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Energy Transition Faces Challenges and High Costs Without EU Investment in Biomass

April 22, 2025
in Policy
Reading Time: 4 mins read
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Biomass in a European energy system with negative emissions
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A recent comprehensive study led by researchers at Chalmers University of Technology in Sweden has shed new light on the pivotal role of biomass in Europe’s quest for a sustainable, carbon-neutral future. Biomass, derived from sources such as energy crops, forestry residues, and agricultural waste, emerges from this analysis not merely as a renewable energy option but as an indispensable component enabling both fossil fuel replacement and crucial carbon dioxide removal mechanisms. This study highlights the staggering economic penalties and technical challenges that arise if biomass is sidelined in energy strategies aiming for aggressive climate targets, including scenarios achieving net-negative emissions well below 1990 levels.

Unlike many climate scenarios that prioritize wind, solar, or hydrogen, this investigation reveals that excluding biomass from the European energy portfolio would add an astonishing €169 billion annually to the continent’s energy system costs. This figure rivals the cost of discarding wind power entirely, underscoring biomass’s underrated economic and strategic value. The researchers employed an advanced computational model integrating electricity, heating, industrial sectors, and transportation to simulate how biomass utilization affects overall system costs and emission trajectories.

A crucial insight from the research is the multifaceted utility of biomass. Beyond burning biomass for heat and electricity, it serves as a feedstock for producing biofuels and fossil-free chemicals, thus displacing carbon-intensive fossil raw materials. Industries like steel and cement, which traditionally rely on fossil fuels and face steep decarbonization challenges, also stand to benefit from biomass-derived process heat. Moreover, biomass’s carbon content embodies a unique opportunity: when coupled with carbon capture and storage (CCS), it facilitates the removal of atmospheric CO₂ through a process known as Bio-Energy with Carbon Capture and Storage (BECCS). This contrasts with direct air capture (DAC), which, while promising, demands substantial energy input and currently incurs higher costs.

The study explores two ambitious emissions scenarios for the EU energy system: one achieving net-zero emissions and another reaching net-negative emissions—a 110% reduction relative to 1990 levels. Within these frameworks, biomass resources primarily consist of locally sourced waste and residues, supplemented by costlier imports when demand exceeds domestic supply. This nuanced approach allows the researchers to elucidate not only the intrinsic value of biomass but also the financial and technical consequences of constraining its availability.

Model results reveal a notable sensitivity of system costs to biomass availability. Limiting biomass to current usage levels moderately increases costs by about 5%, but total exclusion triggers a disproportionate 20% rise. This escalation is attributed to the dual role of biomass in supplying both renewable energy and fossil-free carbon, a combination challenging to substitute elsewhere. Alternatives such as expanded direct air capture or ramped-up renewable energy installation face scalability and cost constraints, underscoring biomass’s critical enabling role.

Furthermore, the study emphasizes that biomass’s value lies less in the energy it provides and more in its carbon content that can be sequestered or repurposed. Technologies that extract and store CO₂ from biomass combustion products—either underground or by conversion into synthetic fuels and chemicals—create durable carbon sinks and facilitate a circular carbon economy. Thus, from a climate strategy perspective, the efficient capture and utilization of biomass-derived carbon atoms are paramount.

Importantly, the research indicates flexibility in how biomass can be deployed across energy sectors. Regional conditions, infrastructure capabilities, and policy frameworks will shape whether biomass is funneled primarily towards electricity generation, heating, or liquid biofuels. Deploying a portion of biomass as a flexible dispatchable energy reserve can enhance grid reliability amidst the intermittency of wind and solar power, further bolstering energy security.

The implications for policy are profound. The expanded modeling framework used surpasses previous studies in detail and scope, capturing interdependencies across sectors and technology pathways. This broader evidence base calls for targeted policy instruments that recognize biomass’s dual function as a renewable energy source and a provider of fossil-free carbon. Current regulatory regimes often constrain bioenergy deployment due to sustainability concerns around land use, food security, and biodiversity, but the study advocates for enabling frameworks that reward sustainable biomass practices and incentivize investments in BECCS and related technologies.

Researchers caution, however, that scaling up biomass supply sustainably demands coordinated governance across agriculture, forestry, and energy sectors. Responsible biomass cultivation and harvesting alongside improvements in land management practices can reduce environmental risks and improve resource efficiency. Crafting policies that align economic incentives with sustainability outcomes is critical to harness biomass’s full climate mitigation potential.

This study, published in the journal Nature Energy, not only quantifies the costs of excluding biomass but also demonstrates its indispensable role in navigating the energy transition’s complexity. The findings challenge simplified narratives favoring singular climate solutions by revealing how integrated resource use and carbon management strategies confer substantial economic and environmental advantages.

In light of escalating climate ambitions and tightening emission constraints, the research underscores that biomass should remain a cornerstone of Europe’s energy strategy. Ignoring this resource could jeopardize the feasibility of reaching net-zero and net-negative targets, exacerbate transition costs, and compromise the balance between energy supply and carbon removal imperatives. Strategic deployment of biomass, combined with advanced CCS technologies, offers a pragmatic path to deepen decarbonization while supporting energy system flexibility and resilience.

The study represents a landmark contribution to understanding the complexity and multiplicity of pathways through which biomass can contribute to achieving stringent climate goals. Policymakers, industry decision-makers, and researchers are urged to interpret these findings as a call for integrated planning and a recognition that biomass, far from being a marginal player, is vital in the portfolio of solutions that can deliver Europe’s climate commitments affordably and reliably.


Subject of Research:
Biomass usage pathways and their role in achieving emissions targets in the European energy system

Article Title:
Diversity of biomass usage pathways to achieve emissions targets in the European energy system

News Publication Date:
23-Jan-2025

Web References:
https://www.nature.com/articles/s41560-024-01693-6
https://www.nature.com/articles/s41560-024-01685-6

References:
Millinger, M., Hedenus, F., Reichenberg, L., Berndes, G., Zeyen, E., Neumann, F. (2025). Diversity of biomass usage pathways to achieve emissions targets in the European energy system. Nature Energy. https://doi.org/10.1038/s41560-024-01693-6

Image Credits:
Adapted from Millinger et al, CC BY 4.0

Keywords:
Biomass, carbon dioxide removal, negative emissions, BECCS, renewable energy, energy system modeling, European energy policy, carbon capture and storage, climate targets, net-zero emissions, bioenergy, fossil-free fuels

Tags: biomass and carbon dioxide removalbiomass energy utilizationbiomass in climate scenarioscarbon-neutral future in Europechallenges of energy transitionChalmers University biomass studyeconomic impact of biomassenergy system cost analysisEU investment in biomassfossil fuel replacement with biomassrenewable energy strategiessustainable energy sources
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