|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 1.92 billion
|
|
CAGR (2024-2028)
|
7.91%
|
|
Largest Market
|
Europe
|
|
Fastest Growing
Segment
|
Biodiesel
|
Market Overview
The Global Bioliquid Heat & Power Generation
Market was valued at USD 1.92 billion in 2022 and is expected to grow at a CAGR
of 7.91% during the forecast period. The government's growing support for green
energy is driving significant expansion in the bioliquid heat and electricity
generation market. One of the key factors fueling market growth is the
increasing production of bioliquids for heat and power generation. The market is
expanding as more countries aim to combat global warming and reduce greenhouse
gas emissions by reducing reliance on fossil fuels. Technological advancements
that convert feedstocks into liquid biofuels and increased waste recycling to
support bioliquid manufacturing are driving market expansion. The strengthened
regulatory environment for bioliquids and renewable energy is creating a
substantial opportunity for the market.
Key Market Drivers
Increasing Renewable Energy Targets and
Sustainability Goals
One of the key factors driving the Global Bioliquid
Heat & Power Generation Market is the global shift towards renewable energy
sources and the establishment of ambitious sustainability goals. Governments,
businesses, and organizations worldwide are setting targets to reduce carbon
emissions and increase the share of renewable energy in their energy
portfolios.
Many countries have made commitments to ambitious
renewable energy targets as part of their efforts to combat climate change.
These targets often include specific objectives for increasing the use of
renewable energy in the heat and power sectors. Bioliquids, derived from
organic materials like biomass and waste, play a critical role in achieving
these targets. They are considered a renewable energy source because the carbon
dioxide released during their combustion is part of the natural carbon cycle, offsetting
emissions and reducing the carbon footprint of energy generation.
Governments are implementing supportive policies,
such as feed-in tariffs, subsidies, and incentives, to promote the utilization
of bioliquids in heat and power generation. These policies create a favorable
environment for the development of bioliquid-based power plants and heating
systems, thereby driving market growth.
The second driving force behind the Global
Bioliquid Heat & Power Generation Market is the continuous advancement of
technologies related to bioliquid production and conversion. Innovations in the
production and processing of bioliquids have improved their efficiency,
cost-effectiveness, and accessibility.
Technological Advancements
The advancement of cutting-edge conversion
technologies, including pyrolysis, gasification, and hydrothermal liquefaction,
has significantly bolstered the efficacy of biomass and organic waste
conversion into bioliquids. These technologies enable higher energy yields and
decreased emissions.
Extensive research and development endeavors have
primarily concentrated on optimizing the blending of bioliquids with fossil
fuels and ensuring their compatibility with existing power generation and
heating systems. This has greatly expanded the scope of bioliquid applications
and augmented their acceptance within the energy industry.
The implementation of sustainability certification
schemes, specifically designed for biofuels and bioliquids, guarantees
adherence to stringent environmental and social criteria. The certification
process enhances the credibility of bioliquid-based energy generation and
fosters market growth.
Growing Awareness of Environmental Impact
The third driver of the Global Bioliquid Heat &
Power Generation Market is the growing awareness of the environmental impact
associated with conventional fossil fuels. As individuals, businesses, and
governments become increasingly conscious of the imperative to reduce
greenhouse gas emissions and combat air pollution, there is a discernible shift
towards cleaner and more sustainable energy sources.
Bioliquids are considered a low-carbon or
carbon-neutral energy source due to the carbon dioxide released during their
combustion being offset by the carbon absorbed during the growth of the biomass
feedstock. This environmental benefit is in accordance with the objectives of
reducing greenhouse gas emissions. In comparison to fossil fuels, the
combustion of bioliquids typically generates fewer pollutants, such as sulfur
dioxide and particulate matter. As concerns regarding air quality and public
health continue to escalate, bioliquids are increasingly regarded as a cleaner
alternative. The utilization of bioliquids derived from locally sourced biomass
reduces dependence on imported fossil fuels, thereby enhancing energy security
and supporting local economies.
In conclusion, the Global Bioliquid Heat &
Power Generation Market is driven by the mounting emphasis on renewable energy
targets, advancements in bioliquid production and conversion technologies, and
the growing recognition of the environmental impact of traditional fuels. These
drivers are fostering the adoption of bioliquids in heat and power generation,
contributing to the sustained growth of the market.
Download Free Sample Report
Key Market Challenges
Cost Competitiveness and Economic Viability
One of the key obstacles impeding the widespread
adoption of bioliquids in heat and power generation is the considerable initial
investment costs associated with the development and deployment of
bioliquid-based facilities and infrastructure.
Biomass feedstock production, bioliquid processing
plants, and retrofitting or constructing new power plants capable of utilizing
bioliquids often entail substantial capital investments. These costs can
dissuade both public and private sector investors from embracing bioliquid
projects. The economic viability of bioliquid-based heat and power generation
is intrinsically linked to the price and availability of biomass feedstock.
