The global biopellet energy market is anticipated to grow at a significant CAGR during the forecast period. Biopellet or pellet fuels are biofuels made from biomass. Pellets are generally made from various biomass substances such as agricultural residues, energy crops, food waste and virgin lumber. Wood pallete considered as one of the best biopelletes and an effective alternatives to replace the fossil fuels in industrial combustion and power plant applications. The key factor driving the global biopellet market is growing demand for biomass pellets as a fuel for co-firing in coal-based boilers and in other end-user applications. For instance, in October 2021, NTPC has placed an order of 9,30,000 tonnes of biomass pellets for co-firing in power plants toimprove air quality.Apart from this, the adoption of biopelletes in industrial and commericla heat & power generation to reduce the carbon emission has surged their market demand , which in turn driving the market growth. . However, factors such as expensive extraction process, low product quality, and high cost of raw materials restrains the growth of the market. Furthermore, the increasing favourable government regulation and initiatives aimed at curbing carbon emission by increasing reliance on renewable energy for generating power is bringing new opportunities to the market. For instance, from 2013-2020, the European Government has reduced emission level upto 20% as per the Kyoto Protocol. 

Impact of COVID-19 Pandemic on Global Biopellet Energy Market

The global biopellet energy market was hardly hit by the impact of COVID-19 pandemic. The disruption in raw material supply chain owing to the mobility restriction imposed by the government resulted declination in maket growth. Moreover, the lockdown also had a major impact on the energy sector overall as energy demand around the world has decreased by 18 – 25%. Industrial production ground to a halt in major economies and restrictions on movement of people led to one of the greatest drop in transport fuel demand. Due to which the demand for biopellet got reduced. Apart from these,  the World Bioenergy Association (WBA) undertook a survey ‘COVID-19 and impact on the global bioenergy sector’ in May 2020. In this survey Bioenergy stackholders wre to respond to the impact of COVID-19,on investments, revenues, production and employment in the sector. Majority of the respondents were producers of bioenergy equipment (boilers, pellet mills etc.) processed solid biomass (pellets, wood chips etc.), energy (electricity and heat), liquid bioethanol, biodiesel and biogas. In this the Liquid biofuel sector was affected hardly and solid biomass sector has shown resilience. Producers of solid biofuels, had no significant impact due to no significant restrictions. 

Segmental Outlook 

The global biopellet energy market is segmented based on type and application. Based on the type, the market is segmented into pellet stoves, boilers, and burners. Based on the application, the market is sub-segmented into vehicle fuel, heat generation, commercial and residential heating, and others.. Among the type segment boiler segment is anticipated to be the fastest growing during theforecast period due to the high adoption of boiler in industrial application. 

Global Biopellet Energy  Market Share by Application, 2020 (%)

The Heat Generation Segment is Projected to Hold Lucrative Share in Global Biopellet Energy Market

Based on applications, heat generation segment is likely to hold significant share in the market during the forecast period. Biopellets are highly used in heat & power generation in induatrial and commercial sector. They are also used in residential and commercial sectors for food cooking and grilling, and supplying heat to homes. The cost of biopellets is less than  other fuels and this is the major reason they become an economical option for heat generation. Major economies are using biopellets for renewable heat generation on a large level. For instance, in 2019, wood pellet consumption for heating application was majorly observed in Europe, followed by North America and Asia. Europe represents more than 50% of global pellet demand. As of 2020, European nations’ use of pellets includes residential heating (40%), power plants (36%), commercial heating (14%), and combined heat and power plants (10%). Moreover, pellets have also made their way into coal conversion projects in local authority or public administration buildings such as schools and offices.

Regional Outlooks

The global biopellet energy market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  Asia-Pacific is projected to be the fastest-growing region in global biopellet energy market during the forecast period. The factors driving the regional growth include huge biomass availability, rapid industrialization, and stringent government regulation towards reneable energy generation. 

Global Biopellet Energy  Market Growth, by Region 2021-2027

North America Holds the Largest Share in Global Biopellet Energy Market

The North America is expected to grow exponentially during the forecast period. The major factor contributing to the growth includes various initatives and investments made by USgovernment for reneable energy generation. For instance, in February 2021, a new Wood and Pellet Heater Investment Tax Credit(ITC) has been announced by US government, that consumers buying efficient wood, pellet stoves and, larger residential biomass heating systems may claim a 26% tax credit that is uncapped and based on the full cost of the unit. Moreover, new pellet manufacturing are commissioned across the US countries such as Kentucky, Alabama, and West Virginia. North America is incresing it pellet consumptions due to regional price competation with propane and residential heating oil. Traditional burners are being replaced from wood pellets for improving feed is also suppring demand for pellets in this region. 

Market Players Outlook

The major companies serving the global biopellet energy market include AMP Clean Energy, BIOAGRO Energy Osterlen AB, Pinnacle Renewable Energy Inc, Mitsubishi Corp, Weyerhaeuser NR Co, and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in September 2021, Drax Group has announced the construction on the second of three satellite pellet plants in Arkansas. The move is part of a $40 million investment by Drax in the state, creating approximately 30 new direct jobs and many more indirect jobs across Arkansas.The three pellet plants are expected to produce a total of around 120,000 metric tons of sustainable biomass pellets a year from sawmill residues, supporting the renewable energy company’s.

The Report Covers

    • Market value data analysis of 2020 and forecast to 2027.

    • Annualized market revenues ($ million) for each market segment.

    • Country-wise analysis of major geographical regions.

   • Key companies operating in the global biopellet energy market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

   • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

    • Analysis of market-entry and market expansion strategies.

    • Competitive strategies by identifying ‘who-stands-where’ in the market.