Future Prospects for Wood Pellet Markets
IEA Bioenergy Task 40 Webinar – Future Prospects for Wood Pellet Markets (Poster)
13 November 2019
This webinar presents the findings of the report “Margin potential for a long-term sustainable wood pellet supply chain”.
Wood pellets are well-established in residential heat and large-scale industrial (power) markets, and existing supply can deliver wood pellets at reasonable prices. Yet, given the competition with other renewables (solar, wind), and building efficiency in the longer-term, wood pellet markets are under price pressure, and actually could shrink in the near future, specially for co-firing in powerplants.
The report showed that:
- further technology development can reduce wood pellet costs along (international) supply chains significantly, and
- can broaden the feedstock base to low-cost material (e.g. bagasse, wood wastes), while
- torrefaction can, compared to traditional white pellets, improve energy, GHG and cost performance of long-distance supply, allowing for widespread applications.
In case studies, future options for pellets were explored (high-temperature industrial heat, steelmaking, BECCS/U), and it was shown that potential exists there, allowing to help achieving the Paris Agreements and the SDGs, especially if adequate CO2 prices are introduced in energy markets.
Click here to view webinar – http://cif-ifc.adobeconnect.com/pnajaxe5cjiy/