EUROPE BIOMASS POWER MARKET FORECAST 2024-2032

Europe is a global leader in this sector, with countries like Germany, the United Kingdom, and Sweden leading the way in biomass capacity and utilization. The market is supported by favorable government policies, including subsidies and incentives, aimed at reducing carbon emissions and promoting energy security. Additionally, technological advancements in biomass conversion systems and efficient feedstock management have contributed to the increased competitiveness of biomass as a sustainable energy source. As part of the EU’s Green Deal and its efforts to achieve net-zero emissions by 2050, biomass power continues to play a vital role in the region’s renewable energy mix.

With the largest share in Europe, Germany’s market growth is propelled by supportive government policies, abundant feedstock availability, and technological advancements. According to IEA Bioenergy, Germany is at the forefront of bioenergy deployment, with institutions like DBFZ (Deutsches Biomasseforschungszentrum) playing a crucial role in sustainable biomass energy research and deployment, particularly in biogas and biomethane. In the first half of 2023, renewables (including biomass) accounted for a record 57.7% of Germany’s net electricity generation, showing the increasing reliance on various renewable sources. In 2022, biomass contributed to 7.7% of the German energy mix. As of October 2023, there were 14,922 biomass power plants across Germany, and this number is expected to increase in the forecasted years.

The Europe biomass power market is segmented into feedstock, technology, and application. The feedstock segment is further classified into solid biomass, liquid biomass, biogas, and municipal solid waste. 

Biogas is a significant technology segment in the Europe biomass power market. This process involves the anaerobic digestion of organic materials—such as agricultural waste, manure, municipal waste, and sewage sludge—in the absence of oxygen to produce biogas, mainly composed of methane and carbon dioxide. The biogas is used to generate electricity and heat, while the remaining digestate serves as a nutrient-rich fertilizer. This method not only produces renewable energy but also offers effective waste management by reducing landfill use and capturing methane emissions.

The growth of the biogas segment is driven by supportive government policies, technological advancements, and increased environmental awareness. European Union directives and national incentives encourage its adoption in agricultural and municipal sectors for efficient waste management and energy production. The rising demand for renewable natural gas and its integration into existing energy systems further boost this segment. As efforts to reduce carbon footprints intensify, biogas plays a crucial role in advancing sustainable energy solutions in Europe.

Some of the top players operating in the Europe biomass power market include Acciona SA, Drax Group PLC, Enel Green Power, etc.

Enel Green Power, headquartered in Italy, is a global leader in the development and management of renewable energy projects, including wind, solar, hydroelectric, geothermal, and biomass power. The company develops and manages biomass power plants that utilize organic residues and energy crops to produce electricity and heat. Enel Green Power is actively involved in biogas projects, investing in technologies that enhance the efficiency of anaerobic digestion processes. By leveraging biogas production through the treatment of agricultural and agro-industrial waste, the company contributes to waste management solutions and the generation of renewable energy.