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Biomass Power Market Report Overview
The global biomass power market attained a value of USD 149.70 Billion in 2025 and is projected to grow at a CAGR of 6.40% through 2035. The market is further expected to reach USD 278.38 Billion by 2035, driven by the global shift toward renewable baseload power, supportive co-firing and feed-in policies, and rising utilisation of agricultural, forestry, and municipal solid waste residues for electricity generation.
Key Market Trends and Insights
- Combustion remains the dominant technology segment, commanding the majority of installed biomass power generation capacity worldwide, with the segment's own revenue estimated to expand at an industry-estimated CAGR of approximately 4.9% through 2035 as operators continue co-firing and boiler-retrofit programmes across mature markets.
- Gasification is the fastest-growing technology segment, with its own CAGR estimated at approximately 10.7% through 2035 as developers accelerate large-scale biomass-to-green-gas and biomass-to-syngas conversion capacity across Europe and North America.
- Asia Pacific is the fastest-growing regional market, with its own CAGR estimated at approximately 9.2% through 2035, underpinned by rapid biomass capacity additions across China and India and expanding anaerobic-digestion and waste-to-energy investment.
Market Size & Forecast
- Market Size in 2025: USD 149.70 Billion
- Projected Market Size in 2035: USD 278.38 Billion
- CAGR from 2026 to 2035: 6.40%
- Fastest-Growing Regional Market: Asia Pacific
The Biomass Power Market's expansion is closely tied to the broader push to decarbonise baseload electricity generation, with biomass increasingly deployed alongside wind and solar to provide dispatchable renewable capacity within the wider global power generation mix. As of the end of 2024, China's installed biomass power capacity alone had reached approximately 45.99 million kilowatts, generating around 208.3 billion kilowatt-hours annually, according to state data released in June 2025, underscoring the scale biomass has achieved within national power portfolios. Combustion-based plants continue to anchor this capacity, while gasification and anaerobic digestion routes expand the fuel-flexibility of the broader generation mix.
Utilities are also restructuring legacy thermal assets to capture this growth. In November 2025, Ørsted A/S confirmed it had become the first major energy company to complete its green transformation, cutting carbon emissions by 98% since 2006 and lifting its renewable energy share to 99%, achieved in part by converting former coal-fired stations such as Asnæs and Avedøre to certified sustainable biomass firing before closing its last coal station. This conversion pathway illustrates how incumbent power producers are redeploying existing thermal infrastructure rather than building new capacity from scratch, a trend expected to support steady biomass demand through the forecast period.
On the project-development side, waste-derived feedstocks are drawing fresh capital. Ameresco, Inc. brought a 5.2-megawatt landfill-gas-to-renewable-natural-gas facility online at the Upper Rock Island County Landfill in East Moline, Illinois in January 2026, its 16th joint project with Republic Services, processing roughly 2,000 standard cubic feet per minute of landfill gas while avoiding more than 27,000 metric tons of carbon dioxide annually. Parallel momentum in boiler-equipment demand was evident at Babcock & Wilcox Enterprises, Inc., whose Renewable segment reported bookings of $21 million in the second quarter of 2025 alone, pointing to healthy near-term order visibility for biomass-fired boiler and balance-of-plant equipment across both mature and emerging markets.
Compound Annual Growth Rate
6.4%
Value in USD Billion
2026-2035
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| Global Biomass Power Market Report Summary | Description | Value |
| Base Year | USD Billion | 2025 |
| Historical Period | USD Billion | 2019-2025 |
| Forecast Period | USD Billion | 2026-2035 |
| Market Size 2025 | USD Billion | 149.70 |
| Market Size 2035 | USD Billion | 278.38 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 6.40% |
| CAGR 2026-2035 - Market by Region | Asia Pacific | 9.2% |
| CAGR 2026-2035 - Market by Country | India | 9.2% |
| CAGR 2026-2035 - Market by Country | China | 8.8% |
| CAGR 2026-2035 - Market by Technology | Anaerobic Digestion | 9.0% |
| CAGR 2026-2035 - Market by Feedstock | Biogas | 9.1% |
| Market Share by Country 2025 | India | 4.1% |
Key Trends and Recent Developments
Drax Group announced in May 2026 that it continued to generate over 5% of the United Kingdom's total electricity and approximately 10% of its renewable power, even as the company accelerated its FlexGen strategy following the March 2026 completion of its Flexitricity acquisition, which added roughly 710 megawatts of flexible generation and tolling assets. The update reinforced biomass's continuing role as a dispatchable, grid-balancing renewable source even as the company diversifies into battery storage and flexible gas assets. Companies can leverage this diversification pathway to pair baseload biomass output with flexible capacity and secure longer-term revenue visibility through capacity-market contracts.
