Notes

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

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



Thanks to the oversea need, America's timber pellet production development swiftly in the past couple of years. The growth of wood pellet plants mostly take place in the southeast, due to the fact that they are close to EU market, as well as there are even more biomass power, workforce, framework, as well as innovation build-up.



Manufacturing ability and distribution

America's wood pellets manufacturing expands continuously since 2004. There are 119 factories that consumes timber residuals, however their major items has altered from papers to timber pellets. Considering that 2005, 16 brand-new timber pellet production plants have been established in the south of America. In between 1995-2015, 14 pulp and also paper mill have been shut completely. By 2016, the production capacity of America wood pellet market has actually risen to 13.7 million loads.



Many timber pellet plant in America is located in southeast, southeast and also northwest locations. They are significant wood production locations in America. There are 15 wood pellet plants with the manufacturing ability greater than 300,000 short loads every ear. They are all situated in the Southeast America. 7 of them remain in Enviva, whose complete manufacturing capacity is 2.7 million loads. Amite BioEnergy and also Morehouse BioEnergy remains in Drax, whose complete ability is 890,000 tons. Georgia Biomass is the biggest independent timber pellet plant in America, whose is production capacity is 740,000 heaps.



America wood pellet plant whose production capacity is greater than 300,000 short bunches annually

Besides, the planned wood pellet plants are expected to add 3.5 million tons' timber pellet production.



Basic material source of wood pellets

The majority of wood pellet plants make use of recurring timber fibers and also pulp timber as raw materials. As estimation, timber pellets just occupies 2-4% of lumber market, since they have less market value than timber as well as paper pulps. In this regard, biomass raw materials are usually the by items of high-value forestry products.



Wood pellets consumption in America


There is no official statistics of the residential wood pellet usage, but we can cauculate it according to the production, import and export. The table listed below shows the estimated timber pellet consumption in America.



America's timber pellet manufacturing is mostly for export. In 2015, 63% of wood pellet production is for export, and the rest is for residential home heating, with only 1% for commercial use. gas powered pellet mill is approximated that greater than 13 million domestic timber heating systems remain in use, with 10% are pellet stove. It is vague the amount of wood pellets are utilized for power generation and also home heating supply.



Wood pellet price

The timber pellets consumption in the U.S.A. is driven by the cost benefit. They are cheaper than property heating oil, gas as well as various other alternative to fire wood.



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



In household market, the timber pellets is supplied by bags. A bag of 40 pound wood pellets prices $5-$ 7. To put livestock pellet machine , they are$ 275-385 per lot.



Trade as well as logistics

Traditionally, most timber pellets in America is generated by small plants, as well as delivered to residential home heating market. Given that 2007, the wood pellet manufacturing grows up swiftly in southeast locations. The general wood pellet production grows from 2 million loads in 2008 to 7.4 million lots in 2015. But the residential consumption is around 3 million heaps. A large amount of timber pellets are exported to Europe. They count on large-scale transports, consisting of barges as well as railway to the port as well as shipping to overseas.



Plan driving and blockages

The USA has some reward plan for biomass heating in residential and commercial construction, yet none for commercial home heating supply and power generation. In fact, wood pellets intake for cogeneration is the least. Biomass materials are primarily used to produce the by-products of forestry market, such as pulp and also papers.



Incentives for property home heating pellets

EPA New Source Efficiency Standards (NSPS): In March 2015, the Epa (EPA) released a New Resource Performance Standards (NSPS) for domestic fire wood heating systems as well as pellet cooktops.



Biomass oven tax credit plan: It is a government incentive that supplies $300 for purchasing high-efficiency firewood as well as pellet cooktop before the year 2017.



Rewards for commercial timber pellets

EPA suggested Clean Power Plan (CPP) to reduce the carbon air pollution of power plant, yet It consulted with opposition from more than 20 states, sector groups and business after the demand was published. So in 2016, the Supreme Judicial Court put on hold the implementation of CPP.



Eco-friendly portfolio criterion (RPS) requires to enhance the use of renewable resource in power generation, but wood pellets are normally not made use of for this purpose due to the high cost.




Besides CPP, numerous states have made Energy Portfolio Requirement and also Goals. These common requires civil service business to take on a particular part of renewable resource. For instance, the electric power for sale need to has a specific part created by renewable resource. It consist of solar, wind, hydraulic and also biomass energy.



Biofuel manufacturing objectives

Timber pellets is the raw product to generate biofuel in biorefinery. But these new sectors really did not drive the development of timber pellet manufacturing. The development of biofuel sector is driven by the Power Independence and Protection Act (EISA) released in 2007, which revised the Sustainable fuel criterion (RFS).


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