Notes

Wood pellets industry and also market in Canada<br>
Drives of biomass energy advancement

Biomass industry experts mention 3 drives in Canada: environmental stress, administration objectives of sustainnable forestry, as well as rate advantages.



Biomass fuels are carbon neutral. Plants soak up CO2 in its development as well as give off the same amount of carbon dioxide in burning, so they does not add additional greenhouse gases to the environment. Besides, biomass power can minimize the use of coal, gas as well as oil, which is the souce of greenhouse gases.



Lasting forestry is a common objective of all public lands in Canada. It thinks about forest health, wild animals habitat and also biodiversity in the exploration of forestry sources. From financial prospect, sustainable forestry administration intends to make use of all materials in one of the most efficient way, consisting of wood wast. However, it is not a good idea to transform all forestry waste right into biomass energy. In some cases it is handy to leave some wood waste in the forestry to shield wild animals habitats and also promote soil nutrients regrowth.



When the price of standard fuels drop, biomass energy will certainly lose benefits. The cost competitors makes the manufacturers create much more reliable ways to process biomass power, especially to lower the price of raw mateirals transport. By controling the production expense, biofuels are competitive with standard fuels. For example, if the rate of a barrel of oil is greater than $17, biomass power is a lot more affordable.



Renewable resource reward policy

The manufacturing as well as usage of wood pellets in Canada is driven by global need and domestic policy. Canadian Federal federal government has attracted a plan to stop making use of coals by 2030, as well as increase the ratio of renewable energy in power generation to 90%.



Currently, coal power adds 10% of the complete greenhouse gas emission in Canada. Coal plants are generally located in Alberta( 10 ), Saskatchewan( 2 ), New Brunswick( 1 ), as well as Nova Scotia. According to the policy, New Brunswick as well as Alberta proclaim to gradually remove coals by 2030, and also convert a number of coal-fired nuclear power plant right into co-fired or biomass nuclear power plant.



In property heating market, the firewood oven replacement task in Nova scotia, Quebec, new Brunswick, British Columbia, and Ontario will improve the residential 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 produce 1.3 Mt, representing 65% of the residential overall manufacturing, and export 1.2 Mt of them. In 2011, the production rise to 1.5 Mt, with 1.3 Mt for export.In 2012, the production capability has actually reached up 3Mt. Type 2015-2016, the wood pellet manufacturing rises by 1Mt per year. In 2016, Canada has 42 pellet factory, with the manufacturing capability over 4Mt, and brand-new pellet manufacturing facilities remain in building and construction.



British Columbia creates over 150,000 wood pellets yearly, representing 60% of the complete production in Canada. The following are Ontario and Quebec. The wood pellet manufacturing facilities in Ontario primarily serve residential market, while the wood pellet manufacturing facilities in British Columbia offer overseas large warmth nuclear power plant. Other provinces have several tiny pellet manufacturing facilities primarily serving local market, with the complete manufacturing ability around 50,000 loads.



Biomass products in Canada.

In Canada, the biomass sources spread in those provinces with responsive pulp, paper as well as forestry industry, including Ontario, Alberta, Quebec, and also New Brunswick. Biomass products such as barks, sawdust, wood chips, braches are made use of to make wood pellets, biogas, cellulosic ethanol, biodiesel, and bio-oil.



In the past, numerous paper mills has a specific area to produce hog fuel, the mixed barks and also wood wastes utilized to create heat and power. With increasingly more paper mills combine with saw mills in the 1990s, the wood wastes are delivered to the saw mills. In the last ten years, with several saw mills fold, the source of wood waste decrease sharply, so forestry become a significant resource to obtain biomass products.



Forestry biomass products can be acquired in different kinds. It is popular to accumulate twigs, branches, needles, barks, and so on, which is carried out along with logging, but the transport cost is high. Besides, biomass comes from silvicultural thinning, right-of-way cleaning, sphagnum peat, or the residues after fire, condition as well as pest parasites.



Tamarack as well as larch become prominent in biomass sector. They are except making woodworks or papers, however ideal for biomass gas production owing to high development speed. They are mosting likely to be a cost-effective remedy to generate sustainable power.



Wood pellets Export market.

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



Thanks to place benefits, British Columbia has actually come to be the among the first wood pellet suppliers for Korean as well as Japan Market. In the past years, Canada's wood pellets export has actually occupied 2/3 of Japan's wood pellet import. ( use this link ).



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



In the future, the majority of wood pellets in Canada will certainly continue serving oversea market. Canadian wood pellet makers need to count on Europe as well as Asia market. In Asia, Korea is mosting likely to be a thriving market, with many independent power producers as well as industries adopting wood pellets. Japan is likely to have the fastest growth, with a growing number of coal-fired nuclear power plant to be converted. Japanese market is anticipated to expand by 10-12Mt annually.



Wood pellets residential intake.

Canada's domestic wood pellet usage is 300,000 lots every year, mostly for domestic heating cooktop and the biomass nuclear power plant.



The domestic residential heating market will continue to be stable, or increase the size of with the growing cost of heating oil. The co-firing power plant will certainly boost residential market. But wood pellet has to compete with other renewable energy such as solar and wind. Besides, wood pellets are recognized as costly, whose advantages such as uniform dimension, storability, and fluidity haven't obtain due attention.



Biomass power generation in Canada.

Canada National Power Board lately released a report on the application of renewable energy. chicken manure pelletizer pointes out Canada adopts higher portion of renewable resource in power generation compared to other industrialized countries.



As the report shows, Canada has 70 biomass nuclear power plant in 2014, with the overall gross capacity of 2408MW. The biomass consists of wood, wood by-products, as well as landfill gas. As a whole, biomass occupies 1.9% of the overall power generation in Canada. In 2015, the biomass power generation depends on 12,161 GWh, which has grown up by 54% because 2005.



Atikokan is the largest 100% biomass fuel power plant, possessed by Ontario Power Generation. This nuclear power plant is transformed from coal-fired power plant right into biomass power plant with 170 million Canadian Dollars in 2012. Because 2014, Atikokan has actually undertaken the peak need for electrical power. It calls for 1000 lots of wood pellets every year, taking up 30% of the domestic performance.



Sandbey, another power plant in Ontario, is also exchanged wood pellet fired. Presently, it takes in about 8000 lots of carbonized wood pellets from Norway.



Wood pellet price.

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




According a job in British Columbia, the price of heating wood pellets (consisting of operation and electricity) is $15.9/ GJ, dimethylmethane is $24.36/ GJ (consisting of shipment, carbon tax obligation and electric fans), power is $29.47/ GJ, as well as heating oil is $33.93/ GJ.( Murray, 2015).



Wood pellets logistics.

Canada's wood pellets are exported out of British Columbia via the Vancouver port and also Royal prince Rupert port. Inland, richi pellet mill connect the wood pellet factories and ports, and also vehicles transportation forestry materials to the wood pellet manufacturing facility.



The brand-new profession road from eastern Canada to Europe, and also the wood pellet factories in the eastern provinces like Ontario, Quebec and also New Brunswick adopts barges for transportation.

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