Global wood pellet production increases. Raw stuff in need

Almost not known 15 years ago, the international wood pellet industry became one of the most important wood fiber consumers. Such industry development caused its rivalry with pulp and wood – panel trade for wood raw- stuff.

As wood industry experts say, the global amount of pellet production in 2008 estimated up to 10 million tons. And, according to some industry experts forecasts the said amount will double in next 4-5 years, and in accordance with other industry experts opinions, the global wood pellet production grows will make 25-30% within next 10 years.

Europe is actually considered to be the principal market for pellets, though North American countries are also interested in non fossil fuels. The new US government policy should positively influence on alternative fuel consumption and expected changes in energy policy directions can cause the pellets import from Canada to US to grow. The import growth will cause the biomass flow reduction from North America to Europe, which will prompt European pellet customers to look for alternative raw stuff sources in Asia, Latin America, Africa and Russia.

The sawdust and shavings from the sawmilling industry is a principal traditional raw stuff, applied for pellet production. Though, due to this supply source run down, the industry experts noticed the interest growth for alternative grain search.

According to experts’ forecasts, the European pellet manufacturers will increase the forest residues, urban wood waste and fast-growing tree species usage together with the rivalry with pulpmills and wood-panel mills for sawmill chips and pulplogs. Some pellet factories may optionally use wood chips, imported from abroad.

Though, the most interesting fact about pellet manufacturing lies in the following: a really large part of world pellet production is being delivered to the markets outside the manufacturing country.
Some data from wood industry specialists:

• the world pellet production export amount made approximately 25% as per year 2008.
• Shipping countries: British Columbia, Canada
• Consumer countries: Belgium, the Netherlands and Sweden
(without paying attention to the expensive 15,000-kilometers trip from BC Interior to European countries market).

The experts explain such situation by current raw stuff low prices (shavings and sawdust) and wood pellets high prices in European countries. They also forecast quick expansion in biomass world trade (both wood chips and pellets) in the next three to five years, explaining such forecast by the fact that more and more countries are prone to renewable energy due to cheap biomass supplies run down in their countries. The only question to solve is about the time of such international water borne transport growth, as it makes uncertain about further prices for oil and the paradox of low-refined heavy fuel oils large quantities consuming for green energy shipment to European countries.