Environmental Sustainability of Industrial Biomass Boilers to Drive Global Industrial Biomass Boiler Market

Industrial biomass boilers are usually fired on wood pellets and wood chips instead of coal, oil, and gas to produce power and heat. These boilers are gaining popularity across a number of sectors due to the growing demand for bioenergy. The global industrial biomass boiler market is anticipated to expand robustly at a CAGR of 11.1% during the period between 2016 and 2025. The overall market was worth US$68.2 bn in 2015 and is projected to reach a valuation of US$193.1 bn by 2025. 

• What is the commonly used feedstock in industrial biomass boilers?

Wood deliverable remains the single-largest feedstock for heat and power generation through biomass. Other commonly used feedstock inindustrial biomass boilers includes landfill residues, agricultural residue including high energy crops such as miscanthus, maize, and willow. The increasing utilization of biomass, including plant and manure materials to generate electricity will significantly help in the conservation of non-renewable sources of energy. Thus, the installation of biomass power plants will help in attaining climate policy objectives. 

• Which are the key regions that hold immense potential for the growth of the global industrial biomass boiler market?

The usage of biomass as an energy source has a number of environmental and economic advantages. While the developed economies across Europe and North America are fast realizing the importance of industrial biomass boilers and are framing policies targeted towards affordable and green energy, the developing nations in South and Central America, Asia Pacific, and Africa are largely untapped regions in the global industrial biomass boiler market. 

In Asia Pacific, Singapore is among the pioneers in waste management. Recently, Mitsubishi Heavy Industries and Hyflux, a Singapore-based water company, have secured loans worth US$473 mn to develop a waste to energy plant. The TuasOne plant is anticipated to generate 120 MW of energy by processing 3,600 tons of waste per day. In the plant, biomass steam boilers will be fuelled by industrial and commercial waste to generate electricity.  

• How is CHP production defining the future outlook of the global industrial biomass boiler market?

The key application areas of industrial biomass boiler include industries such as breweries, pulp and paper, sawmills, power generation, CHP production, and others. CHP production has majorly driven the demand from the global industrial biomass boiler market since 2014. 

Combined heat and power generation is the key to building a greener economy. As a result, governments are focussing more on CHP production. For example, in Britain, the manufacturing sector consumes a large amount of heat from non-renewable resources. In an effort to make the U.K. economy greener, the Green Investment Bank and Equitix are investing funds worth £25 mn to build a plant for CHP production in the Wrexham Industrial Estate located in Wales. The plant is expected to generate 34 GWh of energy per year. The construction of such environmentally sustainable plants across nations will fuel the demand for industrial biomass boiler market.

Biomass Boiler Sales to be Pushed Upward by Regulatory Enforcement and Cost Saving Incentives

Behind the consistently rising sales of biomass boilers globally are several larger forces at play. The regulatory environment for one, has created a scenario where both industrial and residential consumers are gradually being compelled to switch over to greener energy sources. Biomass fits this need well as it can be burned to directly produce heat and it can be used to produce liquid biofuels. Although the United States is the world leader in biomass power generation (half of the country’s renewable energy produced is biomass), many other countries are catching up. This is causing an unprecedented rise in the sales of biomass boilers globally. The United Kingdom, notably, is expecting higher demand for biomass boilers as a result of its Renewable Heat Incentive (RHI) policy.

Despite concerns that most of the biomass obtained for use in biomass boilers today comes from sources that are not sustainable, the global biomass boiler, nevertheless, will continue to gallop ahead at a CAGR of 19.9% between 2014 and 2022. By 2022, the global biomass boiler market is expected to be worth US$8.90 bn, estimates Transparency Market Research.

Regulations Pave the Way for Increased Biomass Boiler Sales

In terms of sales of biomass boiler, Europe was the largest market in the world in 2013. The region has attained this position thanks largely to ambitious targets for the use of biomass energy in its overall energy consumption pie. Programs such as the Renewable Heat Incentive (RHI) have boosted sales of biomass boilers in the United Kingdom. The U.K. aims to implement innovative energy technologies to achieve a targeted reduction of 80% in its GHG emissions by 2050. The widespread use of biomass boilers is integral to this meeting this ambitious plan.

In the United Kingdom, biomass is being used not just for heat and power generation, but also for producing fuel that can be used in the transportation sector. Thus, the future of the biomass boilers market in the United Kingdom remains strong.

Cost Savings Afforded by Biomass Boilers are Propelling Purchases

Among the notable benefits of a biomass boiler is the fact that its functioning is similar to a conventional oil or gas boiler, except that the former uses logs of wood or wood pellets to generate heat.

In the United Kingdom, although the cost of a biomass boiler on the market is more than that of a conventional wood stove or boiler, consumers using a biomass boiler can claim a reimbursement of part of their energy bills for using a renewable energy source. The RHI scheme, introduced in 2014, will be applicable for five years. These incentives are applicable to consumers using a biomass stove and biomass boiler. In countries such as Austria too, a sizeable portion of energy is generated by using biomass. More such examples are being seen outside of Europe too, indicating that the demand for biomass boilers will rise steadily northward.

However, the storage of wood pellets and logs calls for massive space and this is proving to be a greater hindrance than expected in the smooth switchover to biomass.

Browse Industry Research Press Release: http://www.transparencymarketresearch.com/pressrelease/biomass-boiler-market.htm