Bioliquid Heat and Power Generation Market By Fuel Type (Vegetable Oil-Based Bioliquids, Used-Cooking-Oil-Derived Finished Fuels, Animal-Fat-Based Fuels, Fast Pyrolysis Bio-Oil, Other Biomass-Derived Liquid Fuels); By Technology (Internal Combustion Engines, Steam Turbines, Gas Turbines, Combined Heat and Power [CHP] Systems, Dedicated Boilers); By Application (Electricity-Only Generation, Combined Heat and Power [CHP] Generation, Heat-Only Generation); By Plant Capacity (Below 1 MW, 1–5 MW, Above 5–20 MW, Above 20 MW); By End User (Power Generation Utilities, Industrial Manufacturing, District Heating Operators, Commercial and Institutional Facilities, Agricultural and Food Processing Facilities); By Geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa), Segment Revenue Estimation, Forecast, 2026–2032

Bioliquid Heat and Power Generation Market Size, Share, Trends and Forecast, 2026–2032 – (Updated On: 8th-Oct-2026)

The Global Bioliquid Heat and Power Generation Market was estimated at approximately USD 1.57 billion in 2025 and is projected to reach USD 2.14 billion by 2032, expanding at a CAGR of 4.5% during 2026–2032, according to Strategic Market Research. Global stationary bioliquid fuel consumption is estimated at approximately 1.60 million metric tonnes in 2025, supplying electricity generators, combined heat and power (CHP) facilities, industrial heating systems, and district heating networks.

 

Global liquid-biofuel electricity generation capacity reached 2,077 MW in 2025, according to the International Renewable Energy Agency (IRENA). Italy accounted for approximately 880 MW, followed by South Korea with 496 MW, Germany with 187 MW, and the United States with 102 MW. The concentration of generating capacity in a small group of countries makes plant utilization, renewable-fuel procurement, and energy policy eligibility particularly influential in determining market revenue. IRENA Renewable Capacity Statistics 2026

 

The South Korean Bioliquid Heat and Power Generation Market was estimated at approximately USD 280 million in 2025, representing 17.8% of global revenue, and is projected to expand at a CAGR of 4.2% during 2026–2032, according to Strategic Market Research. South Korea accounted for 496 MW of liquid-biofuel electricity generation capacity, equivalent to 23.9% of global capacity. Its commercial activity is concentrated in stationary electricity generation, where bio-oil procurement, plant utilization, and renewable electricity compensation influence operating expenditure. The country's substantial generating capacity creates recurring fuel supply opportunities for certified liquid-biofuel producers, particularly those serving utility-scale electricity facilities.

 

The United States Bioliquid Heat and Power Generation Market was estimated at approximately USD 90 million in 2025, accounting for 5.7% of global revenue, and is projected to expand at a CAGR of 5.3% during 2026–2032. The country operated approximately 102 MW of liquid-biofuel electricity generation capacity, equivalent to 4.9% of the global total. Industrial and institutional heating represents an additional commercial application. Ensyn's Renfrew facility in Canada has an annual Renewable Fuel Oil production capacity of 3 million US gallons, supplying heating customers in the northeastern United States and Quebec. The company's agreement with Youngstown Thermal also demonstrated the application of renewable fuel oil in district steam generation, highlighting opportunities for contracted industrial heating supplies. Ensyn Production Facilities

 

Japan's Bioliquid Heat and Power Generation Market was estimated at approximately USD 8 million in 2025, representing 0.5% of global revenue, with an indicative CAGR of 2.0% during 2026–2032. Japan's stationary liquid-biofuel opportunity is concentrated in specialized power generation and industrial heating applications. In March 2025, Japan's Ministry of Economy, Trade and Industry announced that biomass liquid-fuel power generation projects would cease to qualify for new FIT/FIP support from fiscal year 2026. The policy directs commercial attention toward existing projects, qualifying fuel procurement, and economically competitive industrial applications, making operating efficiency and fuel sourcing increasingly important to investment decisions. METI – Renewable Energy Purchase Prices and FIT/FIP Policy

 

Key Report Takeaways

By Fuel Type

• Largest Subsegment: Vegetable Oil-Based Bioliquids — Accounted for approximately 57.4% market share, generating USD 902.5 million in 2025, with an estimated 3.5% CAGR, supported by established consumption in stationary electricity generators and CHP facilities.

