Assessment of biomass utilization pathways: a German case study

Currently, biomass utilization is predominantly directed toward bioenergy (BE) production. Yet, alternative pathways such as biochar carbon removal (BCR) and bioenergy with carbon capture and storage (BECCS) are emerging options within negative emission technologies. Given limited biomass resources, determining their most beneficial allocation remains a pressing question. This study addresses the research gap by jointly evaluating the private investment perspective (net private benefit, NPB) and the broader societal perspective (net social benefit, NSB). Through an integrated assessment framework, the analyses compare biomass utilization pathways across a range of technological, regulatory, and market developments. Herein, wheat straw in Germany was selected due to its high theoretical potentials. Under current conditions, BE shows the highest NPB, followed by BECCS, while BCR displays a negative NPB without policy or market adjustments. However, all pathways demonstrate positive NSB when environmental externalities are monetized. Scenario analyses indicate that BECCS can surpass BE in NPB with incentives such as higher carbon removal credit, cost reductions, or improved CO₂ storage infrastructure. BCR becomes NPB-positive under scenarios with either cost reductions or revenue increases. It surpasses BE only when both occur simultaneously but does not exceed BECCS in any scenario. As the energy sector decarbonizes, BCR and BECCS become increasingly competitive. The study emphasizes the need for flexible, context-dependent pathways and robust policy support to ensure that biomass utilization in Germany is viable from both private economic and societal standpoints.