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Pellet Mill Canada Is Worthy Much Investment

Canada Requires High Wood Pellets Demand

It was reported that the Canadian federal government has planned to phase out the use of coal by 2030 as part of its overall clean energy strategy. Biomass wood pellets, as one kind of renewable resource, meets the plan of Canada government. As a country with rich forest resources, Canada is huge, and some of that rising demand can be met. Then many coal boilers can be converted to use wood pellets. (Read more: 2TPH Wood Pellet Plant in Australia >>)

Biomass Wood Pellets
Biomass Wood Pellets Produced by Wood Pellet Mill

Wood Pellet Market Over the World 

Globally, the production and demand for wood pellets are still growing. And the worldwide market for industrial wood pellets will continue to rise at 2.7 MMT per year until 2025, according to forecasts. At the same time, wood pellets are also in high demand in Canadian markets. The wood pellet market in Canada focuses on exports, with high production and export capacities well over domestic demand. Over the last few years, the United Kingdom and Japan have driven the growth of demand for Canadian wood pellets to extend their use of renewable energy in heating and power plants. Government expenditure on renewable energy in this field is anticipated to drive high potential market growth. (Related post: Pellet Mill UK >>)

Why Use Wood Pellets as Fuel? 

Amount of heating generation (lower limit)
4.7 kWh/kg = about4,000 kcal/kg
Kerosene conversion value
pellet:kerosene = about2.1tons:1m3
Volume weight
650 kg/m3
Hydrous rate
wood except bark: under 0.5%, bark: over 2.5%

The table above is the characteristcis of wood pellets produced by wood pellet making equipment. Wood pellets are among the most common types of biomass energy used worldwide. Generally, they are made from sawmilling and other agricultural waste. For decades now, the wood pellets were commonly used for heating and as fuel substitutes. Nevertheless, for decreasing fossil resources and rising fossil prices, the wood pellet markets have experienced a dramatic increase in global markets in recent years. (Read more: Feasibility of Industrial Wood Pellet Production >>)


how to start your own production line with best business plan

Customized Pellet Mill for Sale Canada

In today's market, there are two types of wood pellet machines that are popular around the world, one is Flat Die Pellet Machine for household or small scale wood pellet production line, and the other is Ring Die Pellet Mill that is designed for medium and large scale wood pellet production. 

Flat Die Pellet Mill Small Type
Flat Die Pellet Machine on Hot Sale
Small Scale Wood Pellet Machines Plant
Small Scale Wood Pellet Machines Plant
Ring Die Pellet Mill - Large Type
Ring Die Pellet Mill  for Sale at Factory Price
Large Scale Wood Pellet Production Line
Large Scale Wood Pellet Production Line

As the professional wood pellet equipment manufacturer, GEMCO Energy not only offers the single wood pellet machines for sale, but also provides complete wood pellet production solutions from plan making to equipment manufacturing, installation and debugging etc.

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Complete Wood Pellet Mill Production Video

We provide turnkey project service to help you set up your own wood pellet mill plant in Canada at low cost. Although there are many pellet mill manufacturers in Canada, more and more business investors and pellet mill owners tend to choose to buy pellet mill machines from China due to the high quality and relatively low price! Welcome to contact us for more information!

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Is Pellet Mill Canada Worthy the Investment?

Wood Pellets Consumption in Canada

As early as 2014, more than 51 factories were built in Canada, and the total annual capacity is 5,674.00 millions. Even though the productivity is so large, it is still far from enough.

Wood Pellet Mill Industry in Canada

  • Domestic Consumption 

The current domestic pellet consumption is calculated at 300,000t/year, which is used in residential heating furnaces and the Atikokan power station in Ontario. Wood pellets have become one kind of fuel source because the cost of primary fuels like coal, gas and petrol increases and people’s concern about global climate change. But in fact, Canada and the US have not yet developed enough consumer awareness. Besides, there are not enough sophisticated appliances or incentive programs to encourage customer demand. As a result, they have fewer users of wood pellets for heating than European market.

  • Export Market 

The main markets for wood pellets produced in Canada are overseas (large) thermal power plants in Europe (including the United Kingdom and Belgium, etc.) and Asia (including Japan and South Korea) and the residential heating market in the United States. Since European market has greater demand for wood pellets than supply, Canada and the United States mainly export wood pellets to European countries. The pellets exported to Europe are used for residential, institutional and co-generation purposes. It is reported that North American wood pellets exports to Europe have doubled in the past 2 years (2012 and 2013). The North America wood pellet export in 201 was 800,000 tons, while it was 2.9 million tons in 2013 according to research data. This data is estimated to have a great increase in the following years.


