Bio-Coal Market Size and Outlook 2030

Report Description

Forecast Period	2026-2030
Market Size (2024)	USD 170.83 Billion
CAGR (2025-2030)	7.31%
Fastest Growing Segment	Industrial Heating
Largest Market	Asia Pacific
Market Size (2030)	USD 260.86 Billion

Market Overview

The Global Bio-Coal Market will grow from USD 170.83 Billion in 2024 to USD 260.86 Billion by 2030 at a 7.31% CAGR. Bio-coal, or torrefied biomass, represents a solid biofuel derived from organic materials such as agricultural and forestry residues, designed as a cleaner alternative to conventional coal. This renewable energy source undergoes thermal processing to enhance its energy density and combustion properties. The global bio-coal market is primarily driven by the escalating demand for sustainable energy alternatives to mitigate carbon emissions, alongside supportive government policies and regulatory incentives promoting bio-based fuels. Additionally, the increasing utilization of agricultural and forestry waste for bio-coal production supports a circular economy model.

According to REN21's Renewables 2025 Global Status Report, in 2024, ArcelorMittal's bio-coal plant in Ghent demonstrated industrial-scale output by converting 88,000 tonnes of waste wood into 37,500 tonnes of bio-coal annually, showcasing its direct application in industrial processes. A significant challenge impeding broader market expansion remains the elevated production costs associated with the complex and energy-intensive conversion processes required for bio-coal manufacturing.

Key Market Drivers

The global bio-coal market's expansion is significantly propelled by the increasing demand for sustainable energy sources, driven by the global imperative to mitigate carbon emissions. Bio-coal offers a cleaner, renewable alternative to conventional coal, providing comparable energy density crucial for industrial applications. This demand reflects a profound shift in energy consumption patterns. According to the IEA, in its Renewables 2024 report, modern bioenergy usage is projected to nearly double from approximately 21 Exajoules in 2023 to 39 Exajoules by 2030, signifying a critical reliance on such renewable alternatives. This robust growth underscores bio-coal's expected role in decarbonization. Furthermore, According to IEA Bioenergy's Annual Report 2024, modern bioenergy is projected to meet between 15% and 20% of total energy needs by 2050 in the IEA Net Zero Emissions by 2050 Roadmap, underscoring its long-term strategic importance in the global energy transition.

Supportive government policies and stringent environmental regulations represent another pivotal driver, actively fostering a conducive environment for bio-coal market expansion. These frameworks include financial incentives, subsidies, and renewable energy mandates, designed to accelerate the transition from fossil fuels. Such regulatory backing mitigates economic barriers for industries. For example, the U.S. Department of Energy's Bioenergy Technologies Office announced $52 million in December 2024 for six university and industry projects aimed at advancing low carbon intensity, purpose-grown energy crops, vital feedstocks for bio-coal production. This direct governmental investment underscores a commitment to the bioenergy sector, enhancing bio-coal's commercial viability and deployment.

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Key Market Challenges

A significant challenge impeding broader market expansion for bio-coal is the elevated production costs associated with its complex and energy-intensive conversion processes. These substantial capital investments and operational expenditures required for torrefaction and densification technologies render bio-coal less economically competitive compared to established fossil fuels. This disparity directly limits the adoption of bio-coal by industrial end-users, who prioritize cost-effective energy solutions for their operations.

The continued reliance on conventional energy sources underscores the economic hurdles bio-coal faces. According to the IEA Bioenergy's "Implementation of bioenergy in the European Union – 2024 update", the EU's energy supply still relied on fossil fuels for approximately 70% in 2022. This persistent dominance of fossil fuels, despite strong policy drivers for renewable energy alternatives, highlights the struggle for bio-coal to achieve widespread market penetration against lower-cost alternatives. Consequently, high production costs deter new market entrants and restrict the scaling of existing bio-coal manufacturing operations, thereby limiting overall market growth.

Key Market Trends

The global bio-coal market is experiencing a significant uplift due to advanced biomass conversion technologies. Innovations in torrefaction and pyrolysis processes are enhancing the energy density and combustion properties of bio-coal, making it a more viable alternative to conventional coal. These technological advancements are critical for improving efficiency and reducing production costs, thereby expanding the market's reach. According to the International Energy Agency’s World Energy Investment 2025 report, released in June 2025, bioenergy investments are forecasted to climb 13% in 2025, reaching a new high of $16 billion. This growth reflects increasing confidence in the economic viability of advanced conversion solutions. For example, according to Fortum Corporation Investor News, October 2025, the company committed approximately EUR 85 million for the decarbonisation of its Zabrze plant in Poland, retrofitting it with biomass and refuse-derived fuel technology to reduce coal-based capacity and fossil CO2 emissions.

