Notes

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

America's timber pellet manufacturing began in the northeast and southeast areas. In the beginning, they are small wood pellet plants that refine sawmill deposits, and supply household home heating market. The residential market is limited because of the expansion of gas network as well as the uncompetitive price.



Thanks to the oversea need, America's wood pellet production development swiftly in the past few years. The growth of timber pellet plants generally take place in the southeast, because they are close to EU market, as well as there are even more biomass energy, workforce, infrastructure, as well as technology build-up.



Manufacturing capacity and distribution

America's timber pellets production expands steadily given that 2004. There are 119 manufacturing facilities that takes in wood residuals, however their primary products has changed from papers to wood pellets. Considering richi machinery , 16 new wood pellet manufacturing plants have actually been established in the south of America. Between 1995-2015, 14 pulp and paper mill have been closed permanently. By 2016, the production capability of America wood pellet market has actually reached up to 13.7 million tons.



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



America wood pellet plant whose production ability is more than 300,000 short bunches each year

Besides, the planned wood pellet plants are anticipated to include 3.5 million lots' timber pellet manufacturing.



Basic material resource of wood pellets

Many timber pellet plants use residual timber fibers as well as pulp timber as resources. As evaluation, wood pellets just uses up 2-4% of timber market, because they have much less market value than timber and paper pulps. Hereof, biomass resources are normally the by items of high-value forestry products.



Timber pellets usage in America

There is no main data of the residential wood pellet usage, but we can cauculate it according to the manufacturing, import as well as export. The table listed below shows the approximated wood pellet usage in America.



America's wood pellet production is mostly for export. In poultry feed pellet machine , 63% of wood pellet production is for export, et cetera is for household home heating, with only 1% for business usage. It is approximated that more than 13 million residential timber furnaces are in usage, with 10% are pellet stove. It is uncertain how many timber pellets are used for power generation and home heating supply.




Wood pellet price

The timber pellets consumption in the United States is driven by the cost advantage. They are less expensive than residential heating oil, lp and also various other replacement for firewood.



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



In property market, the timber pellets is supplied by bags. A bag of 40 extra pound timber pellets prices $5-$ 7. Simply put, they are$ 275-385 per heap.



Trade as well as logistics

Traditionally, most timber pellets in America is produced by small plants, and delivered to residential heating market. Given that 2007, the timber pellet manufacturing grows up rapidly in southeast areas. The total wood pellet manufacturing expands from 2 million loads in 2008 to 7.4 million tons in 2015. However the residential consumption is around 3 million heaps. A huge amount of wood pellets are exported to Europe. They rely upon large transportations, including barges and railroad to the port as well as delivery to overseas.



Plan driving as well as obstructions

The United States has some motivation policy for biomass heating in residential and also business construction, however not any for industrial home heating supply and power generation. As a matter of fact, wood pellets consumption for cogeneration is the least. Biomass products are mostly made use of to generate the spin-offs of forestry market, such as pulp as well as documents.



Incentives for property heating pellets


EPA New Resource Performance Standards (NSPS): In March 2015, the Epa (EPA) released a New Resource Performance Criteria (NSPS) for residential firewood furnaces as well as pellet ranges.



Biomass oven tax obligation credit history plan: It is a federal incentive that provides $300 for purchasing high-efficiency firewood and pellet oven before the year 2017.



Motivations for industrial timber pellets

EPA suggested Clean Power Plan (CPP) to lower the carbon contamination of power plant, however It consulted with resistance from greater than 20 states, market teams and also companies after the requirement was published. So in 2016, the Supreme Judicial Court put on hold the implementation of CPP.



Eco-friendly portfolio requirement (RPS) calls for to increase using renewable energy in power generation, yet wood pellets are typically not used for this purpose due to the high cost.



Besides CPP, numerous states have made Energy Profile Requirement and Goals. These common calls for civil service firms to adopt a particular section of renewable resource. For instance, the electrical power available for sale must has a specific section generated by renewable resource. It consist of solar, wind, hydraulic and biomass power.



Biofuel manufacturing goals

Wood pellets is the raw product to generate biofuel in biorefinery. Yet these brand-new sectors didn't drive the growth of wood pellet manufacturing. The advancement of biofuel industry is driven by the Power Independence and also Security Act (EISA) released in 2007, which changed the Renewable fuel requirement (RFS).


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