VIETNAM'S WOOD PELLET EXPORT AND MANUFACTURING

What exactly are wood pellets? What are the applications of wood pellets?

   Sawdust pellets or wood pellets are biofuels produced using modern production lines from biomass materials such as shavings, sawdust, corn stalks, waste wood, peanut shells, and so on. Pressed into small, hard wood pellets.

Because wood pellets have a low moisture content, a low ash content, and a high heat emission that is safe for users' health, they are becoming increasingly popular in markets where high temperatures are required.

Some applications of wood pellets:

• Wood pellets used in industry

Large-scale industrial wood pellets are used to increase the thermal value of waste during heating while reducing pollutant emissions significantly.

Wood pellets are increasingly being used to replace electric or gas fireplaces in small fireplaces and hot water supply systems. Wood pellet fireplaces, like other heating systems, can use a heat pipe system to distribute heat to all areas of the house. However, its advantage is high heating efficiency, which allows you to control the heat and save money.

• Use in cooking

Wood pellets are being considered as an alternative material by the food industry, service industries, bakeries, and so on. Wood pellets are the preferred choice due to their high energy efficiency, environmental friendliness, and economic efficiency.

• Other applications include

  Wood pellets can also be used to improve soil acidity and add natural nutrients. Alternatively, simply scatter ash wood pellets around the tree to prevent snails from crawling onto it.

   In addition to being used for heating and generating industrial energy, wood pellets are also used to line animal and livestock cages. 

Wood pellet export situation

   Wood pellet products are currently being used in accordance with international standards such as: Sustainable Forest Management Certification (FSC-FM), Chain of Custody Certification (FSC-CoC), and Certified Wood Control (FSC-CW) for enterprises to control their raw materials through risk assessment of raw material areas in accordance with international standards. These are also the standards that importers are requesting from Vietnamese wood businesses.

   Recently, annual export output reached around 3 million tons, with a turnover of 350 million USD. Korea and Japan are currently two important import markets, accounting for more than 90% of annual wood pellet export volume from enterprises... The Korean market is bigger than the Japanese market.

   However, the level of stability in the Japanese market is approximately 20 to 30 USD/ton higher than the export price to Korea. In addition to the above two markets, some countries require the use of energy wood pellets between 2020 and 2025: the UK requires 2.5-3.4 million tons per year; China requires 8-10 million tons per year; and 30 Japanese factories require 2.4-3.2 million tons per year.

Power plants and biomass power plants in Korea require 3.2-4 million tons per year, while Germany, the Netherlands, and others, particularly France (the COP21 host country), have cut 100% of coal energy used in thermal power plants, industrial fuels, and so on, and will switch to renewable energy (wood pellets, wind power, solar energy) beginning in 2025.

High foreign wood pellet producers 2022

  Vietnam has begun to focus on producing wood pellets for export to Japan, Korea, and the rest of the world beginning in 2020. Currently, the average output of large businesses in Vietnam ranges between 300,000 and 500,000 tons per year.

   In addition, there are ten other small businesses with annual production of less than 30,000 tons. Because of the market demand characteristics, the area of abundant cheap and durable raw materials is large, so all companies have good output and do not compete with one another.

   According to the General Department of Forestry, the country has approximately 80 wood pellet factories. However, according to survey data from experts organizing Forest Trends, the number of enterprises directly involved in the production and export of tablets may be much higher.

   The Southeast region, which is the center of wood processing facilities, has the most pellet production facilities in the country. Because wood by-products from wood processing facilities are brought in as input materials for pellet production, pellet production facilities are concentrated in this area.