PKS Fuel Market

PKS Fuel Market Outlook (2025 to 2035)

The global PKS fuel market was valued at USD 1,025 million in 2024 and has been projected to expand at a noteworthy CAGR of 6.9% to end up at USD 2,128 million by 2035.

The PKS fuel market has been growing significantly due to the fast-increasing demands for renewable energies, government assistance for biomass application, and modern technological developments that facilitate processing. Palm kernel shell is a biomass fuel from the palm oil industry that is mainly used for energy generation and industrial heating.

PKS are a byproduct of the oil palm industry; therefore, one can ensure their steady and guaranteed supply for generation. Since it is relatively less expensive than regular fossil fuels, PKS serves as an affordable option for many power plants when it comes to reducing operation expenditure.

Report Attributes	Details
PKS fuel Market Size (2024A)	USD 1,025 Million
Estimated Market Value (2025E)	USD 1,092 Million
Forecasted Market Value (2035F)	USD 2,128 Million
Global Market Growth Rate (2025 to 2035)	6.9% CAGR
East Asia Market Share (2025)	27.1%
China Market Growth Rate (2025 to 2035)	7.2% CAGR
Key Companies Profiled	BIO ENECO™ Biomass Fuel Co.Ltd.; CM Biomass; DSNG (PT Dharma Satya Nusantara Tbk); Erex; HANWA; Hyogo Pulp Co.Ltd.; Iwatani Corporation; New Energy Development Co.Ltd.; NISSIN BIO ENERGY; OVOL New Energy Sdn. Bhd.; Palmline Bioenergy; Provident Biofuels.

Historic Analysis (2020 to 2024) and Future (2025 to 2035) Pathway Analysis for the PKS fuel market

The market for PKS fuel grew at a growth rate of 6.1% from 2020 to 2024, and by the end of 2024, it was valued at USD 1,025 million.

Historical Report Attributes	Details
Market Size (2020A)	USD 797.2 million
Market Size (2024A)	USD 1,025 million
Historical CAGR (2020 to 2024)	6.1%
Forecasted CAGR (2025 to 2035)	6.9%

• Short Term (2025 to 2028): It is becoming very common for facilities to incorporate PKS in biomass power plants in order to fulfill the rising energy demand. Increased production of PKS, a reliable and accessible renewable energy source, is gaining popularity due to energy security concerns, for diversification of energy sources. This is driving the market in short term.
• Medium Term (2028 to 2032): Advancement in technology is a significant aspect affecting the market to grow in this period. Improving industry and consumer appreciation for the value of sustainable practices. It is stimulating an interest in sustainable sources of fuel in biomass fuel form like PKS. The development of these technologies is expected to drive the market in the medium period.
• Long Term (2032 to 2035): PKS is sustainable substitute for coal in power generation, reducing dependence on fossil fuels. Increment in global energy demand, especially in emerging economies, resulting into growing need of multiple sustainable energy sources, and biomass fuels are a good alternative. This is driving market in long term.

On the back of the aforementioned facts, the PKS fuel market is anticipated to grow at a CAGR of 6.9% during the forecast period from 2025 to 2035, According to the Fact.MR, a market research and competitive intelligence provider.

Market Dynamics

What are the Factors Propelling Global Sales of PKS Fuel?

“Environmental Awareness and Demand for Sustainable Fuel is Driving the market for PKS Fuel”

Governments focused on achieving carbon neutrality or reducing greenhouse gas emissions look for renewable energy sources like PKS, to mitigate environmental impacts. The pollution due to carbon emission can also reduce by co-firing biomass and coal in power plants for the generation of energy. PKS is appropriate for co-firing applications because it is a biomass fuel. This is the major driving factor for the market.

Utilizing biomass fuels to produce energy from waste products like PKS is in conformity with waste-to-energy programs. Such programs transform agricultural waste into useful sources of energy.

Increasing growth of the palm oil industry, for instance in South East Asia makes PKS easier to use as a by-product of energy source through biomass energy applications.

“Growing Application across various Industry is Boosting the Revenue Growth of the Market”

PKS is being increasingly used in cogeneration plants, where it is being utilized for both heat and power generation, thus enhancing the overall efficiency of energy utilization.

Increasing construction of new biomass power plants and expansion of existing plants raise the demand for PKS.

What are the Challenges Encountered by Manufacturers of PKS Fuel?

