The wood pellet market is advancing at a strong growth rate globally with regions such as Europe, North America, and Africa actively encouraging wood pellets production. Investors are increasingly beginning to establish wood pellet plants to raise the output of residential and commercial-grade pellets. This column is a study of the global wood pellet market and an assessment of its current status and trends.
Huge Investment Potential for Wood Pellet Production Business
Global Market Overview: Wood pellets demand is expected to grow year-on-year from 2023-2028
Pellets are a solid biomass fodder, produced from wood residues and agricultural by-products. Compared to unprocessed biomass feedstock, the advantages of biomass pellets include standardized performance, high energy content and high density. They are widely used in homes for efficient combustion in small heating stoves.
Currently, with the increasing use of wood pellets around the world to provide residential heating and commercial power generation. The demand for wood pellets market is expected to increase in the coming years. Three specific reasons are as follows.
3 Reasons for Increasing Wood Pellet Industry
Reason 1: Pellet fuel has become a more economical option
Wood pellets production is mainly used in the residential and commercial sectors for food, cooking and grilling, and for heating homes. Since the cost of pellet fuel has long been lower than other fuels, biomass pellet fuel has become a more economical option that addresses a major concern in the residential and commercial departments.
Reason2: Russia-Ukraine war stimulates wood pellets to become the first choice for export
In recent years, with the continuous progress of society and industrial development, the demand for energy has been increasing worldwide. However, the reserves of conventional coal, oil and natural gas are decreasing. The global energy prices are also rising sharply due to the Russian-Ukrainian war. Therefore, wood pellets have been the indispensable green energy for daily energy and heating.
Reason3: wood pellet production business is supported by many governments
As a renewable resource, in recent years, many countries have introduced policies and plans related to wood pellet heating, strongly supporting the development of energy-saving and environmentally friendly wood pellet projects.
Setting up a wood pellet production plant business has become a profitable project
Due to the appeal of three factors, quality wood pellet business occupies a non-negligible role in the global market, and more and more investors open their biomass pellet production plants with very small investments and large returns.
ABC Machinery, as a biomass pellet mill manufacturer with more than 20 years of experience, makes wood pellet mills that meet the market and can be trusted by investors according to the current market situation, and can also customize the equipment for customers according to their requirements.