Australia Circulating Fluidized Bed (CFB) Boilers Market Size, Share, Growth and Forecast, 2025-2035

Biomass and waste fuels drive solid fuel steam projects

The Australia circulating fluidized bed (CFB) boilers market was valued at USD 10.5 million in 2025 and is projected to increase from USD 11.2 million in 2026 to USD 29.7 million by 2035, registering a CAGR of 11.44% during 2026–2035. Demand comes from sugar mills that burn cane fiber for steam and power, from wood and paper processors that use residues, and from manufacturers and energy recovery operators that want to replace gas with solid renewable fuels. New South Wales held the largest regional share, 31.5% in 2025, because it combines large manufacturing sites with forestry residues and the Hunter Valley energy base. Queensland is the fastest-growing region at 11.92% a year, as sugar mills modernize their cogeneration plants. In turn, Safeguard Mechanism baselines for large emitters decline by 4.9% each financial year to 2030, which pushes heavy industry to cut fossil fuel use.

Which solid fuel steam systems and services does the estimate cover?

The estimate measures the value of circulating fluidized bed boilers that burn bagasse, woody biomass, prepared waste fuels and mixed solid fuels to make process steam, combined heat and power, or electricity in Australia. It counts new equipment, engineering and installation work, and operation, maintenance and spare parts for installed units.

The estimate excludes grate-fired and stoker units, gas and electric steam generators, and turbines sold on their own. The value chain runs from global boiler makers in Europe, Japan and North America through local engineering contractors to sugar mills, wood processors, manufacturers and energy recovery sites in every mainland state.

Woody biomass leads while prepared waste fuels grow fastest

Why does woody biomass lead fuel demand?

Based on energy source, the market is categorized into bagasse, woody biomass, prepared waste fuels and mixed solid fuels. Woody Biomass led with a 36.0% share of 2025 value, because sawmill, plantation and processing residues are available in most states. Prepared Waste Fuels grow fastest at 12.60% a year, as licensed waste-to-energy projects need units that handle variable and lower-quality fuels.

How do cogeneration and process steam split use?

Based on application, the market is categorized into industrial process steam, cogeneration and electricity-only generation. Cogeneration led with a 48.0% share of 2025 value, because sugar mills and paper plants need both steam and power from the same fuel. Industrial Process Steam grows fastest at 11.91% a year, as manufacturers replace gas-fired steam with renewable solid fuels.

Why do wood and paper processors buy the most capacity?

Based on end user, the market is categorized into sugar mills, wood and paper processors, food and materials manufacturers, and energy recovery operators. Wood and Paper Processors led with a 30.0% share of 2025 value, because they burn their own residues around the clock. Energy Recovery Operators grow fastest at 12.21% a year, as state licensing lets new plants process residual waste for energy.

How do equipment and service spending compare?

Based on value chain stage, the market is categorized into equipment, engineering and installation, and O&M and spare parts. Equipment led with a 52.0% share of 2025 value, because new units and major retrofits carry the largest contracts. O&M and Spare Parts grows fastest at 12.02% a year, as owners extend the life of installed units and add inspection and cleaning services.

Sugar cogeneration and fuel switching lift demand

How does sugar cogeneration modernization lift demand?

Sugar cogeneration modernization lifts demand, because mills need efficient boilers to turn cane fiber into steam and export power. Mackay Sugar produces more than two million metric tons of bagasse each year, which it burns to make high-pressure steam for its power houses and mill turbines. The same mills are fully energy self-sufficient and export renewable electricity to the national grid. Excess bagasse is also stockpiled during the June to December crush and burned at the Racecourse cogeneration plant in the off season. The Australian Research Council also awarded AUD 176,000 in April 2021 for combustion modeling and control of biomass-fueled sugar mill boilers. As a result, cogeneration holds 48.0% of 2025 value, as mill owners upgrade aging units.

Why does industrial biomass fuel switching raise orders?

Industrial biomass fuel switching raises orders, because manufacturers want to cut gas costs and emissions in their steam systems. The Australian Renewable Energy Agency committed over AUD 12 million in September 2025 to trial and demonstrate low-emission process heat technologies that reduce reliance on natural gas. The agency earlier provided AUD 2 million to MSM Milling to replace LPG-fired units with a woodchip-fired steam boiler. Renewables also reached 12.3% of final energy consumption in 2021, up from 9.8% in 2018, according to the World Bank. In turn, industrial process steam grows at 11.91% a year, the fastest application rate, as plants move to industrial biomass heating.

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How does installed-fleet compliance spending support service work?

