Growing toward a greener, cleaner future. Every year, millions of tons of industrial waste are turned into millions of dollars of reusable materials. CPM and Di Più Systems help make that happen. We’ve joined forces to bring you the world’s best mechanical and hydraulic briquetting technology. Together, we’re taking the fossil out of fuel. CHART 3 Swaan, entered into the first off-take agreement for bulk pellet delivery from North America. Swaan produced pellets at what is now the Pacific BioEnergy pellet plant, which he founded in Prince George, B.C., and he loaded the ship, the Mandarin Moon, in Prince Rupert, B.C., on Feb. 9, 1998. That was the beginning of the transoceanic trade in wood pellets. As demand grew, the U.S. southeast came into play. Fram Renewable Fuels (originally 130,000 tonnes per year (tpy)) was founded in 2007 in Georgia, and Green Circle (originally 550,000 tpy) started in 2008 in Florida. Since those early days, North American supply has grown dramatically. As demand has materialized in Japan and South Korea, new pellet production capacity has followed in fibre-rich areas in southeast Asia. The Baltic states (Estonia, Latvia, and Lithuania) have also become major producers of wood pellets. Vietnam production has also increased over the past five years. HISTORICAL PRICES FOR DELIVERED PELLETS FutureMetrics has estimated the historical delivered (CIF) price of wood pellets from international trade data. The value and quantity of imported pellets reflects the actual prices that buyers are paying for the fuel. Most pellets are traded under long-term contracts. Some pellets (probably less than 15 per cent of total trade) are traded on the spot market. Argus reports the weekly spot price of pellets. However, the spot price is quite volatile compared to the overall prices paid for imported pellets because the spot price reflects short-term supply and demand imbalances. If the market is in a state of excess supply, prices fall. If the market in a state of excess demand, prices rise. Since the spot market is a small portion of overall pellet trade, supply and demand imbalances have amplified impacts on the spot market. Long-term off-take agreement prices are stable and change only due to the terms of the contract. For more information, visit cpm.net or call 800-428-0846 1114 E. Wabash Ave., Crawfordsville, IN 47933 CHART 4 Client: Global Biomass Group 26 Canadian BIOMASS Publication: Canadian Biomass CB_CPMGlobal_Winter20_CSA.indd 1 2019-12-05 10:27 AM WINTER 2020
Canadian Biomass Winter 2020: Page 26
