Wood pellet production

12 May 2010

Nara, Japan

IEA Bioenergy ExCo65 workshop

Ken’ichiro Kojima

Pellet Club JAPAN

Wood Pellets installation in 1980’s• Pelletizing process: 1976, invented by Rudolf

Gunnerman, Bio-Solar, woodex, USA• Pellet utilization in Japan: 1981, green house (melon),

Shizuoka pref., imported from USA• Technological development in Japan: 1980, METI,

technology from USA• Domestic production: from 1982, started in

Iwate/Aomori pref.• Motivation: The first oil crises in 1979, Ogalite industry• Records: until 1986, 30mills operation, main raw

materials are bark, peak 27,772 ton/y• Demands: stove, green house, hotel, hot spa• After 1983: crude oil price fell• Conclusion: couldn't establish solid biofuel market,

political instrument (subsidy), underdeveloped boilers/stoves, fuel standardization,

Pellet production (1982-1990)

0

5,000

10,000

15,000

20,000

25,000

30,000

1982 1983 1984 1985 1986 1987 1988 1989 1990

Year

tonn

es

0

5

10

15

20

25

30

num

ber

Pellet production

Number of plants

26 plants(1985)

27,722 tones(1984)

What is “Ogalite”

• one of a densified wood fuel• invented by Kitamoto in 1954• used be use for old type Japanese “Goemon-buro” baths• abundant raw materials(sawdust)

Source http://www.joy.hi-ho.ne.jp/gfield/

Briquette“Ogalite” production

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

1,000,000

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

Year

tonn

es

0

100

200

300

400

500

600

700

800

900

num

ber

Ogalite production

Number of plants

809 plants(1968)

945,000 tonnes(1969)

Wood Pellets production in Japan

Source: Pellet Club JAPAN, 2009

Source: 1982-2003,209: Pellet Club JAPAN, 2004-2008: Forestry Agency

Import 60,000ton/y

Raw materials for wood pellets(domestic mills)

100

2

9

10

15

17

18

29

Using ratio(%)

81*TOTAL

4roadside trees, pruned trees

10driftwoods in a dam, cutting trees from civil engineering work

4Bark

15Shavings

16Cuttings

19saw dusts

13thinning woods, forest residues

MillsType of raw materials

Source: Japan Wood Pellet Association, 16th March 2009*including few materials in one mill

Capacity of mills and sort of pellets(domestic mills)

4211

Bark

221211215

White Whole tree

513482439

Mills

25TOTAL

>3,000

11,000-2,999

6500-999

12100-499

250-99

4<49

Sort of pelletsCapacity(ton/year)

Source: Japan Wood Pellet Association, January 2009

Sort of produced wood pellets(domestic mills)

5124225

Mills*

100TOTAL (2008)

35Whole tree

55White

10Bark

Share(%)Sort of pellets

Source: Japan Wood Pellet Association, 16th March 2009

*sort is decided as a main products of each mill

Sales for purpose

5,800(14.9%)

3,189(12.6%)

3,196(16.5%)

for Stove

38,700

25,375

20,068

Sales(ton/year)

32,900(85.1%)

2008*

22,186(87.4%)

2007

16,872(83.5%)

2006

for BoilerYear

*estimation, January 2009

Source: Japan Wood Pellet Association, 16th March 2009

60,000 60,0002008*

for BoilerImported

*planed

Source:Press release, Kansai Electric Power CO.

Price of wood pellets(domestic mills) ex. transportation cost

lowmiddlehigh

38

43

33

43

46

50

34

33

28

40

37

42

Whole tree

White

Bark

Whole tree

White

Bark

Sort of pellets

31

33

24Boiler

37

36

25Stove

Price at mill(yen/kg)Purpose

*second semester of 2008(June-December)

Source: Japan Wood Pellet Association, January 2009

Pellet furnace equipments

Pellet stove• Domestic manufactures:16 (28 products)• Imported: 7 (25 products)• Sales number: 11,094 (total)Pellet boiler(<500kW)• Domestic manufactures: 5• Imported: 2• Installation number: 463 (total)Greenhouse heater: 4 manufacturersCooling & heating device: 1 manufactureSmall steam boiler: 1 manufacturere

Co-firing

Source: Rinsei-Nwes, No.380, 13 January 2010

< 30,000 ton

30,000-100,000 ton

> 100,000 ton

Domestic fuel

Imported fuel

Conclusion

Overview• Domestic mills increase rapidly, but small & low operation

rates ? “Local production & Local consumption”• Power companies & industrial power generations starting

co-firing ? big scale, waste, imported• Demand polarization into domestic & imported

Barriers• Lack of raw materials ? waste• No national standards (solid biofuel, equipment)• Statistic• Pellet is “Fuel” = METI, “Forest products” = MAFF• Lack of political instruments (environmental tax etc.)

Sustainability• Domestic resource ? up to “Forestry”

Source: Working papers of Finnish Forest Research Institute 118; Global potential of modern fuelwoodOriginal sheet: 13th July 2009 NAGANO, MARKKU PAANANEN, JAMK University of Applied Sciences

Resource potentials

Timber imports in Japan

22.6

39.3

12.6

14.5

0

20

40

60

80

100

120

1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2006 20070

20

40

60

80

100

? ? ? ? ? ? ?

? ? ? · ? ? ? ? ? ? ? ?

? ? ? ? ? ? ?

? ? ? ? ?

Domestic

Imported

( Million m3)( % )Board industry

Pulp & Paper industry

Sawmill industry

Average

Source: Forestry Agency “Annual Report on Trends in Forest and Forestry” Fiscal Year 2008

Resource capacity

“Annual Report on Trends in Forest and Forestry” Fiscal Year 2008

Age structure of our forest

Source: Forestry Agency

year

Natural

Forest

Artificial

forest

Private forest

10,000ha

National forest

Structural Defect of Japanese Forestry

Price component of sawn timber

Price of standing tree

Felling & Loading, transportation

Processing in forest industry & distribution

Source: Forestry Agency

Pellet demand for future

• Coal demand in the world2010: 5.1 billion ton2030: 7.8 billion ton

• Pellets demand in the world2007: 7 million ton2010: 15 million ton2015: 228 million ton?2030: 350-400 million ton?

Source: Bioenergy International No.44 (2010)

Our Bioenery Future = Forestry