Global Wood Pellet Market is projected to grow at a CAGR of 14.47%
Knowledge Sourcing Intelligence announces the publication of a new report on “Global Wood Pellet Market – Forecasts from 2020 to 2025” to their offering.
Renewable energy policies to reduce the share of fossil fuel in the national energy mix, industrial and private consumption of wood pellets, wood fuel trade in informal markets among others, are poised to result in healthy market growth.
As per the report, the global market pertaining to Wood Pellet Market is expected to reach US$23.604 billion in 2025 from US$10.491 billion in 2019
A wide variety of developments in the global wood pellet market is anticipated to augment market growth. A few developments mainly related to North America are being listed below:
July 2019 – Output Capacity Enhancement Plans
Drax Group plc (LON: DRX) which according to its half-yearly report of 2019 produced 650,000 metric tons of wood pellets during the first half of 2019 which was a slight decline from 660,000 metric tons that was reported for the same year expressed its plans for pellet production capacity expansion by 350,000 metric tons over the next two years, representing an investment of £50 million leading to a combined capacity of 1.85 million metric tons annually besides reporting an increase in biomass power output. The decline was attributed to high levels of rainfall in the US gulf which prevent the adequate quantum of forest extraction and limited wood pellet production ultimately impacting the pellets shipments.
October 2019 – Acquisition of Assets
The sale of operating assets of Texas Pellets Inc. and German Pellets Texas LLC which are collectively known as Texas Pellets – essential a wood biomass pellet manufacturer that operated a 500,000-metric ton nameplate manufacturing facility in Woodville, Texas, and a pellet storage facility and shipping terminal in Port Arthur, Texas, to AS Graanul Invest, was announced. The assets were acquired by one of the largest produces in Europe for $63 million in cash, among others.
December 2019 – Receipt of Approval for Wood Pellet Facility Construction
Enviva LP (NYSE: EVA) which is the largest producer of wood pellets which is gaining increasing cognizance as a renewable and sustainable energy source for electricity and heat generation had issued a statement about the receipt of the approval of a permit from the Alabama Department of Environmental Management (ADEM) allowing Enviva to construct a wood pellet facility in Sumter County, Alabama. The project involves an initial investment of $175 million and an anticipated annual economic impact in the region of about $180 million.
December 2019 – Construction Plans of New Industrial Wood Pellet Facility Plans
Pinnacle Renewable Energy Inc (TSE: PL) which is a rapidly growing industrial wood pellet manufacturer and distributor and the third-largest producer in the world had announced its plans to construct a new industrial wood pellet production facility in the southeast United States in close vicinity to Pinnacle's Aliceville, Alabama facility with an anticipated production volume of 360,000 metric tons per annum (MTPA). The facility is anticipated to come online during the 2nd quarter of 2021.
Besides since the aforesaid is mainly related to the North America region it is pertinent to note that The US House Select Committee on the Climate Crisis has identified biomass as one of the pillars for achieving zero carbon emissions by 2050, and it has recommended investment in research on the implications of wood use and wood products for the climate. The US has a total annual production capacity of 10.9 million tons in the manufacture of densified biomass I.e., wood pellets with approx. 84 facilities that are operational as of April 2020. Industrial wood pellets comprised 79% of total US wood pellet production in 2019, and the average domestic price was $183 per ton. North American wood pellet production reached 11.8 million tons in 2019 with additional growth in pellet production being derived from new and restarting operations. Canadian wholesale prices for wood pellets sustained close to $140 per ton in 2019 while the average US retail prices for wood pellets was $183 per ton in the same year.
As a part of the report, the major players operating in the global wood pellet market, which have been covered are AS Graanul Invest, AVPGroup, Canfor, Drax Group plc, Energex, Enviva LP, German Pellets GmbH, Lignetics, Pinnacle Renewable Energy Inc, PIVETEAUBOIS, Stora Enso, Svenska Cellulosa Aktiebolaget SCA (publ), The Brookridge Group and Wood & Sons.
View a sample of the report or purchase the complete study at https://www.knowledge-sourcing.com/report/global-wood-pellet-market
This report segmented the global wood pellet market on the basis following terms
- Residential and Commercial
- United States
- South America
- The United Kingdom
- Middle East and Africa
- South Korea
- North America
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