Global pellet market to reach $9 billion by 2020

The global market for pellets is expected to double in the next seven years, growing from a $4 billion market to $9 billion, Michele Rebiere with Viridis Energy Inc. told attendees at the Pellet Supply Chain Summit, March 24. The summit preceded the International Biomass Conference being held March 24-27 in Orlando, Fla.

Speaking in the closing panel of the day, Rebiere said the largest market, by far, is the European, with 20 million metrics tons (mmt) used in 2013 for both industrial power and residential heat. That is forecast to grow to 28 mmt by 2015 and 42 mmt by 2020. The North American market, is now at 4 mmt and forecast to be 5 mmt in 2015, but she added, are understated going out further. “I think the forecast in North American will increase substantially,” she said added, as the interest in cofiring with coal is likely to increase which the forecasts won’t include until projects are announced. The Asian market is expect to grow as well, from 1 mmt in 2013, to 3 mmt in 2015 and potentially 7 mmt by 2020. While the power market is the largest market contributor, the heating market is growing rapidly. Italy, in particular, garnered attention with the doubling of its demand in one year.

Seth Ginther, executive director of the U.S. Industrial Pellet Association, was a bit more conservative on his growth projections, pointing out that 2020 estimates range between 25 mmt and 70 mmt. “I think that 2013 was the year we’re beginning to see where the market is going to shake out. It’s going to be more like the 25 mmt level, but that still is going to be significant.”

In his discussion on the changes in the United Kingdom’s incentives, Ginther said it is important to note that the incentives for biomass conversions are aimed at helping  develop infrastructure. And, as the carrot is phased out, the stick – the price of carbon – is being increased, making it very expensive to burn coal. As a result, UK power producers are expected to continue to move towards biomass.

As a large UK buyer of North American pellets, Richard Peberdy, vice president of sustainability for Drax Biomass International, outlined his company’s commitment to biomass power and its interest in sustainability. The UK power producer has experimented with a number of biomass sources to supplement coal since 2008, making a commitment to pellets to provide a large portion of its biomass needs. It has two pellet facilities under construction in Mississippi and Louisiana and is building a port facility in Baton Rouge, La.
The first of three boiler conversions has been completed at Drax, with the second to be brought into service later this year and the third planned for 2015. Peberdy reported that Drax was pleased with the performance of its first biomass boiler conversion at the end of the first year of operations. “It’s outperformed our expectations in the first year at 39 to 40 percent efficiency on 100 percent biomass.” That is significant, he added, because UK sustainability reports projected biomass power would only reach 25 percent efficiencies, much lower than coal power’s average 35 percent efficiency.

 

Peberdy described Drax’s commitment to sustainability, pointing out that the company established its own sustainability goals even prior to the development of UK standards. The pressure for sustainability brings benefits, he said, by increasing investments in forests, in outreach to forest owners and in safer and better systems for making, handling and moving pellets.

Ben Conte, renewable energy sales manager for Bridgewell Renewables, filled out the panel at the summit on market energies by describing the work his company has done in marketing pellets in the EU. Much of the Bridgewell’s focus has been on meeting the high quality heating market, working to help its customers with their branding efforts. While Bridgewell is developing a brand to be able to meet spot markets, much of the work it’s done has been in seasonal 3-6 month contracts as well as long term contracts for one or two years. “The market is evolving,” he said. “The industrial and residential markets are linked in Europe and Asia,” he added, and are getting more sophisticated.

Other panels during the day included industry speakers addressing forestry ownership implications, sustainable forest management, pellet mill design considerations and infrastructure.

