to those 14 mi2 on a side.

United States Road: Carbon Pricing Score: Excluding Emissions from the Combustion of Biomass: EUR 120 per Tonne of CO2 data was reported at 36.430 % in 2018. United States Road: Carbon Pricing Score: Excluding Emissions from the Combustion of Biomass: EUR 120 per Tonne of CO2 data is updated yearly, averaging 36.430 % from Dec 2018 (Median) to 2018, with 1 observations. The data reached an all-time high of 36.430 % in 2018 and a record low of 36.430 % in 2018. United States Road: Carbon Pricing Score: Excluding Emissions from the Combustion of Biomass: EUR 120 per Tonne of CO2 data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s United States – Table US.OECD.ESG: Environmental: Effective Carbon Rates: by Sector: OECD Member: Annual. The carbon pricing score answers the question how close countries are to price carbon in line with carbon costs. EUR 60 is a midpoint estimate for carbon costs in 2020, and a low-end estimate for 2030. Pricing all emissions at least at EUR 60 in 2020 shows that a country is on a good track to reach the goals of the Paris Agreement to decarbonise by mid-century economically. EUR 30 is a historic low-end estimate for carbon costs, and EUR 120 is a midrange estimate for carbon costs in 2030.; The carbon pricing score answers the question how close countries price carbon emissions in line with carbon costs. EUR 120 per tonne CO2 is a central estimate for carbon costs in 2030.More generally, a carbon pricing score of 100% shows that a country prices all carbon emissions at the carbon cost estimate or more, and a carbon pricing score of 0% shows that a country does not price any carbon emissions.The carbon pricing score by country, by sector answers the question how close countries price carbon emissions in line with carbon costs within a given sector.For additional information, see Effective Carbon Rates 2021

Congo, Republic of Material Resources:(GDP) Gross Domestic Productper Direct Material Input: PPP: 2015 Price: Biomass: Wood data was reported at 8.600 USD/Tonne th in 2022. This records an increase from the previous number of 7.877 USD/Tonne th for 2021. Congo, Republic of Material Resources:(GDP) Gross Domestic Productper Direct Material Input: PPP: 2015 Price: Biomass: Wood data is updated yearly, averaging 6.944 USD/Tonne th from Dec 1990 (Median) to 2022, with 33 observations. The data reached an all-time high of 9.656 USD/Tonne th in 2014 and a record low of 5.289 USD/Tonne th in 2004. Congo, Republic of Material Resources:(GDP) Gross Domestic Productper Direct Material Input: PPP: 2015 Price: Biomass: Wood data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Congo, Republic of – Table CG.OECD.ESG: Environmental: Material Resources by Material Groups: Non OECD Member: Annual.

This metric represents cost of potential treatments for the Northern California region and is dependent on predefined treatments or silvicultural prescriptions, which are best generated at the local and/or project level. The cost to perform each treatment depends on a defined prescription and should consider an array of factors including the spatial juxtaposition of the resources and infrastructure, as well as the location of the saw timber and biomass processing plants.

Treatment cost calculations take into consideration the multiple costs necessary to move material from the forest harvest site to a processing location (sawmill or biomass facility) and includes the costs of felling, processing, skidding and hauling:

• costs to move material along different types of roads (i.e., dirt, paved, highways, etc.)

• across barriers (i.e., water courses)

• operational costs

• machine costs

• speed of moving material across the landscape.

Cost values have been broken down into the costs to move either biomass or sawlogs, and for a high-cost and low-cost scenario (reflecting variation in machine rates). Non-mechanical hand treatments, piling and burning operations, and prescribed fire treatments are not addressed in this data set. We hope to provide cost estimates on those types of treatments later.

