A biomass power plant can be designed to generate electricity only or both electrical power and heat as a CHP (combined heat and power) plant. Renewable energy sources include branches and wood remnants from forestry that have seldom been reclaimed for further use. Wood chips and pellets, as well as fermented residue such as sewage sludge, liquid manure and biowaste are also suitable for incineration. Unlike the production of biodiesel and bioethanol from corn, rapeseed or sugar cane, biomass power plants usually do not compete for resources that can also be used for food. Biomass is considered a climate-friendly renewable energy source because it is generally carbon-dioxide-neutral: The amount of carbon dioxide that plants need for growth is equal to the amount released during combustion.

Siemens manufactures steam turbine generators power plants. Siemens has more than 100 years of experience in power generation and has pioneered the ongoing development of especially energy-efficient technologies, now offering customers a portfolio of steam turbines ranging in performance from 45 kW to 1,900 MW as well as 1,000 different generators in the 25 to 2,200 MVA (mega volt-ampere) range. Extremely high levels of efficiency – from 60 percent to 95 percent – can be achieved through cogeneration (CHP). In this process biomass fuel is combusted to produce both electrical energy and heat (usually in the form of steam and hot water). The turbine exhaust gas is very hot. This energy can be passed on to a heat exchanger for heating or vaporizing water. The steam or hot water can then be utilized for other applications..