[Potential Market] Production of Wood Pellets in Asia, Africa, Oceania, South America

When we look at the outlook for the global wood pellet market, it is inevitable to contrast the booming European and North American markets with the emerging markets of Asia, Africa, South America, and Oceania. Europe and North America have already achieved great success in the field of biomass pellet processing, while emerging markets show great potential that is encouraging.  Now, let's delve deeper into the potential of these developing markets and see how they are emerging in the global renewable energy revolution. (Link to Analysis of Booming Market: North-America and Europe>>)

wood fuel pellet plant
Wood Pellets Produced by Biomass Pellet Plant

Production of Wood Pellets in Emerging Markets: Navigating Opportunities


wood pellet production yield and application

Asia, Africa, South America, and Oceania are uniquely positioned in the wood pellet production market. They have abundant wood resources, relatively low labor costs, and growing energy demand. Governments and businesses in these regions are also increasingly focusing on renewable energy, providing solid support for wood pellet production. As a result, these emerging wood pellet making markets offer encouraging prospects for investors seeking opportunities for investment and expansion.

Production of Wood Pellets in Developing Market

Region Market Share 2020 Market Share 2021 Market Share 2022
South America 10% 11% 12%
Oceania 5% 5% 5%
Asia 15%  14%  13% 
Africa 5%   5%   5%  

Setup Wood Pellet Line in Asia

The scale of wood pellet production in Asia has grown rapidly over the past few years and the number of wood pellet manufacturing mills is increasing. The production of wood pellets in Asia has become an important part of the global market.

wood fuel pellets trade in Asia
Map of Wood Pellets Trade in Asia

  • Major Producing Countries

China is the largest producer of wood pellets in Asia and one of the largest in the world. Vietnam has a significant presence in wood pellet production. South Korea and Japan are also producers of wood pellets in Asia for domestic heating and power generation.

  • Feedstock Sources

Wood pellet production line in Asian countries relies mainly on forest resources and by-products from the wood industry. Some countries also use agricultural by-products such as agricultural waste and straw as feedstock. Asia has abundant forest resources that can be used to make biomass fuel pellets by wood pellet production machines, including pine, eucalyptus, willow, and larch. (Link to Raw Material of Wood Pellet>>

  • Relevant National Policies

China's "Clean Energy Substitution and Heating Project" policy supports the use of wood pellets as a clean energy source, especially in the field of winter heating. The Japanese government launched the "Renewable Energy Development Strategy", where wood pellets are used for power generation and heating. South Korea implemented the "Renewable Energy Development Program" to promote the use of renewable energy.

Overall, the scale of wood pellet production in Asia is growing, driven mainly by market demand and policy support. As the demand for renewable and green energy continues to increase, wood pellet production in Asia is expected to continue to expand and biomass pellet production plants will be more and more, and then, the production of wood pellets will occupy a significant position in the global wood pellet market.

Establish Wood Pellet Production Line in Oceania

​With a relatively small number of wood pellet factories having been growing gradually in recent years, wood pellet production has become an important industry in some countries such as Australia, New Zealand, and Tasmania.

wood pellet market analysis in Oceania
Wood Pellet Plant's Opportunity in Oceania

  • Major Producing Countries

Major countries producing wood pellets include Australia and New Zealand. These two countries have a competitive advantage in wood pellet production. In addition, some other Pacific Island countries have also begun to build biomass pellet production plants, although on a relatively small yield but with rapid development in recent years.

  • Raw Material Sources

Feedstock sources of biomass pellet production line are mainly forest resources, including fast-growing wood and forestry by-products. The main tree species include pine and eucalyptus.

  • Relevant National Policies

The Australian government has implemented the "Clean Energy Future Package" (Clean Energy Future Program), which aims to encourage clean energy production and use. The New Zealand government adopted "Bioenergy Initiatives" in order to promote the development of sustainable energy.

Overall, wood pellet production in the Oceania region is limited in scale, but has achieved some success in some countries, relying mainly on abundant forest resources and support from relevant policies. The wood pellet making industry is expected to continue to grow as sustainable forestry management and environmental awareness increase.

