Notes

Russia wood pellet sector analysis as well as prediction<br>
Russia resource benefits as well as restrictions

Russia has large land area, which contains abundant nature sources, consisting of the globe's biggest forest. Although forestry covers 50% of Russia's land, its wood industries only account for 1% of GDP. Lack of road and locals makes the forestry resources not available.



Yet Russia is establishing the wood pellet market, and also has actually turned into one of the largest wood pellet exporters. It delivers wood pellets to Europe wood pellet market via the Baltic sea. Presently, Russia export half of its wood pellets to Sweden and also Denmark, and also it is increasing the market to England, Netherland as well as various other Europe countries.



The starting of Russia wood pellet sector

Russia wood pellet industry started in the early 21st century, when 4 wood pellet factories are built in Leningrad. They create wood pellets for Europe market. With the rise of the demand, more wood pellet factories are constructed in the northwest connecting with Finland.



Russia's wood pellet market made terrific progress in the initial years of 21st century. As reported by Russia Federal Statistics Service, from 2007 to 2010, the variety of wood pellet factories increases from 65 to 150. The production capability and also exportation keep growing. Annually around 20-30 wood pellet manufacturing facilities export wood pellet to Europe.



In 2010, Vyborgskaya forestry business introduced to build the world's biggest wood pellet manufacturing facility in northwest St. Petersburg. It has the globe's biggest lumber yard, 24 hammer mills as well as 36 pellet presses. At full capability, this manufacturing facility can generate numerous wood pellets. As it is located in a harbor as opposed to a forestry area, it need to transfer resources by river vessel. The building of Vyborgskaya marks the maturity of Russia wood pellet sector.




The structure of centimeters biomass firm

The economic situation growth in Russia and also countries around Baltic Sea provides chances to investors and also dealerships. Copenhagen Merchants has 30 years' experience on grain trading, and entered into wood pellet company in 2006. In 2009, they established CM biomass firm with numerous parenters. Nowadays, hand pellet machine come to be a giant in Russia wood pellet industry, and also trade near 700,000 lots of wood pellets.



Centimeters biomass business has built cooperation with 30 wood pellet manufacturers. There are just a few big wood pellet distributors with the manufacturing over 100,000 bunches, regarding 30 mid-size suppliers, and also several tiny providers whose production is 500-1000 loads monthly. Centimeters biomass assistance connect Russia makers with purchasers in England, Belgium, Netherland, Demark and also Germany. A lot of the wood pellets are exported from St.Petersburg harbor, which can store 25000 million lot wood pellets. It is approximated that around 170000 tons of wood pellets are exported from this port.



Siberia will be the second biggest wood pellet production area

Compared To North America, Russia wood pellet sector is weak in infrastructure. Some inland wood pellet manufacturing facilities have to move 4000 miles to St.Petersburg harbor, which takes at least 2 weeks.



These remote roadways are mostly located in Siberia. The advancement of Siberia is mosting likely to release huge production capability. It is the largest biomass product supply area, where the wood pellets have the best quality, since the trees have high fiber thickness in cold weather.



They have started to develop wood pellet factory in Siberia, which is mosting likely to be the second largest wood pellet production area in Russia. Although the transportation price is high, the wood pellet production pays owing to low labor expense, export tariff exemption, and ruble decline.



Russian wood pellets have to obtain accredited to go into EU market

The boosting need of wood pellet in Europe emerge from the decarburization project in EU participant nations. European energy group developed Sustainable Biomass Partnership (SBP) to create and also execute verification structure to help with regulators in every country.



Russia wood pellet producers are committed to pass the verification. SBP accreditation is threshold for getting in Europe market. 11 producers in Russia as well as 5 in Belorussia introduced they were undertaking SBP qualification. Although centimeters Biomass aims to acquire certifications for their producers, it is hard for little producers. For the long run, several small wood pellet plants face purchase or closing.




The future of Russia wood pellet industry

Just recently, the USA division of farming (USDA) Overseas farming division released a record launching the wood pellet production in Russia, as well as anticipating its growth.



As the record evaluations, although Russia wood pellet industry starts late, it represents 6% of the world's total wood pellet exportation. It is currently the world's 8th biggest wood pellet producers, adding 3% of the global wood pellet manufacturing.



Russia produced 1750,000 lots of wood pellets in 2017, 32% greater than last year. It exported regarding 1.44 million lots of wood pellets, 34% higher than in 2015. This number is expected to grow to 11.5 million bunch in 2018. The growth results from the continual need from Europe and Asia. The major exportation location consists of Demark, Korea, Belgium, and also Sweden.



Currently, Russia has 10 big wood pellet producers adding 60% of the country's production. In in 2014, the northwest government area as well as the Siberian government area contributes 70% of the country's manufacturing. This record reminds that the fact might be insufficient. Some mid-scale as well as small-scale equipment are not included.



According to forecast, Russia wood pellet production will boost to 5 million tons by 2020, as well as 8 million tons by 2025. When it comes to usage, Russia eat 320,000 tons of wood pellets each year. small fish feed making machine , the residential demand is anticipated to stay level.


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