The global wood pellets fuel market is experiencing robust growth, driven by increasing demand for renewable energy sources and stringent environmental regulations aimed at reducing carbon emissions. The market, currently valued at approximately $15 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033, reaching an estimated market size of $28 billion by 2033. This growth is fueled by several key factors, including the rising adoption of wood pellets in power generation, industrial furnaces, and civil applications. The shift towards sustainable energy solutions, coupled with government incentives and subsidies for renewable energy projects, is further propelling market expansion. Key segments within the market include white and black pellets, with white pellets currently holding a larger market share due to their higher energy density and cleaner burning properties. Geographically, North America and Europe are currently the dominant regions, driven by established renewable energy infrastructure and supportive government policies. However, Asia-Pacific is poised for significant growth in the coming years, driven by increasing industrialization and rising energy demand in countries like China and India. The market's growth is not without its challenges. Fluctuations in raw material prices, along with concerns regarding sustainable forestry practices and transportation costs, pose significant restraints. Competition among established players and new entrants is also intensifying. However, ongoing technological advancements in pellet production, improved logistics, and increasing investments in research and development are expected to mitigate these challenges. The market is witnessing innovation in areas such as pellet production efficiency, transportation optimization, and the development of advanced combustion technologies to improve overall efficiency and reduce environmental impact. This dynamic landscape presents opportunities for both established players and new entrants to capitalize on the growing demand for sustainable energy solutions. This in-depth report provides a comprehensive overview of the global wood pellets fuel market, analyzing key trends, growth drivers, challenges, and opportunities. Valued at over $15 billion in 2023, the market is projected to experience significant growth, driven by increasing demand for renewable energy sources and stringent environmental regulations. This report delves into production, consumption, and trade dynamics, offering crucial insights for investors, industry stakeholders, and policymakers. Keywords: wood pellets, biomass fuel, renewable energy, power generation, industrial fuel, sustainable energy, pellet production, bioenergy, market analysis.

Cambodia Material Resources:(GDP) Gross Domestic Productper Domestic Extraction Used: PPP: 2015 Price: Biomass: Food data was reported at 1.232 USD/Tonne th in 2022. This records an increase from the previous number of 1.165 USD/Tonne th for 2021. Cambodia Material Resources:(GDP) Gross Domestic Productper Domestic Extraction Used: PPP: 2015 Price: Biomass: Food data is updated yearly, averaging 0.827 USD/Tonne th from Dec 1990 (Median) to 2022, with 33 observations. The data reached an all-time high of 1.232 USD/Tonne th in 2022 and a record low of 0.493 USD/Tonne th in 1991. Cambodia Material Resources:(GDP) Gross Domestic Productper Domestic Extraction Used: PPP: 2015 Price: Biomass: Food data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s Cambodia – Table KH.OECD.ESG: Environmental: Material Resources by Material Groups: Non OECD Member: Annual.

The biomass pellets market, currently valued at USD 12.3 billion (2025), is likely to reach USD 23.6 billion by 2035, growing at a CAGR of 6.7%.

Metric	Value
Industry Size (2025E)	USD 12.3 billion
Industry Value (2035F)	USD 23.6 billion
CAGR (2025 to 2035)	6.7%

Analyzing Biomass Pellets Market by Top Investment Segments

Product Type	CAGR (2025 to 2035)
Wood Pellets	6.7%
Agricultural Pellets	7.4%
Industrial Pellets	7.5%
Others	8.4%

End Use Industry Segments	CAGR (2025 to 2035)
Residential	7.2%
Industrial	6.9%
Energy	7.0%
Commercial	6.8%
Agriculture	7.1%

Biomass Pellets Market Forecast by Top Countries

Country	CAGR (2025 to 2035)
United States	6.1%

Country	CAGR (2025 to 2035)
Canada	6.5%

Country	CAGR (2025 to 2035)
Germany	5.8%

Country	CAGR (2025 to 2035)
United Kingdom	6%

Country	CAGR (2025 to 2035)
France	6.2%

Country	CAGR (2025 to 2035)
Japan	6.6%

Country	CAGR (2025 to 2035)
South Korea	6.8%

Country	CAGR (2025 to 2035)
China	6.7%

Country	CAGR (2025 to 2035)
India	6.8%

Country	CAGR (2025 to 2035)
Brazil	6.9%

For fiscal year 2025, the forecast FIT price for biomass was highest for woody biomass derived from thinned wood under 2,000 kilowatts, with around 40 Japanese yen per kilowatt-hour. The FIT price of woody biomass derived from thinned wood with more than 2,000 kilowatts was the lowest, with only 32 yen per kilowatt-hour.

