Australia Biomass Market

Australia Biomass Market Overview:

The Australia biomass market size reached USD 2.67 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 5.65 Billion by 2033, exhibiting a growth rate (CAGR) of 7.8% during 2025-2033. Renewable energy, government incentives for clean energy, environmental sustainability goals, and the agricultural sector's biomass waste are some of the factors contributing to Australia biomass market share. Additionally, technological advancements in biomass conversion and the rising cost of fossil fuels contribute to the market's growth.

Australia Biomass Market Trends:

Renewable Biomass Power Investment

The Australia biomass market is witnessing significant investments in renewable power generation, particularly in sawmills and industrial sectors. This focus on biomass is driving the installation of advanced technologies such as steam turbines and boilers, designed to generate large quantities of renewable electricity. These projects aim to meet increasing energy demands while achieving substantial environmental benefits, including significant reductions in greenhouse gas emissions. Biomass power generation not only supports renewable energy goals but also promotes carbon neutrality in industrial operations. As such initiatives continue to develop, they are expected to contribute to Australia's growing commitment to sustainable energy and climate change mitigation, with large-scale projects anticipated to play a key role in shaping the future energy landscape. These factors are intensifying the Australia biomass market growth. For example, in October 2024, OneFortyOne committed approximately USD 30 Million in a renewable biomass power generation project at its Jubilee Sawmill in Mount Gambier, Australia. The project includes installing a new boiler and steam turbine, generating 43,800 MWh of renewable electricity annually. Expected to be completed by 2026, it will reduce emissions by over 70%, cut combined scope 1 and 2 emissions by over 50%, and avoid 9,000 tCO2e emissions compared to 2021 levels.

Advancements in Biomass Oil for Biofuel Production

The market in Australia is benefiting from innovations aimed at enhancing biofuel production, including sustainable aviation fuel. New technologies are increasing plant oil yields by expanding oil production from traditional seeds to the entire plant biomass, including leaves and stems. This shift is opening new opportunities in biofuel production by utilizing underexploited parts of plants, improving overall yield efficiency. Research partnerships are actively advancing these technologies, positioning Australia as a key player in the sustainable biofuels sector. The focus on biomass oil not only supports the nation’s renewable energy goals but also fosters economic growth by creating new pathways for agricultural products to contribute to global biofuel demand. This innovation is expected to play a pivotal role in the future of sustainable energy. For instance, in November 2024, Australia's CSIRO developed a breakthrough technology to increase plant oil yield, enhancing biofuel production, including sustainable aviation fuel. The technology, acquired by Nufarm, extends oil production from seeds to plant biomass, such as leaves and stems. Nufarm has since led a global research partnership to further advance this innovation, contributing significantly to Australia's biomass market and biofuel sustainability, as part of the Biomass Oil Project.

Australia Biomass Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on feedstock and application.

Feedstock Insights:

• Agriculture Waste
• Wood and Woody Residue
• Solid Municipal Waste
• Others

The report has provided a detailed breakup and analysis of the market based on the feedstock. This includes agriculture waste, wood and woody residue, solid municipal waste, and others.

Application Insights:

• Power Generation
• Heating
• Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes power generation, heating, and others.

Regional Insights:

• Australia Capital Territory and New South Wales
• Victoria and Tasmania
• Queensland
• Northern Territory and Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory and New South Wales, Victoria and Tasmania, Queensland, Northern Territory and Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Biomass Market News:

• In March 2025, the Albanese government announced plans to invest USD 250 Million to accelerate Australia’s Low Carbon Liquid Fuels (LCLF) industry, part of the USD 1.7 Billion Future Made in Australia Innovation Fund. LCLFs, produced sustainably from biomass and waste, would focus on sustainable aviation fuel and renewable diesel. This investment supports regional economic growth, diversifies agriculture, and creates jobs, contributing up to USD12 Billion annually.

Australia Biomass Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia biomass market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia biomass market on the basis of feedstock?
• What is the breakup of the Australia biomass market on the basis of application?
• What is the breakup of the Australia biomass market on the basis of region?
• What are the various stages in the value chain of the Australia biomass market? 
• What are the key driving factors and challenges in the Australia biomass market?
• What is the structure of the Australia biomass market and who are the key players?
• What is the degree of competition in the Australia biomass market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia biomass market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia biomass market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia biomass industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.