Wood pellets sector and also market in Canada

Drives of biomass energy development

Biomass market experts point out 3 drives in Canada: environmental stress, monitoring objectives of sustainnable forestry, and also cost benefits.

Biomass fuels are carbon neutral. Plants absorb CO2 in its growth and also give off the exact same quantity of CO2 in burning, so they does not add added greenhouse gases to the environment. Besides, biomass power can reduce the use of coal, gas as well as oil, which is the souce of greenhouse gases.

Lasting forestry is a typical goal of all public lands in Canada. It takes into consideration woodland wellness, wildlife habitat and biodiversity in the exploration of forestry sources. From economic possibility, lasting forestry management aims to make use of all materials in one of the most effective method, consisting of wood wast.

Nonetheless, it is not smart to turn all forestry waste right into biomass energy. Occasionally it is helpful to leave some wood waste in the forestry to safeguard wildlife environments as well as advertise soil nutrients regeneration.

When the rate of conventional fuels decrease, biomass energy will certainly lose advantages. The rate competition makes the makers create a lot more efficient means to refine biomass energy, particularly to reduce the expense of raw mateirals transportation. By controling the production cost, biofuels are affordable with conventional fuels. For example, if the rate of a barrel of oil is greater than $17, biomass energy is a lot more cost-effective.

Renewable energy incentive plan

Wood pellets sector and also market in Canada

The manufacturing and consumption of wood pellets in Canada is driven by international need and domestic policy. Canadian Federal government has actually drawn a plan to stop utilizing coals by 2030, and also boost the ratio of renewable resource in power generation to 90%.

Currently, coal power adds 10% of the overall greenhouse gas emission in Canada. Coal plants are primarily located in Alberta( 10 ), Saskatchewan( 2 ), New Brunswick( 1 ), and also Nova Scotia. According to the policy, New Brunswick as well as Alberta state to gradually remove coals by 2030, and transform a number of coal-fired power plant into co-fired or biomass power plant.

In domestic heating market, the firewood range substitute job in Nova scotia, Quebec, new Brunswick, British Columbia, as well as Ontario will certainly increase the residential wood pellet market. ( HPBAC , 2016 ).

Wood pellet manufacturing in Canada

In 2010, Canada can produce 2 million tons of wood pellets every year. The wood pellet manufacturing facilities can produce 1.3 Mt, accounting for 65% of the domestic overall manufacturing, and also export 1.2 Mt of them. In 2011, the production rise to 1.5 Mt, with 1.3 Mt for export.In 2012, the manufacturing capacity has risen 3Mt. Kind 2015-2016, the wood pellet production rises by 1Mt annually. In 2016, Canada has 42 pellet manufacturing facility, with the production ability over 4Mt, and brand-new pellet manufacturing facilities are in construction.

British Columbia generates over 150,000 wood pellets annually, accounting for 60% of the complete manufacturing in Canada. The next are Ontario and Quebec. The wood pellet manufacturing facilities in Ontario primarily serve residential market, while the wood pellet factories in British Columbia offer overseas massive heat nuclear power plant. Other provinces have several small pellet factories generally serving local market, with the total manufacturing capacity around 50,000 heaps.

Biomass materials in Canada

In Canada, the biomass sources spread in those districts with reactive pulp, paper and forestry market, including Ontario, Alberta, Quebec, as well as New Brunswick. Biomass products such as barks, sawdust, wood chips, braches are made use of to make wood pellets, biogas, cellulosic ethanol, biodiesel, as well as bio-oil.

In the past, many paper mills has a specific space to create hog fuel, the combined barks and wood wastes utilized to produce warmth as well as power. With more and more paper mills merge with saw mills in the 1990s, the wood wastes are transferred to the saw mills. In the last 10 years, with several saw mills fold, the source of wood waste reduction greatly, so forestry end up being a significant resource to get biomass products.

Forestry biomass materials can be acquired in various types. It is popular to gather twigs, branches, needles, barks, etc, which is performed together with logging, but the transportation price is high. Besides, biomass originates from silvicultural thinning, right of way clearing, sphagnum peat, or the residues after fire, condition and bug bugs.

