Report says EU biomass demand to grow

July 11, 2011, Brussels, Belgium –
Renewable energy policy in Europe will generate an increase in lignocellulosic
biomass demand of 44% between 2010 and 2020, predicts the European Biomass
Review, a new study from RISI. The increased use of biomass will be driven
principally from the energy sector, but also from the industrial and
residential sectors.

What is the potential to increase regional
supply for biomass from forest and other sources, and what actions are being
taken to release the potential? The key to the future development of European
biomass markets resides in the region's supply potential and how well it can
mobilize new sources of supply such as forest residues, agricultural residues,
and energy crops. Three scenarios for the mobilization of new supply
sources by 2020 are included for each region in the European Biomass Review. A
cost-curve analysis for each region and each scenario illustrates the
implications for biomass pricing and imports.

While technologies such as wind, solar, and
geothermal are developing rapidly, lignocellulosic biomass is currently the
largest renewable energy source and remains attractive due to its relative
abundance and reliable supply. The economics of biomass versus other renewable
energy sources is analyzed in the study using macro demand drivers and the
National Renewable Energy Action Plans (NREAPs) to forecast biomass demand by
sector until 2020.

"The NREAPs offer insights into how
governments plan to meet the renewable energy targets by 2020," says study
author Glen O'Kelly, "but forecast biomass demand is based on announced
investments, carbon costs, and the relative economics of biomass, as well as an
analysis of macro drivers: forecast GDP, population, household energy use,
forest industry production."

The European Biomass Review covers the EU27
countries, combined with Norway and Switzerland, with breakdowns for five
regions (North, West, East, and South Europe, and UK-Ireland). It highlights
opportunities for global biomass exporters, as well as the need to develop
infrastructure such as ports and terminals for supply chains, biomass futures,
and hedging instruments.

www.risi.com/ebiomass