• Fastest-Growing Subsegment: Fast Pyrolysis Bio-Oil — Represented approximately 5.0% market share, contributing USD 78 million in 2025, with a projected 8.2% CAGR, supported by industrial heating applications and investments in wood-residue conversion technology.

By Technology

• Largest Subsegment: Internal Combustion Engines — Represented an estimated 50.9% market share, generating approximately USD 800 million in 2025, with a projected 3.8% CAGR, reflecting their position in established liquid-biofuel electricity generation facilities.

• Fastest-Growing Subsegment: Combined Heat and Power Systems — Accounted for approximately 31.7% market share, contributing USD 498.5 million in 2025, with an estimated 5.8% CAGR, supported by industrial requirements for simultaneous electricity and process heat production.

By Application

• Largest Subsegment: Electricity-Only Generation — Held approximately 60.9% market share, generating USD 958 million in 2025, with an estimated 3.7% CAGR, supported by dedicated liquid-biofuel power generation facilities in Italy, South Korea, and Germany.

• Fastest-Growing Subsegment: Heat-Only Generation — Accounted for approximately 7.3% market share, contributing USD 115.5 million in 2025, with a projected 7.2% CAGR, driven by renewable fuel oil adoption in industrial boilers, institutional heating, and district heating networks.

By Plant Capacity

• Largest Subsegment: Above 20 MW — Represented an estimated 52.0% market share, generating approximately USD 817 million in 2025, with a projected 4.0% CAGR, supported by concentrated fuel consumption in larger electricity generation and industrial energy facilities.

• Fastest-Growing Subsegment: Above 5–20 MW — Accounted for approximately 26.0% market share, contributing USD 409 million in 2025, with an estimated 5.8% CAGR, reflecting opportunities for medium-scale industrial cogeneration and distributed energy installations.

By End User

• Largest Subsegment: Power Generation Utilities — Held an estimated 39.4% market share, generating approximately USD 620 million in 2025, with a projected 3.7% CAGR, supported by recurring fuel procurement across dedicated bioliquid electricity generation facilities.

• Fastest-Growing Subsegment: Industrial Manufacturing — Represented approximately 31.8% market share, contributing USD 500 million in 2025, with an estimated 5.8% CAGR, driven by renewable process heating, captive CHP, and substitution of conventional liquid heating fuels.

By Region

• Largest Subsegment: Europe — Accounted for an estimated 66.8% market share, generating approximately USD 1.05 billion in 2025, with a projected 4.2% CAGR, supported by Italy's liquid-biofuel generation capacity and industrial bio-oil applications in Northern Europe.

• Fastest-Growing Subsegment: North America — Represented approximately 7.0% market share, contributing USD 110 million in 2025, with an indicative 6.0% CAGR, supported by renewable fuel oil supply projects and industrial heating opportunities in the United States and Canada.

 

Recent Developments in the Bioliquid Heat and Power Generation Market

• October 2, 2025: Green Chem Oy acquired the Lieksa bio-oil production facility in Finland from BTG Bioliquids, with plans to restart operations following technology upgrades. The facility has a design capacity of approximately 24,000 tonnes of bio-oil annually. The acquisition represents renewed investment in wood-residue-based liquid-fuel production, creating potential supply opportunities for industrial heating applications. (Source: Yle – Lieksa Bio-Oil Facility Acquisition)

