The global biomass pellet market was valued at $6,976.3 million in 2014, and it is expected to grow with a CAGR of 11.1% by 2020, a study published by the US consultancy agency P&S Market Research claims.
According to research, the factors driving the growth of the global market include low GHG emission from biomass, increased government initiatives for renewable technologies, need for constant energy supply and massive untapped biomass potential. The rapid depletion of fossil fuels and global warming caused by their usage has shifted the global interest from conventional energy to green energy.
The different governments across the globe have initiated several schemes in the form of incentives, grants and subsidy to promote and encourage the generation of renewable energy. The new government policies are encouraging the development of renewable energy sources for power generation. This is expected to be one of the major growth drivers for biomass power generation during the forecast period. Moreover, preferential tariffs, CDM revenue, Renewable Purchase Obligations and Renewable Energy Certificates for biomass projects are an attractive investment option, which is expected to boost the growth of the market in the near future.
In 2014, the European market held the largest share in the global biomass pellet market, in terms of value and volume. The major reasons behind the growth of the biomass pellets market in the region are low GHG emission from biomass and increased government initiatives for adoption of renewable technologies.
The biomass pellets market in Europe is expected to maintain its growth rate, which is mainly driven by various subsidies and legislation. The incentives for biomass conversion in the U.K. are aimed at encouraging infrastructural development. The price of carbon is getting increased, thus making it very expensive to burn coal. As a result, the U.K. power producers are expected to continuously move towards biomass production. This is expected to support the growth of the European biomass pellets market.
In 2014, North America accounted for the second largest share in the global biomass pellet market, in terms of value and volume.
However, Asia biomass pellet market is expected to witness the fastest growth (21.6% CAGR) globally during 2015 - 2020. The major consumers of biomass pellets in Asia are China, Japan and South Korea. On January 1, 2006, Renewable Energy Law was enacted in China. As a result of this, the Chinese government put the adoption of biomass fuel development at top priority. Currently, biomass pellets are produced in large scale for replacing coal burning in China and is expected to grow steadily. This in turn, is expected to support the growth of the Asian biomass pellets market.
To read the report in full, visit https://www.psmarketresearch.com/market-analysis/biomass-pellet-market.
[News URL: http://www.cti-timber.org/content/global-biomass-pellet-market-rise-strongly-2020]