By Sue Retka Schill | March 24, 2014
Source : http://biomassmagazine.com/articles/10194/global-pellet-market-to-reach-9-billion-by-2020

Racing for Lowering The Temperature Of The Earth

Although the carbon neutral scenario does not reduce greenhouse gas concentrations in the atmosphere, but with this scenario does not add more greenhouse gases in the atmosphere. The use of carbon neutral fuel from biomass is the concrete step. Gradually the role of the biomass fuel usage is improved and strengthened with the support by the state regulations. A number of countries have dared to take an ambitious policy for the utilization of biomass in the massive scale. Confidence factor such as the solution to the environmental problems of climate change and global warming, depletion of fossil fuel reserves, the image of an environment friendly country that will be known the world , and the economy are driving some of those countries to implement the policy.

For Asia, South Korea has started using biomass massively with the officially issued the Renewable Portofolio Standard (RPS) in Korea in 2012. The regulation state that 2% of the electricity shall come from renewable energy. Percentage of renewable energy needs will increase in incremental reach 10% in 2022. Another driving force is the emissions trading scheme which will be issued in January 2015. Whereas in Japan the energy strategy to be the hit of nuclear reactors has since abandoned some time ago. The actual strategy including the manufacture of power plants with the composition of nuclear and renewable energy from 30% to 70% until 2030. Japan with a population about half the residents of Indonesia but its energy consumption 5 times in Indonesia. Japan is also targeting production of energy from biomass power plants with a capacity of 1100 MW until 2020. As for the use of renewable energy have a target to reduce Japan's emissions of CO2 by 1990 levels by 2030. While China has a goal to use the 11.4% from non-fossil fuels from primary energy consumption in 2015. Its CO2 emissions will be reduced by as much as 17%. The Target reduction of CO2 emissions by as much as 40-45% by 2020 to reach such a level in 2005. In Europe, with a target of 20-20-20 has prompted demand especially for biomass pellets fuel. Target 20-20-20 is a greenhouse gas reduction of 20%, 20% renewable energy use and energy efficiency at 20%. Effective tool in Europe to achieve the targets is the emissions trading scheme (emission trading scheme EU ETS/).

  

Indonesia has also announced to reduce fossil energy by 2025, with the share of fossil fuels 83% and renewable energy around 17% in particular biomass gets a share of less than 5%. The energy potential of biomass in Indonesia is huge i.e. equivalent electric 49,810 MW but in utilized is still less than 4% or equivalent of 1,680.4 MW. Critical land and unused land that reach millions hectares, become an extraordinary potential to provide energy plantations to produce biomass as an energy source. Optimisation of the potency will support the target achievement the energy consumption of biomass as renewable energy in total energy mix. . Finally the creation of a low-carbon economy can be a solution for the welfare of society and improve the quality of the environment, with the most popular commodities i.e. wood pellets. The Global market for these pellets predicted to rise from 16 million tons (2010) becomes 47 million tons in 2020.

The Fastest Route For The Wood Pellets Production

Raw material particle size and moisture content of woody biomass that meet for specific technical requirements as long as adequate quantity then can be directly processed into wood pellets with pelletiser. Stages such as debarking, size reduction, and drying become no need to be done with the raw material in these conditions. The shorter route in the process so it will be more economical production processes are carried out. This is the ideal choice that be searched by all manufacturers of wood pellet. Ideal conditions are not plentiful but can be met in some industries.

Waste wood shavings (planers) due to the small its particle size  and already dried (MC~10%) generally can be directly processed into the pelletiser for the production of wood pellets. Just an additional equipment, that is hopper as a temporary reservoir is usually required before pelletiser for maintaining the stability of the supply of raw materials to the pelletiser continuously. The availability and sustainability of such raw materials would become one of the key success factors for the production of wood pellets. The dried raw material but if the raw material size is still quite large such as wood chips can not be directly fed into the pelletiser for wood pellets.

