Cooperation to invest in a factory to produce wood pellets sawdust wood pellet for export
Cooperation in investing in a wood pellet factory for export is a project that combines customers, investors and sustainable wood pellet manufacturers with the assurance of raw materials, technology and markets. output field. GREEN MECH Vietnam introduces to interested investors about the project of producing wood pellets sawdust wood pellet for export.
What is sawdust wood pellet?
Wood pellets are a form of energy derived from plantations that can play an important role in reducing emissions that cause global warming. Trees in the forest are at work naturally absorbing carbon as the forest goes through a cycle of growth, harvesting, and recovery.
When harvested wood is used to produce wood pellets as fuel to generate electricity, the carbon released during combustion will be reabsorbed by the next generation of trees. Therefore, wood pellets provide a low-carbon, readily available, renewable, alternative to fossil fuels such as coal – one of the largest contributors to fossil fuels. climate change.
What is the opportunity to export wood pellets sawdust wood pellet like?
The demand for wood pellets sawdust wood pellets is increasing
Wood pellets are becoming a potential export product of Vietnam due to the increasing demand for fuel from industrial plants and thermal power plants in the world. According to the General Department of Vietnam Customs, by the end of 2021, the export volume will reach 3.5 million tons, equivalent to a turnover of 413 million USD. In the first months of 2022, tablet exports increased sharply in the context of a decrease in world supply.
In the woodworking industry, wood pellets are often considered as a by-product or end product. Input wood sources are branches and tops from plantation timber, by-products of the processing such as wood chips, sawdust, shavings… Vietnam is currently one of 10 pellet producing countries. the world’s largest compressor with an average capacity of 2.5 million tons/year. Exports of this item have grown the most since 2018, with export turnover nearly doubling compared to the previous year (2017). After that, the growth rate kept steady around 10-20% per year.
With a large export volume and turnover, sawdust wood pellets have become an important export item of Vietnam’s wood industry. Vietnam’s advantage is that it has available input materials, which are mobilized from plantation timber, especially from forest plantation households; make full use of wood by-products of the processing industry; production investment capital scale is small (1 – 2 million USD), management level, production technology is not very demanding while the market demand is large.
Producing wood pellets helps to make the most of wood by-products.
Almost all of the pellets produced by Vietnam are exported to Korea and Japan, with similar turnover. According to Mr. To Xuan Phuc, an expert from Forest Trends, in terms of motivation and growth rate, the Japanese market has a much stronger and more stable growth rate than the Korean market. Some enterprises in the industry shared that in the future, the demand for tablets in the Japanese market will increase about 3 times compared to the present. Vietnam’s tablets have a huge market expansion opportunity here.
However, learning from experience in previous years, there were cases of reduced orders and pressured prices. On the one hand, enterprises had to constantly improve technology and increase the added value of tablet products. On the other hand, it is necessary to actively seek and diversify markets. 2022 is a good opportunity, because in March, the Russian Government issued a ban on the export of some wood products from Russia, including pellets until the end of the year. This requires countries that previously imported tablets from Russia, mainly from the EU, to find alternative sources of supply. Currently, there is no sign that the price of Vietnam’s export pellets will slow down in the future.
According to experts’ forecasts, the current world demand for biomass pellets is 12-15 million tons/year and by 2030 about 50 million tons. This stems from the fact that countries have entered the mandatory phase of emission reductions under the Paris Agreement on climate change. The world is gradually turning to renewable energy to replace fossil energy such as coal and oil. This will be an open market for Vietnamese businesses to take advantage of the abundant wood by-products.
Contributing to sustainable forest development
Expanding the market also means targeting more difficult importing countries. Some international standards related to wood pellet products such as: Certificate of sustainable management according to Japanese market standards (JIA), Certificate of sustainable forest management recognized worldwide by the Association. International Forest Stewardship Council (FSC), Certificate of Sustainable Biomass Management according to European Union standards (SBP).
In Vietnam, the currently planted production forest area that has obtained FSC certification is only about 186,000 ha, mainly concentrated in the North and Central regions. The area to exploiting age only accounts for about 40% – 50% of the total certified area. The South mostly imports wood for processing. The large source of certified wood is used to process furniture for export, while the source of branches and tops is for making chips and pellets.
The production of biomass pellets has strict requirements on the origin and certification of planted forests, so localities as well as the forestry sector must have policies on forest development, planning a reasonable exploitation plan to promote efficiency. forest land potential. If this is done well, Vietnam will not only develop the forest economy but also protect the forest area and increase the green coverage rate.
However, Vietnam’s tablet industry currently has some limitations such as the lack of a monitoring mechanism in the production stage, especially the quality of product output, including legal and sustainable aspects. in the product. Vietnamese manufacturing and exporting enterprises lack information on legal and sustainability requirements from export markets. Lack of connection between enterprises in production and export. This makes businesses in the industry not have a common voice on aspects of production, business and when participating in the export market.
Another problem is that all pellets produced today are for export due to higher prices. So, what needs to be done to promote the use of pellets at domestic thermal power plants, reduce coal imports and contribute to the overall national emission reduction target? These will be the issues that managers need to get involved in, in order to enhance the role of this available bioenergy.
Technology of producing wood pellets
GREEN MECH Vietnam is a pioneer in Vietnam in developing technology to produce wood pellets. For sawdust wood pellet factory projects, we provide and transfer wood pellet production technology from:
Investment consultancy in sawdust wood pellet factory
Apply for a license to invest in a sawdust wood pellet factory
Explanation of investment plan for wood pellet factory
Design of a wood pellet factory
Supply and install wood pellet factory production line.
Transfer of technology to operate the tablet factory.