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How do you start a biomass energy business and what do you need to know?

What are Biomass and Biomass Energy?

As we all know, living (organic) matter is referred to as biomass. And the energy obtained from this biomass material is called bioenergy or biomass energy. Plants, plant-derived materials, trees, and tree-derived materials are the best examples of living matter with which we can generate bioenergy.

The very first bioenergy production began in the ancient era when man used wood (tree-derived) as a fuel for fire. Since then, this biomass has been the major source of bioenergy. Other examples of biomass materials include food crops, agriculture residues, oil-abundant algae in forests, urban food wastes, etc. 

Benefits of Biomass Energy: Your Biomass Business’s USPs

  1. Reduced greenhouse gas (CO2) emissions

When we burn fossil fuels, they release CO2 to a greater extent, whereas burning biomass releases comparatively less CO2. Industry experts specify that burning biomass releases the same amount of CO2 that was consumed for its growth. 

  1. Enhanced rural welfare

Growing biomass for bioenergy on already clear or bare land creates opportunities for rural communities. This localized job creation helps rural families earn their income without relocating or learning an all-new skill or business. Also, this doesn’t require them to own land for growing biomass.

  1. Reduced dependency on non-renewable resources 

Today, many countries, including the United States, import fuel (oil) to meet their energy consumption needs. Countries that flourished with oil resources earlier are already seeing depletion in their resources because they are all non-renewable energy sources (fossil fuels). By using biomass for energy production, your country can reduce its dependency on importing non-renewable fossil fuels.

Reasons why renewable energy is getting popular!

Types of Bioenergy Businesses You Can Start

Commercial bioenergy production either involves direct or indirect burning or processing of biomass materials. You can produce heat energy or power (electricity) with the help of direct biomass processing. On the other hand, indirect processing can yield liquid biofuels.

1. Biofuels Business

They are the liquid energy form of biomass used for the transportation of vehicles. They are equivalent to current fuel forms such as petroleum or gasoline. Ethanol and biodiesel are the two most common biofuels produced from cellulosic biomass. 

Did you know? About 400 gallons of biofuel (ethanol) can be produced with one acre of biomass (corn).

2. Biopower Business

The direct processing of biomass yields electric power or heat. These energy forms are called biopower. This biopower is obtained either by burning the biomass (pyrolysis) or decaying the biomass under controlled bacterial action (anaerobic decomposition). 

3. Bio-products Business

Bioplastics or bio-lubricants are examples of bioproducts. Often, these are the byproducts of converting biomass into biofuels or biopower. 

How Do I Start a Biomass Energy Business?

As the world experiences a paradigm shift toward sustainable and green energy, as an entrepreneur, you can make use of this opportunity.

Follow these steps to get a clear picture of how to start a bioenergy business:

Step 1: Gain knowledge about biomass storage, conservation, and distribution 

Step 2: Check your previous industry experiences and try finding ways you can relate bioenergy to it

Step 3: Select your area of expertise in biomass processing

Step 4: Choose your product or service accordingly 

Step 5: Create a business plan with your idea, technology, or expertise

Step 6: Scout for financing and then launch your business.

Factors favoring the renewable energy business!


As biomass serves as one of the most promising renewable energy sources, we cannot clear forests (deforestation) so as to produce biomass materials. Only the use of empty land is sustainable and environmentally friendly.  

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