Biomass and energy from production residues: an untapped opportunity for industry in Bosnia and Herzegovina

17. March 2026.

Industrial production in Bosnia and Herzegovina generates large volumes of by-products with considerable energy potential. In the wood-processing sector these include sawdust and wood shavings; in the food industry residues from fruit, vegetable and grain processing; while in the agro-processing sector significant quantities of biomass are generated during the processing of agricultural crops. Despite their energy value, many of these materials are still treated as waste or sold at very low prices, even though they could serve as a valuable source of energy and help reduce operating costs for companies.

The wood-processing industry offers perhaps the clearest example of this potential. Large quantities of sawdust, wood chips and other residues are generated during timber processing. Some companies already use these materials to heat production facilities or power wood-drying kilns, while the remainder is typically sold as raw material for pellet production. Installing biomass boilers in industrial facilities allows these residues to be used directly as fuel for heat generation, reducing the need to purchase natural gas or other energy sources. In many wood-processing plants, drying kilns are among the most energy-intensive parts of production, meaning that switching to biomass-based energy can significantly reduce operational costs.

A similar potential exists in the food industry. Fruit and vegetable processing generates substantial quantities of organic residues, while brewing produces spent grain that can be used as animal feed or as input material for biogas production. In several European countries, such residues are increasingly used in biogas plants that generate energy from organic waste streams. These facilities can simultaneously produce heat and electricity, while the remaining digestate can be used as organic fertilizer.

The agro-processing sector also generates considerable volumes of biomass. Agricultural residues such as straw, corn stalks and other plant materials are often treated as low-value by-products. From an energy perspective, however, these materials represent valuable resources that can be used to produce heat or electricity. Across Europe, an increasing number of projects use agricultural biomass in cogeneration plants that supply energy to industrial facilities or local communities.

For industrial companies that generate stable quantities of production residues throughout the year, biomass can become an integral part of their own energy systems. Once companies understand how much biomass is generated during production and what its energy value is, they can assess whether it is more beneficial to sell these materials or to use them internally for energy production. In many cases, using biomass on-site provides greater economic benefits than selling by-products at low market prices.

The use of biomass also plays an important role in the broader green transition of industry. European markets increasingly emphasize efficient resource use and waste reduction within production processes. Companies that can demonstrate that production residues are used as a source of energy or as input materials for other processes often gain an advantage in business relations with buyers who increasingly seek evidence of sustainable practices.

For industry in Bosnia and Herzegovina, biomass represents a resource that already exists within production processes. When production residues are viewed as a potential energy source, companies can reduce energy costs while making better use of resources already available within their operations. In a business environment where energy prices and market expectations continue to rise, the ability to use such resources efficiently can have a direct impact on the competitiveness of manufacturing companies.

The program is jointly financed by:

Logotipi EU i Švicarske Logotipi BMZ i GiZ