A new report published by consultancy Baringa, on behalf of the Renewable Energy Association (REA), has stated that biomass could play a significant role in the UK's energy transition - by delivering reliable power, cutting emissions and reducing overall system costs.
According to the report, biomass generation currently provides up to 5.5 gigawatts (GW) of reliable ‘firm’ power, helping to balance more variable renewable sources such as wind and solar.
This figure is equivalent to approximately 90% of Britain’s operational nuclear capacity.
The document stated that retaining this capacity could reduce Capacity Market costs in 2028/29 by around £900 million (€1.05 billion), with similar savings forecast for the following years.
The analysis comes amid concerns about a looming gap in the UK's firm power capacity.
The report noted that up to 8 GW of existing generation relied upon during low-wind periods is due to retire by 2030, while only around 1 GW of new firm capacity is currently expected to be added to the grid.
In this context, sustainable biomass could play a pivotal role in reducing the need for additional gas-fired generation or expensive new battery installations, while also cutting carbon emissions by approximately 1 million tonnes annually.
These emissions savings are valued at over £250 million (€293 million) each year in societal benefits, the report claimed.
The study also emphasised the strength of domestic supply chains, stating that 68% of the biomass used for electricity, heating and transport in the UK is sourced domestically.
It estimated the sector contributes around £2 billion (€2.34 billion) to the UK economy each year and supports approximately 46,000 jobs across farming, forestry, processing, transport, and logistics—many of them in rural communities.
Looking ahead, the report highlighted the potential of Bioenergy with Carbon Capture and Storage (BECCS) technologies, which, if fitted to existing facilities, could remove up to 10 million tonnes of CO₂ from the atmosphere annually by 2035. This would deliver 79% of the carbon removals required under the Climate Change Committee’s Seventh Carbon Budget.
According to the analysis, any delay in retaining current biomass capacity could have significant cost implications, with a one-year postponement potentially increasing the total cost of meeting net zero targets by at least £1.2 billion (€1.4 billion).
Last year, biomass and broader bioenergy sources accounted for around 14% of the UK’s total electricity generation. More than 200 biomass combined heat and power (CHP) and power plants are currently operating nationwide. Beyond electricity, the report noted that biomass also has wider industrial applications, including decarbonising sectors such as steel and chemical manufacturing, and contributing to the production of Sustainable Aviation Fuels (SAF).
Samantha Smith, Head of Biomass UK at the REA, said: “Sustainable biomass is already playing a vital role for the UK, driving down energy system costs and supporting tens of thousands of jobs in rural areas. As we scale up clean power by 2030 and shift away from reliance on foreign fossil fuels, sustainable biomass generation is only going to become more essential in delivering energy security and keeping bills lower.
"By backing biomass and investing in greenhouse gas removal technologies such as BECCS on existing facilities, by 2035 we can potentially lock away more than 10 million tonnes of CO₂ emissions each year - equivalent to cancelling every flight departing from Heathrow Airport for 17 months.”
New report highlights biomass as key to UK’s future energy security and climate goals
