Thailand's biogas and biomass industry grew 19.7% in 2012-2017

The northeastern part of the country significantly grew both biogas and biomass.

Thailand’s biogas and biomass industry registered a robust five-year CAGR of 19.7% in 2012-2017 thanks to the doubling of the biogas market and growth of the biomass segment, a study by Ken Research revealed. 

“The growth was mainly driven by implementation and amendments of regulatory norms to push the use of biogas and biomass as alternative fuel. Increased demand for energy and rise in awareness about clean energy among the people has promoted the development of biogas and biomass industry,” Ken Research said.

However, the revenue of the biogas engineering procurement construction (EPC) market played at $70m in 2017, slightly lower than around $75m in 2012.

The northeastern part of Thailand is the biggest market for biogas generating companies accounting for a third of the market in 2017, swiftly followed by the central and southern parts. The heavy presence of a number of host industries was the key driver, the study said.

For biomass, the northeastern part of Thailand was the largest contributor in terms of market share. It was followed by central Thailand.

“Southern Thailand has the minimal share in both biogas and biomass market, but is expected to grow heavily in next five years due to special incentives provided by the government to invest in that region,” Ken Research added.

The report also found that tapioca starch plants were the largest users of electricity generation from biogas. “Sugar producing industries were the biggest producers of electricity from biomass. Biogas and biomass have become a major source of renewable energy and are being heavily targeted by the government due to the high unutilized potential within the sector,” it added.

Big companies also fished majority of their new contracts from the small-scale segment. Companies operating in EPC business in biomass and biomass market are also engaged in consultation, engineering services, equipment manufacturing.

The study found that many companies are targeting the construction of very small power plants (VSPP) and small power plant (SPP). Asia Biogas became the largest player in the biogas market in Thailand after acquiring Thailand Biogas Energy Company (TBEC).

The market for electricity generation from biogas and biomass market is expected to grow positively between 2017-2022, Ken Research said. However, the five-year CAGR is expected to be significantly smaller at 9.6%.

“Availability of new technology at low cost to small players is the major growth driver behind the growth of biogas sector,” it added.

The northern Thailand market is also expected to grow by a small proportion in the biogas sector. The biomass sector has the biggest potential in southern provinces of Thailand which will grow in the next five years, the firm concluded.