More pellet plant is being built

With the winter season under way the wood pellets market is heating up and several pellets manufacturers are making acquisitions and investment moves.Much of the activity is due to the growing demand for wood pellets. Reports estimate that the market is expected to expand at a annual growth rate of 21% from 2013 to 2020.

A Maryland company named Enviva, one of the largest names in wood pellet production in Europe would build the pellet plant at Sampson County. The place is in northeastern Sampson Country off interstate 40's Exit. The county hopes to hours a 40-acre plant that will convert a half-million tons of wood into pellets the width of a pencil and the length of a child's finger. And a forest the size of Fayetteville will be fed into huge processing plants to create energy for European industry. According to experts of loggers, forestry experts and state officials say the construction of the plants by wood pellet manufacturer will spur economic growth. When the mills are up and running, about a million tons of wood biomass will be converted into pellets annually, then shipped by rail and truck to Wilmington for export.

Read:How to start a pellet plant

Experts of environmental protection say that the cutting more wood for materials for pellet plant may destroy the ecological balance of the forest in this area. Although the pellet fuel is eco-friendly, the basic theory is that using a renewable energy, such as trees, won't add to carbon in the atmosphere because the next generation of trees will use that carbon as they grow. In contrast, using coal adds more carbon than will be used in future tree growth. European governments are proving economic incentives for industries to use environmentally neutral energy. Solar and wind power can't meet the demand, so large users, such as power plants, are turning to wood pellets.

Another company, Bethesda, MD-based Enviva partners LP, raise up to $100 million in an initial public offering, to help fund the construction of more plants. The company provides wood pellets to industrial customers and currently has five manufacturing facilities in the Southeast. And it has a capacity to produce approximately 1.7 million metric tons of woody biomass per year.

The increased demand for wood pellets from industrial customers and large chain retailer is reducing availability for individual consumers. The impressive demand for woody biomass for residential heating across the United States is increasing. Producers and retailers through the country are delivering the renewable fuel from regions with strong supply to regions with the highest demand. The pellet fuels industry is further adjusting its output to meet this growing market. The creation of new markets provides a chance to harvest wood that has no market. Since they were planted, paper mills have changed. The pellet industry will take that wood, providing a demand and more chances to work for loggers-and a market for landowners to reforest.

Pinnacle, which has its headquarters in Singapore, is hoping to cultivate an energy plantation on 5,000 acres of land in the Pomeroon Region 2, Guyana. The company has signed a Memorandum of Understanding with Guyana Office for Investment (GOINVEST) for the lease of the land. Additionally, in the period before harvesting the leucaena, the company plans to establish another facility utilising the biomass available in Guyana to produce electricity. The plantation investment is expected to produce 200 tons of wood pellets per day which would be exported to Europe. The European Biomass Association estimates that wood-pellet consumption in Europe will reach 50 million tons per year by 2020.

From above, we can see that the EU is becoming the big consumer for biomass pellet fuel. American and the surround countries are the important resources for biomass pellets for EU. Under this situation, more and more big pellet plants are build in American or other countries, especially the country with abound of resource for pellet fuel and convenient transport. Also the winter season is another factor which increases the speed of building more pellet plants.

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