Feedstock prices are subject to fluctuations
influenced by factors such as weather conditions, market demand, and
competition from other industries, such as biofuels and food sectors. These
price fluctuations can introduce uncertainty for bioliquid projects, making
long-term profitability prediction and securing financing challenging.
Bioliquid-based heat and power generation
facilities typically operate on a smaller scale compared to conventional fossil
fuel power plants and even some other renewable energy sources like wind and
solar farms. This limited scale can impact economies of scale and
competitiveness. Furthermore, the increasing presence of other renewables can
create competition for government incentives, subsidies, and investor
attention.
Sustainability and Environmental Concerns
The sustainable production of biomass feedstock for
bioliquids raises concerns regarding land use competition and potential
conflicts with food production. If not managed diligently, the expansion of
biomass cultivation for bioliquids could result in deforestation, loss of
biodiversity, and conflicts over land and water resources.
While bioliquids are acknowledged as a low-carbon
energy source, the net impact on greenhouse gas emissions is contingent upon
several factors, including feedstock production practices, land use changes,
and supply chain emissions. Ensuring a positive carbon balance throughout the
entire lifecycle of bioliquid production and utilization presents a complex
challenge that necessitates comprehensive sustainability assessments and the
development of efficient and low-emission supply chains.
Regulatory and Policy Frameworks
The regulatory landscape for bioliquid heat and
power generation varies considerably across regions and countries. Inconsistent
regulations, standards, and certification processes can create barriers to
market entry, escalate compliance costs, and impede the cross-border trade of
bioliquids. The market's growth heavily relies on government policies and
support mechanisms, including subsidies, tax incentives, feed-in tariffs, and
renewable energy targets. However, the long-term stability and predictability of
these policies can be uncertain, which poses risks for investors and project
developers.
The acceptance of bioliquid-based heat and power
generation by the public and local communities can be influenced by factors
such as concerns about land use change, potential environmental impacts, and
unfamiliarity with bioliquid technologies. Addressing these concerns through
transparent communication and community engagement is an ongoing challenge that
requires trust-building.
In conclusion, the Global Bioliquid Heat &
Power Generation Market holds significant promise for sustainable energy
production. However, it faces substantial challenges related to cost
competitiveness, sustainability, and regulatory frameworks. Overcoming these
obstacles will necessitate collaboration among governments, industries, and
stakeholders to develop innovative solutions, enhance economic viability, and
ensure the environmental sustainability of bioliquid-based energy generation.
Key Market Trends
Integration with Decentralized Energy Systems
A notable trend in the Global Bioliquid Heat &
Power Generation Market is the integration of bioliquid-based systems into
decentralized energy generation models. Decentralized energy systems involve
smaller-scale power generation and heat production that are in close proximity
to end-users.
Combined Heat and Power (CHP) systems, also known
as cogeneration, efficiently produce both electricity and usable heat from a
single energy source.
Bioliquids are particularly suitable for CHP
applications, especially in industries and communities aiming to optimize
energy efficiency and reduce greenhouse gas emissions. Microgrids are
self-contained energy systems that can operate independently or in conjunction
with the main grid.
Bioliquid-based microgrids offer resilience during
grid outages and can provide clean, locally sourced energy to remote or
off-grid areas. Decentralized bioliquid projects in rural areas and communities
enable energy self-sufficiency, job creation, and the utilization of locally
available biomass resources. This trend aligns with the growing interest in
energy security, grid resilience, and the integration of renewable energy
sources into the energy mix.
Advanced Conversion Technologies
One of the prominent trends in the Global Bioliquid
Heat & Power Generation Market is the adoption of advanced conversion
technologies for bioliquid production. Traditional methods of biomass
conversion, such as combustion and fermentation, are being supplemented and, in
some cases, replaced by more sophisticated techniques. Pyrolysis involves a
decomposition process that converts biomass into bio-oil, biochar, and syngas.
Pyrolysis offers higher energy yields, reduced emissions, and the potential to
utilize a wider range of feedstocks. The adoption of these advanced conversion
technologies is driven by the need for enhanced efficiency, lower emissions,
and increased flexibility in feedstock utilization. These technologies
significantly contribute to the sustainability of bioliquid production.
Gasification converts biomass into a synthesis gas (syngas) composed of
hydrogen and carbon monoxide. Syngas can be utilized for the production of
electricity, heat, or biofuels. Hydrothermal Liquefaction employs high temperature
and pressure to convert wet biomass into biocrude oil, which can be further
refined into various bioliquids.
Segmental Insights
Fuel Type Insights
The Bioethanol
segment holds a significant market share in the Global Bioliquid Heat &
Power Generation Market. The bioethanol segment plays a significant role in the
Global Bioliquid Heat & Power Generation Market, offering a sustainable and
renewable energy source primarily for heat and power generation. Bioethanol is
produced through the fermentation of sugars or starches found in biomass
feedstocks, making it a valuable component of the bioliquid market.