Mitsubishi Heavy Industries, Ltd. disclosed in February 2026 that Energy Systems order intake for the first three quarters of its fiscal year reached approximately ¥2,857.0 billion, an increase of ¥889.9 billion year-on-year, prompting the company to raise its full-year guidance. While large-frame gas turbines drove much of the gain, the segment also houses the group's steam-power and boiler equipment lines that supply biomass and co-firing capacity across Japan and Southeast Asia. Companies can leverage this segment-wide order strength to secure boiler-equipment slots and engineering capacity before backlogs extend further into the forecast period.
Ameresco, Inc. and Republic Services brought a 5.2-megawatt landfill-gas-to-renewable-natural-gas facility online at the Upper Rock Island County Landfill in East Moline, Illinois in January 2026, marking the 16th collaborative project between the two partners. The plant processes approximately 2,000 standard cubic feet per minute of landfill gas into pipeline-quality renewable natural gas while eliminating more than 27,000 metric tons of carbon dioxide emissions annually, reinforcing Illinois's clean-energy targets. Companies can secure similar landfill-gas partnerships to expand biogas-feedstock capacity while generating durable environmental-credit revenue streams alongside power or RNG sales.
Ørsted A/S announced in November 2025 that it had become the first major energy company to complete its green transformation, achieving a 98% reduction in carbon emissions since 2006 and a 99% renewable energy share, accomplished partly by converting former coal-fired stations, including Asnæs and Avedøre, to certified sustainable biomass before closing its last coal unit. The milestone highlights biomass conversion as a proven decarbonisation pathway for legacy thermal fleets across Northern Europe. Companies can leverage comparable coal-to-biomass conversions to extend asset life, retain grid capacity, and meet accelerating emissions targets without full plant replacement.
Babcock & Wilcox Enterprises, Inc. Renewable Segment Posts Higher Bookings and Backlog
In its second-quarter 2025 results reported in August 2025, Babcock & Wilcox Enterprises, Inc. disclosed that its Renewable segment generated $19.0 million in quarterly revenue, up from $15.4 million a year earlier, while bookings reached $21 million for the quarter and backlog climbed to $34 million as of June 30, 2025, compared with $20 million a year prior. The segment's growth reflects continuing demand for biomass-boiler parts, construction, and project work across the company's installed base. Companies can leverage this backlog visibility to plan boiler-maintenance and retrofit capital spending further in advance, reducing the risk of unplanned outages.
Ramboll Group A/S Advises on Southeast Asian Waste-to-Energy Concession
Ramboll Group A/S confirmed in July 2025 that it was serving as technical advisor to Malakoff on a proposed waste-to-energy facility in Sungai Udang, Melaka, Malaysia, supporting negotiation of the concession, construction, power-purchase, and financing agreements. The plant is designed to process roughly 1,056 tonnes of municipal solid waste daily into about 22 megawatts of gross renewable power under a 34-year public-private concession, advancing Malaysia's 2050 net-zero target. Companies can leverage long-dated waste-to-energy concessions of this kind to secure predictable tipping-fee and power-offtake revenue over multi-decade horizons.
Vattenfall Group Reviews District-Heating Portfolio to Sharpen Biomass and Heat Strategy
Vattenfall Group disclosed in March 2025 that it was conducting a strategic portfolio review of its district-heating operations across Sweden, the Netherlands, and the United Kingdom, a business serving roughly 550,000 households and anchored in part by biomass-fired combined-heat-and-power plants such as its Uppsala facility. The company said it intended to prioritise future investment toward fossil-free electricity generation and storage while assessing potential divestment of selected heat assets. Companies can leverage similar portfolio reviews to reallocate capital toward the highest-return biomass and renewable-heat assets within a diversified generation fleet.
EnviTec Biogas Commissions Largest U.S. Anaerobic Digestion Plant
EnviTec Biogas announced in March 2025 that it had commissioned its largest U.S. anaerobic digestion facility to date, located in South Dakota, processing manure from more than 9,500 dairy cows into roughly 483 standard cubic feet per minute of renewable natural gas alongside partner SJI Renewable Energy Ventures. The project is the fifth of fifteen planned plants under the partnership and extends EnviTec's U.S. presence first established in 2012. Companies can leverage multi-plant development partnerships of this kind to standardise anaerobic-digestion engineering and shorten construction timelines across a pipeline of similar dairy-waste projects.
