As per MRFR analysis, the US Biomass Power Market Size was estimated at 14.87 (USD Billion) in 2023. The US Biomass Power Market Industry is expected to grow from 15.5(USD Billion) in 2024 to 0.03 (USD Billion) by 2035. The US Biomass Power Market CAGR (growth rate) is expected to be around -43.331% during the forecast period (2025 - 2035).
Key US Biomass Power Market Trends Highlighted
In the US Biomass Power Market, a notable trend is the shift towards sustainability as states increasingly adopt policies to promote renewable energy solutions. The US government encourages the use of biomass as a clean energy source, which is evident in various incentives and tax credits offered to biomass power projects. This trend aligns with national goals to reduce greenhouse gas emissions and reliance on fossil fuels, making biomass an attractive option for energy generation.
Key market drivers for this growth include the rising demand for renewable energy and stricter environmental regulations aimed at promoting clean energy solutions. The USDA and the Department of Energy actively support biomass as part of a broader initiative to enhance energy security and reduce waste by utilizing agricultural and forestry residues.These efforts are further bolstered by technological advancements that improve the efficiency and competitiveness of biomass power generation. Moreover, there are significant opportunities in the US Biomass Power Market for innovation in waste-to-energy conversion technologies and expanding infrastructure. Enhanced facilities for collecting and processing biomass can create more efficient supply chains and improve overall energy output.
Additionally, as public awareness of climate change increases, there is potential for stronger community support and funding for biomass initiatives, particularly in rural areas where biomass resources are abundant.Recently, collaborations between industry stakeholders and research institutions have gained momentum, aiming to find better solutions for biomass utilization and to address challenges such as feedstock supply and processing methods. This collaborative climate fosters innovation and promotes the understanding of biomass's role within the renewable energy landscape. Overall, these developments illustrate a promising trajectory for the US Biomass Power Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Biomass Power Market Drivers
Growing Energy Demand in the US
The increasing energy demand in the United States is a significant driver for the US Biomass Power Market Industry. According to the U.S. Energy Information Administration, electricity consumption is projected to grow by approximately 1.3% annually over the next decade. This growing consumption necessitates diversification of energy sources, with biomass power emerging as a viable option. Furthermore, biomass energy offers a renewable solution that aligns with federal initiatives aiming to reduce carbon footprints.The United States Department of Energy is actively promoting renewable energy resources, including biomass, under the Bioenergy Technologies Office, thereby supporting the development of biomass power solutions. This aligns well with the country's commitment to reducing greenhouse gas emissions in line with the Paris Agreement targets, indicating a long-term opportunity for biomass power market growth.
Supportive Government Policies
Government policies are increasingly favoring clean energy technologies and sustainability, driving the US Biomass Power Market Industry forward. For example, the U.S. Renewable Fuel Standard program established by the Environmental Protection Agency (EPA) encourages the production of fuels from renewable resources, including biomass. As part of this program, the legislation mandates specific percentages of renewable fuel to be blended with conventional fuels, which has significantly expanded the biomass power sector.In 2022, over 90 million gallons of biofuel were produced from biomass sources in the U.S., reflecting a strong governmental push towards a sustainable energy infrastructure. This support aligns with initiatives aimed at enhancing job creation in rural areas, promoting economic growth, and improving energy security, thereby providing a conducive environment for the biomass power market.
Advancements in Biomass Conversion Technologies
Technological advancements in biomass conversion processes are enhancing the viability and efficiency of biomass power generation, fostering growth in the US Biomass Power Market Industry. Recent innovations in gasification, anaerobic digestion, and combustion technologies have improved the energy output from biomass feedstocks. A report from the National Renewable Energy Laboratory highlighted that the efficiency of converting biomass into energy has improved by about 30% over the past decade due to these advancements.
Additionally, the U.S. Department of Agriculture supports the development of innovative biomass technologies that enable better utilization of agricultural residues and waste materials, thus providing both environmental benefits and commercial opportunities for the biomass industry. As a result, these technological improvements not only contribute to higher energy yield but also significantly reduce operational costs, making biomass power a more attractive option for energy producers.
