Biomass energy

Biomass energy

Photo by Shutterstock

Biomass energy
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Alternative Energy
Business Model Description

Build and operate biomass plants to generate energy for sale to local utility companies or directly to end users.

Expected Impact

Help transition into a cleaner energy source for electricity, reduce power disruptions and ensure equal access to electricity.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Nigeria was projected to have a total energy potential of biomass of about 5.5EJ in 2020
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Climate Action (SDG 13)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Zero Hunger (SDG 2) Clean water and sanitation (SDG 6)
Sector Sources
  • 1) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G. (2019). Sustainable Development Report 2019. New York: Bertelsmann Stiftung and Sustainable Development Solutions Network (SDSN). 2) Federal Republic of Nigeria (2017). Economic Recovery & Growth Plan 2017 - 2020. Abuja: Ministry of Budget and National Planning. 3) The Rural Electrification Agency . Opportunities for Investment in Nigeria's Power Sector for Minigrids/Renewable Energy
IOA Sources
  • 4) Nigerian Biofuel Policy and Incentives (2007). 5) Electric Power Sector Reform Act (2005). 6) Environmental Impact Assessment Act (1992). 7) Nigerian Electricity Regulatory Commission(2020). NERC's Regulation Envisages 2,000MW of Renewable Sourced Electricity by 2020. 8) Nigeria Electricity Hub (2020). UNIDO Hands Over Biomass Power Plant to Ebonyi. 9) Petroleum Africa (2020). Power Plant for Delta State. 10) Privida Energy (2020). Privida Energy. 11) Federal Republic of Nigeria (2017). Implementation of the SDGs: a national voluntary review. 12) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press.Sustainable Development Report, 2020. 13) Federal Republic of Nigeria (2020). Nigeria Economic Sustainability Plan. 14) Federal Republic of Nigeria (2020). Integration of the SDGs into National Development Planning: A Second Voluntary National Review (2020). 15) IRENA (2018). Empowering Women in Nigeria with Solar Energy. 16) UNDP (2012). Gender and Energy. 17) Sobamowo, G.M. (2018). 'Tech-economic analysis of biomass energy utilization through gasification technology for sustainable energy production and economic development in Nigeria'. Journal of Energy. 18) Pacific Northwest Laboratory (2017). Hydrothermal processing of biomass. 19) PwC / UNDP Consultations 2020.