No.2841
10/28/2021

Biomass Energy Market in Japan: Key Research Findings 2021

Biomass Energy Market Size for FY2021 to Reach 726,100 Million Yen

Yano Research Institute (the President, Takashi Mizukoshi) carried out the domestic biomass energy market and found out the market trends, the trends of leading market players, and future outlook.


Biomass Energy Market Size Transition and Forecast
Biomass Energy Market Size Transition and Forecast

Market Overview

Biomass energy is renewable energy derived from organic resources of biological origin. The market consists of resources including food waste, livestock excrement, etc., power generation electricity, heat (steam), and biofuels being supplied.

The biomass energy market size in this research is calculated by totaling the volume of biomass power generation, biomass heat (steam) supply, and biofuel supply, converted into monetary value. The estimated domestic biomass energy market size for FY2020 is 670,700 million yen. The growth of the market has been driven by the biomass power generation market.

In biomass power generation projects under the FIT system (Feed-in Tariff for Renewable Energy), the number of installations of woody biomass power generation and methane fermentation biogas power generation is increasing year by year. For methane fermentation biogas power generation, there are more plans to use food wastes as feedstock, and some companies are developing dry methane fermentation technology that can process organic wastes including solid wastes.

In the biofuel supply market, there is a growing need for bio-jet fuels in the aviation industry as a measure to reduce CO2 emissions. There are cases of commercial flights using imported biofuels started in Japan after 2020.

Noteworthy Topics

Bio-Jet Fuel

Bio-jet fuel is an alternative aviation fuel (SAF: Sustainable Aviation Fuel) produced from biomass-derived raw materials. The main raw materials include waste cooking oil, woody biomass, municipal waste, biomass sugar, and microalgae. In the aviation industry, bio-jet fuel has become the focus of attention as a countermeasure to the agreed regulation on CO2 emissions from international flight operations.

The bio-jet fuel market is led by the U.S and Europe. The manufacturing process that has internationally moved on to the commercial phase is HEFA (Hydroprocessed Esters and Fatty Acids). Other manufacturing processes that are in the R&D demonstration phase just before commercialization are Biomass Gasification Integrated Fischer-Tropsch (BGIFT) synthesis process and ATJ (Alcohol to Jet) process.

In Japan, major airline company has started working on securing bio-jet fuels by closing contract with an overseas manufacturer for bio-jet fuel supply. In addition, the domestic bio-jet fuels project has started to build a whole supply chain from manufacturing to supply of fuel.

Future Outlook

The domestic biomass energy market size, based on the energy supply volume converted into monetary value, is likely to attain 726,100million yen in FY2021, 108.3 percent of the preceding fiscal year. As the domestic bio-jet fuel is to be fully adopted from around 2023, the biofuel supply market size is projected to generate 865,400 million yen by FY2023

When observing the details of the biomass power generation market, reviewing of the feed-in-tariff system is likely to decelerate the growth of new establishment of large-scale woody biomass power plants from around 2023. Still, the demand for the business aiming at “treatment or reusing of waste as resources” such as methane fermentation is not likely to be eliminated. Being produced mainly at mid-to-small power generation plants, biomass energy is expected to be used as the energy that can help decrease carbonization of energy sources, that effectively use unused resources, and that contribute to revitalization of local industries.

Research Outline

1.Research Period: June to September 2021
2.Research Object: Biomass resources suppliers, biofuel suppliers, biomass power generation businesses, biomass facility system manufacturers, etc.
3.Research Methogology: Face-to-face research by the expert researchers, surveys via telephone, and literature search

The Biomass Energy Market

Biomass energy is renewable energy derived from organic resources of biological origin. It consists of resources (i.e., unused wood, general wood, building waste, palm coconut shells, imported wood, sewage sludge, food waste, livestock excrement, etc.,) power generation electricity, heat (steam), and biofuels (i.e., bioethanol, biodiesel, bio jet fuel, etc.) being supplied to the market.

The biomass energy market size in this research is calculated by totaling the volume of biomass power generation, biomass heat (steam) supply, and biofuel supply, converted into monetary value.

<Products and Services in the Market>

biomass power generation, biomass heat (steam) supply, and biofuel supply

Published Report

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