Title page 1

Contents 3

Abstract 5

Foreword on the Clean Energy Technology Observatory 6

Acknowledgements 7

Executive summary 8

1. Introduction 11

1.1. Scope and context 11

1.2. Methodology and data sources 11

2. Technology status and development trends 13

2.1. Technology overview 13

2.1.1. Biomass pre-treatment 13

2.1.2. Thermochemical conversion: combustion 14

2.1.3. Thermochemical conversion: gasification 15

2.1.4. Thermochemical conversion: pyrolysis 15

2.1.5. Thermochemical conversion: hydrothermal processing 16

2.1.6. Biochemical conversion: anaerobic digestion 17

2.1.7. Upgrading: biogas to biomethane 17

2.1.8. Upgrading: syngas cleaning 18

2.2. Technology readiness level 19

2.3. Installed capacity, energy production and consumption 20

2.3.1. Global bioelectricity production trends 20

2.3.2. EU Bioenergy consumption 22

2.3.3. Biogas and Biomethane production in Europe 24

2.3.3.1. EU Bio-LNG 27

2.3.3.2. EU Bio-CNG 28

2.3.4. EU Bioelectricity generation 28

2.3.5. EU Bio-Heat generation 29

2.4. Technology costs 31

2.4.1. Bioenergy costs 31

2.4.2. Biomethane costs 32

2.5. Public RD&I funding 33

2.6. Private RD&I funding 36

2.6.1. Venture Capital and Private Equity 36

2.7. Patenting trends 38

2.8. Scientific publication trends 42

2.9. Assessment of EU R&I project developments 46

3. Value Chain Analysis 50

3.1. Turnover and Gross Value Added 50

3.2. Environmental and socio-economic sustainability 52

3.3. Role of EU companies 53

3.4. Employment 53

3.5. Energy intensity and labour productivity 56

3.6. EU production data 56

4. EU market position and global competitiveness 59

4.1. Global markets and growths prospects 59

4.1.1. Current EU positioning in the global market 59

4.1.2. Market prospects 59

4.2. Trade (import/export) and trade balance 64

4.3. Status of net-zero technology systems and components in the EU 67

4.3.1. Relevant final products and primarily used components 67

4.3.2. EU manufacturing benchmarks 68

4.3.3. EU share in global manufacturing benchmark 69

4.4. Resource efficiency and dependency in relation to EU competitiveness 69

5. Conclusions 70

References 72

List of abbreviations and definitions 74

Annex 1. Sustainability assessment framework 80

Annex 2. Energy System Models and Scenarios 92

Tables 78

Table 1. CETO SWOT analysis for the competitiveness of bioenergy in the EU 9

Table 2. Current TRL of bioenergy processes 19

Table 3. CAPEX & OPEX Bioenergy technologies 31

Table 4. Horizon Europe projects and funding for bioenergy heating and power generation 49

Table 5. Growing markets of biomass for bioenergy based on a 2-year average of net import change 66

Table 6. Net-zero technology: sustainable biogas and biomethane technologies 67

Figures 76

Figure 1. Flowchart of Heat & Power production from biomass 13

Figure 2. Evolution of bioelectricity production in the world by regions 20

Figure 3. Evolution of bioelectricity production in the world by source 21

Figure 4. Global bioelectricity production by region and by source in 2023 21

Figure 5. Global renewable electricity production by region and by source in 2023 22

Figure 6. Breakdown of renewable energy consumed for heat and cooling in the EU in 2023 23

Figure 7. Evolution of bioenergy consumption for bioelectricity and bio-heat in the EU 23

Figure 8. Leading EU Member States by share on renewable heat deployment in 2023 24

Figure 9. Evolution of biogas and biomethane production in Europe 25

Figure 10. Newly installed biomethane plants in Europe 26

Figure 11. Biogas production in Europe in 2023 26

Figure 12. Share of natural gas replaced by Biogas, Biomethane production in Europe, 2023 27

