+ 24.08.2011 + Mega plants in America and Russia supply the European power plant market: 11th Pellets Industry Forum and Interpellets 2011 inform about international markets, production and sustainability.

The boom of the global pellets trade is unstoppable. According to a study by Hawkins Wright Ltd., Kew, UK around 2.5 million tons of pellets were imported into Europe in 2010; this is 40% more than in 2009. Experts are expecting the international wood pellets trade to continue its rapid growth over the coming years. Pöyry Management Consulting Ltd., London, UK are forecasting transcontinental trade flows with a volume of 18 million tons of pellets per year for 2020.

These huge amounts are creating new opportunities and challenges for the pellets industry, for example in terms of efficient and safe production technology for large pellets factories, or in terms of the fuel’s sustainability – a subject which is receiving increasing attention. This and many more topics will be discussed at the 11th Pellets Industry Forum from October 4 to 5. The organizers, Solar Promotion GmbH, Pforzheim, Germany are expecting around 550 international experts and decision makers to attend the event at Stuttgart Trade Fair Center. The simultaneous trade exhibition, Interpellets 2011, takes place from October 5 to 7. A large number of renowned companies from all over Europe have already registered for the show.

Global trade expands

The global pellets trade is mainly driven by co-firing in coal-fired power stations. According to the survey carried out by Hawkins Wright, the major market for wood pellets is Europe, with the Netherlands accounting for 900,000 tons in 2010, followed by the United Kingdom with over 500,000 tons. Currently, the European power plant market is mainly supplied by producers from the USA and Canada. According to the North American Wood Fiber Review, around 1.6 million tons of pellets were shipped from the USA and Canada to Europe in 2010. Between 2008 and 2010, the number of pellets transports from North America doubled – and the trend continues. The first freighter from the new RWE Innogy mega factory in Georgia, United States, which has an annual production capacity of 750,000 tons, reached the Dutch harbor of Dordrecht at the end of June, after 14 days at high sea. It had around 23,000 tons of wood pellets on board. It is possible, however, that other regions will outperform North America in the coming years.

The world’s largest pellets factory with an annual capacity of 900,000 tons in Vyborg, Russia, which is mainly geared towards exports, took up production this year. Brazil also has major plans. The Brazilian paper and cellulose producer Suzano is planning to take into operation three pellets factories with a combined annual capacity of 3 million tons by 2015. The pellets production outside Albany, West Australia, is somewhat smaller than that, but also geared towards exports. The targets here are 250,000 tons of pellets exports to Europe and Japan.

Focus on sustainability

The more international trade increases, the more sustainability becomes a much-discussed subject in Europe and beyond. Deforestation of native forests, illegal wood cutting and the competition from short rotation coppice for arable land for food production must be prevented. The Renewable Energies Directive already lays down rules for liquid biomass, and the EU Commission is currently working on similar criteria for solid biomass. The EU also supports the “PellCert” project. “The project brings together a large number of pellets associations, the European Umbrella Organization Aebiom and representatives from the electricity industry to prepare sustainability criteria to be integrated into the ENplus System. The objective is to establish sustainability certification as an integral part of the ENplus certification,” explains Christian Rakos, President of the European Pellet Council (EPC).

“I think that we should have an agreement on how to implement the sustainability certification by the end of 2012 at the latest“. It is particularly important to find a solution which applies all over Europe, not individual regulations in each Member State.

Sustainability and raw material competition are also going to be the topics of the panel discussion on the first day of the 11th Pellets Industry Forum. Participants from opposing interest groups such as the pellets industry, the forestry industry and the wood materials sector will make for an interesting discussion. From October 4−5, the 11th Pellets Industry Forum at the , International Congress Center of the Trade Fair Center Stuttgart provides an overview of European and global key markets along with developments and outlooks in global pellet markets as seen by various market players.

The simultaneous trade exhibition, Interpellets 2011, takes place from October 5 to 7. An expected 150 exhibitors from Germany and abroad have an area spanning 7,000 square meters to showcase their latest products, services and technical solutions in the field of pellets technology and wood-fired heating. Around 6,000 visitors are expected to attend, with 25% coming from outside Germany.

Interpellets 2011

Date: October 5−7, 2011

Venue:  New Stuttgart Trade Fair Center, Hall 4 more

Online-Registration

INTERPELLETS 2011