Global wood pellet demand reached 46 million tons in 2023, up approximately 11 million tons from 2018—a 24% increase in just five years. That number is projected to reach up to 59 million metric tons by 2030, with a good chunk of that new demand coming from Japan.In the spirit of forecasts, I decided to look back at what previous predictions for global demand looked like—it was interesting, with vastly different perspectives. About a decade ago, one source predicted demand to reach 51 million tons by 2020. Another forecasted that European consumption alone would reach 42 million metric tons by 2020. And another organization estimated total global demand to land between 50 million and 80 million tons by 2020. None of those predictions were particularly accurate, but the major drivers of this industry—policy, subsidies and the weather—are not very predictable. However, a new driver may be to a certain degree, and that is commitments to decarbonization targets.In particular, heavy industry—cement, steel, lime, paper—or any entity that produces its own heat, power or steam using fossil fuels, including government buildings is facing increasing pressure to reduce emissions. Goals to reach net zero, with incremental reduction targets along the way, are becoming commonplace—and necessary. Our page-12 feature, “Opportunities Ahead,” explores some of the potential applications unfolding for wood pellet manufacturers. In the article, I chat with Gordon Murray, executive director of the Wood Pellet Association of Canada, and he highlights decarbonization efforts in Taiwan and the work WPAC is doing to demonstrate the benefits of wood pellets, from larger-scale power plants to smaller boiler applications. Though Murray represents Canadian producers, these opportunities aren’t exclusive to them, and he is sure to mention that, saying, “I think that if we’re going to make something happen in Taiwan, it will take everyone to come together for that supply. It’s no good if one country or one supplier holds the opportunity to themselves, and then they don’t have enough critical mass to make the thing take off—I think it’s going to take all of us.”Rachael Levinson, associate director at Hawkins Wright, also discussed opportunities in industrial applications, saying that although it could be substantial and there has been a great deal of interest, it’s early on. She also gives a nice rundown of policy updates by country, from Japan to Europe.Our second feature article features Prairie Clean Energy, which has launched an operation in Saskatchewan to produce flax straw pellets, some of which will be used to help heat potash mines, replacing coal (the province produces 30% of global potash and has an abundance of flax straw waste). They’ll also be sold to customers outside the province for heat and power production as well as animal bedding in the short term. Mahmood Ebadian, PCE chief product and supply chain development officer, told contributing writer Keith Loria that these ag pellets should not be viewed as competition for wood pellets—rather, as a compliment—and that's what trials to date have indicated, despite their higher ash, nitrogen and chlorine content. “Our product has been tested by major users of wood pellets, and we have not run into any major setbacks to stop these facilities from using large quantities of flax straw pellets,” he says.I hope you enjoy this issue of Pellet Mill Magazine, and if you’re reading this at the International Biomass Conference &amp; Expo, be sure to stop by booth 701 and say hello.Author: Anna Simet&nbsp; Editor

2024-03-04 - Ample Opportunity Amongst Decarbonization Efforts (Biomass Magazine)

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The current issue of Pellet Producer Magazine addresses global wood pellet demand, market opportunities, industrial applications, and a Canadian business focused on the production of flax straw pellets. 

Ample Opportunity Amongst Decarbonization Efforts

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