Biomass Black Pellets Market Global Report 2026

The biomass black pellets market size has grown rapidly in recent years. It will grow from $1.62 billion in 2025 to $1.81 billion in 2026 at a compound annual growth rate (CAGR) of 11.6%. The growth during the historic period was driven by growing demand for renewable energy sources, increasing focus on reducing carbon emissions, rising adoption of biomass-based power generation, expanding government support for clean energy projects, and growing industrial demand for alternative heating fuels.

The biomass black pellets market size is expected to see rapid growth in the next few years. It will grow to $2.76 billion in 2030 at a compound annual growth rate (CAGR) of 11.1%. The growth during the forecast period can be attributed to increasing replacement of coal with sustainable biofuels, growing investments in biomass pellet production facilities, rising demand for carbon-neutral energy solutions, expanding adoption of biomass in industrial heating applications, and increasing development of advanced biomass conversion technologies. Key trends expected during the forecast period include increasing adoption of advanced biomass densification technologies, growing demand for high-energy-density renewable solid fuels, rising development of improved biomass thermal treatment processes, expansion of sustainable biomass supply chain networks, and increasing production of durable moisture-resistant biomass pellets.

The increasing demand for renewable energy sources is expected to drive the growth of the biomass black pellets market in the coming years. Renewable energy sources are naturally replenished resources, including solar, wind, hydropower, biomass, and geothermal energy, that are utilized for electricity generation and heating with limited depletion over time. The rising demand for renewable energy sources is supported by the need to reduce greenhouse gas emissions, as clean energy technologies produce electricity with considerably lower environmental impact compared to fossil fuels. Biomass black pellets contribute to renewable energy generation by offering a high-energy, low-emission fuel alternative to coal, supporting cleaner electricity and heat production from sustainable biomass materials. For instance, in February 2024, according to the US Energy Information Administration, a US-based government department, utility-scale facilities generated approximately 4.18 trillion kilowatt-hours (kWh) of electricity in 2023, along with an additional 73.62 billion kilowatt-hours (kWh) produced from small-scale solar systems. Therefore, the increasing demand for renewable energy sources is driving the growth of the biomass black pellets market.

Major companies operating in the biomass black pellets market are focusing on strategic collaborations to improve energy density, enhance handling and storage capabilities, and provide optimized renewable energy solutions for power generation and industrial heating applications. Strategic collaboration refers to a partnership between organizations that combines resources, expertise, or technologies to achieve common objectives, accelerate innovation, and strengthen competitive positioning. For instance, in May 2025, Kobe Steel, Ltd., a Japan-based producer of steel and aluminum, partnered with Mitsubishi UFJ Capital Co., Ltd. (MUCC), a Japan-based venture capital firm, to conduct a feasibility study focused on the production and commercialization of black pellets. The initiative aims to support greater adoption of renewable fuels and advance decarbonization efforts. The collaboration facilitates the assessment of large-scale black pellet supply chains, enhanced utilization of biomass resources, and increased potential for reducing greenhouse gas emissions in energy-intensive industries, strengthening the role of advanced biomass black pellets in sustainable power generation and industrial energy transition strategies.

In May 2025, Valmet, a Finland-based automation company, partnered with Wilhelmina N.V. Forge to commercialize TG2 pellet plants, enabling large-scale production of advanced black biomass pellets from agricultural residues as a sustainable substitute for coal. Through this partnership, Valmet and Wilhelmina N.V. Forge aimed to accelerate the commercialization of TG2 pellet plants for manufacturing advanced black biomass pellets and support the transition from fossil fuels toward sustainable renewable energy sources. Wilhelmina N.V. Forge is a Netherlands-based company involved in biomass black pellets through the development, production, and commercialization of its proprietary TG2 black pellets.

Major companies operating in the biomass black pellets market are Airex Energy Inc, Arbaflame AS, Drax Group plc, Enviva Inc, Foresta Group Holdings Limited, Graanul Invest, Idemitsu Kosan Co. Ltd., TTCL Public Company Ltd.

North America was the dominating region in the biomass black pellets market in 2025. Asia-Pacific is expected to be the rapidly growing region in the forecast period. The regions covered in the biomass black pellets market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the biomass black pellets market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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