Industrial Biomass Boiler Market: Key Benefits for End-Users

 

Industrial Biomass Boiler Market: Key Benefits for End-Users

The growing global focus on sustainability and combating climate change has fueled the adoption of renewable energy sources. Biomass, a readily available and renewable energy option, is increasingly being used for generating heat and power. This shift is part of a broader trend toward environmentally sustainable energy solutions.  

The global industrial biomass boiler market is set to rise at a 10.12% CAGR from 2024 to 2032, as per Inkwood Research. This growth aligns with a surge in global industrial energy consumption, which the World Bank estimates will rise by 40% between 2018 and 2050.  

According to the International Energy Agency (IEA), renewable energy led the global energy transition in 2023, accounting for nearly 50% of global renewable capacity additions, making it the fastest-growing energy source. Industrial biomass boilers, which convert organic materials into energy, are gaining traction as industries look for sustainable alternatives to traditional 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 International Energy Agency (IEA) states that the paper and pulp industry is highly energy-intensive and accounts for more than 5% of 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 fact, in 2023, solid, gaseous, and liquid biomass resources made up half of all renewable energy consumption in the EU. 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 access to biomass feedstock.

Plant owners are also 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, and transport, and the expansion of carbon and forest cover 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 Cēsis, 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 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.

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