Biomass Gasification Market

Market Definition

The market refers to the global industry focused on converting organic materials—such as agricultural residues, forest waste, municipal solid waste, and animal by-products—into synthesis gas (syngas) through a thermochemical process. 

Syngas, primarily composed of hydrogen (H₂), carbon monoxide (CO), and carbon dioxide (CO₂), serves as a clean energy source for power generation, chemical production, transportation fuels, and biochar. The report explores key market drivers, in-depth regional analysis, and an overview of the competitive landscape that is shaping future market opportunities.

Biomass Gasification Market Overview

Global biomass gasification market size was valued at USD 119.65 billion in 2024, which is estimated to be valued at USD 128.60 billion in 2025 and reach USD 228.33 billion by 2032, growing at a CAGR of 8.55% from 2025 to 2032. 

The market is witnessing strong growth due to increasing demand for fossil-free industrial energy. Manufacturers are transitioning to renewable alternatives like syngas to meet emissions regulations, reduce carbon footprints, and secure sustainable, long-term energy sources.

Major companies operating in the biomass gasification industry are Valmet, EQTEC PLC and Group, thyssenkrupp Uhde GmbH, MITSUBISHI HEAVY INDUSTRIES, LTD., Enerkem, Ankur Scientific, Shell International B.V., Wuxi powermax renewable energy technology co., ltd., Congqing Fengyu Electric Equipment Co. Ltd., Beltran Technologies, Inc., Sierra Energy, ANDRITZ, E. B. Mechanism Pvt. Ltd., Infinite Energy Pvt. Ltd., OVN Engineers, and others.

The market is experiencing steady growth, driven by increasing demand for renewable energy and rising concerns over environmental sustainability. Governments and industries are adopting gasification technologies to reduce reliance on fossil fuels and manage organic waste more effectively. 

Technological advancements in gasifier designs, improved feedstock preprocessing methods, and supportive policy frameworks are further enhancing market potential. The focus on cleaner energy alternatives positions biomass gasification as a key solution in the global transition toward low-carbon energy systems.

• In August 2023, researchers from Nanjing Forestry University, Sukkur IBA University, and East China University of Science and Technology proposed strategies to optimize biomass gasification such as, selecting proper feedstock, applying torrefaction/hydrothermal carbonization, using high-temperature gasification, dual gasifying agents, and combining these with multistage air-bed gasifiers to enhance syngas yield and quality.

Key Highlights:

1. The biomass gasification market size was recorded at USD 119.65 billion in 2024.
2. The market is projected to grow at a CAGR of 8.55% from 2025 to 2032.
3. Europe held a market share of 36.58% in 2024, with a valuation of USD 43.77 billion.
4. The fixed bed gasifiers segment garnered USD 45.86 billion in revenue in 2024.
5. The agricultural waste/residues segment is expected to reach USD 89.09 billion by 2032.
6. The power generation segment is anticipated to witness fastest CAGR of 9.05% during the forecast period
7. Asia Pacific is anticipated to grow at a CAGR of 9.23% during the forecast period.

Market Driver

Rising Demand for Fossil-Free Energy Solutions

A major growth driver in the market is the rising demand from manufacturing industries for fossil-free energy solutions. As global regulations tighten around carbon emissions and climate targets, industries are under pressure to shift from coal, oil, and natural gas to cleaner alternatives. 

Biomass gasification provides a viable option by converting organic waste into syngas, which can be used for heat, electricity, or as a feedstock in chemical production. This reduces greenhouse gas emissions and enhances energy security through the use of locally available biomass resources.

• In July 2024, Meva Energy’s biomass gasification technology was verified for negative emissions through a life cycle assessment with Chalmers University. The study confirmed emissions as low as -6 g CO₂-eq/kWh, highlighting the potential of combining biogas and biochar production to reduce industrial carbon footprints and combat climate change.

Market Challenge

Feedstock Availability and Consistency

Feedstock availability and consistency remain critical challenges for the biomass gasification market, as the efficiency of gasification heavily depends on uniform, high-quality biomass. Seasonal variations, geographic limitations, and competing uses for biomass can lead to supply disruptions. 

However, establishing decentralized biomass collection hubs, promoting energy crop cultivation, and investing in standardized feedstock preprocessing can help ensure a steady supply. Additionally, integrating diversified feedstock sources can enhance system resilience and operational continuity in various settings.

Market Trend

Demonstration and Pilot Plant Development

Demonstration and pilot plant development refers to the construction and operation of small-scale facilities designed to test and refine new technologies before full-scale commercialization. In the market, this has become a significant trend, reflecting growing confidence in the technology’s potential for large-scale hydrogen production. 

Companies are investing in these pilot facilities to evaluate and optimize advanced gasification methods, such as catalytic and torrefied biomass pathways. 

These projects help validate technical performance, economic feasibility, and environmental benefits, serving as essential steps toward broader deployment. The trend also draws policy support and investor interest, accelerating the shift toward cleaner hydrogen production solutions.

• In August 2023, Reliance Industries (RIL) announced plans to produce green hydrogen from biomass using torrefaction and catalytic gasification. With successful trials completed and demonstration plants underway, the company aims to produce low-cost hydrogen and transition from grey to green hydrogen by 2025, supported by India’s hydrogen-focused policy initiatives.

