Global Biomass Energy Expansion: A 2023–2027 Outlook-Biomass energy—derived from organic materials such as agricultural residues, wood pellets, and animal waste—is emerging as a cornerstone of the renewable energy revolution. As countries seek alternatives to fossil fuels, biomass offers a flexible, sustainable energy solution that is already fueling electricity, heating, and transportation systems globally. Between 2023 and 2027, the biomass energy sector is expected to witness significant growth driven by policy support, technology innovation, and environmental commitments.
Market Growth and Projections
There has been a steady upward trend in the global market for biomass-based electricity. In 2024, the market was valued at approximately $41.4 billion. By 2025, it had already grown to about $45.2 billion, posting a compound annual growth rate (CAGR) of 9%. Looking ahead, forecasts indicate the market will expand to over $61.3 billion by 2027, maintaining a healthy CAGR of nearly 8%.
In parallel, the biomass power generation market—focused on electricity production from biomass—is expected to rise from $91.3 billion in 2024 to around $105.7 billion by 2028. This represents a consistent CAGR of 3%, highlighting the steady global investment in biomass as a core component of renewable energy portfolios.
Regional Developments and Expansion Plans
Europe
European countries are taking proactive steps to scale up biomass utilization. The UK is actively constructing new bioenergy facilities, adding nearly 875 megawatts (MW) of capacity. Japan, although outside Europe, has committed to increasing its bioenergy capabilities by building an estimated 1,200 MW of new biomass power plants. These expansions are set to raise bioenergy capacity by roughly 20% in the UK and 36% in Japan, positioning these countries as leaders in the transition toward cleaner energy sources.
Africa
On the African continent, Namibia is making notable strides with the development of the Otjikoto Biomass Power Station. This 40 MW plant, scheduled for completion by 2027, is designed to use sustainably harvested wood chips. The project will help meet local energy needs while supporting environmental restoration by reducing bush encroachment.
Asia
With abundant agricultural resources, India is a central force in the expansion of biomass energy. With vast agricultural resources, the country is leveraging biomass for rural electrification and industrial use. National programs are incentivizing biogas plant installations, particularly under initiatives aimed at rural households. These programs not only promote clean energy but also reduce reliance on traditional fuels like firewood and kerosene.
Technological Innovations
Innovations in biomass conversion are reshaping the industry. From hybrid systems combining solar and biomass to advanced gasification techniques, technology is helping reduce emissions, improve fuel efficiency, and lower production costs. Hybrid biogas plants, in particular, are gaining traction for their ability to process multiple organic inputs and generate steady energy output while minimizing operational waste.
Automation and AI-based monitoring are also entering the scene, making plant operations more efficient and scalable. These technologies are critical in ensuring the sustainability of biomass production without overexploiting natural resources.
Environmental and Economic Impacts
Biomass energy provides numerous environmental and socio-economic benefits:
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Carbon Neutrality: When sourced sustainably, biomass can be nearly carbon neutral. The carbon dioxide emitted during combustion is typically offset by the carbon absorbed during plant growth.
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Waste Utilization: Biomass projects reduce landfill use by repurposing organic waste, such as crop residues, wood waste, and even municipal solid waste.
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Job Creation: Expanding the biomass sector creates diverse jobs in cultivation, supply chain operations, technical services, and plant maintenance—most notably in remote and economically weaker regions.
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Energy Security: By reducing dependency on imported fossil fuels, biomass strengthens national energy independence and price stability.
Challenges Ahead
Despite the positive outlook, the biomass sector faces several hurdles:
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Sustainability Concerns: Unsustainable harvesting and monoculture energy crops can lead to deforestation and biodiversity loss.
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Air Quality: Improper combustion methods can emit fine particulate matter and pollutants.
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High Initial Costs: Setting up biomass plants requires significant upfront investment and reliable supply chain infrastructure.
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Policy Gaps: Inconsistent regulatory frameworks in many regions hinder large-scale adoption.
To overcome these barriers, international cooperation, stricter sustainability standards, and targeted subsidies will be essential.
Future Outlook
The future of global biomass energy is promising. As countries aim to meet net-zero emissions targets, biomass will play a crucial role in decarbonizing sectors like heating and transportation, which are harder to electrify. Between 2025 and 2027, the expansion of biomass is expected to be widespread across continents, supported by growing demand for green energy and more efficient technology.
With continued investment, clear regulations, and innovation, biomass energy is set to become a critical pillar in the world’s clean energy transition—providing power, reducing waste, and supporting economic growth in the process.
