Why Shifting to Wood Pellet Fuel is a Good Strategy for Your Company?

The massive uproar over the use of fossil fuels has led to a search for alternate sources of fuel for energy generation. In this search, wood pellet fuel has proved to be a reliable and efficient option. Wood pellets are nothing but compressed form of wood biomass such as sawdust and other wood waste which can be used in domestic stoves and heaters. 

Underlying reasons behind the increasing demand for wood pellet fuel

Firstly, since wood pellets are made from saw dust and other industrial and domestic wood waste materials, the cost of this fuel is extremely low as compared to other conventional fossil fuels. Additionally, the carbon emitted by wood pellets is around 1/10th of the carbon released by oil. At the same time, the energy conversion rate of wood pellets is as high as 80%, meaning maximum biomass is converted into energy. Easy availability of wood pellets is another important advantage; this is an important benefit as far as rural areas are concerned where conventional fuels might not be readily accessible. 

Factors influencing the growth of the market

The wood pellet fuel market is anticipated to surge ahead at a healthy CAGR of 7.6% in the 2023-2032 timeframe. There are several factors which are expected to play a role in helping the market achieve this growth rate. Primarily, rising popularity of wood pellet fuel in residential heating and energy generation is projected to create favorable conditions for growth of the industry. Moreover, increasing adoption of wood pellet fuel in industrial applications will strengthen the position of the industry. Along with this, technological advancements in the wood pellet production sector will further augment the growth rate of the market. 

Based on the feedstock, the others segment is estimated to have the highest CAGR of 7.9% during the forecast period. The others segment includes sawdust and wood shavings, wood chips, and biomass crop. At the same time, by application, the combined heat and power (CHP) segment is set to rise at a CAGR of 8.1%. On the other hand, the market in Japan, when studied by region, is predicted to be the fastest growing with a CAGR of 8.5% in the analysis period.

Innovative product launches in the industry

The global private sector has contributed greatly to the tilting of the balance in favor of renewable energy sources for electricity and power generation. For instance, ÖkoFEN, an Austrian pellet boiler manufacturer, announced the launch of advanced ZeroFlame wood pellet combustion technology. The company has claimed that this product launch is an important milestone in the use of renewable energy for power generation.

In April 2022, CPM, a leading pellet mill manufacturer, launched a new technology for improving the pellet mill efficiency. This patented innovation called Twin Track technology will ensure that the pellet quality remains consistent, and the speed of production also increases. Thus, this product launch, along with many such innovations will help the companies to address the demand of the industry.

The global wood pellet fuel market is, thus, expected to witness a massive boost owing to vital advantages offered by wood pellets. The ingenious product launches by major companies in the market will further take the industry to new heights in the coming period.

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