Biomass is becoming increasing appealing for the international market

Renewable acquisitions have more than doubled in the first months of 2010 compared to the same period of 2009. The news is that most investments regarded biomass

In the first quarter of 2010, the international merger and acquisition market regarding renewable energy grew by 145% in terms of trade volume over the same period of 2009, with a 63% value increase.

The real novelty in this scenario, according to the recent survey Powering Ahead: 2010 - An outlook for renewable energy – that KPMG conducted from January to March 2010 - is that biomass has become the most popular renewable source for investors. Biomass was the most appealing sector for 37% of investors, even surpassing solar power (36%) and onshore wind power (35%), though these two technologies require less time for installation (and therefore for economic returns).

KPMG believes that this increased attention is due to the fact that biomass plants can create greater economic revenues than other renewable technologies, since in the long-term they deliver larger economies of scale. A particularly significant advantage is that they are capable of simultaneous generation of electricity and thermal energy, with the possibility of supplying heating for buildings or particular uses of the process. Above all, what is emphasized as the most significant advantage is that it operates more effectively as a base load power in comparison to typically intermittent technologies like wind and solar.

According to the KPMG survey, one of the challenges that the biomass industry must overcome in the near future is the issue of long term fuel supply and its cost.

(June 2010)