Effects of Global and Local Markets Evolution in the Biomass Industry as a Green Business Model

Purpose: With the increasing public concern on the environmental impact that natural resource exploitation is bringing to the planet, the biomass industry is gradually rising its commercial value and prominence in the economy. Nevertheless, a detailed in-depth description of the functional and historical characteristics of this sector is seldom explored in the literature. In this study, we aim to analyze the most relevant factors to be considered when elaborating a business plan for the biomass sector. Later, we describe the development organization of a typical fossil-based energy enterprise seeking to transform its business model into biomass exclusively, within the international and local legislative framework. For this, we collect, characterize, and apply a set of potentially relevant management models so to study their theoretical effect on production quality and definitive business efficiency. Design/Methodology/Approach: Our study makes use of the following models: 1) Table of Cross Impact, 2) Comparative Chart, 3) Pareto’s Diagram. Findings: Public investment is comparatively balanced between country and international sources. In general, the renewable energy industry receives considerable governmental incentives and public support, this is an excellent scenario for news entrepreneurships. Unfortunately, it also requires high costs and specialized knowledge. On its side, private investment in renewable energy projects is overwhelmingly from domestic sources, revealing international commercial indifference in this field. Practical Implications: Useful application for biomass companies, both public and private. Organizations in the process of implementing and generating renewable energy. Analysis and evaluation of energy production results on an annual basis. Originality/Value: In recent years, the production of renewable energy has attracted the attention of many countries, which their governments and organizations are looking to invest in this type of project. However, there is little research that has delved into biomass areas. Therefore, it is an original topic that can open the opportunity for other researchers to settle in this area.