US Biomass Power Market Segment Insights:
Biomass Power Market Feedstock Insights
The Feedstock segment in the US Biomass Power Market plays a crucial role in defining the overall landscape and functionality of the biomass energy sector. This segment comprises various components, including Woody Biomass, Agricultural Residues, Forest Residues, Biogas, Landfill and Sewage Gas, Energy Crops, as well as Industrial and Municipal Waste. Each component holds significant importance in contributing to the Biomass Power Market, facilitating energy generation through renewable means. Woody Biomass, often derived from trees, is one of the most widely recognized sources, providing durable energy solutions and contributing to sustainable forest management practices.
Agricultural Residues, sourced from the processing of crops, serve as an invaluable resource, helping mitigate waste while contributing to the renewable energy supply chain. Forest Residues, largely resulting from logging and thinning activities, help in improving forest health and increasing the availability of biomass energy. Biogas production, primarily from decaying organic materials, presents an opportunity to harness waste from various sectors, including livestock and food processing, thus addressing both energy needs and waste management issues.Landfill and Sewage Gas represent a unique opportunity within this segment, capturing methane emissions from waste management sites to generate energy. The utilization of Energy Crops, specifically grown for energy production, introduces sustainability into agricultural practices.
Moreover, Industrial and Municipal Waste is pivotal as it redirects waste materials that would otherwise contribute to landfill burdens, converting them into usable energy and reducing environmental impact.Trends in the US suggest an increasing focus on sustainable practices and efforts to reduce carbon footprints, driving innovations in Feedstock utilization. The ongoing developments in technology are expected to foster the growth of the Feedstock segment, optimizing the conversion processes and enhancing overall efficiency in the biomass power sector. Additionally, public policies supporting renewable energy initiatives are contributing to a favorable environment for the feedstock components of the biomass power market. Overall, the Feedstock segment stands as a fundamental pillar supporting the efforts toward a renewable energy future in the U.S. while addressing vital environmental challenges related to waste management and resource sustainability.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Biomass Power Market Technology Insights
The Technology segment of the US Biomass Power Market encompasses various methods through which biomass can be converted into electricity and heat, prominently including Anaerobic Digestion, Combustion, Gasification, and Co-Firing. Anaerobic Digestion is vital as it not only generates energy but also helps in managing organic waste effectively, contributing to sustainability efforts across the country. Combustion remains a significant method due to its established technology and ability to utilize a variety of biomass feedstocks, making it a popular choice amongst energy producers.
Gasification is gaining traction as it allows for cleaner energy production with the ability to convert biomass into synthetic gas, promoting efficiency and lower emissions. Co-Firing emerges as an important technology in the energy landscape as it enables the blending of biomass with traditional fossil fuels, thus reducing overall greenhouse gas emissions while leveraging existing infrastructure. Collectively, these technologies represent a dynamic and evolving approach to harnessing biomass power, reflecting the increasing focus on renewable energy solutions in the United States, driven by regulatory support and a growing demand for sustainable energy sources in the market.
Biomass Power Market End Use Insights
The US Biomass Power Market, characterized by its varied End Use segments, showcases distinct dynamics across Industrial, Commercial, and Residential categories. The Industrial sector plays a vital role in the energy supply chain, leveraging biomass to power manufacturing processes and reduce dependence on fossil fuels, which aligns with national sustainability goals. The Commercial segment contributes significantly by utilizing biomass for energy in offices and retail spaces, often supported by state-level incentives promoting renewable energy solutions.
Meanwhile, the Residential sector caters to households looking for alternative energy sources, emphasizing energy independence and environmental responsibility. Together, these segments reflect the diverse applications of biomass energy, highlighting trends towards cleaner energy solutions and innovative technologies. The market growth is propelled by a combination of regulatory support, increasing public awareness of environmental issues, and technological advancements in biomass energy generation, making the US a leader in the Biomass Power landscape.
US Biomass Power Market Key Players and Competitive Insights:
The US Biomass Power Market is an evolving sector characterized by an increasing focus on renewable energy sources and sustainability. As companies and governments actively promote cleaner alternatives to fossil fuels, biomass power has emerged as a significant player in the renewable energy landscape. The market is influenced by various factors, including regulatory frameworks, technological advancements, and an ever-growing demand for green energy solutions. Competitive insights in this market reveal a landscape where companies are adopting innovative strategies to capitalize on opportunities while mitigating challenges posed by fluctuating raw material costs, regulatory policies, and competition from other renewable energy sources.
