Wood Pellet Certificate Standards

As a trading commodity that is becoming a world trend, many wood pellet standards are implemented. Basically the wood pellet standard covers only two things, namely quality and sustainability which are mostly related to environmental aspects. Many aspects of quality are related to the technical aspects of the production of wood pellets and also the raw materials used. A number of countries or certain institutions apply the quality aspects that they can receive for these wood pellet products. The application of wood pellet quality standards is also related to the use of wood pellets or more specifically technology or equipment to consume or use wood pellets as fuel. Based on this, usually the market segments are also differentiated, namely for industries and households. The industry segment has its own specifications which are slightly different from households. Some quality standards are widely used today: ENplus, DINplus, PFI, ITEBE, Onorm and CANplus. Following are the quality tables:

The second type of standard is about sustainability and now it has also begun to be widely applied, especially for the trade in large quantities of wood pellets. Sustainability standards include the practice of cultivating trees whose wood is a source of wood pellets. In terms of its implementation there are a number of countries that buy wood pellets that are very concerned about this sustainability standard, but there are also those who do not pay much attention to it. Japan is an example of one of the countries in Asia that is very concerned about the issue of sustainability standards. Some sustainability standards that are widely used today: FSC, PEFC and so on.

Prospective wood pellet producers must pay attention to the problem above, because it is closely related to the market or trade in wood pellets. Without being able to map the market comprehensively, it is very possible that the production of wood pellets will be constrained. For example wood pellet producers will target their markets in Asia, especially in Japan and Korea, even though the market characteristics of wood pellets in Japan and Korea are different.

Container Still Become the Main Choice of Wood Pellet Export in Indonesia?

Buyers' satisfaction for getting goods on demand, undamaged and defective, is an important factor in the sustainability of a business so buyers continue to repurchase and repeat orders, by making or renewing existing contracts, even by increasing their purchasing capacity. This also applies to the wood pellets business. Attempts to get goods that order for the buyer one of them by keeping the goods along the journey from various damage is important one by choosing the packaging or the appropriate wood pellet delivery or the type of delivery. Almost all Indonesian wood pellet exports today use containers with wood pellets in jumbo bags and then arranged inside the container. Some use sack packs then place them in containers as well. There is also a way of bulk or not packed in jumbo bag or sack but still in containers. The use of containers is chosen because, firstly the export wood pellet volume is not large yet, second are not yet available adequate supporting facilities for large quantity wood pellets export with bulk shipment.

Wood pellets is a very sensitive product with water, so protection or keeping it out of water should be done to maintain the quality of the wood pellet. By placing the wood pellet in a container then protection from water such as rain water can be done, so it is still used as the main choice. Then how to export wood pellets in large quantity routinely done every month? Need extra effort at this time if want to use bulk shipment, especially for protection from water. Especially in the rainy season. Rainfall intensity in Indonesia is quite high compared to other countries in general, namely, an average of 2700 mm / year or three times higher than the world average of only 900 mm / year. Indonesia's rainfall is higher than India (1,080 mm), America (715 mm), China (645 mm), Brazil (1,750 mm), Argentina (591 mm) and even Thailand (1,625 mm). Only two of our neighbors are able to surpass the Indonesian rainfall of Malaysia (2,875 mm) and Papua New Guinea (3,140). While countries in the Middle East in general have only a small rainfall such as Jordan (111 mm), Qatar (74 mm), Saudi Arabia (59 mm) and Egypt who only get 51 mm rainfall per year. So if bulk shipment of wood pellets will be done then in the dry season will be easier because water protection is easier to do. In comparison we will see shipping of palm kernel shell (pks) which is also biomass fuel has been exported abroad especially with bulk shipment.

