Industrial Biomass Boiler Market: Key Benefits for End-Users

The global focus on sustainability is driving renewable energy adoption. Biomass, a readily available option, is increasingly used for heat and power as part of a broader shift toward sustainability.

The industrial biomass boiler market is set to grow at a 10.12% CAGR from 2024 to 2032 (Inkwood Research), aligning with a projected 40% rise in industrial energy consumption by 2050 (World Bank).

In 2023, renewable energy led the global transition, contributing nearly 50% of new capacity (IEA). Industrial biomass boilers, which convert organic materials into energy, are gaining traction as industries seek sustainable alternatives to fossil fuels.


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Governments worldwide are implementing policies and incentives to promote renewable energy usage, including subsidies and tax breaks for biomass projects. These initiatives further drive the demand for industrial biomass boilers, supporting the global transition to cleaner and more sustainable energy solutions.

How Does Biomass Benefit Major End-Users? 

Paper and Pulp Industry

The IEA reports that the paper and pulp industry is highly energy-intensive, consuming over 5% of global industrial power. More than 40% of its heating needs are met with bioenergy from solid biomass, the highest share.

In 2023, biomass—solid, gaseous, and liquid—accounted for half of the EU’s renewable energy consumption. Solid biomass demand is driven by efficiency goals and lower carbon emissions. The industry relies on biomass for heat and power due to easy feedstock access.

Plant owners are upgrading boilers to improve efficiency, boosting market growth. Under China’s 14th Five-Year Plan (2021–2025), paper and pulp mills must rebuild or phase out boilers per provincial policies.

Key focus areas include decarbonizing energy-intensive sectors like cement, steel, power, transport, and meat production, alongside expanding carbon and forest markets.

Biorefineries

The functions of a biorefinery are similar to the petroleum industry, wherein multiple products, such as value-added chemicals, biofuel & biodiesel, and biomass power, are produced in the same plant from a single biomass source. According to a report by the European Biomass Association, using biomass for heat and power generation can result in an 80-90% reduction in greenhouse gas emissions compared to fossil fuel-based heating and power generation.

Further, in February 2023, PBF Energy Inc and Eni Sustainable Mobility announced their plans to enter into a joint venture, St. Bernard Renewables LLC (SBR), where each of them contributes $835 million and up to an additional $50 million to individual projects while also providing expertise in biorefining operations and supply.

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Key Product Developments by Global Players

  • In 2021, Corigin Solutions, an agricultural processing plant in California, installed a biomass boiler to generate heat and power from almond shells, which would otherwise be waste material. The installation has reduced the plant’s reliance on fossil fuels and reduced carbon emissions by over 90%. The plant estimates that the biomass boiler will save around $1 million in energy costs over the next decade.
  • In 2022, a manufacturing plant in Ohio, Hurst Boiler, installed a biomass boiler to replace its traditional fossil fuel boiler. The new boiler generates heat and power by burning waste wood chips generated by the manufacturing process. The installation reduced the plant’s carbon emissions by over 80%, and the cost savings from using biomass fuel are estimated to be around $400,000 annually.
  • In 2023, Adven Latvia inaugurated a new woodchip boiler house on Berzaines Street 31 in CÄ“sis, significantly reducing reliance on natural gas. This facility enhances energy efficiency and supports the region’s transition to renewable energy sources.
  • Biovéa Énergie SA is developing a 46 MW biomass-fired thermal power plant in Ayebo, Ivory Coast. The facility will utilize palm oil waste sourced from local farmers to generate electricity, contributing to sustainable energy production and reducing carbon emissions. The project is expected to be commissioned in 2024.

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Conclusion

Industrial biomass boilers offer a sustainable and cost-effective solution for many facilities. Their ability to reduce carbon emissions and utilize renewable energy makes them attractive to end-users. Additionally, biomass-based electricity often outcompetes fossil fuel-based power in cost across many regions, helping users save money.

As more facilities adopt sustainable practices and seek to lower their carbon footprint, they are expected to increasingly choose biomass boilers for heat and power generation, driving global market growth during the forecast period.

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    FAQ

    How do industrial biomass boilers work?

    Industrial biomass boilers generate heat and power by burning organic materials such as wood chips, agricultural waste, or pellets. The combustion process produces steam, which is then used for industrial heating, electricity generation, or both in combined heat and power (CHP) systems.

    What are the environmental benefits of using biomass boilers?

    Biomass boilers significantly reduce carbon emissions compared to fossil fuel boilers, as the COâ‚‚ released during combustion is offset by the COâ‚‚ absorbed during the biomass growth cycle. Additionally, they help divert organic waste from landfills, contributing to waste management and sustainability.

    Is biomass fuel cost-effective for industrial use?

    Yes, biomass fuel can offer substantial cost savings, particularly when sourced locally or as a byproduct of industrial processes. Many industries report annual savings due to lower fuel costs and government incentives for renewable energy adoption.