Expanding industrial applications of organic matter

The German Advisory Council on the Environment (SRU) has published a new dossier titled "Targeted Use of Biomass for a Climate-Neutral and Competitive Industry," in March 2023. The dossier offers insights into the potential and challenges of industrial biomass use in a climate-neutral energy system.

The dossier emphasizes the need for suitable incentives and a cross-sectoral strategy for the efficient use of biomass. It recommends strengthening the European Emissions Trading System (ETS), promoting end-of-life pricing of fossil carbon, and offering a clear framework for non-fossil carbon.

Currently, biomass use in Germany is predominantly for low-temperature heat or in road traffic. However, the dossier focuses on application areas with high economic and systemic benefits, such as material use in industry and the generation of high-temperature heat.

The dossier suggests that biomass can serve as a carbon source or, in combination with BECCS (Bioenergy with Carbon Capture and Storage), contribute to permanent CO2 storage in industries like cement and lime, and waste incineration. This combined approach could jointly capture unavoidable fossil emissions and biogenic CO2, requiring appropriate compensation for the removal performance.

The dossier also highlights the importance of coordinating funding to use biomass where it provides the greatest economic and climate policy benefits, particularly in industry. It recommends a comprehensive strategy for the long-term, meaningful, and efficient use of biomass, either by completing the National Biomass Strategy (NABIS) promptly or replacing it with a new, coherent roadmap.

The dossier also discusses the role of steering instruments like quotas for certain products or green lead markets in strengthening material use, provided they are technology-open and allow circular approaches.

In addition, the dossier mentions the ESC Orientation Consultation Guide and ESC Implementation Consultation Guide, which provide descriptions of the first and second phases of implementing an Energy Saving Contracting (ESC) project.

The dossier further notes that fossil alternatives like natural gas are cheaper than biomass, and the CO2 price has little steering effect. To address this, the dossier suggests that climate protection agreements (CPA) should enable the material use of biomass.

For more information about the dossier, you can contact Lisa Voelker at +49 30 66 777 - 485 or lisa.voelker@ourwebsite.

Lastly, the dossier concludes that in a climate-neutral energy system, biomass could be particularly valuable for hard-to-electrify applications, such as in the chemical, steel, and aluminum industries.

A notable event related to this topic is the Energiesprong Convention 2025, scheduled for Thursday, October 16, 2025, in Berlin. This event promises to be a significant gathering for discussions on the future of energy and its role in achieving a climate-neutral future.