Biomass Gasification Market

The global biomass gasification market is receiving strong tailwinds as the boom around renewables grows denser. Research predicts growing application for MSW management will significantly drive the market revenue in future.

Market Analysis in Brief

In a regulated atmosphere, biomass derived from organic matter is transformed into gases like carbon dioxide, hydrogen, and carbon monoxide, in the process of biomass gasification. The demand for decentralized energy generation has increased due to the rising rate of rural electrification, particularly in emerging nations. This desire is a key factor propelling the worldwide biomass gasification market toward expansion. In addition, the market is gaining from the broadening acceptance of these waste processing systems as an alternative to traditional but environmentally unsustainable methods like landfilling, and incineration.

Additionally, the major market participants and governments of various countries have continually made investments in creating cutting-edge technologies, further aiding in the expansion of the biomass gasification market. For instance, the Gasification Systems Program of the United States Department of Energy (USDOE) is creating novel and adaptable modular designs. This facilitates the production of clean synthesis gas from various domestic coal blends, waste plastics, and municipal solid waste in the US. Additionally, the global market is positively impacted by the growing development and commercialization of small- to large-scale biomass gasification systems coupled with power generation equipment.

Key Report Findings

• In 2021, the global biomass gasification market size roughly exceeded US$25 Mn
• The market is expected to demonstrate noteworthy growth as energy generation from biomass has picked pace
• Potential opportunities in municipal solid waste (MSW) management will propel market revenue through 2030
• Asia Pacific is poised to account for the largest share of the market value pie

Growth Drivers

Increasing Adoption of Alternate Energy Resources

The consistently growing demand for decentralized energy is primarily driving the progression of the biomass gasification market. The world's energy needs are growing daily, while fossil fuel sources are depleting quickly at the same time. Since fossil fuels are limited resources, they will eventually run out. Coal extraction has expanded due to coal-based nuclear power plants and other uses. As a result, carbon emissions rise along the entire coal extraction value chain, from mine to combustion.

Like other limited energy sources, oil and gas are aggressively sought and mined to fulfill global energy demands but because the sources are running out quickly, efforts are being made to find alternative energy sources. Biomass is being investigated and developed as one of the preferred renewable energy sources. As a result, the biomass gasification market is driven by quickly running out of fossil fuels.

Increasing Application for MSW, and Growing Industrial Application

Several nations are putting municipal waste management practices into practice. This aids in preventing MSW from being disposed of in landfills or burned, both of which increase carbon emissions and environmental degradation. Organic material from daily home and other activities is present in the garbage. Due to its high organic content, it burns quickly and produces a lot of gas and heat energy, both of which can be used to make power.

Biomass gasification plants were restricted to small-scale industrial or residential settings. The demand for biomass gasification has increased due to rising investment and increased knowledge of the different advantages and incentives. Additionally, the market for biomass gasification is boosted by the fact that creating hydrogen through biomass gasification is one of the greenest and cleanest methods. As a result, the method has become more commercialized, which promotes the biomass gasification market expansion.

Growth Challenges

High Initial Investments

Installing biomass gasification plants is expensive. The necessary equipment is expensive and hefty. Additionally, the labor costs for the same are expensive. As a result, the cost of building and operating gasification facilities rises. This hinders the expansion of the biomass gasification market. This deters the overall market share of biomass gasification in the primary energy sector. Investor apathy also has a detrimental effect on the market. While this is happening, market possibilities for biomass gasification are being provided by technological developments that produce little to no tar during the gasification process.

COVID-19 Impact

The worldwide supply chain disruption caused a decline in waste management operations, negatively influencing the global biomass gasification market, particularly in the beginning. Due to a broken supply chain, a backlog in government permissions, and a refusal to bend, the ongoing and planned projects were delayed. However, as the 2030 net emissions objectives draw closer, public and commercial actors worldwide are investing in biomass technology to transition to clean energy from biomass gasification.

Overview of Key Segments

Fixed Bed Gasifiers Dominant with Heterogeneous Feedstock Handling Ability

The biomass gasification market is segmented into moving or fixed beds, fluidized beds, entrained, and others based on the kind of gasifier. Moving or fixed bed gasifiers, which can handle heterogeneous feedstock like MSW and are useful for waste-to-fuel or waste-to-power, have the largest share of the biomass gasification market pie. However, during the projection period, fluidized bed gasifiers are anticipated to expand at a faster CAGR. There are two types of fluidized bed gasifiers, viz., bubbling and circulating. Both the gasifiers have dense beds and low and high fluidization velocities.

The ability to operate at greater temperatures makes the fluidized bed gasifiers advantageous for producing heat and gases like methane, and hydrogen. These gasifiers are appropriate for producing fuels, chemicals, and hydrogen. The following traits are frequently seen in entrained-flow gasifiers, such as their ability to accept a range of solid feedstocks as fuel. Most commercial plants are oxygen-blown. However, it can also be air-blown and has high oxidant requirements. It is employed in slagging processes and requires a constant temperature inside the reactor. Although its cold gas efficiency is modest, it has a high carbon conversion rate.

Power Generation Remains the Leading Segment

Power generation remains the leading application category in the biomass gasification market with a dominant value share, which is anticipated to expand at a faster CAGR over the projection period. This can be ascribed to the fact that the power sector is actively working on the energy transition from coal-based to affordable and eco-friendly solutions, and biomass is anticipated to enhance its contribution with increased developments in gasification technology. Wastes created from biomass, such as wood, are used by the electric power sector to produce electricity sold to other industries. About 4.8 quadrillions of Btu, or 5% of the nation's total primary energy consumption, came from biomass. For 2021, the United States' total biomass energy usage in the power sector was 9%.

Since the power industry is actively pursuing a coal-to-affordable, environmentally friendly energy transition, biomass is anticipated to enhance its role with increased gasification technology developments. The process of gasification produces several byproducts that can create liquid fuels. These liquid fuels are employed in the transportation, aerospace, and aviation industries. The global movement to reduce carbon emissions has gained speed due to the dramatic rise in those emissions over the past few decades. Several government and market participants are actively investing in green technologies to reduce carbon emissions.

Growth Opportunities Across Regions

Asia Pacific to Secure the Top Spot

The industry is expected to be led by Asia Pacific during the projected period. Numerous elements, including the rising energy demand, the existence of sizable coal reserves, and the rising demand for clean energy technologies, can be blamed for the market expansion in the Asia Pacific region. China, India, and Japan are the other main revenue contributors to the region’s biomass gasification market. Additionally, the BP Statistical Review estimates that the Asia Pacific region produced 2,853.1 million tonnes of coal equivalent in 2019. In 2018, the region produced over 73% of the coal consumed worldwide. With 2,841.3 million tonnes of oil equivalent in coal consumption in 2018, the area was also the world's largest coal user.

Decentralized Energy Systems of India (DESI) by the Indian government uses biomass gasification projects to harness electricity for economic activity in nations like India, where the rural sector is still unable to reap the benefits of primary energy. In large-scale biomass gasification plants, MSW is burned. The MSW is initially separated before being burned in gasification plants. Waste-to-energy facilities are widely used to extract energy in MSW. In some European nations and Japan, the utilization of waste-to-energy plants is comparatively high. Over the projection period, North America, and Europe are anticipated to witness a uptick. The majority of biomass gasification facilities are in Europe. Europe will have more than 42,000 MW gasification capacity by the end of 2020.

Global Biomass Gasification Market: Competitive Landscape

A few players in the biomass gasification market include Beltran Technologies, Inc., Vaskiluoto Voima Oy, EQTEC plc, Ankur Scientific Energy Technologies Pvt. Ltd., KASAG Swiss AG, Goteborg Energi AB, Infinite Energy Pvt. Ltd., Chanderpur Works Private Limited, Valmet Corporation, and ThyssenKrupp AG.

Recent Notable Developments

• In April 2021, EQTEC plc purchased an Italian waste-to-energy facility. It restarted the plant, using straws and other local farm and forest trash to make bioenergy through gasification, which would power the neighborhood
• In May 2022, The Valmet Corporation unveiled a brand-new facility in Sweden. The facility's main goal is to boost biomass treatment research and development. Additionally, this will assist the business in meeting the need for biofuels and bioenergy

Regional Classification of the Global Biomass Gasification Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability

Key Elements Included In The Study: Global Biomass Gasification Market

• Biomass Gasification Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2018 - 2022
• Volume Consumption at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Production Output Analysis (Major Producing Regions)
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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