Multiple Concept Stocks Hit Daily Limits! How Is Biomass Energy Making a Comeback to Become the New Green Power Opportunity?

On March 24, the biomass power generation sector surged, rising by 5.54%. By the close, multiple stocks such as Huaguang Huaneng (600475.SH), China Tianying (000035.SZ), Ningbo Energy (600982.SH), and Shao Neng Co., Ltd. (000601.SZ) hit the daily limit.

In terms of news, several regions in China have recently introduced subsidy policies for biomass power projects, further clarifying electricity price support for agricultural and forestry biomass power, municipal waste incineration power, and other projects. Coupled with new energy storage capacity pricing policies working together, the profitability of biomass power projects is effectively guaranteed, and companies are actively starting operations.

Huge Development Potential

Biomass energy is an innovative and sustainable energy type. In the renewable energy family, biomass accounts for about 10%, making it the fourth-largest renewable energy source after hydropower, wind power, and solar, showing great growth potential.

Biomass energy has significant advantages in environmental protection, renewability, and economy. Compared to traditional fossil fuels, biomass has almost zero carbon emissions over its lifecycle because it absorbs CO2 during growth, and the CO2 released during conversion is roughly equal to what was absorbed, achieving “carbon neutrality.” This unique environmental benefit makes biomass an important tool in combating global climate change.

The renewability of biomass means its raw materials are abundant and sustainable, including agricultural and forestry waste, urban solid waste, and more. These resources are continuously produced on Earth, and with proper utilization, energy supply can be sustained indefinitely. Economically, biomass energy also has notable advantages. Its investment payback period is relatively short, typically within 5 to 8 years, making it well-suited for rural and remote economic development.

Trillion-Scale Market Accelerating

In recent years, the global biomass energy market has shown strong growth momentum. In 2023, the global market size reached $150 billion. By 2025, it is expected to surpass $200 billion, with an annual growth rate of over 8%.

China plays a crucial role in the global biomass energy market. In 2023, China’s market size reached an impressive $30 billion, accounting for nearly one-fifth of the global market. In terms of installed capacity and output, China has also achieved remarkable results.

Currently, China’s biomass power installed capacity exceeds 40 GW, meaning a large amount of biomass energy is efficiently converted into electricity, contributing significantly to the national energy supply. Additionally, annual biomass fuel production has reached 5 million tons, widely used in industry, agriculture, and residential sectors, actively promoting energy structure optimization and upgrading.

Analysts say that biomass energy, as a pillar of green energy, has unique advantages in distributed energy and rural electrification. It can provide stable energy supply to remote areas, fostering regional economic prosperity and energy transformation.

Multiple Stocks Hit Limit Up

Recently, several regions in China have introduced subsidy policies for biomass power projects, boosting the sector. On March 24, stocks such as Huaguang Huaneng, Ningbo Energy, and Shao Neng Co., Ltd. all hit the daily limit.

Specifically, China Tianying is one of the leading companies in the domestic biomass power sector, with multiple large-scale biomass power projects and upstream and downstream businesses including waste treatment and biomass comprehensive utilization. The company has established a complete industrial chain, which is expected to generate synergistic effects to improve overall profitability.

Ningbo Energy mainly engages in cogeneration, biomass power, pumped storage, and integrated energy services. The company previously stated on an interactive platform that it will continue to focus on the energy industry, actively expand and reserve quality projects, and strengthen innovative research in energy, environmental protection, and power reform to achieve breakthroughs in new energy and related fields.

Shao Neng Co., Ltd. has been deeply involved in biomass power for years, with abundant project reserves in South China. Relying on regional forestry and agricultural resources, it has established stable raw material collection channels. Its biomass power projects operate efficiently and are industry-leading, with strong growth certainty.

Analysts believe that the current market focus on biomass power aligns with the “dual carbon” transition, combining clean attributes with stable power output. As technological improvements continue to enhance efficiency, coupled with rising overseas energy security demands leading to export growth, industry prosperity is expected to continue upward.

(Edited by: Wang Zhiqiang HF013)

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