Market Opportunities

Below we have provided a snapshot of information for regions and countries regarding market opportunities.

For more detailed information please review documentation in the download section of our website.

Australia

The Australian Government has set a national target for 20 percent of Australia’s electricity to be sourced from renewable energy sources by 2020.

Today bioenergy currently provides approximately 4 % of Australia’s Total Primary Energy Supplies (TPES) and makes up 78 % of the reported renewable energy. The latter percentage is in part due to the use of some four to six million tonnes of firewood per year. Other large energy contributions are from bagasse (sugar cane residues) and wood waste in heating and electricity generation, as well as capture and use of methane gas from landfill and sewage facilities.

The use of bioenergy for electricity generation in Australia has expanded considerably over the past decade or so. This expansion has been supported by Australian Government renewable energy schemes, initially the Mandatory Renewable Energy Target (MRET) and now the Large-scale Renewable Energy Target (LRET). Bioenergy currently provides approximately one percent of Australia’s electricity.

Bioenergy production is expected to grow at a faster rate and progressively provide a greater proportion of Australia’s electricity and transport fuel needs.

Work completed by, ABARE, CSIRO, the Clean Energy Council, and the Australian Business Roundtable on Climate Change describe the potential for increased production of bioenergy. These reports concluded that, in the longer term, bioenergy could easily provide 20% or more of Australia’s electricity or transport fuels.

We believe that expanded bioenergy use can be supported in particular by the development of large resources of sustainable biomass around Australia that are not currently being used for bioenergy. Particular opportunities involve existing agricultural residues, and future tree planting on farms for biomass and other environmental benefits (such as belts of mallee trees).

The commercial development of multiple technologies for conversion of biomass into biofuels is a viable opportunity.

We have also studied the prospects for large scale, sustainable bioenergy production in Australia, focussing on supply of biomass feed stocks. Preliminary CSIRO estimates show that a range of feed stocks including bagasse, crop stubble, plantations, urban wood waste, and short rotation energy crops could collectively provide 55.2 TWh/y (199 PJ/y) by 2030. This would equate to approximately 20 percent of current electricity production.

Specific Opportunities

  • Distressed forestry assets
  • Plantation acquisitions
  • Fuels from waste
  • Bioenergy crops
  • Biofuels
  • Bio pellets

China

China, the world’s top emitter, is only using about five per cent of its total biomass potential. The situation has become vitally important to supply more of the entire nation’s annual energy consumption and solve its pollution woes.

China only obtains about eight per cent of its total primary energy from non-fossil fuel sources. Official targets released recently aim to increase this share to at least 11.4 per cent in 2015 and 15 per cent in 2020.

Biomass, in particular, is a readily available source of fuel in China. However, currently only about five per cent of the total potential is being collected on a systematic basis. Since introducing the renewables law, more than 260 new biomass projects have been completed providing a considerable 4,870 megawatts (MW) of additional grid-connected power.

Biomass will be a big part of the renewable agenda in China in not only providing base load power, but in creating employment in local communities, providing opportunities for wealth creation through ownership of economic assets.

Biomass and Bioenergy for China is a long term trend with unrivalled benefits.

Looking forward, stricter regulations, an increasingly competitive market and a growing awareness of the potential benefits and advantages of biomass, indicate that being at the forefront of technological innovation and invention is now more important than ever for the Chinese.

Specific Opportunities

  • Agribusiness
  • Bioenergy crops
  • Biofuels
  • Biogas
  • Bio pellets

 

European Union

Energy security and climate change mitigation are core elements in current European energy policy. The EU countries are mandated to meet by 2020 a target of 20% renewable resources in the energy supply and 10% renewable resources in energy in the transport sector.

The Energy Strategy 2020 of the European Commission calls for increased use of renewable resources in the energy system and the European Council has presented a long term target for the EU and other industrialised countries of 80 to 95% cuts in greenhouse gas emissions by 2050.

The demand for biomass for energy in the European Union will increase from the current 5.7 EJ yr−1 to 10.0 EJyr−1 by 2020. Dedicated energy crops grown on liberated agricultural land or marginal lands are expected to be able to meet the major part of the increasing biomass demand. Residues from agriculture and forestry are not expected to increase significantly in the future.

The demand for biomass for energy will continue to increase also beyond 2020 due to EU policy to transition to a lower carbon emitter and economy. This calls for further technology development and increased focus on technology integration to meet the grand challenge of a decarbonised energy supply.

Further development of harmonised and transparent assessment methodologies is required to improve applicability and reproducibility of such assessments.

To meet future needs for biomass, not only for energy, also for food, feed and materials emphasis must be put on increasing the production of biomass per unit of land and exploring the potentials in new biomass sources to reduce the pressure on native and protected eco systems.

Further focus on optimised utilisation of individual plant components in biomass with a link to the component specificity of different conversion technologies could improve the utility gained from biomass and bioenergy and reduce negative impacts on land use.

Specific Opportunities

  • Forestry Plantations
  • Bio crops
  • Bioenergy crops
  • Biofuels
  • Agribusiness
  • Bio pellets

Indonesia

Indonesia has committed itself to significantly reducing its GHG emissions. Nationally legislated energy goals include 17% renewable energy generation by 2025, a 30% improvement in energy efficiency by 2025, and GHG emissions 30% below business as usual forecasts by 2020.

Renewable energy sources will account for 60% of the 10,000MW of new energy capacity that Indonesia plans to develop by 2016 to meet growing energy demand.

With some of the best land in the world for plantation crops, Indonesia remains a substantial global player in the production of palm oil, rubber, cocoa and some others, including copra and coffee.

Figures from the Indonesian Ministry of Agriculture (MOA) indicate that prime crops -coconut, palm oil, rubber, cocoa, coffee, tea, cashew nut, pepper, sugar, tobacco and cotton – contributed $18.6 billion to the value of the country’s exports in 2010.

It is estimated that Indonesia produces 146.7 million tons of biomass per year, equivalent to about 470 GJ/y. Sources of biomass energy in Indonesia are scattered all over the country, but the biggest potential in concentrated scale can be found in the Island of Kalimantan, Sumatera, Irian Jaya and Sulawesi.

Other potential biomass sources are rubber wood residues (120 GJ/year), sugar mill residues (78 GJ/year), palm oil residues (67 GJ/year), and less than 20 GJ/year in total from plywood and veneer residues, logging residues, sawn timber residues, coconut residues, and other agricultural wastes.

The major crop residues to be considered for power generation in Indonesia are palm oil sugar processing and rice processing residues. Currently, 67 sugar mills are in operation in Indonesia and eight more are under construction or planned.

The current pressure for cost savings and competitiveness in Indonesia’s most important biomass-based industries, along with the continually growing power demands of the country signal opportunities for increased exploitation of biomass wastes for power generation.

Specific Opportunities

  • Forestry & Agribusiness
  • Plantation acquisitions
  • Bio waste
  • Biogas
  • Bio pellets

Malaysia

The Malaysian government targets for renewable energy is that it should contribute at least 5.5 percent to the country’s generation mix by 2015.

The National Renewable Energy Policy and Action Plan, effective since June 2010, aims to draw more of the nation’s electricity supply (11 percent by 2020) from renewable energy. The Ministry of Energy, Green Technology and Water’s Green Technology Financing Scheme, worth Rm1.5 billion (about US$500 million) offers incentives to green technologies.

Malaysia is one of the fast growing economies in Southeast Asia. It produces at least 85 million dry tons of biomass per annum, mostly waste streams from the palm oil plantations. Great economic and sustainability opportunities are at hand to realise a waste-to-wealth biobased industry.

Malaysia has approximately 4 million hectares of land under oil palm plantation. Over 75% of total area planted is located in just four states, Sabah, Johor, Pahang and Sarawak, each of which has over half a million hectares under cultivation.

Among the various sources of renewable energy, bioenergy seems to be the most promising option for Malaysia. The National Biofuel Policy, launched in 2006 encourages the use of environmentally friendly, sustainable and viable sources of biomass energy.

Around 58 million tons of POME is produced in Malaysia annually, which has the potential to produce an estimated 15 billion m3 of biogas can be produced each year.

With an attractive FiT rate and abundant natural resources, Malaysia is ripe for foreign investment in renewable energy projects. Renewable power solutions could help the country avoid becoming a net fuel importer in the next 30 years, reduce its carbon emissions and make a difference to rural quality of life.

Specific Opportunities

  • Forestry assets
  • Plantation acquisitions
  • Agribusiness
  • Bio pellets

New Zealand

The recently released New Zealand Energy Strategy to 2050 has set some ambitious goals, some of these are: 90% renewable electricity by 2050.

Linked to these targets are some forest policies and the emissions trading scheme. These aim to reduce the amount of deforestation and encourage increased afforestation with a target of 250,000 ha of new forest by 2025.

Biomass use is going to have to increase markedly to meet government targets with forest residues use becoming wide spread (an 8 fold increase over current levels) and use of wood processing and municipal wood waste expanding by 45%

The New Zealand Bioenergy Strategy is designed to achieve:

Economic growth and employment built on New Zealand’s capability and expertise in growing and processing wood-crops and converting organic by-products to energy, leading to new business opportunities which by 2040 supply more than 25% of the country’s energy needs, including 30% of the country’s transport fuels.

