The market for biomass energy systems is expected to benefit from recent developments originating in the 1997 EU white paper which envisaged that 12 per cent of the Union's energy would come from renewable sources by 2010, according to a new study by Frost & Sullivan. A further boost comes from the EU climate change programme and the common agricultural policy, which both envisage an expanding role for biomass, and the allocation by the EU of r86 bn to biomass development out of r165 bn for renewables generally by 2006.
F & S says that individual governments are also expected to launch biomass initiatives. Some, such as Germany, already have schemes in place.
Revenues from biomass energy systems reached $715 million in 2001, with the addition of around 1000 MWt of new capacity. Overall, installed capacity is projected to rise to over 60 000 MWt by 2020.
Between 1998 and 2001, most revenue was generated by facilities in the 30 MWt to 50 MWt range. The capacity of biomass plants is generally limited by the fuel supply. Development of suitable energy crops will also be essential if biomass energy is to thrive.
Scandinavia is a significant market for biomass plants, accounting for over 55 per cent of the total capacity installed between 1998 and 2001. Germany, however, is the fastest growing market and Italy is showing significant demand.
The market is currently dominated by large companies such as Kvaerner and Foster Wheeler, but as demand increases competition is expected to increase too, in particular from small regionally-based companies
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