Notes

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

America's timber pellet production started in the northeast and also southeast locations. At first, they are small-scale wood pellet plants that process sawmill deposits, and also supply residential heating market. The domestic market is restricted due to the expansion of gas network and the uncompetitive price.



Thanks to the oversea need, America's wood pellet production development quickly in the past few years. The expansion of timber pellet plants mainly happen in the southeast, because they are close to EU market, as well as there are more biomass power, labor force, infrastructure, and technology accumulation.



Production ability as well as distribution

America's timber pellets manufacturing grows gradually given that 2004. There are 119 manufacturing facilities that eats wood residuals, but their primary products has actually transformed from papers to timber pellets. Because yulong pellet mill , 16 new wood pellet manufacturing plants have been developed in the south of America. Between 1995-2015, 14 pulp and also paper mill have been shut permanently. By 2016, the manufacturing capability of America timber pellet market has reached up to 13.7 million tons.



A lot of timber pellet plant in America is located in southeast, southeast as well as northwest locations. They are major wood manufacturing locations in America. There are 15 wood pellet plants with the production capacity greater than 300,000 short bunches every ear. They are all located in the Southeast America. 7 of them are in Enviva, whose overall production capacity is 2.7 million lots. Amite BioEnergy as well as Morehouse BioEnergy remains in Drax, whose complete capability is 890,000 heaps. Georgia Biomass is the largest independent timber pellet plant in America, whose is manufacturing capacity is 740,000 tons.



America timber pellet plant whose manufacturing ability is more than 300,000 brief loads each year

Besides, the intended timber pellet plants are expected to add 3.5 million heaps' timber pellet manufacturing.



Resources source of timber pellets

Most timber pellet plants make use of residual timber fibers as well as pulp wood as raw materials. As estimation, timber pellets just takes up 2-4% of wood market, due to the fact that they have much less market value than wood as well as paper pulps. Hereof, biomass basic materials are generally the by items of high-value forestry products.



Wood pellets consumption in America

There is no official data of the residential timber pellet consumption, yet we can cauculate it according to the production, import and export. The table below shows the approximated timber pellet usage in America.



America's timber pellet manufacturing is generally for export. In 2015, 63% of wood pellet production is for export, and the rest is for domestic home heating, with just 1% for business use. It is estimated that more than 13 million domestic timber furnaces remain in use, with 10% are pellet oven. It is unclear how many timber pellets are utilized for power generation and also home heating supply.




Wood pellet price

The wood pellets consumption in the U.S.A. is driven by the cost advantage. They are less costly than residential heating oil, gas and also other replacement for fire wood.



In the past, the CIF rate of industrial timber pellets in Amsterdam, Rotterdam or Antwerp port is $155-175/ load. In southeast distribution port like Savanna, GA and AL, the FOB rate is $140-155/ ton.



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



Profession as well as logistics

Typically, the majority of wood pellets in America is produced by small plants, as well as transported to domestic heating market. Considering that 2007, the timber pellet production matures swiftly in southeast areas. The overall timber pellet production expands from 2 million loads in 2008 to 7.4 million heaps in 2015. Yet the domestic usage is around 3 million lots. A large quantity of wood pellets are exported to Europe. They rely upon large transportations, consisting of barges and railway to the port as well as shipping to overseas.




Plan driving and blockages

The USA has some reward policy for biomass home heating in domestic as well as business building, but none for commercial heating supply and also power generation. Actually, wood pellets consumption for cogeneration is the least. Biomass products are mainly used to generate the spin-offs of forestry sector, such as pulp and documents.



Rewards for domestic home heating pellets

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



Biomass stove tax credit scores policy: It is a government reward that offers $300 for purchasing high-efficiency firewood as well as pellet cooktop before the year 2017.



Incentives for industrial timber pellets

EPA recommended Clean Power Plan (CPP) to lower the carbon contamination of power plant, but It met with opposition from more than 20 states, industry groups and business after the demand was published. So in 2016, the Supreme Judicial Court suspended the execution of CPP.



Sustainable profile criterion (RPS) requires to enhance using renewable resource in power generation, but wood pellets are normally not made use of for this purpose due to the high rate.



Besides CPP, lots of states have actually made Energy Portfolio Requirement and also Goals. These standard needs civil service firms to take on a certain part of renewable energy. For instance, the electrical power up for sale need to has a particular section produced by renewable resource. pellet machine for feed include solar, wind, hydraulic as well as biomass power.



Biofuel manufacturing goals

Wood pellets is the raw material to create biofuel in biorefinery. However these new sectors really did not drive the development of timber pellet manufacturing. The growth of biofuel sector is driven by the Energy Freedom and also Security Act (EISA) published in 2007, which revised the Sustainable fuel criterion (RFS).


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