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Pellet Fuel Market: Overview

Increasing fossil fuel prices and environmental concerns have laid a direct implication on the pellet fuel market. According to a recent article published in Biofuel, Bioproducts and Biorefining (Biofpr) (2009) the wood pellet production in Europe was more than 10 million metric tons. The EU 2020 policy regarding the greenhouse gases emission and use of renewable energy resources are likely to create a positive impact in the pellet fuel market. Increasing natural gas and crude oil prices can serve as an important factor towards the use of pellet fuels. As per the biomass magazine the demand for the pellet fuels are directly related to the natural gas prices.

Pellet Fuel Market: Segmentation

Segmentation of the pellet fuel market can be done on the basis type of feedstock, grade, applications and location of pellet fuel using countries. Pellet fuel is made with the help of compressed biomass. On the basis of the feedstock pellet fuels can be classified as wood pellets, corn pellets, and grass pellets. Wood pellets are the most widely used types of pellet fuels. Wood pellets are prepared by the compression of the left over or the recycled woods.

The Wood pellets are mainly available as standard grade and premium grade. Standard grade contains 3% ash content and premium grade contain less than 1% ash content. Corn pellets are similar to wooden pellets in terms of cost to heat production ratio. Although the technology for the development of the stoves to use grass pellets is still in development phase, but there are many types of grasses that can be converted to pellet fuel. Some of the grasses that can be used for the production of pellet fuel are reed canary grass, switch grass and miscanthus. Pellet fuels are used in pellet stoves, pellet baskets and furnaces as a source of fuel.

Pellet Fuel Market: Region-wise Outlook

Geographical segmentation can be done on the basis of the location of pellet fuel consuming countries. Some of the major pellet fuel consumer countries include the United States (North America), Germany, United Kingdom, Belgium, Italy, Sweden, Denmark Austria, Netherlands and Russia (Europe), Australia, China, Japan and New Zealand (Asia Pacific). In Belgium, Netherlands and United Kingdom the pellet fuels are mainly used as fuel for large scale power plants. In Denmark and Sweden the pellet fuel is mainly used in the small scale power plants and residential heating systems. As per the report published by the European Union, the United Kingdom (4540000 tons), Denmark (2500000 tons) and Netherlands (2000000) tons are the three largest pellet fuel consumers in Europe.

Development of high efficiency pellet fuel stoves, low green house gas emissions, low cost of feedstock (corn, grass, wood), supportive government policies and depleting fossil fuel reserves are the main factors that are acting as the drivers for the development of the pellet fuel market.  High costs associated with designing of pellet fuel stoves and chimneys are the main restraints to the pellet fuel market. Recent government policies encouraging the use of clean and renewable sources of energy, depleting and unevenly distributed fossil fuel reserves can act as the opportunities for the development of the fuel pellet market in future.

Major pellet fuel producing companies include German Pellets Louisiana, Enviva Pellets Northampton LLC, Enova Energy Group, Bear Mountain Forest Products and Farm Renewable Fuels.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Pellet Fuel Market

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