Bio-energy to play a key global role in shaping the energy transition this decade, says KPMG

The global bio-energy market is on the cusp of an exciting growth trajectory for the rest of the current decade, and will play a decisive role in shaping a low-carbon future, particularly in transportation, according to the Global Head of Energy, Natural Resources and Chemicals at KPMG.

Often cited as the perfect panacea for meeting the energy needs of the global population and the transportation sector in particular, the bio-energy and bio-fuels sector must work on the modernisation of the distribution and retailing system as well as invest in modern technologies to ensure robust growth for the decade ahead, Anish De told Energy Connects in an exclusive studio interview.

In the global transportation sector, energy needs are increasing by 31% per year, while the demand for plastics is growing by 3% annually – both critical numbers that De said can be addressed by ramping up the contribution of bio-energy.

“If you take India, South Asia, and Africa – these are natural places where biofuels should play a big role. And they do. But unfortunately, it's not modern biofuels as yet. So what we need is the modernisation of the supply chain,” De told Energy Connects during a studio interview at India Energy Week in Goa.

“Everything takes time… It takes time to build the next supply chain, retail networks, and modern technologies. A lot of the actions on climate change have to happen before 2030 for us to have a real chance [at keeping global warming below 1.5C]. I'm very positive that even before we hit 2030, I see biofuels playing a very significant role,” he added.

Earlier this year, Wood Mackenzie estimated that the global bioenergy market was valued at US $44 billion. But if the world meets net zero targets by 2050, its energy transition outlook shows that bioenergy could swell to a $500 billion market.

“The beauty of biomass-based solutions is that we can see a path forward in terms of cost reduction or greater organisation of the sector, becoming mainstream. We can see a clear path, which we sometimes find it difficult even for products like green hydrogen …  We know the challenges with bio-mass, but if we are able to address some of those physical challenges, including supply chain, then we can see a very clear path forward and it can be much cheaper than other alternative energies, which is an important dimension,” De said.