Authors: Ryan Jacobson,
Published in: CSBE-SCGAB Technical Conferences » AGM Vancouver 2019
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The wood pellet industry in Canada currently produces approximately 4 million tonnes of wood pellets and has a production capacity of approximately 6 million tonnes. Wood pellets are a high-quality, well-regulated feedstock for biofuels and bioenergy operations that reduce storage capacity, enable longer shelf life, reduce pre-processing infrastructure inside the conversion plant and improve processing efficiency. Long-term indicators show an increase in wood pellets for both commercial and domestic use as Canada works to remove fossil fuels from its energy portfolio, wood pellets can be a transition step in some energy sectors and provide long-term energy solutions in some situations. There continue to be opportunities to expand the wood pellet industry in Canada, from both increasing European demand and improving Asian markets. British Columbia currently produces approximately 60% of Canadian wood pellets, almost exclusively for export purposes. But to meet the expected growth of global demand, the industry must expand its feedstock harvesting equipment, storage infrastructure and eventually its production facilities. The expected capital expenses for the needed production equipment is estimated to be $750 million and storage silos capital expenses are estimated to be near $1 billion. Growth in production would require an expansion of some transportation infrastructure as well, creating trucking jobs for both feedstock and pellet mobilization. The following analysis will examine the current state of the pellet industry in British Columbia and Canada and discuss the options available for expansion of the wood pellet industry.
Keywords: Wood pellets, Logistics, Handling, Transport, Storage, Infrastructure
Conference name: CSBE/SCGAB 2019 Annual Conference, Vancouver, BC, 14-17 July 2019.
Session name: Policy and economics
Publication type: Text.Abstract
Language 1: en
Rights: Canadian Society for Bioengineering