[Market Report] The Latest Global Industrial Wood Pellet Making Industry Prospect

The global wood pellet market has grown substantially over the past decade. Among them, the pellet heating market accounts for a large amount of global demand, meanwhile, the industrial wood pellets making growth has been contributed. This article will discuss the market prospects of the industrial wood pellets industry.

global industrial wood pellet making business market report
Global Industrial Wood Pellet Making Business Market Report

ABC Machinery is one famous manufacturer and supplier of offering the customers industrial wood pellet machine in the world, helping people making wood pellets for industrial use and commercial use and benefit from making industrial wood pellets. Feel FREE to contact us for more infomation.

Industrial Wood Pellet Making Market Overview

Industrial wood pellets are low-carbon renewable fuels that can replace coal in large utility power stations. Industrial wood pellets can replace coal in two ways, including full firing and cofiring. (Related article: wood pellet machine for sale >>)

  • All-burning means that the entire unit of a coal-fired power station is converted from using coal to using all wood pellets. This requires improvements in fuel handling, feed systems and burners.
  • Co-firing refers to the burning of wood pellets with coal. At lower co-firing ratios, minor modifications to existing pf facilities are required. In fact, if the mixture is low in wood pellets (less than 7%), little modification is required.

Industrial pellets are used in larger quantities than household pellets, and therefore are in greater demand. So, more and more investors start to enter the industrial pellet production industry to get more profit. If you have interests in industrial wood pellet making, you can contact us for more information about industrial wood pellet production details. (Related article:  wood pellets making business for profit>>)

Global Industrial Wood Pellets Making Business Is on The Rise

The industrial wood pellets market is driven by carbon reduction and renewable energy generation policies. The industrial wood pellet industry has grown as big as the heating pellet industry over the past few years and is expected to grow substantially over the next decade. (Read more: Indonesia wood pellets market poteintial>>)

European Wood Pellet Production Industry

Early growth in the industrial wood pellet industry (2010-present) came from Western Europe and the UK. Growth in Europe, however, is slowing and is expected to plateau in the early 2020s. Other European industrial sawdust demand growth will come from projects in the Netherlands and the UK.

woodo pellet processing line setup UK
Indutrial UseWood Pellet Processing Line Setup in UK

  • Demand from Dutch utilities remains uncertain as coal-fired power stations have delayed final investment decisions for co-firing retrofits until they are assured that their coal-fired power stations will be able to continue operating. It is analyzed that expect these issues to be resolved and Dutch demand to grow by at least 2.5 million tons per year over the next 3-4 years. If the four coal-fired power stations already subsidized all go according to plan, Dutch demand could increase to 3.5 million tons per year.
  • Two projects in the UK, EPH's 400MW Lynemouth power station retrofit and MGT's Teeside greenfield combined heat and power station are currently being commissioned or under construction. Drax Power Station recently announced that it will convert a fourth unit to run on wood pellets. It is not yet clear how many hours the unit operates a year. However, given the investment decisions already made, it is estimated that the fourth unit will consume 900,000 tons per year. Each converted unit at the Drax Power Station could consume about 2.5 million tons of wood pellets per year if they were to run at full capacity throughout the year. New potential demand in Europe and the UK is prospected to total 6 million tons per annum.

Asian Industrial Wood Pellet Production Industry

In Asia, the wood pellets demand for industrial sue in Japan and South Korea are taking up the big part, showing an upward trend.  (Read more: how to buy cost-effective wood pellet making machine>>)

Japan: Wood Pellet Potential Demand Is Increasing

Biomass wood demand in Japan is mainly determined by three policy factors: feed-in tariffs to support renewable energy, efficiency standards for coal-fired thermal power plants, and carbon emission targets.

commericla use wood pellet mill delivering to Japan
Commercial Use Wood Pellet Mills Are Delivering to Japan

  • Japan's Ministry of Economy, Trade and Industry (METI) has formulated what it calls an "optimal energy structure" for 2030. In the plan, biomass power generation in Japan in 2030 accounts for 4.1% of Japan's total power generation, equivalent to 26 million tons of pellets (assuming all biomass is wood pellets).
  • Japan's Ministry of Economy, Trade and Industry released a document in 2016 describing the Best Available Technology (BAT) efficiency standards for thermal power plants. This document sets minimum energy efficiency standards for generators. As of 2016, only about one-third of coal power generation in Japan met the best available technical efficiency standards. One way to meet the new efficiency standard is to co-fire wood pellets.
  •  In 2025, the future pellet demand from IPPs is forecast to be around 4.7 million tons. This is based on a detailed analysis of 140 IPPs in the Japan Biomass Outlook report. By 2025, the combined potential demand from utilities and IPPs in Japan could exceed 12 million tons per year.

If you have industrial wood pellet making business plan in Japan, you can contact us, we are offering you the high-quality industrial wood pellet machine and complete service from before-sale to after sale. 

how to start your own production line with best business plan

South Korea: Wood Pellets Making Is Facing Challenge

The demand for industrial wood pellets in South Korea has grown rapidly in recent years, and this trend is likely to continue in the coming years. In 2017, South Korea imported about 2.25 million tons of pellets. South Korea guides the power generation industry with the Renewable Energy Quota System (RPS). The RPS plan calls for the 13 largest power companies (with installed power capacity greater than 500 MW) to steadily increase their share of renewable energy from 2% in 2012 to 10% in 2024. 

wood pellet making plant for commercial use in South Korea
Wood Pellet Making Plant for Commercial Use in South Korea

Renewable electricity generation prices in South Korea have been high in recent years, significantly improve the profitability of co-firing pellet power generation. South Korea's annual demand is expected to increase by around 9 million tons by 2024, if the renewable electricity generation prices are high enough to compensate for the expected higher costs of competition in the region, according to data from announced co-firing and full-firing projects. The industrial wood pellet market in South Korea has tightened, increasing the fast growth of wood pellet making capacity in Vietnam to meet the Korean requirements. And the price of pellets in Vietnam has risen from around $95 per ton to $133 per ton (FOB Vietnam) in the past six months.

Customized Industrial Wood Pellet Machinery for Business

In order to meet the requirements and get the most profits, the industrial wood pellet making plant shall be customized. And you had better make sure the following questions before starting your wood pellet making business for industrial use. (Learn more: customzied wood pellet making plant in Malyasia>>)

  • What are your raw materials? --- to make sure the production process
  • What is the production capacity? --- to make sure the wood pellet machine layout
  • What is your business budget? --- to make sure your production cost
  • What is your wood pellets applications? --- to make sure the factory site

If you start to make your industrial wood pellets making business plan, please contact us. We have professional R&D team, expert technicians and professional salesperson, to provide you the best price wood pellet making machines and best and complete service. Welcome to contact us for investing in industrial-use wood pellet making in Japan, Thailand, Vietnam, Indonesia, Italy, UK, Chile, New Zealand and Australia etc. with low cost.

how to start your own production line with best business plan