Understanding the dynamics of this sector requires a close examination of key market players, their strengths, and positioning, which ultimately shape the competitive landscape.Drax Group is a prominent entity within the US Biomass Power Market, known for its strategic investments in biomass energy generation. The company has established a significant presence in the US by converting traditional coal power plants to biomass plants, aligning with national goals for reducing greenhouse gas emissions. Drax Group’s strengths include its advanced technology in biomass conversion, large-scale production capabilities, and a strong commitment to sustainability and environmental stewardship.
The company's extensive supply chain management and partnerships with local suppliers enhance its ability to source biomass efficiently. With robust operational efficiency and a focus on innovation, Drax Group remains well-positioned to leverage growth opportunities in the US, further advancing its mission in biomass energy.Resolute Forest Products plays a vital role in the US Biomass Power Market by capitalizing on its extensive forest products operations that produce various by-products suitable for biomass energy generation.
The company’s strength lies in its vertical integration, which allows it to effectively supply biomass fuel derived from wood chips, sawdust, and other residual materials. Resolute's commitment to sustainability is evident through its responsible forest management practices, which not only support biomass production but also contribute to overall ecosystem health. With established operations across several US states, the company enhances its market presence through strategic partnerships and a focus on renewable energy solutions. Resolute Forest Products continually explores opportunities for mergers and acquisitions to strengthen its foothold in the biomass sector, ensuring a steady supply of biomass resources and expanding its capabilities in energy generation.
Key Companies in the US Biomass Power Market Include:
US Biomass Power Market Industry Developments
The US Biomass Power Market continues to evolve, with significant developments in recent months. In October 2023, Drax Group announced its commitment to expanding its biomass operations within the US, aiming to increase sustainable wood pellet production, which aligns with the growing demand for renewable energy sources. Concurrently, Resolute Forest Products has been focusing on enhancing its biomass supply chains to meet environmental sustainability goals. RWE and Avangrid are investing in advanced biomass technologies to improve efficiency and reduce emissions, reflecting a shift towards greener operational practices.
In terms of market valuation, companies like Duke Energy and Green Plains Renewable Energy have shown promising growth as they diversify their energy portfolios towards renewable sources, significantly impacting their market position. Recent years have seen a trend in mergers and acquisitions, with Dominion Energy acquiring assets focused on biomass technology, fostering competitiveness in January 2023. Notably, Enviva is expanding its production capacity to meet escalating demand, contributing to an expansion in the overall biomass market. These actions signal a robust trajectory for the biomass power sector in the US, responding to both regulatory pressures and market opportunities.
US Biomass Power Market Segmentation Insights
Biomass Power Market Feedstock Outlook
Biomass Power Market End Use Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 14.87 (USD Billion) |
| MARKET SIZE 2024 | 15.5 (USD Billion) |
| MARKET SIZE 2035 | 0.03 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | -43.331% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Drax Group, Resolute Forest Products, RWE, Avangrid, Duke Energy, Green Plains Renewable Energy, Dominion Energy, Orsted, Renewable Energy Group, NextEra Energy, Enviva, TriState Generation and Transmission, Energy Capital Partners, Pacific Gas and Electric, Nexterra |
| SEGMENTS COVERED | Feedstock, Technology, End Use |
| KEY MARKET OPPORTUNITIES | Increased government incentives, Technological advancements in biomass conversion, Waste-to-energy initiatives expansion, Growing demand for renewable energy, Partnership opportunities with agricultural sectors |
| KEY MARKET DYNAMICS | renewable energy policies, feedstock availability, technology advancements, environmental regulations, market competition |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Biomass Power Market is expected to be valued at 15.5 USD billion in 2024.
By 2035, the US Biomass Power Market is expected to be valued at 0.03 USD billion.
The market is projected to have a CAGR of -43.331% from 2025 to 2035.
Woody Biomass is projected to have the highest market size at 5.0 USD billion in 2024.
Agricultural Residues are valued at 3.5 USD billion and Forest Residues at 3.0 USD billion in 2024.
Major players include Drax Group, Resolute Forest Products, RWE, and Duke Energy among others.
The Biogas segment is valued at 2.0 USD billion in 2024.
The market faces significant challenges due to a projected decline in value and various environmental regulations.
Current energy policies are pivotal, influencing investment and strategies within the US Biomass Power Market.
Factors such as the need for renewable energy sources and advancements in biomass technology are driving growth.
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