• July 23, 2026: Aurora Renewable Carbon secured financing from Triodos Bank, Oost NL, private investors, and company management to restart its Empyro fast-pyrolysis bio-oil facility in Hengelo, Netherlands. The plant has an annual production capacity of approximately 20,000 tonnes of renewable bio-oil and will initially supply existing industrial customers. The investment supports the restoration of biomass-derived liquid-fuel production for industrial heating applications within the Bioliquid Heat and Power Generation Market. (Source: Aurora Renewable Carbon – Empyro Restart Financing)

• January 30, 2025: Castlerock Biofuels, through EME Biofuels, selected Millinocket, Maine, for a proposed renewable fuel oil production facility using Ensyn's Rapid Thermal Processing technology. The planned plant targets annual production of up to 20 million US gallons of Renewable Fuel Oil from forestry residues, supplying institutional heating customers, including hospitals, universities, and district heating operators across the northeastern United States. The project represents a potential expansion in domestic renewable liquid-heating-fuel production capacity. (Source: Ensyn – Castlerock Biofuels Millinocket Project Announcement)

 

How Are Renewable Fuel Economics and Industrial Energy Requirements Shaping Market Growth?

Industrial Heat Substitution Creates Opportunities for Renewable Liquid Fuels

Industrial heating is an important commercial opportunity for bioliquid producers, particularly at facilities operating liquid-fuel boilers and steam systems. Food processing, chemical manufacturing, institutional heating, and district energy networks provide potential outlets for renewable fuel oil and other biomass-derived liquid fuels.

Heat-only applications account for an estimated 150,000 metric tonnes of annual bioliquid consumption in 2025, generating approximately USD 115.5 million, equivalent to 7.3% of global market revenue. The opportunity is concentrated in facilities where renewable liquid fuels can replace conventional heating oil while making use of suitable existing thermal infrastructure.

 

Fuel Prices Are Reshaping Stationary Power Generation Economics

Fuel procurement represents a major operating expenditure for bioliquid electricity generators. Pricing varies across vegetable oils, used-cooking-oil-derived biodiesel, animal-fat-based fuels, and fast pyrolysis bio-oil.

Strategic Market Research estimates vegetable oil-based bioliquids at an indicative USD 950 per metric tonne in 2025, compared with approximately USD 1,250 per tonne for used-cooking-oil-derived finished fuels and USD 1,200 per tonne for animal-fat-derived fuels. Fast pyrolysis bio-oil carries an indicative price of USD 600 per tonne, reflecting a different fuel specification and energy content. These estimates represent blended stationary-use price assumptions across the assessed fuel categories.

Fuel selection increasingly influences generator operating costs, contract structures, and electricity production economics. Vegetable oil-based fuels remain commercially significant in established generating markets, while waste-derived liquid fuels create opportunities where sustainability certification and procurement arrangements support their use.

 

Renewable Energy Rules Influence Fuel Supply and Project Investment

The European Union's revised Renewable Energy Directive, RED III, places sustainability and greenhouse gas emissions requirements on qualifying renewable energy fuels. Compliance affects renewable-energy accounting, support eligibility, and the commercial attractiveness of certified bioliquids.

For European fuel producers and electricity operators, certified feedstock sourcing, documented greenhouse gas performance, and supply-chain traceability influence the value of renewable liquid-fuel contracts.

Germany's July 2026 notification concerning the implementation of RED III covers sustainability requirements for liquid biomass and electricity generated from liquid biofuels. Regulatory alignment is therefore becoming an important factor in long-term fuel procurement and investment planning. European Commission – RED III | Germany's 2026 Regulatory Notification

 

Which Fuel Types, Technologies, and Applications Account for the Largest Market Opportunities?

By Fuel Type: Vegetable Oils Lead Commercial Consumption

Vegetable oil-based bioliquids represented the largest fuel category in 2025, contributing approximately USD 902.5 million, or 57.4% of global market revenue. Annual consumption reached an estimated 950,000 metric tonnes, reflecting their established position in liquid-fuel electricity generation and selected CHP applications.