Contact us free of charge for more success stories and experiences about GEMCO wood pellet production line!

how to start your own production line with best business plan


Build Wood Pellet Mill in Africa

There are relatively few biomass pellet production plants in Africa, but they are gradually increasing. The biomass pellet making industry is still in its early stages of development in Africa, but with the increased demand for renewable energy and the development of the forestry and timber industries, the wood pellet processing industry has great potential for prospects.

wood feedstock in Africa
Abundant Wood Pellet Raw Material in Africa

  • Major Producing Countries

South Africa is one of the largest producers of wood pellets in Africa, with rich forest resources and wood processing industries. Morocco also produces wood pellets in North Africa, mainly for energy heating. East African countries such as Kenya have also developed in wood pellet production.

  • Feedstock Sources

Feedstock sources mainly include forest resources, wood industry by-products and agricultural waste. Pine, eucalyptus, and eucalyptus are often used to process wood pellets by wood pellet production equipment. (Link to sawdust pellet Production Line>>)

  • Relevant National Policies

South Africa's "Renewable Energy Independent Power Producer Procurement Program (REIPPPP)", Morocco's "National Renewable Energy Strategy", and the Kenyan government's "Energy Act 2019" all encourage the development of renewable energy projects.

Overall, Africa is emerging in the field of wood pellet making and some countries have already developed in this area. Policies that support clean and sustainable energy are helping to promote the production and use of wood pellets to meet energy needs while reducing dependence on traditional fuels and promoting sustainable development. Biomass pelletizing plant also offers employment opportunities and economic growth potential for the African region.

Start Wood Pellet Making Line in South America

South America has significant potential in the field of wood pellet production, especially in countries such as Brazil and Argentina. Annual production is typically in the millions of tons and is still growing to meet domestic and export market demand of wood fuel pellets.

wood pellet in Latin America
Bigger Demand of Biomass Fuel Pellets in Latin America Market

  • Major Producing Countries

Brazil is the largest producer of wood pellets in South America, with an abundance of feedstock from its rich forest resources and well-developed agricultural base. Argentina is also competitive in the production of wood pellets and its geographical location favors exports to markets such as Europe and Asia. In addition, Chile plays an important role in the production of wood pellets in the South American region and is internationally recognized for its quality.

  • Sources of Raw Materials

The wood pellet manufacturing in South America mainly uses pine, eucalyptus, eucalyptus, spruce, oak, etc.to make biomass fuel pellets by pellet maker machine, which come from sources such as the logging industry, forestry, and agricultural by-products.

  • Related National Policies

Brazil's National Electricity Integration Program (PNI) aims to promote the development of renewable and clean energy sources to meet domestic electricity demand. Colombia's Clean Energy Industry Stimulus Bill encourages investment in clean energy and renewable energy projects. Chile's Enhanced Renewable Energy Act (Ley 20.257) provides rewards and incentives to promote renewable energy. Argentina: The Renewable Energy Bill (Ley 27.191) sets renewable energy targets and provides fixed buyback prices and incentives. Peru's renewable energy bill (Ley de Energías Renovables, Ley N° 27157) provides incentives and tax incentives to support renewable energy projects.

Overall, South America is emerging as a major player in wood pellet production, growing and potential. ​The Wood pellet manufacturing industry not only provides an important source of energy for the domestic market, but is also competitive in the international market, offering new opportunities for sustainable development and energy needs in the South American region.

Maximize Biomass Fuel Opportunities with GEMCO: Your Key Partner

large scale wood pellet manufacturing plant in Vietnam and Morocco

Gemco's Biomass Pellet Plant Projects

In the field of biomass fuel, which has unlimited potential, choosing the right partner is crucial. GEMCO, with nearly 30 years of rich experience, will be your ideal choice of partner. We have gained an excellent reputation for wood pellet industry expertise and have export wood pellet machinery to the UK, Australia, New Zealand, Serbia, Italy, Vietnam, Thailand, Korea, Bulgaria, South Africa, Ghana, Morocco, and many other countries. As a full-service company, we offer a complete solution from project planning, equipment manufacturing, on-site installation, and commissioning to operational training in a "one-stop-shop" approach. Our wood pellet making equipment is designed to increase productivity, reduce operating costs, and maximize your return on investment.

When you partner with GEMCO, you'll have access to best-in-class equipment, expertise, and a reliable support team to help you excel in the booming opportunities of the wood pellet market. Please feel free to contact our customer service team for more information on how to bring your wood pellet plant project to market successfully. We look forward to working with you to create a sustainable future!

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