Biomass Gasification Market Report Snapshot

Segmentation	Details
By Gasifier Technology	Fixed Bed Gasifiers, Fluidized Bed Gasifiers, Entrained Flow Gasifiers, Others
By Source	Agricultural Waste/Residues, Municipal Solid Waste (MSW), Animal Waste, Others
By Application	Power Generation, Transportation Fuels, Hydrogen Generation, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Gasifier Technology (Fixed Bed Gasifiers, Fluidized Bed Gasifiers, Entrained Flow Gasifiers, and Others): The fixed bed gasifiers segment earned USD 45.86 billion in 2024 driven by their simple design, lower operational cost, and suitability for small-scale biomass gasification systems in rural and industrial settings.
• By Source [Agricultural Waste/Residues, Municipal Solid Waste (MSW), Animal Waste, and Others]: The agricultural waste/residues segment held 38.51% of the market in 2024, due to abundant availability, low cost, and government initiatives promoting sustainable utilization of farm byproducts for clean energy production.
• By Application (Power Generation, Transportation Fuels, Hydrogen Generation, and Others): The power generation segment is projected to reach USD 92.72 billion by 2032, owing to growing demand for decentralized renewable electricity and increasing adoption of biomass gasification in energy-deficient regions.

Biomass Gasification Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Europe biomass gasification market share stood at 36.58% in 2024 in the global market, with a valuation of USD 43.77 billion. Europe is emerging as the dominant region in the market, driven by stringent environmental regulations, strong policy support for renewable energy, and aggressive carbon neutrality targets. 

Countries in region are heavily investing in biomass gasification technologies for sustainable power and green hydrogen production. 

The region’s advanced infrastructure, focus on circular economy, and incentives for clean energy innovation further boost adoption. Additionally, Europe’s commitment to reducing fossil fuel dependency strengthens its leadership in the global market.

Asia Pacific is poised for significant growth at a robust CAGR of 9.23% over the forecast period. The Asia Pacific region is the fastest-growing market for biomass gasification, fueled by industrialization, energy demands, and biomass resources. 

Leading countries like China, India, and Japan are heavily investing in advanced gasification technologies to diversify their energy portfolios and reduce greenhouse gas emissions. Supportive government policies, including subsidies and tax incentives, are also accelerating market growth. 

Additionally, expanding infrastructure and increasing awareness of sustainable energy solutions further drive adoption. This dynamic growth positions Asia Pacific as a key player in the global market.

Regulatory Frameworks

• In the U.S., the Renewable Fuel Standard (RFS) program, established by the Energy Policy Act of 2005 and expanded by the 2007 Energy Independence and Security Act, aims to reduce greenhouse gas emissions and promote renewable fuels.
• In India, the National Policy on Biofuels (2018) promotes advanced biofuels, including Second and Third Generation ethanol, biodiesel, and bio-CNG, aiming to reduce import dependency, cut emissions, and foster rural employment through sustainable biofuel production.
• In the EU, the Renewable Energy Directive sets targets for increased renewable energy use, fostering cooperation among member states to achieve sustainable energy goals and reduce greenhouse gas emissions across.

Competitive Landscape

Companies in the biomass gasification market are advancing technologies to enhance efficiency, reduce costs, and increase sustainability. They are investing in research and development to improve catalysts, gasifier designs, and feedstock pretreatment methods. 

Collaborations with research institutions and pilot projects are mainly used to validate innovations at scale. Additionally, companies are focusing on integrating biomass gasification with renewable energy sources and expanding their product portfolios to include green fuels, chemicals, and power, driving market growth and supporting global decarbonization efforts.

• In November 2024, Clariant announced its collaboration on China’s first commercial biomass gasification-to-green methanol project, launching in early 2025. Utilizing Clariant’s MegaMax catalyst, the plant will convert farm waste and wind power into 250,000 tons of green methanol per year by 2027, marking a significant step in sustainable fuel production.

List of Key Companies in Biomass Gasification Market:

• Valmet
• EQTEC PLC and Group
• thyssenkrupp Uhde GmbH
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• Enerkem
• Ankur Scientific
• Shell International B.V.
• Wuxi powermax renewable energy technology co.,ltd.
• Congqing Fengyu Electric Equipment Co. Ltd.
• Beltran Technologies, Inc.
• Sierra Energy
• ANDRITZ
• B. Mechanism Pvt. Ltd.
• Infinite Energy Pvt. Ltd.
• OVN Engineers

 Recent Developments (Partnerships)

• In October 2024, Technip Energies and Enerkem collaborated to accelerate the deployment of Enerkem’s gasification technology. Combining expertise in engineering and technology integration, they aim to convert non-recyclable waste into sustainable fuels and chemicals, focusing on cost-effective, scalable solutions for hard-to-abate sectors.
• In February 2024, Sumitomo Corporation Group entered a joint development agreement with Strategic Biofuels to produce sustainable aviation fuel (SAF) from woody biomass in Louisiana, U.S. Using gasification-FT technology combined with CCS and BECCS, the project aims for net negative emissions and commercial production by 2029, supporting aviation decarbonization goals and meeting growing SAF demand.