Asia has numerous agricultural resources and agro industries, resulting in a large quantity of agricultural biowastes that are a significant fuel resource. During the past decade there has been an excellent growth in biomass power generation in Asia and this rapid expansion is mainly due to favourable government policies, an increased number of equity investors and lenders, good return on investment and revenue from the Clean Development Mechanism (CDM). Biomass-based cogeneration (combined heat and power) is a key sector: in India, for example, there has been phenomenal growth in the sugar cogeneration sector over the last 15 years.