1/ Wood Pellet from 1970
- Wood has been used for heating and fuel purposes for thousands of years. The wood industry has found itself on the verge of a revolution, however, because of the rapid increase in development and utilization of new wood-based solid and liquid fuels. Wood pellets represent an alternative to the use of coal, gas and even traditional wood logs and wood chips. Wood pellets are cylindrical, compressed wood particles used as burning fuel. Wood pellet size varies from one-fourth to one-third inches (6 to 8 millimeters) diameter and 1 to 1.5 inches (38 millimeters) in length, with a bulk density that is usually about 40 pounds per cubic feet (about two to three times the wood density of softwood).
- Based on the principle of densification of dried wood chips and sawdust, wood pellet offer better and more uniform heating properties per unit volume due to their low moisture content. Wood pellet burn cleaner, have reduced particulate emissions compared with coal, are more economical to transport due to increased bulk density and can be easily produced from wood waste and byproducts. This provides new ways to divert wood waste from reaching landfills as well as to increase overall profit through an integral and more efficient use of the raw material. Wood pellet applications vary from household heating to large-scale industrial power generation. It is important to emphasize that wood pellets are not a new product, they have been utilized for decades, but it is only now that the world is experiencing a large demand increase, and wood pellet potential is still underestimated.
2/ Application Insights
- The heating applications dominated the market accounting for a revenue share of 58.3% in 2023. The use of wood pellets for heating federal or municipal buildings, office buildings, educational facilities, and other commercial buildings in European and North American countries is increasing at a rapid pace on account of the availability of bulk fuel supply and advanced technology such as pellet stoves. In addition, the adoption of these pellets as a clean-burning renewable fuel source coupled with their sustainable production from sawdust and forest residues is projected to have a positive impact on their market growth over the forecast period.
- The power generation application is expected to grow at a CAGR of 6.4% from 2024 to 2030. Wood pellets are used to generate electricity in coal-based power plants, where they are co-fired with coal to reduce greenhouse gas emissions. The easy adaptability of these pellets with automated combustion systems in coal-fired power plants is expected to drive their demand in power generation applications.
3/ End-use Insights
- The industrial end-use dominated the market with a revenue share of 45.8% in 2023 and is further expected to grow at the fastest CAGR from 2024 to 2030. The product finds application in various industrial processes, such as food processing, drying process, and manufacturing, as a renewable energy source.
- They can be used in industrial dryers, thermal equipment, and boilers to provide energy for particular processes and help reduce reliance on fossil fuels. Furthermore, the ability of wood pellets to offer consistent quality because of their size and properties and reliable performance for industrial heating systems is driving segment growth.
- The residential end-use is anticipated to register a growth of 6.2% from 2024 to 2030 owing to the rising use of wood pellets for heating via pellet boilers and pellet stoves in homes. These pellets are becoming increasingly popular among household users due to attributes like green, cleansing, sustainability, etc. They are commonly used for cooking and heating in households, but they can also be used as cat litter and horse bedding.
Note: The information in this article is for reference only and may change depending on the manufacturer and source of raw materials. For the most accurate information, you should consult experts, wood pellet suppliers or contact Overc.vn to answer your questions and problems related to wood pellets and wood chips.
Source:
- Grandviewresearch
- Biomass magazine
- Overc Team synthesise, analyse and write articles.
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OVERC was established in Vietnam, which has 17 FTA (Free Trade Agreement).
Vietnam is one of the countries with the most FTAs in the world.
Our main activities are manufacturing and distributing Wood Pellets and Wood Waste. Our wood pellet products, which are made from Acacia veneer residual 100% or wood waste (logs, sawdust, wood chips, wood shavings,…), have been exported to many countries around the world such as Japan, Korea, EU, etc.
OVERC Co.,Ltd would like to wish you all the best at this time.
For more information on our products, please visit our website at OVERC.VN – Renewable World.