Right now, most producers of power from biomass are struggling to become cost competitive compared to non-renewable resources including coal and natural gas. But that could soon change. A new analysis by Taiyou Research says biomass energy production, as well as bioproduct production, will grow, thanks to benefits from national level programs, energy efficiency incentives, and financial incentives targeting the expansion of the renewables market that will create demand for additional biomass power capacity globally between 2013 and 2035.

The markets of biomass for energy are developing rapidly and becoming more international. A remarkable increase in the use of biomass for energy needs parallel and positive development in several areas and there will be plenty of challenges to overcome. Currently, only a limited number of modern bioenergy technologies are viable at market prices, which include Brazilian sugar-based ethanol and wood based heating in Northern Europe, and industrial applications such as cogeneration technology based on residues from production processes, including those in sugar factories and timber mills.

As biomass power projects are largely very capital-intensive, this remains a significant challenge for a number of utilities in entering countries with abundant feedstock availability. Going forward, the Clean Development Mechanism (CDM) program and availability of carbon credits for renewable energy projects will drive the growth of the biomass power market.

You can read the complete report here.