Pellet Fuel from Corn Cobs and Stalks

Corn cobs and stalks is waste from the cultivation of corn. Generally both of the waste disposed of and is not utilized. The costly of energy prices, solution to problems of waste and increased value added by utilization of these wastes are the driving forces of the utilization of thay waste. Data for the year 2006 with the production of corn nationally 11.7 million tons,  the agricultural waste generated, i.e. 12.1 million tons. With the potential energy of the dried stems and leaves an estimated 66,35 GJ and corncob by 55,75 GJ certainly potential for a source of energy. Dried corn stems and leaves have a calorie value 4370 kcal/kg whereas the corn cob on 4451 kcal/kg at MC 7,53%.

Pelleting to be a pellets fuel is the best choice for the energy source. Pellets from waste agricultural corn can be used to fuel stoves on the agricultural area or for industrial or electricity generation and the potential for exporting abroad. Review of pellet fuel origin because from the waste corn agriculture these include biomass pellet or agri-pellets, that its specifications are slightly different from wood pellets. Production technology of  pellet from waste corn  is also almost the same as the production of wood pellets.

A number of areas where corn production centers throughout Indonesia is potential for developing these commodities due to the availability of raw materials, agricultural waste, tackle the problem of energy needs continue to rise and economic factors. As an environmentally friendly fuel, easily stored and used, as carbon neutral fuel will reduce the impact of climate change due to greenhouse gases and push low-carbon economy.

Energy Production from Pellet Fuel

The pellets fuel are a modern form of densified biomass offering interesting opportunities for development of Renewable Energy in Indonesia, consisting of wood pellets and biomass pellets. Wood pellets derived from wood and biomass pellets derived from biomass such as agricultural wastes and plantations such as oil palm empty fruit bunches. Pellet fuel that be produced could have a large variation in quality because of the raw materials and production technologies. Technology for pellet fuel utilization in thermal route for energy production which is burning and gasification has been applied.

The production of energy from pellets fuel in the form of heat and electricity. Heating with pellets fuel is normally quite simple and the need for inspection and care of the burner and boiler is often limited. However, combustion problems can arise e.g. if the amount of ash increases causing the system to slag and the efficiency to decrease. These problems are often caused by the low quality of pellets fuel or by wrong choice of the plant or system settings.

Calorific value, ash content, ash chemistry, moisture content, dimension and density pellets are several important parameters of pellet fuel. Preference type of pellet fuel will determine the combustion technology. Currently available equipments to burn pellets fuel from the household scale (pellet stove), medium scale up to production of heat and electricity for large scale up to tens of megawatts (MW). Equipment or systems are generally equipped with air regulation valves either primary or secondary and even tertiary to optimize the combustion process is done. Setting the correct operation make the system work optimally match to the specification.

Indonesia Can Develop Biomass Energy

Lack of non-renewable energy sources and an increasing need for renewable energy sources has forced Indonesia to shift gears and refocus its attention, it was revealed during the UN Framework Conference on Climate Change.

“Indonesia has tremendous potential to produce biomass, the market is there, we just need a policy to move forward,” Yetti Rusli, the special staffer for climate change at the Forestry Ministry told the Jakarta Globe during the side event of the conference.

“It’s no longer enough to have our full attention to anticipating climate change or emission reduction, it’s time for us to think about added values” she said.

Yetti said Indonesia could be one of the biggest biomass producers worldwide with its massive potential.

“We are very fortunate to have sunshine 11 hours a day, not to mention we are only second to Brazil when it comes to richness of biodiversity,” she said.

Unlike Brazil, Yetti said, Indonesia has the upper hand with most land being owned by the state.

“The private sector only has the licence to manage the land, they didn’t own it, unlike in Brazil where most land is owned by corporations.”

With the system, she said, it would be easier for the government to introduce a new policy, including prioritizing the production of new energy sources aside from emission reduction.

Unfortunately, feasibility studies about the potential of biomass production in Indonesia are still scarce.

However, she said, Indonesia could use studies that have been done by developed countries and make adjustments to suit domestic needs.

“Studies are conducted to obtain details and to determine the direction of the policy, to create a policy we can simply use best practices from developed countries.