Biomass Power Market Industry Segmentation
This Expert Market Research Report titled "Global Biomass Power Market Report and Forecast 2026-2035" offers a detailed analysis of the market based on the following segments:
Market Breakup by Technology
- Combustion
- Gasification
- Anaerobic Digestion
- Others
Key Insight: Combustion remains the leading technology, underpinned by the scale of installed capacity highlighted by China's 45.99-million-kilowatt biomass power base reported in June 2025; Gasification is advancing fastest, exemplified by the EemsGas joint venture's biomass-to-green-gas facility in the Netherlands backed by approximately €180 million in public funding announced in May 2026; Anaerobic Digestion continues to expand through dedicated plants such as EnviTec Biogas's South Dakota facility commissioned in March 2025; and Others, including emerging co-firing and pyrolysis routes, captures a smaller niche share of the technology mix.
Market Breakup by Feedstock
- Solid
- Liquid
- Biogas
Key Insight: Solid biomass remains the dominant feedstock, reflecting continued reliance on wood chips, pellets, and agricultural residues that anchor combustion-based capacity worldwide; Liquid feedstocks, including bio-liquids and biodiesel-adjacent fuels, contribute a smaller but steady share of fuel supply; and Biogas is the fastest-growing feedstock category, evidenced by India's addition of 2.88 lakh biogas plants over the past decade as reported by its government in December 2025, alongside Ameresco's January 2026 landfill-gas-to-RNG facility in Illinois.
Market Breakup by End Use
- Industrial
- Transportation
- Others
Key Insight: Industrial end use leads the market, as pulp-and-paper, sugar, and other process industries continue to rely on biomass residues for captive power and steam generation; Transportation-linked end use is growing fastest as biomass-derived power increasingly supports rail electrification and off-grid charging infrastructure in emerging markets; and Others, spanning residential and commercial distributed generation, rounds out the remaining demand base.
Market Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Key Insight: Europe leads the regional breakup, supported by long-standing biomass co-firing and district-heating infrastructure such as Vattenfall Group.'s Nordic and Dutch heat assets; Asia Pacific is the fastest-growing region, driven by China's 45.99-million-kilowatt installed base and India's addition of 2,361 megawatts of biomass capacity over the past decade as reported in December 2025; North America continues to expand through landfill-gas-to-RNG and anaerobic-digestion projects; Latin America is supported by sugarcane-bagasse and agricultural-residue cogeneration; and the Middle East and Africa remains a smaller but emerging market anchored by waste-to-energy and diversification initiatives.
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Purchase the Regional Overview for USD 1099
If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.
Purchase the Regional Overview for USD 1099
If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.
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Biomass Power Market Share
By Technology, Combustion leads the market while Gasification grows fastest because expanding biomass-to-syngas and biomass-to-green-gas conversion capacity is outpacing the slower growth of mature combustion-based generation
Combustion-based plants continue to anchor the technology mix, supplying the majority of installed biomass power capacity worldwide through conventional steam-boiler generation. Drax Group's May 2026 update confirmed that its combustion-based biomass units alone continued to supply over 5% of the United Kingdom's total electricity and roughly 10% of its renewable generation, illustrating the scale a single large combustion fleet can deliver within a mature national grid. This installed-base advantage, combined with decades of boiler-engineering experience across operators, continues to support combustion's leading share even as newer conversion technologies expand from a smaller base.
Gasification capacity is expanding fastest as developers commercialise technology capable of processing previously unusable feedstocks. In June 2026, PyroGenesis Inc. delivered a high-temperature plasma gasification system to the Innofibre cellulosic innovation centre in Quebec, Canada, a $14 million facility capable of converting contaminated biomass material tainted with paints, solvents, and other chemicals into syngas suitable for power generation or chemical production. By unlocking feedstocks that combustion and anaerobic digestion routes cannot process, gasification developers are widening the addressable biomass resource base available to the broader power market.
By Feedstock, Solid leads the market while Biogas grows fastest because expanding anaerobic digestion and landfill-gas capture capacity is outpacing the slower growth of traditional solid-biomass combustion
Solid biomass, comprising wood chips, pellets, agricultural residues, and other dry fuels, remains the feedstock of choice for the large installed base of combustion-fired capacity worldwide. China's biomass power fleet, which reached approximately 45.99 million kilowatts of installed capacity and generated roughly 208.3 billion kilowatt-hours in state-reported figures released in June 2025, runs predominantly on solid agricultural and forestry residues, illustrating the scale solid-feedstock plants can achieve at a national level. This fuel-supply depth, together with established pelletising and logistics infrastructure, continues to anchor solid biomass's leading feedstock share.
