7.8.1.2Vertical

Biomass Power Generation

Operators of wood and agricultural biomass power plants.

Market snapshot

These figures describe Biomass & Biofuels (7.8.1), the segment that Biomass Power Generation sits within. They are not figures for Biomass Power Generation on its own.

Market size
~$948M
Growth
~0.9%CAGR (2017–22, nominal)
Companies
~75 firms
Firms by employee count

53.3% of firms have fewer than 20 employees: 40 micro-businesses, below most mandates.

The investable universe35 firms with 20+ employees
20–99
1646%
100–499
411%
500+
1543%

The only renewable class that is not growing, and the reason is competitive rather than technical. Biomass generation is being displaced by solar and wind on cost, while its feedstock economics stay exposed to agriculture and forestry cycles.

NAICS 221117. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

Business model & economics

Revenue model

Biofuel sales plus renewable-fuel credits (RINs, LCFS, 45Z)

Key economics

Revenue per firm
$12,638,067
Revenue per employee
$442,303
Employees per firm
33.5
Recurring revenue
Moderate

recurring fuel demand; credit-driven

EBITDA margin
Margin- and credit-driven; feedstock-exposed
Capex intensity
High

Characteristics

  • Scale-driven: payroll is only 22% of revenue, so the cost base is assets, not headcount
  • Thin strategic-buyer pool: only 15 firms exceed 500 employees, so exits skew sponsor-to-sponsor
  • Ethanol mature; renewable diesel and SAF the growth.
  • RFS, LCFS, and IRA 45Z credits drive economics.
  • Refiners and agribusiness investing heavily.

NAICS 221117. U.S. Census Bureau, 2022 Statistics of U.S. Businesses; U.S. Census Bureau, 2022 Economic Census.

M&A deal context

Deal activityHigh

Who’s acquiring

  • Refiners & renewable-fuel producers
  • Agribusiness & feedstock players
  • Energy & infrastructure investors

What’s driving deals

  • Renewable-diesel and SAF build-out.
  • Low-carbon-fuel standards and 45Z credits.
  • Refinery conversions to renewable fuels.

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