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The global industrial wood pellet market is projected to reach USD 7.69 billion by 2027 owing to the increasing initiatives by governments to promote the usage of biofuels, observes Fortune Business Insights™ in its report, titled, “Industrial Wood Pellet Market Size, Share & COVID-19 Impact Analysis, By Feedstock (Forest Wastes, Agricultural Waste, and Others), By Application (Power Generation, and Combined Heat and Power [CHP]), and Regional Forecast, 2020-2027.” As per the analysis, the market value stood at USD 5.54 billion in 2019 and is expected to register a CAGR of 8.56% from 2020 to 2027.
Pinnacle Renewable Energy Inc. Enters Two New Long-term Contracts
In July 2019, Pinnacle Renewable Energy Inc. entered into two new long-term, take-or-pay off-take contracts with customers in Japan and South Korea. The contract in Japan is an extension of an existing contract with Mitsubishi Corporation, a globally integrated business enterprise in Japan. Under this contract, the company will supply 110,000 to 120,000 metric tons per annum of industrial wood pellets to Mitsubishi Corporation from the beginning of 2021.
The contract in South Korea is agreed with GS Global Corporation, which is a diversified conglomerate in the country. In addition, the company is the first dedicated biomass independent power producer in the country. Under this contract, Pinnacle will supply 100,000 MTPA of industrial wood pellets to GS from the first quarter of 2022.
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Rising Demand in End-user Industries to Drive Growth
Increasing initiatives from governments across the world promoting biofuel in order to reduce carbon emissions are anticipated to drive the industrial wood pellet market growth. For instance, according to the Economic Times, in May 2018, the Indian government approved the National Policy on Biofuels, which was aimed at promoting the use of biofuels. In addition, the rising demand for industrial type of wood pellets in various end-user industries is projected to further strengthen their growth. However, stringent certification criteria from governments worldwide regarding wood pellets are estimated to restrain growth.
Increasing Production Capacity to Aid Key Players Gain Prominence
Key players operating in the global market are focusing on enhancing their production capacity to a greater scale. This will help them gain prominence over other enterprises. For instance, in July 2020, Alabama Pellets, a subsidiary of Pinnacle Renewable Energy Inc., announced its plans to invest USD 95 million for the construction of a wood pellet production facility in Demopolis, Alabama.
List of Key Players Covered in the Report:
Further Report Findings:
Table of Segmentation
Value (USD Billion) & Volume (Thousand Tons)