Installed-fleet compliance spending supports service work, because large emitters must cut emissions at existing sites before they can justify new plants. Safeguard Mechanism baselines decline by 4.9% each financial year through June 30, 2030, according to the Clean Energy Regulator. The scheme covered 208 facilities in 2024-25, with total covered emissions of 132.8 million metric tons of carbon dioxide equivalent. ANDRITZ also agreed in June 2025 to buy the Diamond Power boiler cleaning business from Babcock & Wilcox, which it said strengthens its recovery and power boiler service work. As a result, O&M and spare parts grow at 12.02% a year, the fastest stage rate in the value chain.

Why does waste-to-energy licensing open new fuel demand?

Waste-to-energy licensing opens new fuel demand, because state caps give operators a clear path to build thermal plants for residual waste. Victoria requires a cap licence or an existing operator licence for any thermal facility that processes permitted waste under the Circular Economy Act 2021. Cleanaway received a cap licence on Aug. 20, 2025, that allows 760,000 metric tons of non-recyclable waste a year at its Melbourne energy and resource recovery center. Victoria and South Australia also held 28.9% of 2025 value. In turn, energy recovery operators grow at 12.21% a year, the fastest end-user rate, as waste-to-energy projects need units that handle variable fuel.

Emission limits and waste caps reshape buying

How is the shift to declining emission limits changing plans?

The shift to declining emission limits is changing plant plans, because large emitters now face firm yearly reductions instead of fixed caps. Facilities that began commercial production on or after July 1, 2023, are treated as new and receive tighter baselines from the start. The sectoral baseline is set at 198 million metric tons of carbon dioxide equivalent a year, which caps total covered emissions across heavy industry. The scheme also issued credit units to 54 facilities in 2024-25 that stayed below their baselines. As a result, owners favor solid renewable fuels and efficient combustion that can earn credits, which raises interest in units that burn residues, wood pellets and prepared fuels.

Why is the rise of fuel sourcing scrutiny notable?

The rise of fuel sourcing scrutiny is notable, because planning authorities now test where biomass comes from before they approve large plants. The NSW Independent Planning Commission refused the restart of the 151 MW Redbank Power Station on Sept. 15, 2025. The project sought to burn up to 700,000 dry metric tons of biomass a year, first from invasive native species and later from plantation crops. The commission found that the fuel strategy could create a new incentive for land clearing that had not been assessed. In turn, developers now prepare detailed fuel supply plans, residue contracts and lifecycle studies before they seek approval for new solid fuel plants.

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Can repurposing idle thermal sites open a new project pipeline?

Repurposing idle thermal sites can open a new project pipeline, because existing grid links, water and buildings cut the cost of new renewable generation. Redbank closed in 2014 after 13 years of burning coal tailings, and its owner plans to restart it on biomass with fluidized bed combustion. Verdant Earth Technologies states that the restarted plant would produce about 1 million MWh a year of dispatchable power. The planning commission also acknowledged benefits such as reuse of existing infrastructure, energy security and local jobs. As a result, suppliers that can retrofit older units for biomass power and secure sustainable fuel can win work at former coal and waste sites.

Is there room to grow long-term service partnerships?

Long-term service partnerships have room to grow, because most installed units need regular inspection, refractory repair and cleaning to stay reliable. Valmet opened a new service center and manufacturing unit in Sydney on April 8, 2026, with a focus on pulp, paper and renewable energy customers. Its Melbourne service center already serves customers in Australia and New Zealand with remote and on-site technical expertise. Mitsubishi Power has installed over 50 gas turbines, steam turbines and boilers in Australia, totaling close to 5,400 MW. In turn, owners can shift risk to suppliers through multiyear contracts, while energy-as-a-service models let smaller plants avoid large upfront spending.

Fuel supply and planning risk test suppliers

How does fuel supply risk slow new projects?

Fuel supply risk slows new projects, because lenders and planners want proof of long-term residue volumes. Bagasse is only available during the crush season, and forestry residues depend on harvest levels. As a result, owners must stockpile fuel or blend several fuels to keep units running. Suppliers respond with fuel-flexible designs that handle moisture swings and mixed feedstocks without long outages or costly fuel trucking from distant regions.

Why does planning risk raise the cost of approvals?

Planning risk raises the cost of approvals, because large biomass and waste projects face detailed environmental review and public objections. The Redbank refusal showed that fuel strategy alone can stop a project. In turn, developers spend more on studies and community engagement before they order equipment. Many respond by starting with residues that have clear sources and by sizing plants to local fuel supply that can be proven over the life of the project.

How do small project sizes limit supplier returns?

Small project sizes limit supplier returns, because many Australian sites need units well below the size that suits large global boiler makers. Engineering, shipping and commissioning costs do not fall in line with smaller capacity. As a result, some owners choose grate-fired or packaged units instead. Suppliers respond with modular designs, local partners and service contracts that spread fixed engineering and commissioning costs across several sites.

Why does skilled labor shortage affect operation and upkeep?

