PKS Fuel Market Size Estimated to Reach US$ 2,128 Million at a CAGR of 6.9% by 2035

The global palm kernel shell (PKS) fuel market was valued at USD 1,025 million in 2024 and is projected to grow at a robust CAGR of 6.9%, reaching USD 2,128 million by 2035.

This growth is driven by the rising demand for renewable energy sources, supportive government policies promoting biomass usage, and advancements in processing technologies. PKS fuel, a byproduct of the palm oil industry, is increasingly used for industrial heating and power generation, making it a valuable and sustainable energy alternative.

For More Insights into the Market, Request a Sample of this Report:
https://www.factmr.com/connectus/sample?flag=S&rep_id=10708

Market Overview

PKS is a dense, high‐calorific biomass generated during palm kernel processing. It's converted into fuel in forms like raw shells, pellets, or briquettes, and primarily used across power plants, industrial boilers, and residential heating systems. Its appeal lies in aligning with circular‐economy principles: repurposing agro‐waste into energy.

Growth Drivers

1. Rising Need for Renewable Energy: With mounting pressure to reduce carbon emissions, PKS offers a viable alternative to fossil fuels that also utilizes agricultural residues.

2. Government Incentives for Biomass: Stimulus programs and regulatory support in key producing nations are making PKS more attractive-spurring investment in processing facilities and supply chains.

3. Process Innovation: Technological improvements-such as pelletizing and efficient combustion systems-have lowered costs and heightened PKS efficiency.

4. Waste-to-Energy Circularity: PKS mitigates disposal issues and pollution tied to palm industry byproducts, reinforcing sustainability goals.

Country-Wise Insights

China's PKS fuel market is on a strong growth trajectory, expected to reach notable levels by 2035, supported by a compound annual growth rate of 7.5%. From 2025 to 2035, the country is set to generate a substantial absolute opportunity. This surge is largely fueled by the nation's rising energy needs driven by population growth, a push toward cleaner and more sustainable energy sources, and government initiatives that promote biomass utilization as part of broader energy diversification and decarbonization goals.

In the United States, the PKS fuel market is gaining momentum with growing environmental consciousness and policy shifts favoring low-emission energy alternatives. Projected to grow at a CAGR of 7.2% through 2035, the market reflects increasing demand for cleaner fuels that can help reduce reliance on traditional fossil sources. PKS fuel is emerging as a viable option due to its renewable nature and relatively lower carbon footprint, aligning well with both industrial sustainability targets and national clean energy policies.

Competitive Landscape

The PKS fuel market is composed of several prominent players actively shaping the industry through innovation, sustainability, and strategic partnerships. Key companies include BIO ENECOTM Biomass Fuel Co. Ltd., CM Biomass, DSNG (PT Dharma Satya Nusantara Tbk), HANWA, Hyogo Pulp Co. Ltd., Iwatani Corporation, New Energy Development Co. Ltd., NISSIN BIO ENERGY, OVOL New Energy Sdn. Bhd., Palmline Bioenergy, and Provident Biofuels.

These companies invest heavily in research and development to enhance product quality, improve combustion efficiency, and offer innovative biomass fuel solutions tailored to specific industry requirements. Customization and technological innovation remain key strategies to retain competitiveness and expand market presence.

Strategic Collaborations Highlight Market Momentum

In a significant move toward advancing renewable energy adoption, BIO ENECOTM signed a Memorandum of Understanding (MoU) with JFE Shoji Group in November 2024. The agreement outlines an annual supply of 150,000 tonnes of Green Gold Label-certified palm kernel shells over a 15-year period, starting in April 2025. This long-term partnership not only highlights Bio Eneco's reputation as a reliable biomass supplier but also reinforces Japan's commitment to achieving its sustainable energy goals.

As competition intensifies, such alliances and long-term supply commitments are expected to shape the future of the PKS fuel market-driving greater investment, quality assurance, and sustainable energy integration on a global scale.

Read More: https://www.factmr.com/report/pks-fuel-market

Segmentation of PKS fuel Industry Research

By Application :
Power Generation
Heat Generation

By End-Use Industry :
Power Plants
Industrial Sector
Residential Sector

By Form :
Raw PKS
Pellets

By Region :
North America
Latin America
Western Europe
Eastern Europe
East Asia
South Asia & Pacific
Middle East & Africa

Check out More Related Studies Published by Fact.MR:

Biochar Industry Analysis in Middle East & Africa
https://www.factmr.com/report/biochar-industry-analysis-in-middle-east-and-africa
Hydrofluoroether Market
https://www.factmr.com/report/3429/hydrofluoroether-market
Biochar Industry Analysis in North America
https://www.factmr.com/report/biochar-industry-analysis-in-north-america
Biochar Industry Analysis in Latin America
https://www.factmr.com/report/biochar-industry-analysis-in-latin-america

Contact:
US Sales Office
11140 Rockville Pike
Suite 400
Rockville, MD 20852
United States
Tel: +1 (628) 251-1583, +353-1-4434-232
Email: sales@factmr.com

About Fact.MR
We are a trusted research partner of 80% of fortune 1000 companies across the globe. We are consistently growing in the field of market research with more than 1000 reports published every year. The dedicated team of 400-plus analysts and consultants is committed to achieving the utmost level of our client's satisfaction.

This release was published on openPR.