Owing to the concerns over global warming and reducing emissions, the 1997 European Union (EU) White Paper set its targets for an increase in the use of renewable energy to 12.0 percent of the total energy production by 2010. Within this, it envisages biomass energy as one of the main contributors forecasting an increase in energy production from 44.8 Mtoe in 1995 to 130 Mtoe in 2010. This target was set to include solid, liquid and biogas fuels excluding waste to energy incinerators. All the member countries of EU have devised their renewable energy targets to be achieved by 2010 as a part of the burden sharing mechanism. Very few countries have adopted concrete strategies for biomass to attain the targets. Wind energy is perceived to be a threat, at least before 2010 to bioenergy, which is likely to aid in meeting the targets as well as in providing security of supply.

For the purpose of this study, the biomass energy market covered in this research service has been divided into following segments: