Notes

Russia wood pellet sector analysis and forecast<br>
Russia source advantages as well as restrictions

Russia has large acreage, which has abundant nature resources, consisting of the globe's largest forest. Although forestry covers 50% of Russia's land, its wood sectors only make up 1% of GDP. Absence of road and also citizens makes the forestry resources inaccessible.




But Russia is establishing the wood pellet market, and has actually turned into one of the largest wood pellet exporters. It moves wood pellets to Europe wood pellet market via the Baltic sea. Currently, Russia export fifty percent of its wood pellets to Sweden as well as Denmark, and it is increasing the marketplace to England, Netherland and also various other Europe nations.



The starting of Russia wood pellet sector

Russia wood pellet market began in the early 21st century, when 4 wood pellet factories are built in Leningrad. They generate wood pellets for Europe market. With the increase of the demand, more wood pellet factories are integrated in the northwest getting in touch with Finland.



Russia's wood pellet sector made fantastic progression in the initial years of 21st century. As reported by Russia Federal Stats Solution, from 2007 to 2010, the number of wood pellet manufacturing facilities enhances from 65 to 150. The production capacity and also exportation keep expanding. Annually around 20-30 wood pellet manufacturing facilities export wood pellet to Europe.



In 2010, Vyborgskaya forestry company introduced to develop the world's biggest wood pellet factory in northwest St. Petersburg. It has the globe's biggest lumber yard, 24 hammer mills and also 36 pellet presses. At complete capability, this manufacturing facility can generate numerous wood pellets. As it is located in a harbor instead of a forestry location, it need to move raw materials by river vessel. The building of Vyborgskaya notes the maturity of Russia wood pellet sector.



The building of CM biomass firm

The economic climate growth in Russia as well as nations around Baltic Sea provides possibilities to investors as well as dealers. Copenhagen Merchants has 30 years' experience on grain trading, as well as participated in wood pellet company in 2006. In 2009, they set up centimeters biomass firm with numerous parenters. Nowadays, they end up being a titan in Russia wood pellet market, and also profession near 700,000 lots of wood pellets.




CM biomass firm has actually constructed participation with 30 wood pellet suppliers. There are just a couple of large wood pellet suppliers with the manufacturing over 100,000 loads, regarding 30 mid-size vendors, and lots of small vendors whose production is 500-1000 bunches each month. Centimeters biomass aid attach Russia manufacturers with customers in England, Belgium, Netherland, Demark and Germany. richi machinery of the wood pellets are exported from St.Petersburg harbor, which can save 25000 million lot wood pellets. It is approximated that around 170000 lots of wood pellets are exported from this port.



Siberia will be the 2nd largest wood pellet manufacturing location

Compared To The United States And Canada, Russia wood pellet industry is weak in facilities. Some inland wood pellet manufacturing facilities need to deliver 4000 miles to St.Petersburg harbor, which takes a minimum of 2 weeks.



These remote roads are mostly situated in Siberia. The growth of Siberia is going to launch big manufacturing capability. It is the largest biomass material supply location, where the wood pellets have the finest, since the trees have high fiber thickness in winter.



They have begun to build wood pellet manufacturing facility in Siberia, which is mosting likely to be the second largest wood pellet production location in Russia. Although the transport cost is high, the wood pellet production is profitable owing to reduced labor expense, export toll exemption, and ruble decrease.



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

The boosting need of wood pellet in Europe arise from the decarburization campaign in EU member countries. European utility group developed Lasting Biomass Partnership (SBP) to make and also implement verification structure to assist in regulatory authorities in every country.



Russia wood pellet suppliers are dedicated to pass the verification. SBP certification is threshold for getting in Europe market. 11 suppliers in Russia as well as 5 in Belorussia revealed they were taking on SBP accreditation. Although CM Biomass aims to get certifications for their manufacturers, it is tough for little suppliers. For the long term, numerous tiny wood pellet plants face acquisition or closing.



The future of Russia wood pellet market

Recently, the United States department of farming (USDA) Overseas farming department published a report launching the wood pellet manufacturing in Russia, as well as anticipating its development.



As the report evaluations, although Russia wood pellet market starts late, it represents 6% of the globe's total wood pellet exportation. It is currently the world's 8th biggest wood pellet manufacturers, contributing 3% of the global wood pellet production.



Russia generated 1750,000 lots of wood pellets in 2017, 32% more than in 2015. fish feed pelleting machine price exported regarding 1.44 million tons of wood pellets, 34% higher than in 2014. This number is anticipated to grow to 11.5 million load in 2018. The growth arises from the continual need from Europe as well as Asia. The significant exportation destination consists of Demark, Korea, Belgium, and also Sweden.



Currently, Russia has 10 huge wood pellet manufacturers contributing 60% of the nation's production. In last year, the northwest federal area as well as the Siberian government district contributes 70% of the nation's production. This report reminds that the fact may be incomplete. Some mid-scale and also small tools are not included.



According to forecast, Russia wood pellet production will certainly enhance to 5 million bunches by 2020, as well as 8 million heaps by 2025. When it comes to usage, Russia consume 320,000 tons of wood pellets every year. Psychological term, the residential demand is expected to stay flat.


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