Introduction of Wood pellets

As a type of biomass energy, wood pellets are primarily produced from wood wastes (namely by-products of manufacture of lumber, furniture, etc.), such as sawdust, wood chips, wood shavings, etc. With the global economy develops sustainably, the demand for energy will be stimulated. Thus the green energy, wood pellets will be needed more and more.

Overview of Global Wood Pellets Market

The European countries and the North America enjoy the most shares in wood pellet production. The European wood pellet market is the world's largest market, which is unlikely to change. Besides, Europe is also the world’s largest wood pellet producer. But, North America may overtake Europe someday. As for the Asia wood pellet market, the producers develop quickly.

As for application, more wood pellets are used in residential, commercial and district heating than that used in power plant for power generation.  The price of wood pellets will remain relatively stable, though the demand is increased.  Producers                                     Consumers

 

top producers of wood pellet in the world

 

The World Regional Pellet Consumption

Asian Wood Pellet Market

The Asian wood pellet market is expanding steadily. It is reported that the west coast of America is in a firm position to provide wood pellets for Asia. Most of the wood pellets shipped to Asia flow into two markets. One is the industrial energy sector, where pellets are used for co-firing with coal at power plants and in large boiler. Another is the home heating market, where wood pellets are used in pellets stoves.

China, South Korea, and Japan are the three largest consumers of wood pellets in Asia.
Wide application of Biomass Pellets

China’s Wood Pellet Market

 the usage of wood pellets in chinaChina is the second largest energy consumer in the world, behind America. As we all know, energy is essential for economic growth. Hence energy supply is vital for China, whose economy develops rapidly. It is seeking for substitute of traditional energy source, like wood pellets. Thus, wood pellets market in China will keep growing continually.

The renewable Wood Pellet fuel

Since the renewable energy law was been enacted in 2006,China has put biomass pellet energy as top priority. Wood pellets have been produced in large scale by replacing coal burning. In 2008, the estimated quantity is 80,000 metric tons. And in 2009, it has reached to 1 million. In the future, the tendency is going up steadily. Wood Pellets is more cost-competitive in Chinese market. In China, the wood pellets is largely used in power plants by co-firing with coal. Even though china’s wood pellet production is relatively small in volume, compared with other huge pellets producing countries. China as the second largest energy consumer has a great potential market for wood pellets.
According to related study, China has the potential to become the largest wood pellet market in Asia. China as a highly growing economic entity, its demand for energy is growing increasingly. And because of its sustainable development policy, its wood pellet market will be developed with priority. Chinese wood pellets will be developed sustainability, even though in present days, China  imports limited wood pellets from North America.

South Korea wood pellet import amount

pellet exporters

South Korea’s Wood Pellets Market

Oil is the largest energy source for South Korea. South Korea is dedicated to enriches its energy sources, like wind power and biomass fuel to satisfy its renewable energy requirement by 2020. Thus South Korea will remain a prosperous wood pellets market.

South Korea has taken aggressive steps to increase its renewable energy and aimed to increase renewable energy from the 2007 level of 2.4 percent to 11 percent by 2030. In 2009, about 30 000 tons of wood pellets was imported and 20,000 tons of wood pellets was produced domestically. In November 2013, South Korea wood pellet imports grew by almost 300% and in the first quarter of 2014, the estimated imported volume of wood pellet is 280,000 tons and wood pellet demand will be increased to 5 million tons by 2020.

Japan’s Wood Pellets Market

Japan has almost no natural resources, so its supply of coal, oil, and natural gas relies on imports. It is the world's largest importer of natural gas and second largest importer of oil. Also, most of its wood pellets are imported from other countries. In 2009, Japan imported around 49,000 tons of wood pellets, mainly from Canada. Now, Japan is widening the channels  to import pellets from more countries, like Australia, Vietnam, Indonesia, the Philippines and U.S.

In Japan, wood pellets are mainly used for home heating as well as for power generation. Even though the wood pellet market in Japan is at its starting stage, which is also the right time for pellet exporters to explore the market and develop business relationships.

In the end, we can forecast that wood pellets market in Asia is potential. Meanwhile Asia wood pellets market may develop steadily, especially Japan, China, and South Asia. It is a good chance for you to start your pellet plant now.

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