Notes

America wood pellet market analysis and forecast<br>
Timber pellet production in America

America's timber pellet manufacturing started in the northeast and also southeast areas. At first, they are small timber pellet plants that process sawmill deposits, and also supply property heating market. The residential market is restricted because of the development of gas network as well as the uncompetitive price.



Thanks to the oversea demand, America's wood pellet production growth quickly in the past couple of years. The growth of wood pellet plants mostly occur in the southeast, because they are close to EU market, as well as there are more biomass power, labor force, infrastructure, and also modern technology build-up.



Production capability and distribution

America's wood pellets manufacturing expands gradually since 2004. There are 119 factories that eats wood residuals, but their primary products has transformed from papers to wood pellets. Because 2005, 16 new wood pellet production plants have been established in the south of America. In between 1995-2015, 14 pulp and also paper mill have actually been closed completely. By 2016, the production ability of America wood pellet sector has reached up to 13.7 million loads.



The majority of wood pellet plant in America is located in southeast, southeast and also northwest locations. They are significant wood production areas in America. There are 15 timber pellet plants with the production capacity more than 300,000 brief heaps every ear. They are all located in the Southeast America. 7 of them remain in Enviva, whose total production ability is 2.7 million loads. Amite BioEnergy and also Morehouse BioEnergy remains in Drax, whose total ability is 890,000 bunches. Georgia Biomass is the biggest independent wood pellet plant in America, whose is production capacity is 740,000 loads.



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

Besides, the planned timber pellet plants are anticipated to add 3.5 million bunches' timber pellet manufacturing.



Raw materials resource of wood pellets


Most wood pellet plants make use of residual wood fibers as well as pulp timber as resources. As estimation, wood pellets only uses up 2-4% of wood market, due to the fact that they have less market price than timber and also paper pulps. Hereof, biomass resources are normally the by products of high-value forestry products.



Wood pellets usage in America

There is no main data of the residential timber pellet intake, however we can cauculate it according to the production, import and also export. pellet mill press machine listed below programs the approximated timber pellet intake in America.



America's wood pellet production is generally for export. In 2015, 63% of timber pellet production is for export, et cetera is for residential heating, with just 1% for industrial usage. It is approximated that more than 13 million residential wood heaters are in usage, with 10% are pellet oven. It is unclear the number of timber pellets are made use of for power generation and also heating supply.



Wood pellet cost

The wood pellets usage in the U.S.A. is driven by the price advantage. They are less expensive than domestic home heating oil, lp as well as various other alternative to firewood.



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




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



Profession and also logistics

Commonly, a lot of timber pellets in America is produced by small plants, and also transferred to residential home heating market. Since 2007, the wood pellet manufacturing grows up rapidly in southeast locations. The general wood pellet production expands from 2 million lots in 2008 to 7.4 million lots in 2015. Yet the residential consumption is around 3 million bunches. A big quantity of timber pellets are exported to Europe. They depend on large transportations, consisting of barges and also railroad to the port and also delivery to overseas.



Policy driving and also blockages

The U.S.A. has some motivation plan for biomass home heating in residential and also business building and construction, however none for commercial home heating supply and power generation. Actually, wood pellets consumption for cogeneration is the least. Biomass products are mainly utilized to produce the by-products of forestry industry, such as pulp and also papers.



Rewards for residential home heating pellets

EPA New Source Performance Requirements (NSPS): In March 2015, the Epa (EPA) released a New Source Performance Requirements (NSPS) for property firewood heating systems as well as pellet ovens.



Biomass oven tax credit scores policy: It is a government incentive that gives $300 for getting high-efficiency fire wood and also pellet stove before the year 2017.



Rewards for commercial timber pellets

EPA recommended Clean Power Strategy (CPP) to lower the carbon contamination of nuclear power plant, however It met with opposition from more than 20 states, industry teams and firms after the requirement was released. So in 2016, the Supreme Judicial Court suspended the implementation of CPP.



Sustainable portfolio requirement (RPS) calls for to boost the use of renewable energy in power generation, however wood pellets are normally not made use of for this purpose as a result of the high price.



Besides CPP, several states have made Energy Portfolio Criterion and Goals. These typical needs civil service companies to embrace a specific part of renewable energy. For instance, the electric power offer for sale have to has a certain portion created by renewable energy. It include solar, wind, hydraulic and biomass energy.



Biofuel production goals

Wood pellets is the raw product to generate biofuel in biorefinery. Yet mini poultry feed machine -new markets really did not drive the development of timber pellet manufacturing. The growth of biofuel market is driven by the Power Freedom and also Safety And Security Act (EISA) published in 2007, which modified the Sustainable fuel criterion (RFS).


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