Notes

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

Biomass sector experts mention 3 drives in Canada: environmental pressure, management goals of sustainnable forestry, and also rate benefits.



Biomass fuels are carbon neutral. Plants absorb CO2 in its growth and also discharge the very same amount of CO2 in burning, so they does not add added greenhouse gases to the ambience. Besides, biomass power can reduce making use of coal, gas and oil, which is the souce of greenhouse gases.



Sustainable forestry is a typical objective of all public lands in Canada. It thinks about woodland wellness, wildlife environment as well as biodiversity in the exploration of forestry resources. From financial prospect, sustainable forestry management intends to use all materials in the most effective method, consisting of wood wast. However, it is not smart to transform all forestry waste into biomass energy. Often it is useful to leave some wood waste in the forestry to shield wildlife habitats and also advertise soil nutrients regrowth.



When the cost of typical gas go down, biomass energy will certainly shed benefits. The rate competition makes the makers establish extra efficient methods to refine biomass energy, especially to reduce the expense of raw mateirals transportation. By controling the manufacturing cost, biofuels are competitive with typical gas. As an example, if the rate of a barrel of oil is more than $17, biomass energy is much more cost-effective.



Renewable energy incentive policy

The manufacturing and also usage of wood pellets in Canada is driven by international demand as well as domestic policy. Canadian Federal federal government has drawn a plan to quit utilizing coals by 2030, as well as enhance the ratio of renewable energy in power generation to 90%.



Currently, coal power contributes 10% of the total greenhouse gas discharge in Canada. Coal plants are mostly located in Alberta( 10 ), Saskatchewan( 2 ), New Brunswick( 1 ), and Nova Scotia. According to the policy, New Brunswick as well as Alberta state to slowly eliminate coals by 2030, as well as transform numerous coal-fired power plant into co-fired or biomass power plant.



In residential heating market, the fire wood range replacement job in Nova scotia, Quebec, new Brunswick, British Columbia, and Ontario will certainly improve the residential wood pellet market. （ HPBAC ， 2016 ）.



Wood pellet manufacturing in Canada.

In 2010, Canada can produce 2 million tons of wood pellets each year. The wood pellet manufacturing facilities can generate 1.3 Mt, making up 65% of the residential complete 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 manufacturing ability has actually risen 3Mt. Kind 2015-2016, the wood pellet manufacturing rises by 1Mt annually. In 2016, Canada has 42 pellet factory, with the production capability over 4Mt, and new pellet factories are in construction.



British Columbia creates over 150,000 wood pellets each year, accounting for 60% of the complete production in Canada. The following are Ontario and also Quebec. The wood pellet factories in Ontario mainly serve residential market, while the wood pellet manufacturing facilities in British Columbia offer overseas large heat nuclear power plant. Various other provinces have numerous tiny pellet factories primarily serving regional market, with the total manufacturing capability around 50,000 heaps.



Biomass products in Canada.

In Canada, the biomass sources spread in those districts with responsive pulp, paper as well as forestry sector, consisting of Ontario, Alberta, Quebec, as well as New Brunswick. pellet mill press machine as barks, sawdust, wood chips, braches are utilized to make wood pellets, biogas, cellulosic ethanol, biodiesel, and also bio-oil.



In the past, lots of paper mills has a specialized space to create hog gas, the combined barks as well as wood wastes made use of to produce warmth and also power. With an increasing number of paper mills combine with saw mills in the 1990s, the wood wastes are transported to the saw mills. In the last one decade, with numerous saw mills shut down, the resource of wood waste reduction greatly, so forestry come to be a major resource to obtain biomass materials.



Forestry biomass products can be acquired in various types. It is popular to collect twigs, branches, needles, barks, and so on, which is executed in addition to logging, yet the transport expense is high. Besides, biomass comes from silvicultural thinning, right-of-way cleaning, sphagnum peat, or the deposits after fire, condition and also insect pests.



Tamarack and larch become popular in biomass industry. They are except making woodworks or papers, however ideal for biomass gas manufacturing owing to high development speed. They are going to be a cost-effective option to create sustainable power.



Wood pellets Export market.

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



Thanks to position advantages, British Columbia has come to be the among the initial wood pellet suppliers for Oriental and Japan Market. In the past years, Canada's wood pellets export has used up 2/3 of Japan's wood pellet import. (Strauss 2016).



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



In the future, a lot of wood pellets in Canada will go on serving oversea market. Canadian wood pellet makers need to rely upon Europe as well as Asia market. In Asia, Korea is going to be a flourishing market, with numerous independent power manufacturers as well as industries embracing wood pellets. Japan is most likely to have the fastest development, with more and more coal-fired nuclear power plant to be transformed. Japanese market is expected to grow by 10-12Mt yearly.



Wood pellets residential usage.

Canada's domestic wood pellet intake is 300,000 lots each year, primarily for property heating range and also the biomass power plants.



The domestic household heating market will certainly stay steady, or increase the size of with the expanding rate of heating oil. The co-firing nuclear power plant will certainly increase domestic market. However wood pellet has to compete with other renewable resource such as solar and also wind. Besides, wood pellets are recognized as pricey, whose benefits such as consistent size, storability, and also fluidness have not get due attention.



Biomass power generation in Canada.

Canada National Power Board lately released a report on the application of renewable energy. It pointes out Canada embraces higher part of renewable energy in power generation compared to various other industrialized countries.



As the record reveals, Canada has 70 biomass power plant in 2014, with the total gross capability of 2408MW. The biomass includes wood, wood byproducts, as well as land fill gas. Generally, biomass occupies 1.9% of the overall power generation in Canada. In 2015, the biomass power generation is up to 12,161 GWh, which has actually grown up by 54% considering that 2005.



Atikokan is the largest 100% biomass fuel power plant, owned by Ontario Power Generation. This power plant is transformed from coal-fired power plant into biomass power plant with 170 million Canadian Dollars in 2012. Considering that 2014, Atikokan has actually embarked on the peak demand for power. manual animal feed pellet machine calls for 1000 lots of wood pellets yearly, taking up 30% of the domestic productivity.



Sandbey, one more nuclear power plant in Ontario, is additionally converted into wood pellet terminated. Currently, it consumes regarding 8000 tons of carbonized wood pellets from Norway.



Wood pellet price.

The list prices for bulk export in overseas market is in between 150 and also 180 Canadian bucks. The pellets targeting at America's property home heating market are sold in bags, which has higher price of 210-280 Canadian dollars( Canada Data). The zone rate of bagged wood pellets (40 pound) is $5.24, amounting to $262/ton, and $15.41/ GJ.



According a project in British Columbia, the cost of heating wood pellets (including operation and electrical power) is $15.9/ GJ, dimethylmethane is $24.36/ GJ (including delivery, carbon tax as well as electrical fans), electricity is $29.47/ GJ, and also 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, the rails connect the wood pellet factories as well as ports, and vehicles transportation forestry products to the wood pellet manufacturing facility.




The brand-new profession road from eastern Canada to Europe, as well as the wood pellet manufacturing facilities in the eastern provinces like Ontario, Quebec as well as New Brunswick takes on barges for transportation.

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