In the longer-term the high growth bioenergy path suggested by the Strategy is based on both fuel crops and the planting of large areas of plantation forests and supporting the production in large-scale plants of liquid fuels which will displace hydrocarbon-based fuels in the New Zealand market.

A strategic decision to commit to the large-scale planting of forestry crops will be required by around 2015, given their long growth cycle, if these are to supplement fuel crops in support of the high growth liquid biofuels programme envisaged. With this timing attention should now be focusing on the transition paths available to forest owners.

Additionally exports, of energy chip, pellets or potentially products produced by torrefaction, are expected to be economically viable given a projected world shortage of wood-fuel to meet European and Asian demand for green-energy products to meet climate change objectives.

The New Zealand Government seeks carbon neutrality in the electricity sector by 2025, in the industrial energy sector by 2030, and in the transport sector by 2040. Bioenergy provides a route to achieving these goals, with forestry crops playing a major role.

Specific Opportunities

  • Forestry assets
  • Plantation acquisitions
  • Bioenergy crops
  • Biofuels
  • Biogas
  • Bio pellets

Papua New Guinea

The vast island state of Papua New Guinea (PNG) has long been identified as one of the possible ‘Biofuel Superpowers’ of the 21st century. The tropical country’s estimated sustainable bioenergy production potential is in the tens of Exajoules per year (1 Exajoule equals around 164 million barrels of oil).

PNG’s agro-climatic conditions favor the cultivation of biomass and biofuel crops with very high yields – from grass species such as sugar cane and miscanthus, to tree species such as eucalyptus, or starch and sugar-rich crops such as cassava, nipa and sago.

PNG is still very much an agrarian society, with over 85% of all Papuans making a living in agriculture. Poverty levels are very high, and aside from a few large plantation estates, modern agriculture is virtually non-existent on this vast island.

The biofuel and bioenergy industry is growing worldwide due to environmental and political concerns. PNG has the right natural resources to be an important player in these growing concerns

Specific Opportunities

  • Forestry assets
  • Agribusiness
  • Plantation acquisitions
  • Bioenergy crops
  • Biofuels

Philippines

The Philippines has abundant supplies of biomass resources, including agricultural crop residues, forest residues, animal wastes, agro-industrial wastes, municipal solid wastes and aquatic biomass. There are solid market rules and government programs for biomass development.

Biomass technologies represent the largest installations in the Philippines in comparison with the other renewable energy, energy efficiency and greenhouse gas abatement technologies.

The development of crop trash recovery systems, improvement of agro-forestry systems, introduction of latest energy conversion technologies and development of biomass supply chain can play a major role in biomass energy development in the Philippines.

The Biomass power market is growing and likely to grow faster, with abundant biomass to support growth as well as high domestic liquidity for capital funds. Power rates are among the highest in Asia and energy purchases from biomass power plants stand at roughly Euro 0.15/kWh.

The Philippine’s energy portfolio is quite unique in the region in that domestically, it has few of its own fossil fuel resources, it’s energy mix already includes a high capacity of renewable energy and, in terms of pricing, the Philippines has the 2nd highest electricity rates in Asia and the 4th highest in the world.

The high cost of electricity is partly attributed to high costs related to importing fossil fuels. As far as renewable energy sources, the Department of Energy reported that 40.6% of the primary energy mix was contributed by renewable energy sources in 2011, primarily composed of geothermal at 21.7%, followed by biomass at 12.4%and hydro at 6%.

The Philippines is among the most vulnerable nations to climatic instability and experiences some of the largest crop losses due to unexpected climatic events. The country has strong self-interest in the advancement of clean energy technologies, and has the potential to become a role model for other developing nations on account of its broad portfolio of biomass energy resources.

Specific Opportunities

  • Agribusiness
  • Bio waste
  • Biofuels
  • Biogas

South Korea

The South Korean Government has laid out a vision of “low carbon, green growth,” which aims for sustainable economic growth by minimizing energy and resource consumption while simultaneously minimizing CO2 emissions.

South Korean biomass demand is forecast to reach 10mn t/yr by 2020, following the introduction of renewable portfolio standards (RPS) for power producers. In order to promote this vision, the government settled on a basic plan of developing and popularizing the use of domestic new and renewable energy technology. This has been backed by the fact that South Korea is dependent on imports for 97% of the energy it consumes.

The targets for the amount of primary energy comprised of “new and renewable energy” are 2.4% (2007), 6.1% (2020), and 11.5% (2030). In 2007 biomass accounted for 6.0% of new and renewable energy, but the country plans to try to expand the use of biomass by raising this to 30.8% for 2030.

In Bio pellets, Korea has implemented a programme that covers the construction of eight new pellet plants. In addition, with only limited opportunities to generate feedstock from its domestic sawmilling industry, the government has set a goal of importing 5 million tonnes of pellets by 2020. By then, 75-80 percent of pellets consumed in the country are expected to be imported.

