Notes

Wood pellets sector as well as market in Canada<br>
Drives of biomass energy growth

Biomass industry experts point out 3 drives in Canada: environmental pressure, management objectives of sustainnable forestry, and price benefits.



Biomass fuels are carbon neutral. Plants take in carbon dioxide in its development as well as emit the very same amount of CO2 in burning, so they doesn't include added greenhouse gases to the atmosphere. Besides, biomass power can lower using coal, gas and also oil, which is the souce of greenhouse gases.



Lasting forestry is a common goal of all public lands in Canada. It considers woodland health, wild animals environment and also biodiversity in the expedition of forestry resources. From financial prospect, lasting forestry administration intends to utilize all materials in one of the most efficient method, including wood wast. However, it is not a good idea to transform all forestry waste right into biomass power. Often it is useful to leave some wood waste in the forestry to shield wildlife habitats as well as promote soil nutrients regrowth.



When the cost of traditional gas drop, biomass power will certainly lose benefits. Richi machinery makes the suppliers create extra reliable methods to process biomass power, specifically to reduce the cost of raw mateirals transport. By controling the manufacturing cost, biofuels are affordable with conventional fuels. As an example, if the price of a barrel of oil is more than $17, biomass energy is extra cost-effective.



Renewable energy reward policy

The manufacturing as well as usage of wood pellets in Canada is driven by worldwide demand as well as domestic plan. Canadian Federal federal government has attracted a plan to stop using coals by 2030, and boost the ratio of renewable energy in power generation to 90%.



Presently, coal power adds 10% of the overall greenhouse gas exhaust in Canada. Coal plants are mainly located in Alberta( 10 ), Saskatchewan( 2 ), New Brunswick( 1 ), and Nova Scotia. According to the policy, New Brunswick and Alberta state to slowly remove coals by 2030, as well as convert numerous coal-fired power plant right into co-fired or biomass power plant.



In domestic heating market, the firewood stove replacement project in Nova scotia, Quebec, new Brunswick, British Columbia, and also Ontario will certainly increase the domestic wood pellet market. （ HPBAC ， 2016 ）.



Wood pellet production in Canada.

In 2010, Canada can generate 2 million tons of wood pellets every year. The wood pellet factories can generate 1.3 Mt, accounting for 65% of the residential overall manufacturing, and export 1.2 Mt of them. In 2011, the manufacturing reach up to 1.5 Mt, with 1.3 Mt for export.In 2012, the production ability has reached up 3Mt. Form 2015-2016, the wood pellet production increases by 1Mt per year. In 2016, Canada has 42 pellet factory, with the manufacturing capability over 4Mt, as well as brand-new pellet manufacturing facilities remain in construction.



British Columbia generates over 150,000 wood pellets each year, representing 60% of the overall production in Canada. The following are Ontario and also Quebec. The wood pellet factories in Ontario mostly offer residential market, while the wood pellet factories in British Columbia serve overseas massive warmth power plant. Other districts have many little pellet manufacturing facilities generally serving local market, with the overall manufacturing capacity around 50,000 lots.



Biomass products in Canada.

In Canada, the biomass resources spread in those provinces with reactive pulp, paper and forestry industry, consisting of Ontario, Alberta, Quebec, and New Brunswick. Biomass materials such as barks, sawdust, wood chips, braches are utilized to make wood pellets, biogas, cellulosic ethanol, biodiesel, and also bio-oil.



In the past, numerous paper mills has a specific space to create hog fuel, the blended barks and also wood wastes used to generate warmth and power. With an increasing number of paper mills merge with saw mills in the 1990s, the wood wastes are moved to the saw mills. In the last one decade, with numerous saw mills fold, the source of wood waste reduction dramatically, so forestry come to be a major source to obtain biomass products.



Forestry biomass materials can be gotten in different kinds. It is prominent to gather branches, branches, needles, barks, etc, which is performed along with logging, but the transport cost is high. Besides, biomass originates from silvicultural thinning, right of way clearing, sphagnum peat, or the deposits after fire, illness and pest pests.



