Will PKS for Export Disappear from Circulation and be Replaced by Wood Pellet?

 The need for palm kernel shell (PKS) is increasing due to the increasing need, especially for the export market, making the price even more expensive, even matching the price of wood pellets. Nearly all of the biomass plants in Japan have experienced delays in their operations, now come online for more details can be read here. This has led to an increase in the price of the PKS.

Palm kernel shell (PKS) is a biomass fuel that is the main competitor for wood pellets, because the quality or specifications have many similarities. Previously, PKS were always cheaper than wood pellets, even in the international market some time ago the price of PKS was only about half the price of wood pellets. But currently the price of PKS equals even slightly above wood pellets. This of course will make users switch to wood pellets because of better quality such as lower moisture content, higher calorific value, uniform size and shape, and generally lower ash content.

When users flock change to wood pellets, the PKS commodity for export will get smaller in portions and even disappear altogether. Moreover, wood pellets from Vietnam and Russia are known to be cheap with large capacities. Vietnam is even the largest producer of wood pellets in Asia with a production of more than 1 million tons / year. Of course, this condition is very sad for exporters who have been doing business by exporting the PKS. The high tax and levy in Indonesia make it more difficult for exporters in Indonesia, whereas in Malaysia they do not exist. The most important thing that must be done is to be able to maintain the price of the export PKS so that the PKS is still worth it with its quality. It is not easy, of course.