Biogas is the fastest-growing feedstock category as landfill-gas and manure-based anaerobic digestion projects scale up across both mature and emerging markets. EnviTec Biogas commissioned its largest U.S. anaerobic digestion facility to date in South Dakota in March 2025, converting manure from more than 9,500 dairy cows into roughly 483 standard cubic feet per minute of renewable natural gas as the fifth of fifteen planned plants under its partnership with SJI Renewable Energy Ventures. Projects of this kind are expanding biogas's share of the feedstock mix well ahead of solid and liquid biomass.
By End Use, Industrial leads the market while Transportation grows fastest because electrification of transit and off-grid charging infrastructure is creating new demand for biomass-derived power beyond traditional captive industrial generation
Industrial end use continues to lead the market, as pulp-and-paper, sugar, and other process industries rely on biomass residues for captive power and process steam. India's bioenergy programme illustrates this depth: the government reported in December 2025 that the country had added 2,361 megawatts of biomass power capacity over the preceding decade, much of it tied to bagasse-cogeneration and other industrial captive-power installations across its sugar and agro-processing belt. This industrial captive-power model remains the most established and cost-predictable use case for biomass power globally.
Transportation-linked demand is the fastest-growing end-use category as biomass-derived electricity increasingly supports EV-charging infrastructure, rail electrification, and off-grid transit applications in both mature and emerging grids. The U.S. Energy Information Administration's Short-Term Energy Outlook, released in June 2026, projected that renewables would supply approximately 26% of U.S. electricity generation in 2026, rising to 27% in 2027, with waste-biomass power capacity among the categories expected to expand over the period. As grid operators lean on renewable baseload sources to meet growing electrified-transport load, biomass-fired capacity is positioned to capture an incremental share of this demand.
Biomass Power Market Regional Analysis
Europe commands the largest share of the global Biomass Power Market, holding approximately 35% of total installed capacity and generation in 2025, shaped by decades of co-firing policy support, district-heating infrastructure, and coal-to-biomass plant conversions across the region
This is supported by Vattenfall Group.'s March 2025 disclosure of a strategic review of its Nordic, Dutch, and UK district-heating portfolio a business built in part around biomass-fired combined-heat-and-power plants such as its Uppsala facility and by Ørsted A/S's November 2025 confirmation that it had completed the conversion of its remaining coal-fired stations, including Asnæs and Avedøre, to certified sustainable biomass, lifting its renewable energy share to 99%.
Asia Pacific is the fastest-growing region, with China's installed biomass power capacity reaching approximately 45.99 million kilowatts and generating roughly 208.3 billion kilowatt-hours as of state data released in June 2025, while India added 2,361 megawatts of biomass capacity over the preceding decade according to its government's December 2025 disclosure. North America continues to expand through landfill-gas and anaerobic-digestion capacity, Latin America is supported by sugarcane-bagasse cogeneration, and the Middle East and Africa remains a smaller, emerging market anchored by waste-to-energy diversification.
Competitive Landscape
The global Biomass Power Market is moderately fragmented, comprising large diversified industrial conglomerates, specialised boiler and gasification-technology providers, utility-scale power producers, and regional waste-to-energy developers competing across technology, feedstock, and regional lines.
Competitive dynamics are increasingly shaped by the scale of installed thermal assets available for coal-to-biomass conversion, the depth of engineering and boiler-technology expertise a company can offer, and the financial strength required to fund multi-year waste-to-energy and anaerobic-digestion concessions, with technology breadth across combustion, gasification, and anaerobic digestion emerging as a key differentiator among leading players.
Babcock & Wilcox Enterprises, Inc.
Founded in 1867 and headquartered in Akron, Ohio, United States, Babcock & Wilcox Enterprises, Inc. designs, manufactures, and services steam-generation, boiler, and environmental-control equipment for power and industrial customers, including biomass-fired and waste-to-energy boiler systems. In its second-quarter 2025 results reported in August 2025, the company's Renewable segment posted $19.0 million in revenue and a backlog of $34 million, reflecting sustained demand for its biomass-boiler parts, construction, and engineering services.
Ørsted A/S
Formed in 2006 through the merger of several Danish energy companies and renamed Ørsted in 2017, the Fredericia, Denmark-headquartered company is a leading developer of offshore wind and other renewable generation, including biomass-fired combined-heat-and-power plants converted from former coal stations. In November 2025, Ørsted confirmed it had completed its green transformation, cutting carbon emissions by 98% since 2006 and lifting its renewable energy share to 99%, achieved partly through the conversion of plants such as Asnæs and Avedøre to certified sustainable biomass.