Specific Opportunities

  • Clean Technology
  • Bio Pellets
  • Bioenergy Crops
  • Agribusiness

Thailand

The 15 years Renewable Energy Development Plan (2008-2022) sets a target of achieving 20% of Renewable Energy of the overall country consumption by the end of 2022. According to this incentive, the Thai government is providing secure loans, promotional packages, tax incentives and feed in electricity adders to Private Power Providers using renewable energy including biomass, solar, wind and hydro.

Thailand is a nation that is rich on agriculture and forest resources, which gives its potential for biomass and forestry development. It has significant planted area for the agricultural production of rice, sugarcane, corn, oil palm, coconut, pineapple, soybean, cassava and various ground nuts.

Thailand’s annual energy consumption has risen sharply during the past decade and will continue its upward trend in the years to come. While energy demand has risen sharply, domestic sources of supply are limited, thus forcing a significant reliance on imports.

Thailand’s vast biomass and bioenergy potential has been partially exploited through the use of traditional as well as more advanced conversion technologies for biogas, power generation, and biofuels. Rice, sugar, palm oil, and wood-related industries are the major potential biomass energy sources.

We believe that the energy market in Thailand is ready to be at the forefront of the new generation of solutions for biomass and bioenergy to power, using higher efficiency, multi-fuel and low emissions solutions.

Specific Opportunities

  • Forestry Plantation
  • Biofuels
  • Biogas
  • Bioenergy Crops
  • Agribusiness
  • Biopellets

United Kingdom

The UK has legally binding renewable energy and greenhouse gas reduction targets so that 15% of the UK’s energy demand is produced from renewable sources by 2020

Biomass is anticipated to continue to make major contributions to these.

Research has found however that the UK could produce large levels of energy from biomass without importing resources or negatively impacting the UK’s ability to feed itself.

The UK is wasting an opportunity to generate almost half of its energy from biomass, according to a new report from the Tyndall Centre for Climate Change Research.

By 2050, up to 44% of the UK’s energy could be produced from household and agricultural waste and home-grown fuels, says a study published in the Energy Policy journal.

Biomass currently provides 38% of the UK’s renewable energy, although this only contributes about 15% to the country’s overall energy production.

Reaeach has concluded that residue from agriculture, forestry and industry could potentially provide 6.5% of primary energy demands by 2050, along with 15.4% from waste resources and 22% from specifically grown biomass and energy crops.

The potential bioenergy generated from agricultural residues, particularly from straws and slurry resources, being the highlight opportunities for the bioenergy sector due to their high abundance and current underutilisation.

Specific Opportunities

  • Bio Waste
  • Industrial Waste
  • Bioenergy Crops
  • Agribusiness

Vietnam

Over the last 10 years economic growth rates has demand for energy in Vietnam. The Vietnamese government fears dependency on fossil fuels and new policy sets target to increase renewable energy share in total commercial primary energy from 3% in 2010 to 5% in 2020 and 11% in 2050. Electricity market is slowly adapting to this new reality.

Being an agricultural country, Vietnam has very good biomass energy potential. Agricultural wastes are most abundant in the Mekong Delta region with approximately 50% of the amount of the whole country and Red River Delta with 15%.

Major biomass resources includes rice husk from paddy milling stations, bagasse from sugar factories, coffee husk from coffee processing plants in the Central Highlands and wood chip from wood processing industries. Vietnam has set a target of having a combined capacity of 500 MW of biomass power by 2020, which is raised to 2,000 MW in 2030.

Rice husk and bagasse are the biomass resources with the greatest economic potential, estimated at 50 MW and 150 MW respectively.

Biomass business opportunities are open for collaboration between Vietnamese in these areas: Knowledge transfer and capacity building, international management consulting, technological expertise, financial services and expertise for Biomass related projects.
There is a general need for knowledge transfer and capacity building in all bio-energy related technologies also regarding R&D.

Many biomass feedstocks are not only readily available, but also currently represent a threat a potential threat to the environment. Rice husk, rice straw, coconut pith, sugar cane bagasse and coffee waste: these waste flows are currently not being dealt with in an environmentally sound manner, therefore the utilisation of these resources is a business opportunity as well as an environmental benefit.

Biogas energy potential is approximately 10 billion m3/year, which can be collected from landfills, animal excrements, agricultural residues, industrial wastewater etc. The biogas potential in the country is large due to livestock population of more than 30 million, mostly pigs, cattle, and water buffalo.

Specific Opportunities

  • Forestry Plantations
  • Agribusiness
  • Bioenergy crops
  • Biofuels
  • Biogas
  • Bio pellets