Global Development of Wood Pellet Market-1

Over the past few years,Markets for wood pellets are well established, especially in the northeastern United States. Rising prices for fossil fuels such as fuel oil and natural gas are leading to increased interest in wood pellet heating. 2006 alone saw wood pellet production of 6 to 7 million tons(except Asia, the US, Australia and Latin America) and until 2010 reaching 14.3 million tons(including the above-excluded areas), comparatively, the consumption of wood pellets stranded at 13.5 million tons, an increase of 110%.



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2009-10 witnessed an increase of 22% in wood pellet production, exceeding 28 million tons and it surpassed 30 million tons in 2011, with the most dramatic increase occuring across North America(the US and Canada) and Russia following Germany, Austria and Sweden. But the cold fact remained there barely were 670 pellet plants across the Europe in 2009, of which 30% were hitting a quite low production yield of less than 10,000 tons pellets per year. Conventionally, wood waste stays as the major feedstock of biomass pellets and many pellet plants are situated close to sawmills or wood processing factories, which proves the wood pellet market is influenced by wood industry and forestry a lot. Since 2008/09, wood pellet market has been stimulated with a speedy increase in Europe, the USA, Russia and others. During the same period, unstable real estate market and other competitive industries posed a threat to wood pellet market with the unstable material supply. Hence, Raw material supply of pelletization exerts a huge impact on benefit winning. So you are supposed to take into account sufficient material supply seriously prior to the establishment of a Pellet Plant.

The EU has been remaining the major player of biomass pellet market and the situation will last longer in th years to come. From 2008 to 2010, European pellet production increased by 20.5%, reaching 9.2 million tons in 2009, accounting for 61% of the world market. The same period also saw a huge consumption of wood pellets increasing by 43.5% and surpassing 11.4 million tons in 2010, accounting for around 85% of global demands. We should not ignore the fact that the supply of pellets has been lagging behind the demands, which forced the European countries had to import pellets from other regions.

The pellet market consists largely of combined power and heat production and domestic use of pellets, in particular, across the north Europe, industrial demands for biomass pellets have been soaring. Besides, in Holand, Belgium, Danmark and the UK according to the local strict regulations on greenhouse gas emissions have to transform the energy pattern with an earnest demands for pellets as well. Apart from the above, governments of all European countries are implementing related policies and launching some campaigns to boost the application of renewable energy. For example, a stringent goal of energy transformation from traditional fossil fuel into biomass energy has been mapped out and the implementing is under way, both in Europe and North America.

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