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Torrefied pellets: market growth in 2015

Torrefied biomass is relatively a new kind of fuel, which is able to compete with wood pellets, the most popular renewable energy source. Though the market of torrefied pellets is not that developed, it is of great potential.

Torrefied pellets in comparison with biomass

Wood pellets are known to be environment-friendly and carbon neutral in terms of energy generation. This power source is also becoming the most popular in the European Union. The use of burning wood is definitely efficient way to replace fossil fuels.

However, there is another alternative energy source, which is able to compete with wood pellets. This is about torrefied wood pellets. It has some advantages in comparison with regular wood pellets.

The main benefit of torrefied pellets is that they contain lesser moisture and are able to produce more energy, than wood pellets do. Beyond that, the transportation of torrefied pellets is much cheaper. The same amount of torrefied pellets or regular wood pellets has different bulk density.

That is to say, that а power plant needs less torrefied pellets to generate more energy. Consequently, it gives an opportunity to deliver less burning material and reduce carbon dioxide release.

The potential of torrefied pellets market

Torrefied pellets market is expected to grow rapidly. In 2009-2010, this sector was in its infancy. Nevertheless, the analysts of German Biofuel Portal noted, that torrefaction industry would attain the highest level of efficiency in the next five year on condition that this sector reached market. However,

What is more, the analyst German Biofuel Portal also predicted that 8 power plants, driven by torrefied pellets, would have been built by 2015, 20 by 2017 and 60 by 2020. So, these figures reveal that this branch would rapidly grow and the development level would increase from year to year.

Consequently, the demand for torrefied pellets is also predicted to grow. This forecast is coming to life at present, since such kind of fuel is relatively cheap; it does not lead to greenhouse gas emission and does not require large boilers to be combusted, as wood pellets do.

Torrefied pellets sector requires more investments

Nowadays the main problem in terms of this sector development is to involve investors, who will fund the implementation of innovative technologies. Such technologies are to be applied at the already existing facilities. This is about the coal-fired power plants. It means that there is no need to build new ones, as the converted units of already functioning facilities will be an appropriate solution. So, the only possible way to raise investments is to increase the subsidies of governments.

Another important issue at present, concerning the development of torrefied pellets market, is to provide sustainable industry functioning. This problem is topical in the European Union.

The production of torrefied pellets has been launched in the USA

The European countries are intensively involving wood pellets into energy production. However, there are no appropriate conditions for the development of torrefied pellets yet. This is the main obstacle for investors to fund European industry, which is now in its infancy.

Nevertheless, the production of torrefied biomass at an industrial scale has already been launched in the USA. These two countries possess large areas of forests, which makes it possible for them to ramp up the production of torrefied pellets.

For instance, some American companies, which produce conventional wood pellets, have launched the production of torrefied pellets, made of sawmills residues. Their production is to be exported to the European countries and to be consumed at a local scale. Initially, in 2014, their production capacity equated 80,000 tonnes. This figure tripled in 2015. It is also going to increase further.

In summary, torrefied pellets market is not that developed at the moment. Nevertheless, it has a great potential. Torrefied biomass is more efficient than traditional wood pellets are, it is cheaper and easier to store. Such properties of this kind of fuel are implying that this sector is to grow soon.

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