Used-cooking-oil-derived finished fuels represented approximately USD 312.5 million, equivalent to 19.9% of revenue, with estimated consumption of 250,000 metric tonnes. Their commercial position depends on feedstock collection, processing capacity, product certification, and competition for renewable fuel supplies.

Animal-fat-based fuels contributed approximately USD 144 million, representing 9.2% of revenue. Fast pyrolysis bio-oil generated an estimated USD 78 million, supported by approximately 130,000 metric tonnes of consumption. Other biomass-derived liquid fuels contributed approximately USD 135 million.

Pyrolysis bio-oil offers a distinct opportunity for industrial heating suppliers because biomass residues can be converted into liquid fuels suitable for specialized thermal applications. Its commercial expansion depends on production scale, verified fuel quality, and reliable heating-sector offtake.

 

By Technology and Capacity: Engines Dominate Power Applications, While Boilers Anchor Heating

Internal combustion engines form the principal technology category for stationary liquid-biofuel electricity generation. Their commercial importance is concentrated in established liquid-fuel generator fleets, where renewable fuel compatibility and annual operating hours determine consumption.

Steam turbines and gas turbines serve selected larger thermal generation arrangements, while dedicated boilers support industrial heating and district energy. CHP systems offer additional value through the simultaneous production of electricity and useful heat.

Across plant capacity categories, facilities above 20 MW of rated fuel input represent an important concentration of potential fuel expenditure, while smaller installations serve decentralized industrial and institutional applications. Capacity classification covers plants below 1 MW, 1–5 MW, above 5–20 MW, and above 20 MW.

Valmet's integrated bio-oil technology at Fortum's Joensuu facility illustrates the relationship between fuel production and thermal infrastructure. The facility was designed to manufacture 50,000 tonnes of bio-oil annually, equivalent to approximately 210 GWh of fuel energy, using forestry-derived feedstocks. Valmet – Joensuu Bio-Oil Facility

 

By Application: Electricity Generation Accounts for the Largest Revenue Contribution

Electricity-only generation represented approximately USD 958 million in 2025, accounting for 60.9% of global bioliquid heat and power generation revenue. Estimated consumption reached 950,000 metric tonnes, reflecting the importance of dedicated liquid-biofuel generating facilities.

Combined heat and power applications contributed approximately USD 498.5 million, equivalent to 31.7% of market revenue, with annual fuel consumption estimated at 500,000 metric tonnes. CHP installations attract investment where continuous process heat requirements support high utilization of recovered thermal energy.

Italy provides an important example of application diversity. Terna's published bioliquid electricity statistics identify substantial electricity-only and CHP generating capacity, establishing the country as a major market for both power generation and cogeneration fuel procurement.

Heat-only generation represented the remaining 7.3% of revenue, with industrial boilers, institutional heating systems, and district heating networks providing specialized commercial outlets.

 

By End User: Utilities and Industrial Operators Lead Fuel Procurement

Power generation utilities represent the principal end-user group for dedicated bioliquid electricity production, supported by established generating assets in Italy, South Korea, Germany, and other markets.

Industrial manufacturing is another important end-user category, particularly for process steam and captive CHP. Fuel expenditure is associated with manufacturing operating hours, thermal energy requirements, and the availability of certified renewable liquids.

District heating operators form a specialized customer group, with procurement often structured around seasonal heating requirements and long-term fuel delivery agreements. Commercial institutions, hospitals, and agricultural processing facilities provide additional outlets where liquid-fuel heating infrastructure and locally available feedstocks support renewable fuel consumption.

 

Which Countries Offer the Strongest Commercial Opportunities?

Germany: Renewable Electricity Capacity and Sustainability Compliance Shape Procurement

Germany accounted for approximately 187 MW of liquid-biofuel electricity generation capacity in 2025, equivalent to around 9.0% of the global total, according to IRENA. The country's commercial activity is concentrated in stationary electricity production and qualifying cogeneration applications, where fuel procurement costs and operating efficiency influence plant economics.

