Azeus Machinery Co. Ltd

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Keywords: wood pellet,wood pellet market,East Europe wood pelletmarket,wood pellet making,wood pellet consumption

Why Invest Wood Pellets Plant in East Europe

Wood Pellets IntroductionWood pellets are the most common type of pellet fuel which generally made from compacted saw dustand related industrial waste from the milling of lumber, manufacture of wood products and furniture, andconstruction. And other industrial waste sources include Empty Fruit branches, palm kernel shells,coconut shells, and tree tops and branches discharged during logging operation. Though raw materialshave different size and different types, it is quite important to produce pellet in the same standard so thatpellet application burn and heat consistently.

Firstly , we should shred the raw materials until the pieces are no longer than 2.5cm, and then usinghammer mill to grind them into powders. Secondly, we should use drying machine to make the content

moisture of these materials at 10 to 20 percent. Thirdly, it is a fairly vital step, using a pellet mill to makethem into small particle. Fourthly, sieving the pellets that didnt form properly and using a cooler machineto cool down the pellets thoroughly. Last but not least, these wood pellets should be stored in a cool anddry place in order to go bad. The length of wood pellet is 1-2 cm and the diameter is generally 6,8,10 or12mm. It is possible to produce 25mm wood pellet at maximum. By processing these raw materials all inthe same way, the end products have consistent moisture content, heat value, ash content, and burncharacteristics.

As an unlimited fuel sources, wood pellets become more and more popular all over the word, especiallyin the EU. Due to the increasing of environmental population problems in recent years, more and morepeople begin to pay attention to improve the environment. They start to use wood pellets rather than coalin order to reduce the greenhouse effect. Featured with low cost, high calorific value, high efficient andfriendly environment, wood pellets will have a larger market in the future.

Raw Materials in East Europe

Europe has a long history of multipurpose forests which own one billion hectares. European forests andother wooded land now cover 155 million hectares and 21 million hectares respectively. This togethermeans more than 42% of EU land areas are covered with forest and other wooded land. As a result ofafforestation programmers and due to natural regeneration on marginal lands, forests cover in the EUhas increased over the past few years. In EU, they produced varieties of wood products which accountfor one third of global wood products. Half of globe wood products exports come from EU. They havemade a significant contribution to the international markets. In the East Europe, there are also abundant

in natural resources. The forests area accounts for half of the plain area, especially in Russia, Ukraineand Slovakia. With the development of wood products, there would be more and more sawmill residuesand sawdust which can be utilized to make wood pellets. It is a good method to turn wast to wealth andreduced the green-house effect effectively.

Good Opportunities for Making Wood PelletsProduction of Wood Pellets in East EuropeAs fuel, wood pellets have a fastest growing market in the last ten years both on the markets of individualcountries and the global market. Such market growth mostly results from the price increase of fossil fuels,and more and more people pay heed to the environment they lived. In 2013, global production of woodpellets was 24.5 tons, which was the increase of 11.7% compared to 2012. Currently, EU is the worldslargest markets for wood pellets. While domestic production and imports have both grown since 2006.Nowadays, EU is the leader on the globe consumption of wood pellets. Such a high consumption level inthe European Union mostly results from the production realized in Europe as well as from the importwhich is increasing year after year. In 2012, production has increased to 10 million metric tons, withimports reaching 4.49 million metric tons. In 2013, import of the EU was 6.2 million tons. According to thereport, the European Biomass Association expects consumption of wood pellets in the EU to risedrastically, and approximately 50-80 million metric tons by 2020.

According to the research in the middle of 2014, there are about 180 producers were engaged in woodpellets production in East Europe , most of producers of wood pellets has installed capacities of1000-5000tons annually, while only a few factories in East Europe have installed capacity over30,000tons one year. It is pointed out that the realized production of wood pellets is lesser than the totalinstalled capacities. And there still many sawmill residues havent made full use of them. In this region,the yield of production cant match with the consumer, they need to imports from other countries, such asNorth American. Such high import is the result of the underdevelopment of the local market.There was a rapid increase of the number in producers and factories and plants in the last three yearsdue to high demand in European Union countries and consequently the export of wood pellets from thisregion increased as well.

Demand of Wood Pellets in Europe

With the development of society, more and more people begin to concern the environment which theylived. As a renewable resources, wood pellets can replace fossil fuel (such as coal) in commercial useand personal use. Today, wood pellets are one of the largest internationally trade solid biomasscommodities used specifically for energy purpose. Depending on report, the European Commissionlaunched a plan for a more ambitious and integrated policy for Europe in order to tackle the issues ofclimate change and energy supply. Wood pellets will play an important role in protecting our livingconditions. The biggest market around the world is the European Union. They need plenty of woodpellets each year and most of them are exported from other countries. It is reported that European woodpellet demand to rise to 29 metric tons in 2020. According to the report of the European Union, powerproduction from biomass could account for about 45 percent of renewable use in the heating and coolingsectors. And wood pellet demand is expected to increased from 17.5 million metric tons last year to 21million metric tons in 2015. Pellet imports are also need to grow, from 6.05 million metric tons in 2013 to8.5 million metric tons in 2015. With the decreasing of fossil fuel and the demand of friendly environment,wood pellets will be widely used in more aspects all over the world. But now, production cant match thedemand of wood pellets, there must be had a bigger market in the future.

Environment FriendlyTo a large extent, these pellets will end up as fuel for massive municipal boilers in Europe and around theworld, where wood is increasingly replacing coal as a means of producing heat and electricity-a movethat many governments there consider comparatively clean and climate-friendly. Wood is hardly a greenfuel for heating houses and the technology has improved considerably to make it more efficient. Wood

pellets have high combustion efficiency which is now over 90% efficient. At the same time, its producingless of sulfur dioxide, ammonia nitrogen compound and dust. The calorific values of wood pellets are4300--4500 kcal/kg, and after charring of caloric values can be up to 7000--8000kcal/kg. With a highcaloric value and less pollution, wood pellets become more and more popular in our daily life. Accordingto a recent US Forest Services study, current policies in the European Union and elsewhere requiring theuse of renewable and low greenhouse gas-emitting energy are driving demand for wood pellets used togenerate bio-energy. As renewable resources and efficient sources of heat, more and more governmentand individuals concerns on how to make full use of them. Wood pellets is carbon neutral in combustionas the CO2 released is equal to that absorbed by the tree during photosynthesis, and its low carbonoverall as production and transportation can be less than that of fossil fuels. Featured with easy to storeand environmentally responsible, it can be used extensively around the world.

Global Market of Wood PelletsGlobal demanding for wood pellets is growing in the recent years. With a production of about 11.5 millionon MT in 2013, nearly 50% of global production, EU is the biggest wood pellets producer globally whichhas small or middle size pellets production plants. In Asia, wood pellet market is expanding steadily. Asto consumer, European union is also the largest market. The total consumption in 2013 is 17.5 MMT andthe major consumers of wood pellets in the EU are UK, Italy, Denmark, Germany, Sweden, France andAustria. According to the report, the global demand for wood pellet will be increased strongly in the EUand moderately in Northern America and few or marginal demand in Latin America, Africa and Oceania.While in Asia, the demand for wood pellets will be increased highly in Japan, and South Korea andespecially in China, with a big growth from 0.6 million tons to 10 million tons in 2020. From theperspective of global demand, 45 million tons of wood pellets will be demanded in 2020. In the future, itwill replace most of fossil fuels and change the environment to some extent.

Wood Pellets VS Wood Chips* wood pellets have lower moisture and high calorific value than wood chips. Wood pellets moisturecontent is less than 10%, however, wood chips can vary between 30%-60%.* wood pellets have a higher bulk density than wood chips, it means that less storage space is requiredand reduced construction costs.* wood pellets can be transported to a far great distance at economical prices giving security of supply.* wood pellets can be used in most chip system, while wood chips cant be used in pellet system.

Nowadays, more and more individuals pay attention to the environmental friendly and green house effect.As a renewable resources, wood pellet will play an important roles in the future. Featured with smallvolume, high calorific value, easy to store and low price, it can be widely used for house heating andcommercial. With the reduction of fossil fuel, more and more countries began to generate electricity bywood pellets. Especially in European union, they require a large amount of wood pellets for personal useor commercial use. They should import plenty of wood pellets to match there needs every year. In EastEurope, there are abundant in forests resources and sawmill residues, we can make full use of them tomake wood pellets. In the future, wood pellets and biomass pellets will replace the fossil fuel to a greatdegree. With the development of the world, wood pellets will have a larger market not only in East Europebut around the world.