The service contains price maps from the project Biomass potential to meet energy needs in crisis situations (VG20102013060). The data is displayed for scales of less than 1:50000.

The global white wood pellet market is experiencing robust growth, driven by increasing demand for sustainable and renewable energy sources. The market, valued at approximately $15 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 7% from 2025 to 2033. This expansion is fueled by several key factors: stringent environmental regulations promoting biomass energy adoption, the rising cost of fossil fuels making pellets a more cost-competitive alternative, and the growing awareness among consumers and businesses about the environmental benefits of renewable energy. Significant market segments include power generation, industrial furnaces, and civil use, with high-hardness pellets commanding a premium price due to their superior energy density and burn characteristics. Leading players like German Pellets, Enviva, and Drax Biomass International are actively expanding their production capacities and investing in research and development to improve pellet quality and efficiency. Geographical distribution reveals strong growth across North America and Europe, fueled by supportive government policies and established biomass infrastructure. However, Asia-Pacific is emerging as a key growth region, driven by rising energy demand and government initiatives to reduce reliance on fossil fuels. While the market faces challenges like fluctuating raw material prices and potential supply chain disruptions, the long-term outlook remains positive, underpinned by the global commitment to decarbonization and the increasing adoption of sustainable energy solutions. The consistent growth trajectory and expanding applications point towards a substantial market expansion over the forecast period. This report provides an in-depth analysis of the global white wood pellet market, encompassing production, consumption, trade, and future projections. We delve into key market segments, regional dynamics, competitive landscape, and emerging trends, utilizing rigorous data analysis and industry expertise to deliver actionable insights. The report is designed for investors, industry professionals, and strategic decision-makers seeking a comprehensive understanding of this rapidly evolving sector. Keywords: White wood pellets, biomass pellets, wood pellet market, pellet fuel, renewable energy, sustainable energy, biomass energy, power generation, industrial heating, wood pellet production, pellet manufacturing.

The prudent reforestation of tropical rain forests depends on alternative land uses, the dynamics of carbon accumulation of forest trees, and the implicit social cost of emissions. In this paper, we discuss and extend recent research by Assunção et al. (2023) showing that arguably modest foreign transfers per unit of carbon captured could incentivize substantial reforestation in areas currently used for low-productivity cattle ranching in Brazil. Building on this research, we initiate the study of the relationship between externally set emission prices and changes in biodiversity and biomass. The Amazon holds 10 percent of the world’s vertebrate and plant species. There are more than 15,000 tree species, the vast majority of which are rare. Drawing on the scientific literature on rain forest biodiversity, we provide some preliminary estimates of how carbon pricing could affect biodiversity in the Brazilian Amazon.

The biomass pellets market in Europe will witness an upward surge in demand between 2025 and 2035 because of several, mainly renewable energy demand increases, public policies encouraging bioenergy, and the development toward carbon-neutral heating and power systems. With that said, the market for biomass pellets will shoot to USD 12.9 billion by 2025 and expand to nearly USD 23.9 billion by 2035 at a compound annual growth rate (CAGR) of 6.4% during the period of forecast.

Key Market Metrics

Attributes	Key Insights
Estimated Size, (2025E)	USD 12.9 billion
Projected Size, (2035F)	USD 23.9 billion
Value-based CAGR (2025 to 2035)	6.4%

Region-wise analysis

Region	CAGR (2025 to 2035)
Western Europe	6.6%

Region	CAGR (2025 to 2035)
Central Europe	6.4%

Region	CAGR (2025 to 2035)
Eastern Europe	6.2%

Competitive Outlook

Company Name	Estimated Market Share (%)
Enviva Inc.	10-12%
Graanul Invest	9-11%
Drax Group plc	7-9%
Pinnacle Renewable Energy ( Drax Group)	5-7%
Fram Renewable Fuels	3-5%
Other Companies (combined)	60%