Germany's implementation of renewable-fuel sustainability requirements under RED III is particularly relevant to bioliquid suppliers. Feedstock certification, greenhouse gas performance, and documented fuel origin influence participation in supported renewable energy applications. For generating companies, procurement strategies increasingly depend on the availability of qualifying renewable liquids and the economics of electricity production.

 

United Kingdom: Biodiesel Generating Sites Support a Measurable Stationary Market

The United Kingdom had 55 biodiesel electricity-generating sites with a combined capacity of 35.5 MW, according to the Department for Energy Security and Net Zero's published renewable electricity statistics. These facilities generated approximately 144 GWh of electricity in 2024, representing an implied utilization rate of around 46%. England accounted for 53 of the country's identified generating sites.

The operating fleet demonstrates a distributed market for liquid-biofuel electricity generation. Its commercial requirements include recurring biodiesel procurement, generating equipment availability, and compliance with applicable renewable energy requirements.

The relatively small average generating capacity of approximately 0.65 MW per site indicates a market structure centered on smaller stationary installations rather than exclusively large centralized power stations. Annual operating hours and fuel prices remain critical to the economics of these facilities. UK Energy Trends – September 2025

 

Finland: Pyrolysis-Oil Production Provides an Industrial Heating Opportunity

Finland is an important technology and production market for wood-derived liquid biofuels, particularly fast pyrolysis bio-oil used in specialized heating applications. Fortum's Joensuu facility was designed for annual production of approximately 50,000 tonnes of bio-oil, demonstrating the industrial scale achievable through integrated biomass conversion technology.

The Lieksa pyrolysis-oil facility was designed for approximately 24,000 tonnes of annual production, using forestry-derived raw materials. The project involved an investment of approximately EUR 25 million and illustrates the importance of contracted fuel offtake in determining commercial plant utilization.

In October 2025, Green Chem acquired the Lieksa facility with plans to restart production. The development highlights opportunities for technology upgrades, renewed industrial fuel contracts, and commercial restructuring in Finland's bio-oil industry. Yle – Lieksa Bio-Oil Facility Ownership Development

 

China: Industrial Bio-Oil Development Creates Selective Stationary Heating Opportunities

China's bioliquid heat and power opportunity is associated primarily with biomass conversion technology, industrial liquid-fuel applications, and the potential utilization of agricultural and forestry residues.

China has substantial experience in biomass-to-energy infrastructure, while commercially documented stationary liquid-biofuel power capacity represents a more specialized area of the country's renewable energy sector. Industrial applications depend on the availability of suitable pyrolysis oils, fuel quality, and compatibility with heating equipment.

For technology suppliers, the principal opportunities involve biomass conversion systems, liquid-fuel upgrading, industrial burners, and integrated thermal energy applications. Commercial growth will depend on the ability to translate biomass-derived liquid-fuel production into recurring industrial heating contracts and economically competitive stationary energy use.

 

How Are Manufacturers and Fuel Suppliers Positioning Themselves?

The competitive landscape combines renewable liquid-fuel producers, electricity generation equipment manufacturers, boiler technology suppliers, and integrated CHP system providers.

Wärtsilä, MAN Energy Solutions, and Cummins participate through liquid-fuel-compatible engines and stationary generating equipment. Valmet and BTG Bioliquids provide technologies associated with pyrolysis-oil production and thermal integration, while Ensyn participates in renewable fuel oil production and heating-fuel supply.

Supplier differentiation increasingly depends on fuel compatibility, production reliability, sustainable feedstock access, and the ability to secure recurring industrial or utility customers.

Ensyn's Renfrew production facility has an annual capacity of 3 million US gallons of Renewable Fuel Oil, while Valmet's Joensuu technology demonstrates commercial-scale bio-oil production. These projects illustrate two distinct commercial positions: supplying finished renewable fuels and supplying the technology used to manufacture them.

