The last decade has seen wood pellets emerge as a serious contributor to the heating fuels market, particularly in Europe as well as the US. Sweden was the first country to really move forward by means of wood pellets in a major way. The government put serious investment into establishing biomass pellet plants around the country taking advantage of the huge volumes of sawdust from one of the major industry in Sweden, timber processing. From Sweden’s instance, other European countries followed, along by means of the US. The true benefits of pellet plants to bring economic development are still not fully realised, as smaller more localized plants create more economic sense. As wood pellet energy is now reaching a wide sufficient appeal, more small scale pellet plants will be set-up to meet local market demand. One of the biggest obstacles to proficient pellet production while maintaining a profit margin is shipping, both in the sense of raw material and the finished product. More localized small scale pellet plants can help generate local jobs in addition to cheap energy.

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The reason haulage plays such a crucial role in pellet fuel construction as it effects the costs of construction, possible profits plus also the credibility of pellet fuel as a green fuel. Due to fuels such as bio-ethanol in addition to bio-diesel are now used, most transport still relies on standard, in addition to expensive gasoline. The high price of this energy means haulage costs can be very high. Therefore having large pellet plants which have to have large quantities of raw material transported to the factory is very costly. Large pellet plants as biomass pellet fuel is still a relatively small market, then have to search further a field to find customers. To then transportation the finished pellet to a customer over a long distance also costs a significant amount of money. If all of this charge is passed onto the consumer, it will be difficult to be fee competitive with pellet plants closer to the customer. Finally as shipping still relies on fossil fuels, increased shipping means increased carbon emissions. This therefore increases the carbon footprint of the wood pellet construction process.

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Pellet plants make different grades of pellet fuel for dissimilar consumer markets. One grade is focused more on the residential market, by supplementary pellets focused more on industrial wood burning systems. Presently the residential market is predominately interested in pellet fuels which can offer them similar levels of convenience that their previous gas or oil based heating system offered them. The lower ash percentage of premium grade pellet fuel, though more expensive, serves the majority of the residential market. Industrial customers are more interested in the higher ash but cheaper energy pellets. Depending on the type of wood matter that is to be processed at pellet plants, this will dictate the appropriate pellet mill for the application. For unlike materials the pellet mill may call for to operate a different speeds. For case in point for softer material the pellet mill can operate at higher rotation speeds.

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