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Wood Pellet Demand Crawling Up?

The fall of wood pellet market some time ago is also greatly influenced by the price of oil. The low oil price touched $ 30/barrel in early 2016 also lowered the selling price and demand for wood pellets. This condition even to shift the position of wood pellet as the cheapest fuel for the heating sector. At that time the energy price per calorie of oil which is a liquid fuel better quality and much in demand cheap, so that solid fuel that lower quality and less desirable also become cheaper. There are even many industries switching to using oil fuels than before using solid fuels such as coal. Wood pellets as one of the solid fuels (although from renewable sources) are also affected by the world oil price, because of the basis of calculating the price per calorie or heat of the fuel.

After almost 3 years of oil prices falling gradually, the current price of oil has risen drastically at the price of $ 70 / barrel. Some analysts say if crude oil prices more than $ 63 / barrel then the demand for wood pellets will rise again with prices that are also more attractive. Oil prices to be one of three causes of the decline in the wood pellet market in the world market in the last 3-4 years. The other two causes are the first, because a number of policies for the use of wood pellets have not been effectively implemented because the power plants have not yet been completed or in the development stage, and some power plants are still in the co-firing trial stage with wood pellets. And the second ,climate change then the winters in Europe in recent years been warmer or less as cold as those earlier times. Logically when the above conditions can turn out otherwise the wood pellet market will improve. And what we are witnessing today is a significant increase in oil prices, as it has exceeded $ 63/barrel.
As the wood pellet industry begins to wiggle and excite, it should also spur wood pellet production in Indonesia. Export market or world wood pellet market more ready and attractive prices need to be filled soon, so if need be dominated. Unused land even barren ones can be greened with energy plantations. Stages of designing energy plantation for wood pellet production can be read here. Furthermore, the domestic market is also need immediately created and developed, because in the short term we will also run out of petroleum, with the current conditions have become nett importers of petroleum. What if we just just sit there like a spectator? Certainly will aggravate our energy condition. We should participate to encourage the energy sovereignty of our country especially with renewable energy such as wood pellets because it provides many benefits.


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