Bioethanol production can
utilize a wide range of feedstocks. Crops like corn, wheat, and barley are
commonly used for bioethanol production, especially in regions like North
America and Europe. Sugarcane and sugar beet are rich in sugars, making them
ideal feedstocks for bioethanol in tropical and subtropical regions, such as
Brazil and parts of Europe. Second-generation bioethanol technologies, such as
cellulosic ethanol production, have gained traction. These processes use the
cellulose and hemicellulose components of biomass, allowing for the use of
non-food feedstocks and reducing competition with food production.
Bioethanol is considered a
low-carbon fuel because the carbon dioxide (CO2) released during its combustion
is part of the natural carbon cycle. The carbon absorbed by feedstock crops
during growth offsets the emissions, resulting in a reduced net carbon footprint.
This aligns bioethanol with greenhouse gas reduction goals and sustainability
targets. Bioethanol is already integrated into existing infrastructure,
particularly in the transportation sector as a biofuel additive in gasoline
(e.g., E10, E15). This integration can facilitate the use of bioethanol in
co-firing with fossil fuels in power generation and district heating systems.
Technology
Insights
Turbine
segment is
expected to dominate the market during the forecast period. The turbine segment
plays a pivotal role in the Global Bioliquid Heat & Power Generation Market
by facilitating the conversion of bioliquids into electricity and thermal
energy. Turbines are vital components in power plants and systems that employ
bioliquids for heat and power generation. They are seamlessly integrated into
CHP systems, where they concurrently produce electricity and thermal energy.
Bioliquids are well-suited
for CHP applications as they effectively harness the heat generated during
electricity production. Gas turbines, renowned for their high efficiency and
flexibility, are commonly utilized in bioliquid-based power generation. They
can operate on a wide range of liquid and gaseous fuels, making them suitable
for bioliquids with diverse properties.
Turbines employed in
bioliquid-based systems significantly contribute to energy efficiency by
converting a substantial portion of the energy contained in bioliquids into
electricity and heat. The CHP approach maximizes energy utilization from
bioliquids, resulting in superior overall efficiency compared to separate
electricity and heat generation. Turbines can be seamlessly integrated into
hybrid renewable energy systems, combining bioliquids with other renewable
sources such as wind and solar. These hybrid systems bolster grid stability and
provide a consistent and dependable energy supply.
Download Free Sample Report
Regional Insights
The Europe region is expected to dominate the
market during the forecast period. The European region plays a significant role
in the Global Bioliquid Heat & Power Generation
Market, driven by a strong commitment to renewable energy, sustainability,
and greenhouse gas emissions reduction.
Europe has been at the forefront of adopting
bioliquids for heat and power generation, shaping the market dynamics. It has
established a comprehensive policy framework, including the Renewable Energy
Directive (RED) and its successor, the Renewable Energy Directive II (RED II),
to promote the use of bioliquids. These directives set targets for renewable
energy share and provide sustainability criteria for bioliquids.
The European Union (EU) aims to achieve at least a
32% share of renewables in final energy consumption by 2030, driving investment
and growth in the bioliquid sector. Europe benefits from a wide range of
biomass feedstock sources, supporting sustainable bioliquid production.
Advanced technologies like pyrolysis, gasification, and hydrothermal
liquefaction are being invested in for higher energy efficiency and lower
emissions.
European countries are increasingly incorporating
bioliquids into well-established district heating systems, promoting energy
efficiency and reducing reliance on fossil fuels. Europe also places a strong
emphasis on sustainability certification for bioliquids, ensuring rigorous
criteria are met, including greenhouse gas emissions reductions and responsible
sourcing, through certifications like the ISCC EU (International Sustainability
and Carbon Certification).
Recent Developments
- In 2020, the United States
government made the decision to extend the tax credit provision for biodiesel
and renewable diesel production. This move aims to boost the production of
these fuels across different sectors. Consequently, the biodiesel tax credit
(BTC) has been extended through 2022 as well.
Key Market Players
- Albioma SA
- Archer-Daniels-Midland Co
- Ameresco Inc
- Envitec Biogas AG
- Enviva Inc.
- Drax Group
- Strabag SE
- Pinnacle Renewable Energy Inc.
- Enerkem
- Green Plains Inc.
|
By Fuel Type
|
By Technology
|
By Region
|
|
- Bioethanol
- Biodiesel
- Others
|
|
- North America
- Europe
- Latin America
- Middle East & Africa
- Asia Pacific
|
|
Report Scope:
In this report, the Global Bioliquid Heat &
Power Generation Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Global
Bioliquid Heat & Power Generation Market, By Fuel Type:
o
Bioethanol
o
Biodiesel
o
Others
- Global Bioliquid Heat &
Power Generation Market, By Technology:
o Engine
o
Turbine
o
Others
- Global Bioliquid Heat &
Power Generation Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Global Bioliquid Heat & Power Generation Market.
Available Customizations:
Global Bioliquid Heat & Power Generation Market
report with the given market data, Tech Sci Research offers customizations
according to a company's specific needs. The following customization options
are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Global Bioliquid Heat & Power Generation Market
is an upcoming report to be released soon. If you wish an early delivery of
this report or want to confirm the date of release, please contact us at [email protected]