Another pivotal trend is the growing emphasis on quality standards and certifications within the bio-coal market. As bio-coal gains wider acceptance, ensuring consistent product quality and adherence to environmental benchmarks becomes paramount for industrial consumers and policymakers. Standardization through certification schemes builds trust and facilitates international trade, promoting broader adoption. According to Bioenergy Europe's Pellets Statistical Report 2025, in 2024, ENplus® certified pellets accounted for an estimated 75% of the European pellet heating market, demonstrating the significant role of quality assurance in market penetration. Further strengthening this trend, the Wood Pellet Association of Canada reported in June 2025 that the ENplus® certification scheme successfully underwent acceptance verification for accreditation by the European Cooperation for Accreditation, establishing it as a leading global fuel quality certification system. This formal recognition of stringent quality standards is crucial for market growth and the integration of bio-coal into diverse energy systems.

Segmental Insights

The industrial heating segment is currently the fastest-growing application within the global bio-coal market. This significant acceleration is primarily attributed to robust industrial imperatives for decarbonization and adherence to evolving, stringent environmental regulations aimed at reducing greenhouse gas emissions. Bio-coal offers a strategic advantage as a sustainable, high-energy-density fuel, enabling industries to enhance energy security while markedly lowering their carbon footprint. Its proven cost-effectiveness and versatility across diverse heating processes, such as drying and material heating, further propel its widespread adoption as a vital renewable energy alternative to conventional fossil fuels.

Regional Insights

Asia Pacific leads the global bio-coal market, driven by substantial economic growth and escalating energy demand across the region. Countries like China and India are prioritizing energy diversification, actively reducing reliance on conventional fossil fuels to meet increasing industrial and population energy needs. This shift is strongly supported by abundant biomass resources, including agricultural and forestry waste, providing essential feedstock for bio-coal production. Furthermore, supportive government policies and initiatives, such as mandates for biomass co-firing in power generation, alongside continuous investment in advanced production technologies, significantly bolster the region's dominant position. These combined factors solidify Asia Pacific's prominence in the global bio-coal landscape.

Recent Developments

In May 2025, international technology group ANDRITZ successfully delivered and started up a torrefaction reactor for Joensuu Biocoal Oy, operated by Taaleri in Finland. This reactor, manufactured by ANDRITZ, became a key component of one of Europe's largest industrial torrefaction plants. The facility was designed to produce up to 60,000 tonnes of biocoal annually from sustainably sourced biomass, such as pre-commercial forest thinnings. This new product launch in terms of technology and subsequent production aimed to replace fossil coal in various industrial applications, contributing to significant CO2 savings within the global bio-coal market.

In March 2025, Carbona announced plans to establish a large-scale biomass torrefaction facility in the Central North Island of New Zealand. This initiative involved a collaboration with Austrian technology providers Polytechnik and Andritz, who brought proven expertise, having recently commissioned a similar 60,000 tonne per annum facility in Finland for Joensuu Biocoal. The New Zealand facility aimed for an annual production capacity of 180,000 tonnes of torrefied biomass, intended as an alternative to coal for Genesis Energy's Huntly Power Station. This development represented a significant company collaboration geared towards expanding the global bio-coal supply.

In November 2024, Blackwood Technology BV announced the successful commencement of operations at the first commercial FlashTor black pellet plant in Lampang Province, Thailand. The facility, owned and operated by NT Biomass Products Company Limited, a subsidiary of TTCL Public Company Limited, was engineered to produce 75,000 metric tons of black pellets, a form of bio-coal, annually. These pellets, derived from renewable biomass like corn straw and woody biomass, were developed as a sustainable alternative to fossil coal for use in power generation and steel production. This development marked a notable new product launch and scaling of bio-coal production within the global market.

In May 2024, India's state-owned generator NTPC conducted a significant test demonstrating 20% torrefied biomass-coal co-firing at a 110MW unit within its Tanda power plant in Uttar Pradesh. This research initiative aimed to expand biomass co-firing across its coal-fired operations to reduce emissions. The trials indicated that torrefied biomass could be utilized at higher co-firing percentages without requiring major infrastructure modifications, exhibiting properties akin to high-quality coal. This breakthrough highlighted a viable pathway for substantial carbon emission reductions, directly impacting the global bio-coal market's adoption in power generation.

