Contrary to popular belief, Earth’s resources are not infinite—they are alarmingly finite. While it may still be years before we fully deplete them, the warning signs are undeniable. The UN’s International Resource Panel’s 2024 report indicates that natural resource consumption has tripled in the past 50 years, growing at 2.3% annually. This includes biomass, non-metallic minerals, metals, and fossil fuels. The report further predicts a 60% increase in resource demand by 2060 compared to 2020 levels.
This over-reliance calls for an urgent shift from extractive, unsustainable energy systems to renewable and regenerative solutions. Among the array of clean energy options, bioenergy stands out as a versatile, scalable, and accessible alternative.
What is Bioenergy, and Why Does It Matter?
Bioenergy is a renewable energy source derived from organic materials known as biomass. This includes agricultural residues, livestock manure, forestry by-products, and food waste. These materials are converted into energy in various forms, such as biogas, liquid biofuels (ethanol and biodiesel), or solid fuels like wood pellets.
Bioenergy’s appeal lies in its versatility. It can power industries, fuel vehicles, and even provide electricity and cooking gas to households. Most importantly, it addresses multiple global challenges, from reducing greenhouse gas emissions to creating circular economies that turn waste into valuable resources.
The Role of Bioenergy in Energy Transition
Bioenergy has emerged as a leading renewable energy source. By 2030 it is set to drive 95% growth in renewable fuels, meeting 5.5% of energy demand across industry, building, and transport.
Unlike other emerging technologies, modern bioenergy solutions, such as liquid biofuels and biogas are more affordable and backed by policies in over 60 countries. Countries like China, Brazil, Europe, India, and the United States are leading this shift, backed by strong policies that accelerate bioenergy adoption.
Decarbonizing Transportation with Liquid Biofuels
Global biofuel production reached 200 billion liters in 2023, with the demand expected to increase by 30% by 2023-2028. Liquid biofuels, such as ethanol, produced from crops like sugarcane and maize, are commonly blended with gasoline. On the other hand biodiesel is derived from vegetable oils and animal fats, and serves as a diesel substitute.
Beyond reducing greenhouse gas emissions, biofuels contribute to improved air quality, better waste management, and economic opportunities in rural areas.
Biomass Power Plants for Energy Generation
Biomass power plants generate electricity by burning organic materials like wood pellets, crop residues, and forestry by-products. Although they operate similarly to coal plants, they produce significantly lower emissions. As of 2024, there were 4,971 biomass power plants worldwide. That number is projected to grow to 5,980 by 2033.
Beyond electricity generation, these plants enhance grid stability and reduce landfill waste by repurposing organic materials—supporting a circular economy model.
Modern biodigesters: A Circular Solution for Farmers and the Planet
Modern biodigesters are particularly beneficial for farmers, providing a cost effective means to produce energy and manage animal waste. Whether it is a small dairy farm or a large commercial operation, biogas enables farmers to generate their own clean energy, cut costs, reduce methane emissions, and improve soil fertility with organic fertilizer.
However for large-scale, productive farms, energy is a critical factor, ascertaining efficiency and profitability. These farms require continuous power for irrigation pumps, refrigeration, milking machines and other essential operations. However, energy costs are rising. Grid electricity is expensive and unreliable, priced at ₹8-9 per unit, while diesel generators cost ₹15-25 per kWh equivalent, adding a significant financial burden.
Biogas presents a zero-cost, self-sustaining energy solution for these high-energy-demand farms. A well-designed biogas system can provide a steady power supply throughout the day, matching the energy curve of farm operations—peaking in the morning for irrigation and milking, dipping midday, and rising again in the evening for lighting and processing. With a Levelized Cost of Energy (LCOE) of just ₹4-₹7 per kWh, biogas is far more economical than diesel and grid power, ensuring long-term cost savings.
Beyond energy, biogas supports circular farming by converting livestock waste into clean energy and organic fertilizer, reducing dependence on synthetic inputs and improving soil health. Every ton of organic waste processed prevents about 2.5 tons of CO₂ equivalent emissions, making biogas a key climate solution for regenerative agriculture.
Scaling the Bioenergy Revolution
As we move forward with the 2030 climate agenda and increase clean energy adoption, bioenergy offers a rare combination of readiness and relevance. From small farms in India to industrial sectors in Europe, bioenergy solutions are already delivering measurable climate, economic, and social benefits.
To unlock bioenergy’s full potential, we need stronger policy integration, increased investment, and inclusive models that prioritize farmers and communities. Bioenergy must become a central pillar of national clean energy strategies—not only to reduce emissions and manage waste, but to support regenerative agriculture, expand energy access, and drive rural development.
Let’s commit to scaling bioenergy as a practical, inclusive, and climate-positive energy solution.
Piyush Sohani
Chief Growth Officer