Palm kernel shells are not as sensitive as wood pellets or pellets fuel to water, so the handling is also not as difficult as wood pellets. There are three main things that become the main parameters of palm kernel shells that is water content, calorific value and impurity. Related to the moisture content because the palm kernel shells is not damaged by water but only keep it from getting too wet, while wood pellet which is an industrial product of woody biomass compaction (biomass densification) will be damaged and even destroyed by the presence of water in certain quantities. Mechanical interlocking that occurs during the compaction will decompose and loose due to the presence of a lot of water so the wood pellets destroyed. In shipment of palm kernel shells from stockpile locations to export ports, the use of trucks or barges is common and sometimes only sealed with less dense plastic. In wood pellet closure with plastic when heading to the carrier vessel can also be done but if not tight enough will be prone to water especially in the rainy season, plus if loading to the ship is done in the middle of the sea (transhipment) because the ship can not lean on the port like usually done in Kalimantan.

The difference in the tolerance level of water avaibility between the palm kernel shell and wood pellets, has implications for handling and even the equipment used. Weather factors (such as storms) and density loading traffic port add to the difficulty of loading wood pellets onto the vessel. This makes shipping large quantities of wood pellets with bulk shipment still difficult to be done, so shipping with containers are still the main choice in Indonesia. 

Wood pellet terminal in Canada

Wood pellet loading from silos into the ship

Cement terminal at seaport

Cement loading from silos into the ship

Another reference that we can refer to is the bulk cement shipments. Cement is a product that is also very sensitive to water, in the presence of water then the cement will clot so it becomes unusable, so protection against water is absolutely necessary. Cement distribution lines to their bulk shipment are all protected from the entry of water. In the highways we can easily find large trucks carrying bulk cement pass through, then in a number of ports are also built cement terminals in the form of silos or bin like high towers. When wood pellets production reach massive scale, the infrastructure or supporting equipment is also almost the same as cement and it is now also we can see in wood pellets producing countries like America and Canada. On the receiving port side or port of destination the shipment of adequate equipment is also required to handle the unloading of the wood pellets. For comparison, large quantities of feed pellets will also require almost the same equipment for bulk shipment. So whether the biomass fuel such as wood pellets become waterproof (hydrophobic) like coal? The answer can be with torrefaction technology so the product become torrefied wood pellet. Torrefaction will be discussed in more detail next writing. Insha Allah.

Cost to Benefit Ratio at the Wood / Biomass Pellet Plant

Wood or biomass pellets plant have a vital role in the production of wood or biomass pellets. Target production with standard quality and stable can only be achieved if the wood or biomass pellet plant working optimally. The use of high quality machines is one means that the production process is running optimally. Some criteria to assist the selection of machines for wood or biomass pellet mill, among others:

1. It has been proven and tested, in terms of quality and quantity.
2. Ease of operation and maintenance.
3. Ease of start-up until a stable production.
4. Durable and stubborn, so rare in problem and effective for production in the long term.
5. Meet the rule "3 x 3" that these machines have been used in 3 different places with operating time of more than 3 years.
6. Reliable after-sales services such as ease of obtaining spare parts and auxiliary materials other processes as well as a quick solution if at any time there is a problem in plant operations. Even had there was also a wood or biomass pellets plant were connected to the Internet and can report a variety of problems that occur in the plant so quickly that it can take action quickly as well.
7. Good in Safety Aspects  and minimum environmental pollution impacts

Indeed obtain provider machines of wood or biomass pellets plant that meet the above requirements is not easy especially in Indonesia, in particular, wood or biomass pellets industry is new thing. The prospective producers of wood or biomass pellets should be quite keen attention to this, especially just only lured cheap price, without further thought to the long-term orientation.

There is no guarantee also that something expensive certainly give better results, as well as for machines of wood or biomass pellet plant is. Without regard to the number of the above criteria may be your only losses due to incur huge costs for the purchase of the machines, but the results are not as expected.

Machineries for wood pellets plant that meet the above criteria are usually quite expensive, but the cost-to-benefit ratio is good so that in general will give a good profit as well. Optimization is how to get the machinery of wood or biomass pellets that meet the above criteria with affordable price. This could be one of them to import a vital machines only on wood or biomass pellet plant and the rest made domestically.