Key Market Players

Drax Group Plc
Vivergo Fuels Limited
RWE AG
PT. Alpha Utama Mandiri
Neste Corporation
Eddie Stobart Ltd
Andritz AG
Dynamotive Energy Systems Corporation
Blackwood Technology B.V.
Green Biocoal

By Type	By Application	By Region
Woody Biomass Agricultural Waste	Power Generation Residential Commercial Industrial Heating	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Bio-Coal Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Bio-Coal Market, By Type:

o Woody Biomass

o Agricultural Waste

Bio-Coal Market, By Application:

o Power Generation

o Residential

o Commercial

o Industrial Heating

Bio-Coal Market, By Region:

o North America

§ United States

§ Canada

§ Mexico

o Europe

§ France

§ United Kingdom

§ Italy

§ Germany

§ Spain

o Asia Pacific

§ China

§ India

§ Japan

§ Australia

§ South Korea

o South America

§ Brazil

§ Argentina

§ Colombia

o Middle East & Africa

§ South Africa

§ Saudi Arabia

§ UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Bio-Coal Market.

Available Customizations:

Global Bio-Coal Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Bio-Coal Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Bio-Coal Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type (Woody Biomass, Agricultural Waste)

5.2.2. By Application (Power Generation, Residential, Commercial, Industrial Heating)

5.2.3. By Region

5.2.4. By Company (2024)

5.3. Market Map

6. North America Bio-Coal Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type

6.2.2. By Application

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Bio-Coal Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Type

6.3.1.2.2. By Application

6.3.2. Canada Bio-Coal Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Type

6.3.2.2.2. By Application

6.3.3. Mexico Bio-Coal Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Type

6.3.3.2.2. By Application

7. Europe Bio-Coal Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type

7.2.2. By Application

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Bio-Coal Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Type

7.3.1.2.2. By Application

7.3.2. France Bio-Coal Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Type

7.3.2.2.2. By Application

7.3.3. United Kingdom Bio-Coal Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Type

7.3.3.2.2. By Application

7.3.4. Italy Bio-Coal Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Type

7.3.4.2.2. By Application

7.3.5. Spain Bio-Coal Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Type

7.3.5.2.2. By Application

8. Asia Pacific Bio-Coal Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type

8.2.2. By Application

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Bio-Coal Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Type

8.3.1.2.2. By Application

8.3.2. India Bio-Coal Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Type

8.3.2.2.2. By Application

8.3.3. Japan Bio-Coal Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Type

8.3.3.2.2. By Application

8.3.4. South Korea Bio-Coal Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Type

8.3.4.2.2. By Application

8.3.5. Australia Bio-Coal Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Type

8.3.5.2.2. By Application

9. Middle East & Africa Bio-Coal Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type

9.2.2. By Application

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Bio-Coal Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Type

9.3.1.2.2. By Application

9.3.2. UAE Bio-Coal Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Type

9.3.2.2.2. By Application

9.3.3. South Africa Bio-Coal Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Type

9.3.3.2.2. By Application

10. South America Bio-Coal Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Type

10.2.2. By Application

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Bio-Coal Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Type

10.3.1.2.2. By Application

10.3.2. Colombia Bio-Coal Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Type

10.3.2.2.2. By Application

10.3.3. Argentina Bio-Coal Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Type

10.3.3.2.2. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Bio-Coal Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Drax Group Plc

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Vivergo Fuels Limited

15.3. RWE AG

15.4. PT. Alpha Utama Mandiri

15.5. Neste Corporation

15.6. Eddie Stobart Ltd

15.7. Andritz AG

15.8. Dynamotive Energy Systems Corporation

15.9. Blackwood Technology B.V.

15.10. Green Biocoal

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Bio-Coal Market in 2024?

Which is the dominating region in the Global Bio-Coal Market?

Which is the fastest growing segment in the Global Bio-Coal Market?

What is the expected growth rate of the Global Bio-Coal Market?

Bio-Coal Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Woody Biomass, and Agricultural Waste), By Application (Power Generation, Residential, Commercial, Industrial Heating), By Region, By Competition 2020-2030F

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Bio-Coal Market in 2024?

Which is the dominating region in the Global Bio-Coal Market?

Which is the fastest growing segment in the Global Bio-Coal Market?

What is the expected growth rate of the Global Bio-Coal Market?