Success in Biomass Power Plant Markets Depends on Supply

Amid findings by Frost & Sullivan that the European biomass power plant market industry earned revenues of $1,685.5 million in 2005, with estimates this sum could reach $2,204.4 million in 2012, it is expected that these European markets will become more dependent than ever upon supply and acquisition of such resources.

Driven by the European Union’s (EU) target of achieving a 12 percent contribution to total energy production from renewable energy sources by 2010, the success in biomass power plant markets of Europe calls for continued feedstock availability. This issue will be of particular concern to countries that are already dependent on imports to meet their domestic energy demands, claims the release. While bioenergy will balance these insufficiencies, if pursued in accordance with the long-term benefits to the region, the key will be to secure adequate feedstock supplies to meet surging demand. One of the primary factors challenging market growth, states the report from Frost & Sullivan, will be the location of biomass power plants, which will typically need to be proximate to feedstock sites. This will limit the maximum size of these power plants to around 30 megawatts electric and further upwards even as sourcing of biomass could continue to be a major challenge. Since location will be a critical factor to maintaining plant operations, a feasibility analysis that links planned energy generation with the amount of feedstock that could be sourced at any instance will reassure potential investors that they will be protected from high risk. On the other hand, the release states, they would have to invest heavily in the feedstock supply chain to sustain plant functioning. The report, European Biomass Power Plant Markets, includes research in European renewable energy markets, opportunities in servicing renewable energy plants in Europe and global solar power markets.
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