Tamarack and larch come to be popular in biomass market. They are except making woodworks or documents, yet suitable for biomass fuel manufacturing owing to high development rate. find are going to be a cost-effective option to create lasting power.



Wood pellets Export market.

The wood pellets in Canada are generally exported to Europe (including England as well as Belgium) as well as Asia (including Japan as well as Korean) and household home heating market in America.Canadian Statistical Bureau reported the export statics of the last 4 years.



Thanks to place advantages, British Columbia has come to be the one of the very first wood pellet distributors for Korean and Japan Market. In the past years, Canada's wood pellets export has taken up 2/3 of Japan's wood pellet import. (Strauss 2016).



In 2016, Canada's wood pellet export boosts by 46% and also rise to 2.37 Mt. Japan added the biggest growth price of 240%, as well as England has the largest development volume of 458,217 load.( WPAC ， 2017).



In the future, a lot of wood pellets in Canada will continue offering oversea market. Canadian wood pellet makers need to rely upon Europe and also Asia market. In Asia, Korea is going to be a prospering market, with numerous independent power manufacturers and also markets taking on wood pellets. Japan is most likely to have the fastest development, with a growing number of coal-fired power plant to be transformed. Japanese market is expected to expand by 10-12Mt every year.



Wood pellets residential intake.

Canada's domestic wood pellet intake is 300,000 heaps each year, mostly for domestic heating stove as well as the biomass nuclear power plant.



The domestic residential heating market will stay steady, or increase the size of with the expanding rate of heating oil. The co-firing nuclear power plant will certainly raise domestic market. Yet wood pellet has to take on other renewable energy such as solar and also wind. Besides, wood pellets are acknowledged as expensive, whose advantages such as consistent size, storability, and also fluidness have not obtain due attention.



Biomass power generation in Canada.

Canada National Power Board lately published a report on the application of renewable energy. It pointes out Canada takes on higher portion of renewable resource in power generation compared with various other developed nations.



As the report shows, Canada has 70 biomass power plant in 2014, with the overall gross capability of 2408MW. The biomass includes wood, wood by-products, and land fill gas. Generally, biomass takes up 1.9% of the overall power generation in Canada. In 2015, the biomass power generation is up to 12,161 GWh, which has matured by 54% because 2005.



Atikokan is the largest 100% biomass fuel power plant, owned by Ontario Power Generation. This power plant is converted from coal-fired power plant right into biomass power plant with 170 million Canadian Bucks in 2012. Given that 2014, Atikokan has carried out the peak demand for electrical energy. It requires 1000 tons of wood pellets every year, taking up 30% of the residential performance.



Sandbey, an additional nuclear power plant in Ontario, is also converted into wood pellet terminated. Currently, it takes in about 8000 tons of carbonized wood pellets from Norway.




Wood pellet rate.

The list prices for mass export in overseas market is in between 150 as well as 180 Canadian dollars. The pellets targeting at America's residential home heating market are marketed in bags, which has greater rate of 210-280 Canadian dollars( Canada Data). The zone rate of bagged wood pellets (40 extra pound) is $5.24, equaling $262/ton, as well as $15.41/ GJ.



According a task in British Columbia, the price of home heating wood pellets (including procedure and electrical power) is $15.9/ GJ, dimethylmethane is $24.36/ GJ (including distribution, carbon tax obligation as well as electrical fans), power is $29.47/ GJ, and also home heating oil is $33.93/ GJ.( Murray, 2015).



Wood pellets logistics.

Canada's wood pellets are exported out of British Columbia through the Vancouver port and Prince Rupert port. Inland, the rails link the wood pellet manufacturing facilities and ports, and also vehicles transport forestry materials to the wood pellet manufacturing facility.



The brand-new trade roadway from eastern Canada to Europe, and the wood pellet manufacturing facilities in the eastern districts like Ontario, Quebec and New Brunswick adopts barges for transportation.

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