Notes

Russia wood pellet market evaluation as well as prediction<br>
Russia source advantages as well as limitations

Russia has large land area, which has abundant nature sources, including the globe's biggest woodland. Although forestry covers 50% of Russia's land, its wood markets just make up 1% of GDP. Lack of road and homeowners makes the forestry resources not available.




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



The starting of Russia wood pellet sector

Russia wood pellet industry started in the very early 21st century, when 4 wood pellet manufacturing facilities are built in Leningrad. They produce wood pellets for Europe market. With the increase of the need, more wood pellet manufacturing facilities are constructed in the northwest connecting with Finland.



Russia's wood pellet sector made excellent progression in the first decade of 21st century. As reported by Russia Federal Data Solution, from 2007 to 2010, the variety of wood pellet factories raises from 65 to 150. The manufacturing capacity and exportation maintain expanding. Every year around 20-30 wood pellet manufacturing facilities export wood pellet to Europe.



In 2010, Vyborgskaya forestry firm introduced to build the globe's biggest wood pellet manufacturing facility in northwest St. Petersburg. It has the globe's biggest lumber lawn, 24 hammer mills as well as 36 pellet presses. At complete ability, this manufacturing facility can create countless wood pellets. As it lies in a harbor as opposed to a forestry area, it require to carry raw materials by river vessel. The building and construction of Vyborgskaya marks the maturity of Russia wood pellet industry.



The building of centimeters biomass company

The economic situation growth in Russia and also countries around Baltic Sea supplies possibilities to traders as well as dealers. Copenhagen Merchants has thirty years' experience on grain trading, as well as became part of wood pellet service in 2006. In 2009, they set up centimeters biomass company with several parenters. Nowadays, they become a titan in Russia wood pellet sector, as well as trade near 700,000 lots of wood pellets.



CM biomass company has actually constructed cooperation with 30 wood pellet makers. There are just a few large wood pellet providers with the manufacturing over 100,000 loads, concerning 30 mid-size providers, as well as numerous little suppliers whose production is 500-1000 bunches per month. Centimeters biomass help connect Russia suppliers with customers in England, Belgium, Netherland, Demark and Germany. The majority of the wood pellets are exported from St.Petersburg harbor, which can store 25000 million bunch wood pellets. It is approximated that around 170000 lots of wood pellets are exported from this port.



Siberia will certainly be the second biggest wood pellet manufacturing area

Compared To North America, Russia wood pellet market is weak in infrastructure. richi pellet mill manufacturing facilities need to deliver 4000 miles to St.Petersburg harbor, which takes at least 2 weeks.



These remote roadways are mostly situated in Siberia. The development of Siberia is going to launch big production ability. It is the biggest biomass product supply location, where the wood pellets have the best, since the trees have high fiber thickness in cold weather.



They have actually started to develop wood pellet factory in Siberia, which is going to be the 2nd biggest wood pellet manufacturing area in Russia. Although the transportation price is high, the wood pellet manufacturing pays owing to low labor expense, export toll exception, and also ruble devaluation.




Russian wood pellets need to get certified to get in EU market

The increasing demand of wood pellet in Europe emerge from the decarburization campaign in EU participant countries. European energy team developed Lasting Biomass Collaboration (SBP) to make as well as implement authentication framework to promote regulatory authorities in every nation.



Russia wood pellet suppliers are dedicated to pass the verification. SBP qualification is limit for getting in Europe market. 11 suppliers in Russia as well as 5 in Belorussia announced they were carrying out SBP certification. Although used pto pellet mill for sale to acquire certifications for their suppliers, it is tough for little producers. For the future, numerous small wood pellet plants face purchase or closing.



The future of Russia wood pellet market

Just recently, the United States department of farming (USDA) Abroad farming division released a record launching the wood pellet production in Russia, and forecasting its development.



As the record evaluations, although Russia wood pellet industry begins late, it represents 6% of the world's total wood pellet exportation. It is currently the world's 8th largest wood pellet makers, adding 3% of the global wood pellet production.



Russia produced 1750,000 lots of wood pellets in 2017, 32% more than in 2015. It exported concerning 1.44 million tons of wood pellets, 34% greater than in 2014. This number is expected to grow to 11.5 million lot in 2018. The development arises from the continuous need from Europe as well as Asia. The major exportation location consists of Demark, Korea, Belgium, and also Sweden.



Presently, Russia has 10 huge wood pellet producers contributing 60% of the country's production. In last year, the northwest federal area and also the Siberian government area adds 70% of the nation's manufacturing. This record reminds that the fact may be insufficient. Some mid-scale and small-scale tools are not included.



According to prediction, Russia wood pellet manufacturing will boost to 5 million heaps by 2020, as well as 8 million bunches by 2025. As for intake, Russia eat 320,000 lots of wood pellets yearly. Psychological term, the residential need is expected to remain level.


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