Against the backdrop of global energy transition and the "dual carbon" goal, biomass fuel, as an important form of renewable energy, is ushering in unprecedented development opportunities. Compared with traditional fossil fuels, biomass fuel can significantly reduce greenhouse gas emissions while achieving energy substitution, and is regarded as an important transitional solution connecting the traditional energy system and the zero-carbon energy system.
Overview and Industry Chain Structure of Biomass Fuels
1. Definition and Core Advantages of Biomass Fuels
Biomass fuels are a renewable energy source derived from the photosynthesis of green plants. Raw materials include agricultural and forestry products and their byproducts, as well as industrial and domestic organic waste. Through physical, chemical, or biological conversion methods, these biomasses are processed into directly usable energy forms, such as fuel, heat, or electricity.
Compared to fossil fuels such as coal, oil, and natural gas, biomass fuels have a slightly lower energy density per unit area, but offer significant advantages in carbon emission reduction. Because the raw materials absorb carbon dioxide during growth, and the carbon released during combustion can be reabsorbed, they possess a "near-zero carbon" characteristic in a life-cycle sense, exhibiting a clear dual clean energy attribute.
2. Biomass Fuel Industry Chain Overview
From an industry chain structure perspective, the biomass fuel industry can be divided into three main segments:
Upstream Raw Materials and Equipment Segment
This mainly includes the collection and supply of agricultural and forestry waste such as sawdust, straw, and rice straw, as well as the manufacturing of processing equipment such as loaders, crushers, briquetting machines, pelletizers, dryers, and conveying equipment.
Midstream Production and Sales
This segment encompasses the research, development, production, and commercial sales of biomass pellet fuel, biofuel, and biogas, and is the core of the industry's value chain.
Downstream Applications
These are primarily used in agricultural and forestry biomass power generation, district heating, combined heat and power (CHP), industrial fuel substitution, and feed processing, with biomass power generation and industrial heating being the most important application scenarios.
Generational Classification and Technological Paths of Biomass Fuels
1. First-Generation and Second-Generation Biofuels
First-Generation Biofuels: Represented by bioethanol and biodiesel, primarily using grain or oilseed crops such as corn, sugarcane, and vegetable oil as raw materials. This technological route is mature and highly commercialized, and is an important component of the current global biofuel industry. However, its raw material costs are high, and there are controversies surrounding its potential to compete with food crops and land, gradually limiting its development space.
Second-Generation Biofuels: Represented by cellulosic ethanol and synthetic biofuels, primarily using non-grain biomass such as straw, rice straw, forestry residues, and energy grasses as raw materials. Second-generation biofuels have a wide range of raw material sources, do not affect food security, and are more prominent in greenhouse gas emission reduction, making them a key development direction globally. However, their processes are complex and costly, and they are still in the stage of continuous technological breakthroughs.
Third-Generation Biofuels: Primarily represented by algae. Algae grow rapidly, have high oil production efficiency, and do not occupy arable land, making them considered a highly promising energy solution. However, they are currently still in the research and demonstration stage and have not yet achieved large-scale commercial application.
Classification and Application Characteristics of Biomass Fuels
From the perspective of final form, biomass fuels can be divided into three main categories: solid, liquid, and gaseous.
1. Biomass Solid Molded Fuels
Biomass solid fuels are mainly made from raw materials such as straw, sawdust, and forest residues through compression, molding, or carbonization. They have advantages such as convenient feeding, high combustion efficiency, and low pollution emissions. Their thermal efficiency can reach 85%-90%, making them the most widely used and commercially successful form of biomass fuel in my country, widely used in heating and biomass power generation.
2. Biomass Liquid Fuels
Biomass liquid fuels include bioethanol, biodiesel, and biofuel, which can directly or in combination replace gasoline, diesel, and heavy oil, and are used in transportation and industrial kilns. Although their current cost is still higher than fossil fuels, their economic viability is continuously improving with technological advancements and increased utilization of non-grain raw materials.
3. Biomass Gaseous Fuels
Biomass gaseous fuels mainly include biogas, biomethane, and biohydrogen, produced through anaerobic fermentation or gasification processes. Gasification rates can reach over 70%, with high thermal efficiency. This type of fuel has significant advantages in power generation, heating, and energy supply in remote areas
| Type |
Represents fuel |
Main raw materials |
Energy efficiency |
Main applications |
| Solid fuel |
Biomass pellets, firewood |
Straw, wood chips, forest residue |
Thermal efficiency reaches 85%-90% |
Heating and power generation |
| liquid fuel |
Bioethanol, biodiesel |
Non-edible oils and agricultural waste |
Comparable to traditional fuel |
Transportation, industrial kilns |
| Gaseous fuel |
Biogas and biohydrogen |
Organic waste, livestock and poultry manure |
Gasification rate 70%-85% |
Power generation, industrial fuel, vehicle gas |
Biomass Fuel Market Prospects and Demand Analysis
1. Global Market Size Continues to Expand
Driven by policy, energy security, and emission reduction pressures, the global biofuel market is growing rapidly. The global market size reached US$155 billion in 2024 and is projected to grow to US$310 billion by 2032, with a CAGR of approximately 7%.
The Asia-Pacific region is particularly strong, with a projected CAGR of 13% from 2025 to 2032, becoming the core engine of global biofuel growth.
2. Key Regional Development Trends
Asia-Pacific: Countries such as India, Indonesia, and Thailand are rapidly driving biofuel demand through mandatory ethanol blending and sustainable aviation fuel policies.
North America and Europe: Focus is placed on advanced biofuels and sustainable aviation fuel (SAF), with aviation decarbonization becoming the most promising growth direction.
3. Key Downstream Demand Areas
Transportation: Remains the largest application market for biofuels, accounting for over 80%.
Aviation and Shipping: Driven by global net-zero targets, SAF demand is growing rapidly.
In the industrial heating sector: Biomass heating, as a "green heat source," has unique advantages in zero-carbon industrial parks and industrial decarbonization.
Overall, the biomass fuel industry is at a critical stage of transformation from policy-driven to a dual-driven model of technology and market. With the increasing utilization of non-grain feedstocks, the maturation of advanced biofuel technologies, and the continuous expansion of downstream applications, biomass fuels will play an increasingly important role in the global energy system.
In the next stage of development, whoever can first establish a systematic advantage in raw material security, technological routes, and application scenarios will likely gain a competitive edge in the biomass fuel industry.
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