Mitsubishi Heavy Industries, Ltd.
Founded in 1884 and headquartered in Tokyo, Japan, Mitsubishi Heavy Industries, Ltd. is a diversified heavy-industry group whose Energy Systems business supplies steam turbines, boilers, and biomass and co-firing power-generation equipment worldwide. In February 2026, the company reported that Energy Systems order intake for the first three quarters of its fiscal year had risen to approximately ¥2,857.0 billion, an increase of ¥889.9 billion year-on-year, prompting it to raise full-year guidance.
Vattenfall Group.
Founded in 1909 and headquartered in Solna, Sweden, Vattenfall Group. is a state-owned utility operating power generation, district heating, and distribution assets across Northern Europe, including biomass-fired combined-heat-and-power plants such as its Uppsala facility. In March 2025, the company disclosed a strategic portfolio review of its district-heating operations across Sweden, the Netherlands, and the United Kingdom serving approximately 550,000 households as part of a broader prioritisation toward fossil-free generation and storage investment.
Other key players in the Biomass Power market include Ameresco, Inc. and Ramboll Group A/S, among others.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Key Highlights of the Biomass Power Market Report
- The global Biomass Power Market was valued at approximately USD 149.70 billion in 2025 and is projected to grow at a CAGR of 6.40% through 2035, reaching approximately USD 278.38 billion by 2035.
- Combustion is the leading technology segment, while Gasification is the fastest-growing, supported by large-scale biomass-to-green-gas projects such as the EemsGas facility in the Netherlands.
- Solid biomass remains the dominant feedstock, while Biogas is expanding fastest on the back of growing landfill-gas and anaerobic-digestion capacity.
- Europe leads the market regionally, while Asia Pacific is the fastest-growing region, driven by rapid biomass capacity additions in China and India.
- The competitive landscape features diversified industrial conglomerates, specialised boiler and gasification-technology providers, and regional waste-to-energy developers, including Babcock & Wilcox Enterprises, Inc., Ørsted A/S, Mitsubishi Heavy Industries, Ltd., and Vattenfall Group.
Why Rely on Expert Market Research?
- In-depth, technology-, feedstock-, and region-level segmentation of the global Biomass Power Market, built on primary and secondary research.
- Transparent methodology benchmarked against verifiable company disclosures, government data, and industry developments, with no reliance on unverifiable third-party estimates.
- Continuously updated coverage of company-level developments, capacity additions, and regulatory shifts shaping the biomass power landscape.
- Actionable competitive-intelligence profiles of leading and emerging players across the biomass power value chain.
- Dedicated analyst support to help stakeholders translate market data into investment, capacity-planning, and go-to-market decisions.
Call to Action
As the Biomass Power Market continues to evolve from 2026 onward, Expert Market Research offers in-depth analysis, actionable insights, and strategic recommendations to help stakeholders navigate the competitive landscape, identify emerging opportunities, and make informed investment and capacity-planning decisions.
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Frequently Asked Questions About This Report
The market is projected to grow at a CAGR of 6.40% between 2026 and 2035.
Key players are converting legacy coal-fired assets to certified sustainable biomass, expanding gasification and anaerobic-digestion capacity to diversify feedstock flexibility, pursuing long-term waste-to-energy concessions, and forming multi-project partnerships to standardise engineering and shorten construction timelines.
The key market trends guiding the industry growth include the rising competition and ongoing R&D activities.
The major regions in the industry are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific, with Europe accounting for the largest share in the market.
The major sources of the product in the industry are solid biomass, biogas, municipal waste, and liquid biomass.
The leading end use sector of the product is the industrial sector.
Key players in the Biomass Power Market include Vattenfall Group., Babcock & Wilcox Enterprises, Inc., Ameresco, Inc., Ørsted A/S, Ramboll Group A/S, and Mitsubishi Heavy Industries, Ltd., among other participants.
The Biomass Power Market was valued at USD 149.70 Billion in 2025.
The market is expected to attain approximately USD 278.38 Billion by 2035.
Key challenges include feedstock-supply logistics and seasonality, competition for agricultural and forestry residues from other bioeconomy uses, policy and subsidy uncertainty around biomass sustainability criteria, and the capital intensity of coal-to-biomass plant conversions.
Report Summary
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Technology |
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| Breakup by Feedstock |
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| Breakup by End Use |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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