Wood Pellet Mill Industry Development in Canada

wood pellets export Canada and USA

From the table above, we can see that Canadian wood pellet production has achieved a linear growth of an average 12% annual rise from 2013 to 2017. It continued to climb to 71% in 2017.Canada produced 800,000 tons of wood pellets as early as in 2006 and 1.4 million tons in 2009, based on statistics provided by the Wood Pellets Association of Canada. 

Wood Pellet Maker Machinery for Sale
Wood Pellet Maker Machinery for Sale

The overall processing potential of Canadian wood pellets was around 2,931,000 tonnes, with much of the wood pellets being shipped to Europe and other countries. And the total capacity of 40 plants to produce wood pellets over 2. 9 million tons earlier on February 1, 2012. As early as in 2012, the US is the largest exporter and has surpassed Canada.

Wood Pellet Mill Future in Canada

  • According to the report from the Wood Pellets Association of Canada, certain measures were taken to guarantee that the European markets remain open to Canadian wood pellets. In the meantime, Canada's pellets will have larger foreign markets for the trade of wood pellets as demand for wood pellets is increasing in Korea and Japan. 

  • Moreover, a number of new pellets from Canada have expressed their plans to export pellets, all of which demonstrate that wood pellets are being exported from Canada in due course. Canada currently has a capacity of 4.66 MMTs, but several projects are underway, anticipated to expand by 2020. (Read more: 2TPH Wood Pellet Plant in Australia >>)

Successful Wood Pellet Maker Projects Around the World
Successful Wood Pellet Maker Projects Around the World
  • Aurora Wood Pellets proposes the construction, in the south end of Great Slave Lake in the North-west Territories since 2015, of a 200,000-ton capacity wood pellet processing plant on Hay River. Construction is currently underway while approvals from the local administrative authority Hamlet of Enterprise are received. Northern Energy Solutions Ltd in Miramichi, New Brunswick, is also planning another pellet factory. The plan will expand the existing Miramichi Wood Pellet Plant by 2021 to 275.000 MT.

From the three condition of analysis of wood pellet mill of Canada, we can clearly see that there is already a great demand for Canada's wood pellets. To meet the vast markets for wood pellets in Canada, related wood pellet manufacturing equipment are necessary for the production of high-quality wood pellets. If you have interest in building your wood pellet production line, you can contact us for more information!

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Starting Wood Pellet Production Plant Projects in Canada

Although wood pellets are only a niche market of the Canadian heating system for the domestic pellet market in Canada, approximately 1 percent, during recent years, domestic consumption has remained weak due to a lack of favorable energy policies for biomass and consumer awareness. Per year, Canada still uses 60 million tonnes. Still, by Sept 2012, the new carbon emissions regulation was introduced, which required a decrease in the emission of caps, and potential Pellets used by 2019 were approximately 4.4 million tons.

Complete Wood Pllet Mill Setup in Canada
Complete Wood Pllet Mill Setup in Canada

Starting a wood pellet business by setting up  a biomass pellet plant would be profitable in Canada due to the increasing market demands. What factors should be taken into consideration when you are planning to build up a complete wood pellet mill plant? In general, wood pellet makers, factory layout design, investment capitals, water and electricity, staff and pellet mill manufacturer are more important factors related to the success of your wood pellet business.

Choosing Reliable Wood Pellet Mill  Manufacturer---GEMCO Energy

As a leading manufacturer of wood pellet mills in China, GEMCO has a mature team that focuses on the designing, manufacturing and after-sale services. Our engineers have accumulated sufficient experiences and knowledge in the installation and commissioning of wood pellet mill plants. Both our flat die pellet maker and ring die pellet mill are well recognized by our customers around the world. (Related Post: GEMCO Pellet Machine Price >>)

Wood Pellet Production Plant Projects

Complete Wood Pellet Making Line Built by GEMCO Energy

GEMCO has built turnkey projects of wood pellet plant in Russia, Morocco, Canada, United States, Australia, New Zealand, Uzbekistan, United Kingdom and more. If you are interested in setting up a wood pellet production plant in Canada and have no ideas how to achieve it, just contact us directly. We can provide customized plans for fac tory layout design, equipment selection and manufacturing, project installation and commissioning and operators training. We are always at your side!

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