Bio-energy

Biomass is biological material derived from living, or recently living organisms. In the context of biomass for energy this is often used to mean plant based material, but biomass can equally apply to both animal and vegetable derived material. Physically it is chemically bound solar energy. There are numerous basis materials, processes and usage-scenarios available for biomass energy. In the energy mix, bio-energy is a vital component because it can be produced continuously, regardless of season and weather.

Biomass as a renewable resource is found in nature in various forms. As in the burning of wood in thermal power stations, it can be used directly or converted into other desired physical states such as biogas or biofuel via technical processes.

The use of biomass in energy-realted usage has steadily been increasing since the mid-1990s. In 2009, biomass accounted for 6.1% of primary energy consumption in Germany and was accountable for 5.4% (ca. 31 TWH) of gross power generation. The total biomass has provided more than 105 TWh of final energy for heat generation in 2009, which means 7.3% of the total heat consumption. Globally bioenergy accounted for about 10% of total primary energy consumption in 2008.

In 2011, 2.8 billion euros flowed into investments of biomass power plants and biogas plants for electricity and heat generation in Germany, generating some 5.9 billion euros of revenue. Bioenergy projects provide the opportunity for attractive returns but also involve specific risks.
In this regard, commodity pricing that is driven by volatile market development plays an important role – a mostly unknown factor for other forms of renewable energy.