“Logistics in Sourcing Process is a Significant Challenge in the Market”

Logistics in sourcing, processing, and distributing PKS fuel are cumbersome and expensive and may act as a limiting factor for the market. Cheaper fossil fuels and other renewable energy sources can compete with PKS fuel adoption, as consumers may choose the cheaper alternatives.

Environmental regulations and standards can be challenging for biomass production and utilization, which can make PKS fuel projects less feasible. There might be a problem of lack of knowledge or consciousness about the utility of PKS fuel among various users, leading to its adoption in different areas.

Country-Wise Insights

Why Adoption of PKS fuel High in China?

“Rapid Industrial Automation and Adoption in Biomass Market”

The market in the China is estimated to reach USD 190 million in 2035 at a CAGR of 7.5%. This market is projected to generate a USD 98 million absolute opportunity from 2025 to 2035.

This rising PKS fuel market in China is primarily boosted by the energy demands of increasing populations, an increase in energy demand towards a sustainable energy supply, and governmental policies that push for the consumption of biomass.

However, a few of the issues that will limit market growth include supply chain issues, other competing energy supplies, and strict environmental regulations. The rate of industrialization and urbanization in China has risen so high that there is now a strong need for alternative sources of energy like PKS fuel.

The Chinese government has promulgated policies favorable to the increase in the share of renewable power in the energy mix, with biomass fuels including PKS. For one, these policies will include financial incentives and the regulatory framework supporting the use of biomass.

With growing demand for renewable energy sources worldwide, China will find itself as one of the prominent players in the international biomass market, thereby enhancing local production and consumption of PKS fuel.

Why United States is lucrative Market?

“Improved Biomass Processing Technologies Increasing the Efficiency and Cost-effectiveness”

The market in the United States is estimated at USD 197.4 million in 2025 and is projected to expand at a CAGR of 7.2% through 2035. This market is projected to generate a USD 196.6 million absolute opportunity from 2025 to 2035.

Environmental awareness and issues have been increasing in recent years, putting greater emphasis on clean energy sources. PKS fuel offers an alternative to fossil fuels, thus supporting reduced emissions of greenhouse gases.

Improved biomass processing technologies improved the efficiency and cost-effectiveness of PKS fuel for the energy market. The North American region is closely connected, which makes Canada and Mexico accessible markets for PKS fuel from the United States.

Category-Wise Insights

Which Form is Widely Utilized in the PKS Fuel Market?

“Pellets Dominate the PKS Fuel Market Due to its Efficiency”

Demand for Pellets is projected to increase at a CAGR of 6.4% from 2025 to 2035. Pellets is material that is generated during the manufacturing process making them cleaner in nature. Processed PKS compressed into pellet form for easier handling and combustion.

Which Industry is Expected to Remain Most Popular for PKS fuel?

“Power Plants is Expected to Remain Widely Popular Owing to their Extensive Demand for PKS Fuel”

Power Plants is estimated to account for 54.9% share of the market in 2025, and the segment is projected to reach a market valuation of USD 1,185 million by 2035-end. Power plants adopting PKS (palm kernel shells) fuel because it is readily available, cheap, and environmentally friendly as a renewable energy source. The use of biomass fuels also supports energy policies on reducing dependence on fossil fuels and improving energy security while mitigating climate change concerns.

Competitive Landscape

Key players in the PKS fuel market are BIO ENECO™ Biomass Fuel Co.Ltd., CM Biomass, DSNG (PT Dharma Satya Nusantara Tbk), Erex, HANWA, Hyogo Pulp Co.Ltd., Iwatani Corporation, New Energy Development Co.Ltd., NISSIN BIO ENERGY, OVOL New Energy Sdn. Bhd., Palmline Bioenergy, Provident Biofuels.

Companies devote a significant portion of their revenue to R&D to resolve problems and offer creative solutions to draw in new customers and stay competitive. Companies are developing customized offerings for issues that meet industry-specific needs to compete with other players.

For Instance :

• In November 2024, in a major move towards renewable energy, BIO ENECO™ and JFE Shoji Group have signed a Memorandum of Understanding (MOU) for an annual supply of 150,000 tonnes of Green Gold Label certified palm kernel shells for 15 years, starting in April 2025. The agreement underlines Bio Eneco's reliability as a biomass fuel supplier and supports Japan's sustainable energy objectives.

Fact.MR has provided detailed information about the price points of key manufacturers of PKS fuel positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

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