Tamarack and larch come to be preferred in biomass industry. They are except making woodworks or documents, yet suitable for biomass fuel manufacturing owing to high development speed. They are going to be an affordable service to produce lasting power.

Wood pellets Export market

The wood pellets in Canada are mostly exported to Europe (consisting of England and Belgium) as well as Asia (including Japan and Korean) and residential heating market in America.Canadian Statistical Bureau reported the export statics of the last 4 years.

Thanks to place advantages, British Columbia has ended up being the one of the very first wood pellet suppliers for Oriental and also Japan Market. In the past years, Canada’s wood pellets export has actually taken up 2/3 of Japan’s wood pellet import. (Strauss 2016).

In 2016, Canada’s wood pellet export increases by 46% and also rise to 2.37 Mt. Japan added the biggest growth rate of 240%, and also England has the biggest growth volume of 458,217 bunch.( WPAC , 2017).

In the future, the majority of wood pellets in Canada will certainly continue offering oversea market. Canadian wood pellet producers need to count on Europe and Asia market. In Asia, Korea is going to be a thriving market, with several independent power producers and also markets adopting wood pellets. Japan is likely to have the fastest growth, with an increasing number of coal-fired power plant to be transformed. Japanese market is anticipated to grow by 10-12Mt each year.

Wood pellets domestic usage

Canada’s domestic wood pellet intake is 300,000 bunches every year, mostly for residential home heating stove and the biomass nuclear power plant.

The domestic residential home heating market will continue to be secure, or expand with the growing price of heating oil. The co-firing nuclear power plant will certainly raise domestic market. However wood pellet has to compete with other renewable energy such as solar and wind. Besides, wood pellets are acknowledged as expensive, whose advantages such as consistent dimension, storability, and fluidness haven’t obtain due focus.

Biomass power generation in Canada

Canada National Power Board lately released a record on the application of renewable energy. It pointes out Canada embraces higher part of renewable energy in power generation compared with various other established countries.

As the report reveals, Canada has 70 biomass nuclear power plant in 2014, with the total gross capability of 2408MW. The biomass includes wood, wood byproducts, and also land fill gas. Generally, biomass uses up 1.9% of the total power generation in Canada. In 2015, the biomass power generation depends on 12,161 GWh, which has grown up by 54% since 2005.

Atikokan is the biggest 100% biomass fuel power plant, owned by Ontario Power Generation. This nuclear power plant is converted from coal-fired power plant into biomass nuclear power plant with 170 million Canadian Dollars in 2012. Given that 2014, Atikokan has carried out the peak demand for electrical power. It needs 1000 tons of wood pellets yearly, occupying 30% of the domestic performance.

Sandbey, one more power plant in Ontario, is also converted into wood pellet fired. Presently, it takes in regarding 8000 tons of carbonized wood pellets from Norway.

Wood pellet cost

The sales price for bulk export in overseas market is in between 150 and 180 Canadian bucks. The pellets targeting at America’s residential home heating market are offered in bags, which has higher price of 210-280 Canadian bucks( Canada Statistics). The area rate of bagged wood pellets (40 extra pound) is $5.24, amounting to $262/ton, and also $15.41/ GJ.

According a task in British Columbia, the cost of home heating wood pellets (including procedure as well as electrical power) is $15.9/ GJ, dimethylmethane is $24.36/ GJ (consisting of delivery, carbon tax and electric followers), electrical energy is $29.47/ GJ, and also home heating oil is $33.93/ GJ.( Murray, 2015).

Wood pellets logistics

Canada’s wood pellets are exported out of British Columbia through the Vancouver port and Royal prince Rupert port. Inland, the rails connect the wood pellet manufacturing facilities as well as ports, and also vehicles transport forestry materials to the wood pellet factory.

The new trade roadway from eastern Canada to Europe, as well as the wood pellet factories in the eastern districts like Ontario, Quebec as well as New Brunswick adopts barges for transport.

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