Industrial Biomass Boiler Market: How is Biomass Leveraged?
Industrial biomass boilers have become popular as the world shifts towards more sustainable and environmentally-friendly energy sources. Similarly, the demand for renewable energy has grown significantly in recent years, with increased concern over climate change and a push toward sustainability. In this regard, biomass, a renewable energy source, is widely available and can be used to generate heat and power. According to Inkwood Research, the global industrial biomass boiler market is set to register an 11.58% CAGR during the forecast period 2023-2032.
According to the International Energy Agency (IEA), renewable energy was the fastest-growing energy source, accounting for over 70% of global net additions to power capacity in 2019. Also, as per the World Bank statistics, global industrial energy consumption is expected to increase by 40% between 2018 and 2050. Hence, governments worldwide are implementing policies and incentives to encourage using renewable energy sources, including biomass. These policies include feed-in tariffs, tax credits, and renewable energy standards. Implementing such policies and incentives benefits the market growth of industrial biomass boilers.
How does Biomass benefit Major End-Users?
Paper and Pulp Industry
The International Energy Agency (IEA) states that the paper and pulp industry is highly energy-intensive and accounts for more than 5% global industrial power consumption. The agency also stated that globally, more than 40% of the industry’s heating needs were met using bioenergy with solid biomass, thus accounting for the highest share. In 2021, solid biomass met 55% of European industries’ energy needs. The demand for solid biomass is largely due to the industry’s need for better efficiency and reduced carbon dioxide emissions. One of the prime reasons for using biomass in the paper and pulp industry for generating heat and power is easy to access to biomass feedstock.
Plant owners are replacing older equipment with more efficient boilers, aiding market growth. According to provincial policies of China, the boilers in paper and pulp mills are expected to be completely rebuilt or eliminated during the 14th ‘Five Year Plan’ period, 2021-2025. Further, key areas of interest for the plan include the decarbonization of energy-intensive industrial sectors like cement, buildings, power, meat production, steel, transport, and the expansion of carbon and forest cover markets.
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. The biorefinery was set to open in the first half of 2023 with a capacity of 1.1 million tons. With this partnership, both partners are committed to producing transportation fuels with low-carbon intensity feedstocks.
Key Product Developments by Global Players
- 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
- 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.
Industrial biomass boilers are a sustainable and cost-effective option for many facilities. The benefits of reduced carbon emissions and renewable energy sources make them an attractive option for the end-users. Furthermore, biomass-based electricity is often cost-competitive than fossil fuel-based electricity in many regions of the world, resulting in cost savings for end-users. As more facilities adopt sustainable practices and explore ways to reduce their carbon footprint, the product is anticipated to become a lucrative option for heat and power generation, boosting the global industrial biomass boiler market during the forecast period.
What are some of the key growth drivers of the global industrial biomass boiler market?
Growing demand for renewable energy sources, government incentives and regulations, cost-effectiveness, and increasing industrialization are some of the key growth drivers of the global industrial biomass boiler market.
What are some of the capacities assessed in the global industrial biomass boiler market?
2-10 MW, 10-25 MW, and 25-50 MW capacities are assessed in the global industrial biomass boiler market.