Biomass Clusterization from a Regional Perspective: The Case of Lithuania

Abstract

The usage of renewable resources has become inseparable from the further development of the world economy. To preserve a clean environment for future generations, the use of renewable resources is becoming inevitable even in less developed countries. Recently, the world is facing with challenges in securing green heat production. This situation allows the biomass energy sector to develop. Biomass extracted from waste enables to produce green energy, while contributing to the sustainable development of forestry. One of the major constraints on the usage of biomass is the complex and multifaceted supply chain involving different business subjects. Compatibility problems with different interests can be solved by operating in a cluster structure. Cluster activities allow for more efficient use of limited resources. It allows to create added value for the region and society. Due to the specificity of biomass energy, there is an opportunity to create regional business units that would involve human resources and solves long-standing social problems. The aim of the study is to show the progress of Lithuanian regions in using biomass resources for heat energy production. With the assistance of cluster analysis, it is performed based on economic, social, and environmental data of Lithuanian regions.