Notes

America timber pellet market analysis and also prediction<br>
Wood pellet production in America

America's wood pellet production started in the northeast and also southeast areas. At first, they are small-scale timber pellet plants that refine sawmill residues, and supply household home heating market. The residential market is limited as a result of the development of gas network and the uncompetitive cost.



Thanks to the oversea need, America's wood pellet production development swiftly in the past couple of years. The development of wood pellet plants generally happen in the southeast, since they are close to EU market, as well as there are even more biomass energy, manpower, infrastructure, as well as technology accumulation.




Production capacity and distribution

America's wood pellets manufacturing expands steadily considering that 2004. There are 119 factories that eats timber residuals, but their primary products has actually transformed from documents to wood pellets. Considering that 2005, 16 new wood pellet manufacturing plants have been established in the south of America. Between 1995-2015, 14 pulp and paper mill have been shut permanently. By 2016, the production capacity of America timber pellet market has risen to 13.7 million tons.



Most wood pellet plant in America lies in southeast, southeast as well as northwest locations. They are significant timber manufacturing areas in America. There are 15 wood pellet plants with the manufacturing ability greater than 300,000 short bunches every ear. They are all located in the Southeast America. 7 of them remain in Enviva, whose overall manufacturing capability is 2.7 million lots. Amite BioEnergy and also Morehouse BioEnergy is in Drax, whose total capability is 890,000 lots. Georgia Biomass is the largest independent timber pellet plant in America, whose is manufacturing capacity is 740,000 heaps.



America timber pellet plant whose production capacity is more than 300,000 brief loads each year

Besides, the prepared wood pellet plants are anticipated to include 3.5 million lots' wood pellet production.



Basic material source of wood pellets

The majority of wood pellet plants use residual wood fibers and also pulp timber as raw materials. As richi pellet mill , timber pellets just takes up 2-4% of wood market, since they have much less market price than timber and also paper pulps. Hereof, biomass resources are usually the by products of high-value forestry items.



Wood pellets consumption in America

There is no main data of the domestic timber pellet consumption, but we can cauculate it according to the production, import as well as export. The table listed below programs the estimated wood pellet intake in America.



America's timber pellet production is mainly for export. In 2015, 63% of wood pellet production is for export, et cetera is for property home heating, with just 1% for business use. It is approximated that greater than 13 million residential timber heaters are in usage, with 10% are pellet stove. It is vague how many wood pellets are made use of for power generation and also heating supply.



Wood pellet rate

The wood pellets intake in the U.S.A. is driven by the price advantage. They are less costly than household heating oil, gas and also other alternative to fire wood.



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



In residential market, the wood pellets is provided by bags. A bag of 40 pound timber pellets prices $5-$ 7. In other words, they are$ 275-385 per ton.



Trade and logistics

Traditionally, most timber pellets in America is created by small-scale plants, and also transported to residential heating market. Since 2007, the wood pellet manufacturing matures swiftly in southeast locations. The general timber pellet manufacturing expands from 2 million heaps in 2008 to 7.4 million tons in 2015. However the domestic intake is around 3 million lots. A big amount of timber pellets are exported to Europe. feed machine for poultry count on large-scale transportations, including barges as well as railway to the port and shipping to overseas.



Policy driving and obstructions

The United States has some motivation policy for biomass heating in property as well as business building and construction, but none for commercial home heating supply and power generation. In fact, timber pellets consumption for cogeneration is the least. Biomass materials are primarily utilized to produce the spin-offs of forestry sector, such as pulp and papers.



Motivations for property home heating pellets

EPA New Source Efficiency Specifications (NSPS): In March 2015, the Epa (EPA) released a New Resource Performance Requirements (NSPS) for household fire wood furnaces and pellet stoves.



Biomass range tax credit plan: It is a federal motivation that gives $300 for acquiring high-efficiency firewood and pellet stove before the year 2017.



Motivations for commercial timber pellets

EPA proposed Clean Power Strategy (CPP) to lower the carbon pollution of nuclear power plant, but It met resistance from more than 20 states, market teams and companies after the need was released. So in 2016, the Supreme Judicial Court put on hold the implementation of CPP.



Sustainable portfolio standard (RPS) needs to increase making use of renewable resource in power generation, yet wood pellets are usually not made use of for this objective as a result of the high rate.



Besides CPP, several states have made Power Portfolio Requirement and also Goals. These basic requires public service business to take on a particular portion of renewable resource. As an example, the electrical power up for sale must has a specific section generated by renewable resource. It include solar, wind, hydraulic and also biomass power.



Biofuel production goals

Timber pellets is the raw product to create biofuel in biorefinery. But these new markets didn't drive the expansion of timber pellet manufacturing. The growth of biofuel industry is driven by the Power Self-reliance and also Safety Act (EISA) released in 2007, which revised the Eco-friendly gas requirement (RFS).

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