Wood pellets - the bioenergy feedstock solution?

Global market, players and trade to 2015, Poyry, October 2009

BACKGROUND

Wood pellets are a densified form of biomass typically produced from forest industry residues. The production and demand for wood pellets has increased considerably in recent years, driven partly by the renewable energy targets set by the EU.

  • Wood pellets are one of the fastest growing source of renewable energy in the world, replacing fossil fuels.
  • Wood pellets have a number of advantages over not only other types of biomass such as wood chips, but also over wind and solar power.
  • The number of new wood pellet plants all over the world is growing rapidly in line with high demand and with investments coming mainly from emerging renewable energy companies. Among the main players are Vapo in Europe, Green Circle Bio Energy in the US, and Pinnacle Pellets in Canada.
  • Wood pellets are becoming the newest global commodity with prices posted on the European Energy Derivatives Exchange N.V. (ENDEX).
  • They are also seen as a supply chain solution for accessing surplus biomass.

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