For fuel producers, recurring offtake arrangements offer a route to more predictable sales. For equipment manufacturers, opportunities are associated with generator compatibility, thermal system upgrades, fuel handling, and industrial CHP integration projects.

 

What Will Determine Market Growth Through 2032?

Bioliquid heat and power generation is expected to expand through industrial fuel substitution, CHP utilization, renewable-fuel certification, and specialized electricity generation applications.

The industry's revenue outlook is closely connected to physical fuel consumption and realized selling prices. European electricity generation represents the principal established market, while industrial heating creates additional opportunities for pyrolysis oil and other renewable liquid fuels.

Feedstock availability, competing fuel applications, and renewable-energy support arrangements will continue to shape investment decisions. Producers with reliable certified fuel supplies and established industrial customers are positioned to capture recurring expenditure, while equipment suppliers can benefit from fuel conversion and CHP integration projects.

 

Research Methodology

Strategic Market Research evaluates the Bioliquid Heat and Power Generation Market using a consumption-based methodology linking stationary electricity generation capacity, annual operating activity, industrial heat requirements, fuel consumption, and realized selling prices.

Electricity generation consumption is assessed using country-level liquid-biofuel generating capacity, electricity output, plant utilization, and technology-specific conversion efficiency. Heat-only consumption is evaluated across industrial boilers, institutional facilities, and district heating operations, while CHP fuel use is assigned separately.

Market revenue is derived using fuel-specific consumption and regional pricing across vegetable oils, used-cooking-oil-derived fuels, animal-fat-based fuels, pyrolysis bio-oil, and other qualifying bioliquids. Supplier production disclosures, national energy statistics, and documented commercial applications support market assessment.

Fuel-type, technology, application, plant capacity, end-user, and geographic estimates are reconciled to maintain consistent market coverage. The forecast incorporates generation activity, industrial heating adoption, renewable-fuel availability, pricing developments, and regulatory conditions through 2032.

 

Bioliquid Heat and Power Generation Market Report Coverage Table

Report Attribute	Details
Forecast Period	2026 – 2032
Market Size Value in 2025	USD 1.57 Billion
Revenue Forecast in 2032	USD 2.14 Billion
Overall Growth Rate	CAGR of 4.5% (2026 – 2032)
Base Year for Estimation	2025
Historical Data	2019 – 2024
Unit	USD Million, CAGR (2026 – 2032), Million Metric Tonnes, MW
Segmentation	By Fuel Type, By Technology, By Application, By Plant Capacity, By End User, By Geography
By Fuel Type	Vegetable Oil-Based Bioliquids, Used-Cooking-Oil-Derived Finished Fuels, Animal-Fat-Based Fuels, Fast Pyrolysis Bio-Oil, Other Biomass-Derived Liquid Fuels
By Technology	Internal Combustion Engines, Steam Turbines, Gas Turbines, Combined Heat and Power (CHP) Systems, Dedicated Boilers
By Application	Electricity-Only Generation, Combined Heat and Power (CHP) Generation, Heat-Only Generation
By Plant Capacity	Below 1 MW, 1–5 MW, Above 5–20 MW, Above 20 MW
By End User	Power Generation Utilities, Industrial Manufacturing, District Heating Operators, Commercial and Institutional Facilities, Agricultural and Food Processing Facilities
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., Canada, UK, Germany, France, Italy, Finland, Netherlands, South Korea, Japan, China, India, Brazil, Mexico, Saudi Arabia, UAE, South Africa
Market Drivers	Industrial adoption of renewable liquid fuels for process heating and steam generation; growing demand for integrated CHP systems and decentralized energy solutions; renewable-energy regulations and sustainability certification requirements; increasing utilization of forestry residues, used cooking oil, and other biomass-derived feedstocks; investments in fast pyrolysis bio-oil production and renewable fuel oil supply infrastructure
Customization Option	Available upon request