Western Europe has long been the world's largest market for wood pellets for cogeneration. However, Asian industrial demand driven by Japan and South Korea will grow by an average of 18% over the next decade. This geographical shift in demand growth will reshape Export flows from Canada and the United States, the two largest producers. Information comes from a new study published by RISI Inc., a leading information provider for the global forest products industry.
The study, called 'Global Particle Demand Outlook', highlights the demand outlook for the next 10 years and explores country-specific policy developments and other macroeconomic factors that will reshape export flows from top producers in Canada and the US .
All biomass pellet markets have grown steadily over the past five years, but with the steady industrial consumption in Europe, Asia will continue to expand rapidly. Government policies in Japan and South Korea will continue to drive the transition of industry to renewable energy. Biomass pellets have been provided With 12% of Japan's industrial energy demand, we expect market share to more than double by 2028, reaching 31%. Sarah Martin, co-economist of bioenergy RISI, author of the new study.
Particle demand is influenced by many external factors, including government policies, the market price of competitive energy, and the degree of cold in winter. As detailed in the study, each of these factors will affect the key in different ways over the next decade. Particle consumer countries.
In the next few years, the trend to convert coal-fired power plants into burning pellets in Europe will continue – but after 2026, policy changes are expected to lead to a decline in industrial electricity demand, Martin said.
However, the particles used for heating in Europe should continue to grow until 2028. Although the United States and Canada are the largest export pellet producers, North America has historically been a less important source of particulate demand.
We predict that the annual growth rate of North American heating by 2028 will be 5%, but Asian industrial demand will grow by an average of 9% during the same period - from a larger base. More importantly, by 2028, in Asia, Industrial pellet consumption is expected to be 18 million tons, almost equivalent to 18.3 million tons of industrial production per year in Europe - an important shift that will reshape the dynamics of the entire industry, Martin said.