This paper, which is the first part of a series of papers, introduces a hybrid coal, biomass, and natural gas to liquids (CBGTL) process that can produce transportation fuels in ratios consistent with current U.S. transportation fuel demands. Using the principles of the H2Car process, an almost-100% feedstock carbon conversion is attained using hydrogen produced from a carbon or noncarbon source and the reverse water-gas-shift reaction. Seven novel process alternatives that illustrate the effect of feedstock, hydrogen source, and light gas treatment on the process are considered. A complete process description is presented for each section of the CBGTL process including syngas generation, syngas treatment, hydrocarbon generation, hydrocarbon upgrading, and hydrogen generation. Novel mathematical models for biomass and coal gasification are developed to model the nonequilibrium effluent conditions using a stoichiometry-based method. Input−output relationships are derived for all vapor-phase components, char, and tar through a nonlinear parameter estimation optimization model based on the experimental results of multiple case studies. Two distinct Fischer−Tropsch temperatures and a detailed upgrading section based on a Bechtel design are used to produce the proper effluent composition to correctly match the desired ratio of gasoline, diesel, and kerosene. Steady-state process simulation results based on Aspen Plus are presented for the seven process alternatives with a detailed economic analysis performed using the Aspen Process Economic Analyzer and unit cost functions obtained from literature. Based on the appropriate refinery margins for gasoline, diesel, and kerosene, the price at which the CBGTL process becomes competitive with current petroleum-based processes is calculated. This break-even oil price is derived for all seven process flowsheets, and the sensitivity analysis with respect to hydrogen price, electricity price, and electrolyzer capital cost, is presented.

Data from a three-round Delphi study collecting expert opinion relating to costs along the forest biomass supply chain. Expert responses were captured through two survey rounds and one interview round. Surveys were developed as structured questionnaires with both closed and open-type questions. Surveys were conducted through survey platform Alchemer, and interviews were conducted by phone. Experts were presented with EU cost data and challenged to respond with direction and range of difference for the Australian market. In all rounds, but with an emphasis in the interview round, experts were prompted to provide qualitative comments. Data analysis occurred in the interim between rounds and at the conclusion of the study to identify consensus agreement and cost directions and/or ranges for the Australian market.

The India biomass market is predicted to grow at a CAGR of 5.27% during the forecast period, from XX million in 2025 to XX million in 2033. The increasing demand for renewable energy sources, rising concerns over environmental sustainability, and government initiatives promoting biomass utilization are key drivers of market growth. Biomass is a renewable and sustainable energy source that can be used for power generation, heating, and other applications, making it an attractive alternative to fossil fuels. The market is segmented by feedstock type, application, and region. Agriculture waste is the largest feedstock segment, followed by wood and woody residue. Power generation is the largest application segment, followed by heating. The India biomass market is dominated by a few major players, including Emami Agrotech Ltd., Universal Biofuels Private Limited, and BIOD ENERGY (INDIA) PVT LTD. The market is fragmented, with a large number of small and medium-sized enterprises operating in the sector. Recent developments include: November 2023: The Ministry of Power in India announced a benchmark price of INR 2.27/1,000 kcal (USD 0.027/1,000 kcal) for non-torrefied biomass pellets, which is applicable to northern India, excluding the national capital region. The pellets should have a moisture content below 14 pc and a gross calorific value between 2,800 and 4,000 kcal/kg. The price excludes tax and transportation costs for goods and services.February 2023: Aranayak Fuel and Power, an Indian-based biomass company, broke the ground on its INR 50-crore (~USD 6 million), one tonne-per-day, biomass-based green hydrogen plant in the Mirzapur district of Uttar Pradesh. The company signed an MoU with the state government during the ‘global investors’ meet’ in Uttar Pradesh.. Key drivers for this market are: 4., Favorable Government Support to Drive the Market4.; Abundant Availability of Feedstocks. Potential restraints include: 4., Favorable Government Support to Drive the Market4.; Abundant Availability of Feedstocks. Notable trends are: The Power Generation Segment is Expected to Dominate the Market.