Rise in pellet exports to Asia

Feb. 2, 2015 - Pellet exports from North America rose in the 3Q/14 after a stable first half of the year that could be characterized as a temporary plateau. While pellet exports to Europe were up just marginally, the increase to Asia was more noticeable. Up until 2014, more than 95% of wood pellets leaving US and Canadian ports were destined for Europe.

However, during 2014 there was a shift in Canadian exports from Europe to Asia, with pellet plants in British Columbia shipping record volumes to South Korea during the 3Q/14, as reported in the North American Wood Fiber Review. (Note. Due to irregularities with Customs data, NAWFR collects trade data from a number of sources including Canadian and US customs export data, European import data and from quarterly conversations with both pellet exporters and port contacts.)

Total Canadian overseas pellet exports rose slightly in the 3Q/14 from the previous quarter, but they were still 15 per cent below their high of over half a million tons in the last quarter of 2013. Shipments from both Western and Eastern Canada to Europe fell in the first three quarters of 2014; in the 3Q/14, shipments were at their lowest level since 2011. Export volumes for the Asian market have followed a more positive trend, with increased shipments for six consecutive quarters.

British Columbia's pellet shipments overseas will likely remain stable during most of 2015 until the first of five announced pellet mills starts commercial operation late in 2015 or early 2016. There are currently plans to add over 800,000 tons of pellet capacity in the province during 2015/16 with South Korea being the target market (read more about the expansion plans in the NAWFR, www.woodprices.com).

In the US, pellet exports continue to be dominated by bulk shipments out of the US South to Europe, with only minor container volumes primarily shipped from the US West Coast to Asia. The US overseas pellet exports rose to over one million tons in the 3Q/14, with the growth in shipments having continued without pause since late in 2011.

The North American Wood Fiber Review has tracked wood fiber markets in the US and Canada for over 20 years and it is the only publication that includes prices for sawlogs, pulpwood, wood chips and biomass in North America. The 36-page quarterly report includes wood market updates for 15 regions on the continent in addition to the latest export statistics for sawlogs, wood pellets and wood chips.
- See more at: http://www.canadianbiomassmagazine.ca/pellets/rise-in-pellet-exports-to-asia-5069#sthash.1UxGPLHv.dpuf

Source : http://www.canadianbiomassmagazine.ca/pellets/rise-in-pellet-exports-to-asia-5069

Global wood pellet demand to reach 50 million metric tons by 2024

By RISI | September 04, 2014

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Global wood pellet demand is rapidly expanding as consumers, businesses and regulators look for alternatives to fossil fuels. Globally, wood pellet demand is projected to grow from an estimated 23 million metric tons in 2014 to 50 million metric tons in 2024. These and other key findings were released in a new study by RISI, the leading information provider for the global forest products industry.

"It's a really exciting time to be looking at the wood pellet market. We're seeing strong demand in the European heating sector as high energy prices drive consumers to look for fuel alternatives. Also, policies that promote the generation of renewable energy are spurring the use of pellets as a substitution for coal in power plants," said Seth Walker, author and bioenergy economist at RISI.
"Additionally, Korea and Japan are beginning to enter the market, creating a greater impact on global trade flows. Right now we're getting a small taste of what the market is going to look like in 10 years," continued Walker.

Global Pellet Demand Outlook Study analyzes and forecasts growing wood pellet markets through 2024 by region. This study focuses on the European industrial market, European heating market, North American heating market, and Asian industrial market.
Global Pellet Demand Outlook Study provides forecasts for:
- European Industrial Markets—Including Belgium, Denmark, the Netherlands, Sweden and the United Kingdom
- European Heating Markets—Including Austria, Denmark, France, Germany, Italy and Sweden
- Asian Industrial Markets—Korea and Japan
- North American Markets—The United States and Canada
Industrial users analyzed in this study include: Dong Energy, Drax, E.ON, GDF Suez, KEPCO subsidiaries, Ontario Power Generation, RWE, and Showa Shell
For more information on this study is available here.

Source of article : http://www.biomassmagazine.com/articles/10883/global-wood-pellet-demand-to-reach-50-million-metric-tons-by-2024