Notes

America wood pellet market evaluation as well as prediction<br>
Wood pellet production in America

America's wood pellet manufacturing started in the northeast and southeast areas. Initially, they are small timber pellet plants that refine sawmill residues, as well as supply domestic heating market. The domestic market is restricted due to the development of gas network as well as the uncompetitive cost.



Thanks to the oversea need, America's timber pellet manufacturing development quickly in the past few years. The growth of timber pellet plants generally occur in the southeast, because they are close to EU market, and there are even more biomass power, manpower, infrastructure, as well as innovation buildup.



Manufacturing ability and also distribution

America's timber pellets manufacturing expands continuously because 2004. There are 119 manufacturing facilities that eats wood residuals, but their primary products has changed from documents to wood pellets. Given that 2005, 16 new wood pellet production plants have been established in the south of America. In between 1995-2015, 14 pulp as well as paper mill have been closed completely. By 2016, the manufacturing capacity of America timber pellet industry has actually risen to 13.7 million lots.



A lot of wood pellet plant in America is located in southeast, southeast as well as northwest areas. They are major timber production locations in America. There are 15 wood pellet plants with the manufacturing capacity more than 300,000 short loads every ear. They are all situated in the Southeast America. 7 of them remain in Enviva, whose total manufacturing capacity is 2.7 million lots. pe granulating machine and Morehouse BioEnergy remains in Drax, whose complete capability is 890,000 loads. Georgia Biomass is the largest independent wood pellet plant in America, whose is production ability is 740,000 heaps.



America wood pellet plant whose production ability is greater than 300,000 brief lots each year

Besides, the intended wood pellet plants are expected to add 3.5 million tons' wood pellet production.



Basic material resource of wood pellets

Many timber pellet plants make use of recurring timber fibers and pulp wood as basic materials. As estimate, wood pellets only occupies 2-4% of timber market, since they have much less market value than wood as well as paper pulps. Hereof, biomass basic materials are typically the by items of high-value forestry products.



Wood pellets usage in America

There is no main stats of the residential wood pellet consumption, however we can cauculate it according to the production, import and also export. Richi machine below programs the approximated timber pellet consumption in America.



America's wood pellet manufacturing is primarily for export. In 2015, 63% of timber pellet manufacturing is for export, and the rest is for household heating, with only 1% for commercial use. It is estimated that greater than 13 million domestic timber furnaces remain in usage, with 10% are pellet range. It is unclear the amount of timber pellets are utilized for power generation as well as heating supply.



Wood pellet price

The timber pellets usage in the U.S.A. is driven by the rate advantage. They are less expensive than property heating oil, lp as well as other substitutes for fire wood.




In the past, the CIF cost of industrial timber pellets in Amsterdam, Rotterdam or Antwerp port is $155-175/ lot. In southeast distribution port like Savanna, GA as well as AL, the FOB rate is $140-155/ bunch.



In domestic market, the timber pellets is supplied by bags. A bag of 40 pound wood pellets costs $5-$ 7. To put it simply, they are$ 275-385 per bunch.



Trade and logistics

Typically, the majority of wood pellets in America is created by small-scale plants, as well as transported to domestic home heating market. Because 2007, the wood pellet manufacturing matures swiftly in southeast areas. The total wood pellet manufacturing grows from 2 million lots in 2008 to 7.4 million lots in 2015. But the domestic intake is around 3 million lots. A big amount of timber pellets are exported to Europe. They depend on large transports, consisting of barges and also railway to the port and also shipping to overseas.



Policy driving as well as obstructions

The United States has some incentive policy for biomass home heating in property and business building and construction, however none for industrial heating supply as well as power generation. Actually, wood pellets usage for cogeneration is the least. Biomass products are primarily utilized to produce the byproducts of forestry sector, such as pulp and papers.



Rewards for property home heating pellets

EPA New Source Efficiency Standards (NSPS): In March 2015, the Epa (EPA) published a New Resource Efficiency Criteria (NSPS) for property firewood furnaces and pellet stoves.



Biomass cooktop tax credit report policy: It is a government motivation that provides $300 for getting high-efficiency firewood as well as pellet cooktop before the year 2017.



Rewards for industrial wood pellets

EPA proposed Clean Power Strategy (CPP) to lower the carbon pollution of nuclear power plant, yet It met with opposition from more than 20 states, sector groups and firms after the requirement was released. So in 2016, the Supreme Judicial Court suspended the execution of CPP.



Eco-friendly portfolio requirement (RPS) calls for to raise using renewable energy in power generation, but timber pellets are generally not used for this function as a result of the high rate.



Besides CPP, lots of states have actually made Power Portfolio Criterion as well as Goals. These typical needs civil service companies to embrace a certain portion of renewable resource. As an example, the electric power to buy should has a certain part generated by renewable resource. It include solar, wind, hydraulic as well as biomass power.



Biofuel manufacturing goals

Timber pellets is the raw material to generate biofuel in biorefinery. Yet these new industries really did not drive the growth of wood pellet manufacturing. The growth of biofuel sector is driven by the Energy Freedom and also Security Act (EISA) published in 2007, which revised the Eco-friendly gas requirement (RFS).

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