“Even though we have different climate conditions, the need for a new source of energy is the same” Yetti said.

“Energy security in Indonesia is very fragile because we still have to subsidize it, even though the government has gradually reduced subsidies we still need to catch up with the oil prices, which have been very unstable. To answer this insecurity we need to come up with a renewable source of energy,” the Forestry Ministry staffer said. “Earlier there used to be a focus on developing nuclear energy as the new source of energy.”

She added that since the Fukushima incident, everybody started to look for something else, something more environmentally friendly, such as wind, solar, or biomass.

Producing biomass energy, Yetti said, would not be a totally foreign concept in Indonesia as a country which has been using firewood for centuries.

The experience could easily be translated into a more modern technique after thorough research, she said.

“It’s no longer enough to talk about stopping forest fires or encroachment, we need more.”

Moving forward

The Forestry Ministry has started a pilot project to see the feasibility of producing wood pellets, the material used to produce bio-methanol — believed to be carbon neutral — by planting red calliandra ( Calliandra Calothyrsus ) in Bangkalan, Madura.

“Calliandra is a nitrogen-fixing tree that helps in fixing the soil condition, and is very easy to prune,” Yeti said.

“The trees are quite large and are a good source of nutrition for livestock,” she added.

The government has allocated 170 hectares of land for the Calliandra plantation in Madura, but the community managed to add more and now has 200 hectares of land to cultivate. The construction of a wood pellet factory is now underway in Bangkalan and it is estimated the factory will be able to produce 4,000 metric tons of wood pellets every year.

“It’s not much, but this is a start and people will learn how to cultivate calliandra and produce wood pellets,” she said.

Local success

State plantation firm, Inhutani has managed to secure a business deal with a South Korean consortium consisting of several large companies who have pledged their commitment to build a wood pellet factory in Indonesia, which will be able to produce up to 100,000 tons of wood pellets every year.

“After South Korea, our next target is Sweden, the biggest user of wood pellets in Europe, and then the Netherlands and Italy,” she said.

According to Yetti, biomass production is the most feasible option for Indonesia in the near future because other green products, such as carbon credits are still being negotiated and will take a very long time.

“At the same time the developed countries have been asked to reduce emissions so the need for environmentally friendly energy is very high, which is why the transition product like biomass is in high demand,” she said.

The scheme to reduce emissions, Yetti said, can be combined with agro-forestry,

“As we know the agriculture sector has been accused as one of the main contributors of the emission,” she said.

Trees can retain water and regulate the water cycle, preventing damage to crops and help in the recovery of the agricultural area,” she added.

Head of Indonesian Agricultural Environment Research Insitute at the Ministry of Agriculture (IAERI), Prihasto Setyanto said climate change has a direct impact on the Indonesian agriculture sector.

“People think climate change will impact their lives in the future — in the next few decades — but it’s not true, it’s happening now, it’s affecting our daily lives,” he said.

Prihasto said the agriculture sector has a lot of potential and can be used as a very powerful tool to help reducing carbon emissions.

One of the programs is the sustainable food reserve garden where people are encouraged and educated to make the best use of their own back- or front yards to cultivate some basic commodity.

“In 2010, because of climate change, it rained practically all year long, the farmers could not plant chillies. As a result, in 2011, the price of chillies soared to Rp 120,000 ($10.35) per kilogram. We even had to hold a special cabinet meeting because people were demonstrating across the country, it was that serious,” he said.

With the sustainable food reserve garden, Prihasto said, people would be able to fulfill their domestic needs by a simple farming method.

“And please don’t think the threat of climate change is not real, every 1 degree Celsius rise in temperature raise will cause a 10 percent drop of our rice harvest. If the prediction was correct that Indonesia will suffer from 4 to 5 degree Celsius temperature increase, our crop will drop by half, we can’t let that happen,” he said.

Source : http://www.thejakartaglobe.com/news/indonesia-can-develop-biomass-energy/