As Europe accelerates its transition to low-carbon energy and sustainable land use, demand for perennial biomass crops such as Miscanthus is gaining significant momentum – particularly in the Netherlands and Denmark, where ambitious government targets and environmental legislation are reshaping agricultural and energy markets.
Netherlands: Biomass to transform construction and land use
The Dutch government has set a target to increase the share of renewable energy in the heating and cooling sector from 46% at present to 61% by 2030, of which 83% is currently generated from biomass and Miscanthus is well-placed to meet this demand.
Simultaneously, a radical overhaul of the country’s agricultural sector, driven by policies to cut nitrogen emissions and reduce livestock farming, is freeing up tens of thousands of hectares for alternative land use. The government estimates a need to plant 40,000 hectares of biomass crops, including 10,000 hectares of Miscanthus.
“Miscanthus presents a unique dual opportunity for Dutch farmers,” says Florian Ilias, Terravesta managing director. “It can improve soils and serve the rapidly growing bio-based construction market. With new legislation allowing farmers to share CO₂ credits with material producers, potential returns per hectare could reach several thousand euros – a figure that redefines crop profitability.”
Denmark: Reducing imports, emissions, and agricultural impact
Denmark is another promising growth market. Currently, 26% of national energy consumption is derived from bioenergy, with 1.5 million tonnes of solid biomass imported each year – primarily wood pellets. However, with only limited domestic forest resources, the government is now prioritising home-grown biomass crops to meet its 2030 target of 61% renewable energy in heating and cooling.
Miscanthus aligns well with Danish policy, particularly where fertiliser restrictions, cover crop requirements, and a new carbon tax on agriculture are reshaping land use practices. With EU rules phasing out food crops for biofuels and increasing competition for straw from biogas producers, district heating networks and power plants are now actively seeking dedicated perennial energy crops like Miscanthus.
Expanding across Europe
Beyond the Netherlands and Denmark, markets in Germany, France, and Poland are also showing increased interest in Miscanthus for energy, materials, and environmental services such as carbon capture and phytoremediation.
With rising awareness of its low-input, long-term benefits and a growing regulatory push to decarbonise across sectors, Miscanthus is emerging as a key crop in Europe’s climate strategy.
