The Deloitte report, presented on Monday, January 24, 2022, provides an overview of the potential of bioenergy in the energy transition in the European Union by 2050 and the benefits of its use for the climate, society, and the economy.
The report estimates the impact of bioenergy on the economy in terms of gross domestic product (GDP) and the creation of full-time equivalent (FTE) jobs, especially in rural areas. It also analyzes how bioenergy influences carbon emission mitigation, the maintenance of forest health, energy security, and the development of a circular economy. Finally, it reviews how bioenergy complements other renewable energy sources and renewable hydrogen.
Nearly 800,000 jobs thanks to bioenergy
In 2019, bioenergy created 794,392 FTE jobs, with operation and maintenance as the main generator of direct jobs (22%), followed by equipment manufacturing (11%); it amounted to 34,116 million euros, which represented 0.25% of the EU27 GDP, higher than that of fishing and aquaculture or the manufacture of coke and refined petroleum products and comparable to that of others such as mining and quarrying.
The EU: a global technology leader
74% of bioenergy technology providers are located in the EU. They possess the knowledge and professionals necessary to maintain their leadership as a bioenergy R&D center and a thriving commercial activity.
Environmental benefits of bioenergy
In 2019, the replacement of 132 Mtoe of fossil fuels with biomass avoided the emission of 290 MtCO2eq, equivalent to around 8% of the EU27's GHG emissions and reduced its energy dependence on foreign countries.
Bioenergy is helping to decarbonize fossil fuel-intensive sectors where carbon emissions are difficult to reduce, such as industry and transport.
The EU consumes European biomass
Only 3.7% of the biomass consumed in the EU27 is imported.
Replacing imported fossil fuels with domestic renewable energy improves energy security. Furthermore, the cost of biomass has proven to be more stable and cheaper than that of fossil fuels over time.
The fluctuation of energy costs for fossil fuels puts citizens and industry at risk of energy poverty and reduced competitiveness respectively.
More than 220 Mtoe with biomass in 2050
The European Commission forecasts an increase in bioenergy consumption of 2% between 2019 and 2050, reaching 220 Mtoe by that date, although the Deloitte report highlights that in the last 10 years the annual growth has been 2.6%.
Each Mtoe of energy obtained from biomass could represent 261 million euros in terms of GDP and the creation of 5,181 FTE jobs, which would also avoid the emission of 2.4 MtCO2eq by replacing fossil fuels.