Dublin, Sept. 06, 2024 (GLOBE NEWSWIRE) -- The "Biomass Power in the US - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)" report has been added to ResearchAndMarkets.com's offering.
Biomass power producers have endured a rocky road, with their performance heavily influenced by government regulations, market competition and environmental concerns. The federal production tax credit (PTC) provided significant financial relief, giving biomass power producers an income tax credit of 2.6 cents per kilowatt-hour (kWh) of energy for five years. This helped offset costs and stem revenue declines.
Renewable portfolio standards (RPSs) in 38 states and Washington, DC, have also driven the renewable energy mandate, giving biomass a solid foothold in the energy market. Yet despite these advantages, the sector has faced fierce competition from other renewable sources like wind and solar power. Revenue has been decreasing at a CAGR of 4.5% over the past five years to total an estimated $838.7 million in 2024, including an estimated 1% increase in 2024.
Trends and Insights
- Government incentives bolster biomass power but face stiff competition.
- Legislation like the federal production tax credit and renewable portfolio standards have supported power producers. However, the rise of other renewables like wind and solar has hindered their growth and revenue.
- Direct-fired biomass power plants are declining because of reduced wood and wood waste burning.
- Rising liquid biofuel production and high operating costs are driving this decline.
- Biomass power plants are strategically located based on regional natural resources.
- To maximize efficiency, facilities aim to be near forests and wood waste. Proximity to these materials reduces transportation costs and carbon emissions.
- Biomass power producers must cut electricity production costs to stay profitable.
- As traditional power companies diversify their energy sources, power producers face increasing competition. Efficiency and cost-effectiveness are key to their survival.
- Government legislations impact power producers and have helped to limit revenue declines Biomass power producers have benefitted from legislation and regulations. The federal production tax credit (PTC) gave biomass power-generation companies an income tax credit of 2.6 cents per kilowatt-hour (kWh) of energy produced for five years. This credit reduced the cost of transmitting energy from biomass power plants, limiting falling demand and profit.
- Positive trends will increase industry demand and revenue
- The ongoing push for renewable energy will increase demand for biomass power over the next five years. While biomass power producers will continue to endure greater competition from wind and solar energy producers, biomass power producers will also reap the benefits from the push for renewables.
Company Coverage:
- Progress Energy
- Covanta Holding Corp
Key Topics Covered:
ABOUT THIS INDUSTRY
- Industry Definition
- Main Activities
- Similar Industries
- Additional Resources
INDUSTRY AT A GLANCE
INDUSTRY PERFORMANCE
- Executive Summary
- Key External Drivers
- Current Performance
- Industry Outlook
- Industry Life Cycle
PRODUCTS & MARKETS
- Supply Chain
- Products & Services
- Demand Determinants
- Major Markets
- International Trade
- Business Locations
COMPETITIVE LANDSCAPE
- Market Share Concentration
- Key Success Factors
- Cost Structure Benchmarks
- Basis of Competition
- Barriers to Entry
- Industry Globalization
MAJOR COMPANIES
OPERATING CONDITIONS
- Capital Intensity
- Technology & Systems
- Revenue Volatility
- Regulation & Policy
- Industry Assistance
KEY STATISTICS
- Industry Data
- Annual Change
- Key Ratios
For more information about this report visit https://www.researchandmarkets.com/r/o5qhs3
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