Skilled labor shortages affect operation and upkeep, because circulating fluidized bed boilers need trained operators, welders and inspection staff. Remote mill and forestry towns often struggle to attract these workers. In turn, outages can last longer and maintenance costs rise for owners. Suppliers respond with remote monitoring, robotic inspection and regional service centers that bring specialists closer to sugar, timber and manufacturing sites.

New South Wales leads as Queensland grows fastest

Why does new South Wales hold the top share?

New South Wales held a 31.5% share of 2025 value and grows at 11.22% a year, because the state combines large manufacturing sites, forestry residues and northern sugar mills. It is also the most populous state, with 8.67 million residents at March 31, 2026. The Hunter Valley hosts the Redbank site, the country's best-known fluidized bed power station. As a result, the state leads demand for retrofits, service work and new biomass steam projects.

How do Victoria and South Australia support demand?

Victoria and South Australia held a 28.9% share of 2025 value and grow at 11.22% a year, because both states have food, paper and materials plants that need steam. The two states had a combined population of about 9.07 million at March 31, 2026. Victoria's waste-to-energy cap licences also give energy recovery operators a clear path to build plants. In turn, the zone leads demand for units that burn prepared waste fuels.

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Why is Queensland growing fastest?

Queensland held a 19.3% share of 2025 value and grows fastest at 11.92% a year, because most of the country's sugar mills sit along its coast. Mackay Sugar alone produces more than two million metric tons of bagasse each year for its boilers and cogeneration plant. The state also had 5.74 million residents at March 31, 2026, and growing industrial demand in its south-east. As a result, mill upgrades and new process steam projects lift spending through 2035.

What shapes demand in Western Australia and the territories?

Western Australia and the remaining territories held a 20.3% share of 2025 value and grow at 11.62% a year, because Western Australia has plantation residues and mineral processing sites. Western Australia also recorded the fastest population growth at 2.1% in the year to March 31, 2026. As a result, the zone adds steady demand for process steam and service work.

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Planning rulings and supplier moves, 2025–2026

Fuel flexibility and low emissions shape combustion design

• Circulating bed combustion keeps fuel and sand moving through a hot loop at moderate temperatures, which lets one unit burn wet bagasse, wood residues and waste fuels with low nitrogen oxide output.
• In-furnace sulfur capture adds limestone to the bed so sulfur is removed during combustion, which reduces the need for separate flue gas treatment.
• Robotic inspection and online cleaning use crawling sensors and sootblowers to find wall loss and remove deposits, which shortens outages and extends unit life.

Global boiler makers and service networks compete

Competition is led by global boiler makers that combine equipment supply with long-term service. Mitsubishi Power has supplied equipment in Australia since 1969 and has installed over 50 gas turbines, steam turbines and boilers. Valmet runs service centers in Melbourne and Sydney that support pulp, paper and renewable energy customers. ANDRITZ agreed in June 2025 to acquire the Diamond Power boiler cleaning business from Babcock & Wilcox Enterprises, which adds cleaning systems to its boiler service range. Sumitomo SHI FW offers inspection, damage analysis and maintenance services for fluidized bed owners worldwide through a partnership with Gecko Robotics. Rivals compete on fuel flexibility, emissions, availability, local service and lifecycle cost. Because many Australian projects are retrofits or small new builds, suppliers with local partners and strong service teams win more contracts.

Which companies supply solid fuel steam systems in Australia?

Credence Research view on solid fuel steam demand

Credence Research's view is that Australian demand for circulating fluidized bed boilers will grow quickly from a small base because emission limits, gas costs and waste policy all favor solid renewable fuels. Woody biomass remains the largest fuel, while prepared waste fuels add the fastest growth as licensed plants move ahead. Sugar mills will keep upgrading their cogeneration units as older plants reach the end of service life. Suppliers that pair fuel-flexible designs with local service and clear fuel sourcing evidence should gain share fastest, while planning risk will delay some large projects.

How the national solid fuel steam estimate was built

The report uses 2025 as the base year on a calendar basis, and market values come from the Credence Research model. That model combines emission scheme data, energy statistics, population data, planning decisions, waste licensing records, renewable energy funding announcements and company releases. Segment splits and zone growth rates are Credence Research estimates, while zone shares follow the client-defined split. Sources used are official statistics, regulator and agency releases, planning decisions and company releases, and no interviews or surveys were used.

Waste fuels and service contracts carry growth to 2035

Equipment and service value is expected to reach USD 29.7 million by 2035, an 11.44% CAGR during 2026–2035, as manufacturers, mills and energy recovery operators replace fossil steam with renewable solid fuels. Growth should be strongest through 2030, while Safeguard baselines keep falling each year. After that, service contracts and retrofits will carry more of the value. Faster waste licensing would lift demand, while tougher fuel sourcing rules would slow large projects. Suppliers with local service are expected to gain the most.

Note: The depth of individual sections depends on data availability for this market. Volume, capacity, trade and other unit-based metrics are included where applicable.