Figure 13. Evolution of bioelectricity production in the EU 28

Figure 14. Leading EU Member States in bioelectricity production in 2023 29

Figure 15. Evolution of gross bio-heat production in the EU 30

Figure 16. Leading EU Member States in gross bio-heat production in 2023 30

Figure 17. LCOE on Bioelectricity from solid Biomass and Biogas 32

Figure 18. Biomethane production cost in Europe 2024 33

Figure 19. Public investments in RDD Biomass projects in the EU 34

Figure 20. Share of public RD&I investment in bioenergy by IEA member countries for the period 2014 to 2024 35

Figure 21. Global (left) and the EU (right) public RD&I investment in bioenergy for the period 2014 to 2024 35

Figure 22. Share of RDD funding received by EU Member States for bioenergy projects 2014-2024 36

Figure 23. Venture capital/ private equity investment in bioenergy, the EU and rest of the world, 2015-2024 37

Figure 24. Venture capital investment in bioenergy, the EU and rest of the world (RoW) 37

Figure 25. Bioenergy and biogas number of high-value inventions 2020-2022 39

Figure 26. Number of high-value inventions between 2011 and 2022 (left) and top ten countries with high-value inventions for the period... 40

Figure 27. Global top ten entities with high-value inventions for the period 2020-2022, data for 2022 is not complete 41

Figure 28. International flows of high-value inventions between major economies (2020-2022), data for 2022 is not complete 42

Figure 29. Scientific publications Biomass Feedstock, 2014-2024 43

Figure 30. Scientific publications Biomass Processes, 2014-2024 43

Figure 31. Highly cited scientific publications Biomass feedstock, 2014-2024 44

Figure 32. Highly cited scientific publications Biomass processes, 2014-2024 44

Figure 33. Collaboration network scientific publications Biomass H&P worldwide, 2014-2024 45

Figure 34. Collaboration network scientific publications Biomass H&P in Europe, 2014-2024 46

Figure 35. Horizon Europe grants (EUR 62 million) for TRL 7 bioenergy carriers to innovation actions per technology 48

Figure 36. Turnover Solid Biomass and Biogas, EU 2018-2023 50

Figure 37. Turnover of Solid Biomass to Energy, EU Member States 2023 51

Figure 38. Turnover of Biogas, EU Member States 2023 52

Figure 39. Solid Biofuels and Biogas Full-Time Equivalents (FTE) Jobs, EU 2018-2023 54

Figure 40. Solid Biofuels Full-Time Equivalents (FTE) Jobs, EU 2023 55

Figure 41. Biogas Full-Time Equivalents (FTE) Jobs, EU 2023 55

Figure 42. Biomass carrier production value in the EU, 2015-2024 NB the EU total (yellow line) includes data that some Member... 57

Figure 43. EU biomass commodities production share by value, 2015-2024 58

Figure 44. Electricity generation from bio sources in the EU (primary axis, stacked bars) and share in total electricity generation... 60

Figure 45. Centralised heat generation from bio sources in the EU (primary axis, stacked bars) and share in total centralized... 61

Figure 46. Global production capacity and overnight investment cost trends for biomass (BM) power generation technologies 62

Figure 47. Global electricity production and share of total electricity production by biomass (BM) power generation technologies 63

Figure 48. Solid biomass energy carriers and feedstocks trade in the EU 64

Figure 49. Top ten global (left) exporters and (right) importers of biomass for bioenergy 2022-2024 65

Figure 50. Top five (left) importers and (right) exporters to the EU of biomass for bioenergy 2022-2024 66

The European Union bioenergy sector is a pillar of the EU’s green ambitions, generating a turnover of over €32 billion and supporting 304,000 jobs. This report covers solid biomass fuels, bioliquids and biogases for heat and power generation. It does not include liquid biofuels for transport, which are the subject of the CETO report on advanced biofuels in the EU.

A key trend is the tenfold increase in biomethane production since 2011. Another key trend is the shift to sustainable feedstocks such as waste and agricultural residues, supported by EU legislation. In heating and cooling, bioenergy provided 75% of all renewable energy and it accounted for almost 20% of total consumption in the EU in 2023. In 2014-2024, the EU had a trade deficit in biomass feedstocks and bioenergy carriers.