Investing Wood Pelletizing Business in Indonesia

Wood pellets are a kind of biofuel made of compressed wood. The production sources for wood pellets mainly include sawdust, wood chips, forestry residues, waster paper and forestry waste. Wood pellets have excellent waste utilization and renewable quality of raw material. As a new type of biofuel, wood pellet has been highly valued by many governments, coupled with the vigorous promotion of environmental protection projects in recent years, the market demand for wood pellets is also rising rapidly. (Read more: How to Make Wood Pellets from Sawdust?)

investing biomass wood pelletizing business in Indonesia
Starting Wood Pellets Manufacturing Business in Indonesia

Indonesia is rich in biomass raw materials. It has a large forestry industry, is one of the world's largest exporters of wood products, and is the world's leading producer and exporter of palm oil and palm husk. Japan and South Korea import large amounts of biomass feedstock from Indonesia each year for power generation. Despite its great biomass potential, Indonesia has only a small fraction of its installed biomass capacity and much of its potential remains untapped. To phase out coal-fired power plants, Indonesia is looking for technology and investors worldwide to work together to develop biomass projects. (Read more: Biomass Pellet Project Cost >>)

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Business Analysis: Invest Wood Pellet Plant in Indonesia

  • Demands in Wood Pellets Applications

Wood pellets are mainly used in the fields of power generation, industrial furnace and civil use. Among them, the demand for wood pellets in power generation accounts for the largest share, up to more than 50%; followed by the civil sector, with a demand share of more than 20%. In the global market, with the increasing downstream demand, especially the scale of biomass energy power generation industry is growing year by year, the wood pellet market is developing rapidly, and the market size is expected to reach more than USD 4.5 billion by 2022, and the product sales volume will also break through to 30.5 billion tons.

  • Demands in Different Regions

The global production of wood pellets is mainly concentrated in Europe, North America, China and other countries and regions, of which North America (including Canada and the United States) is the largest wood pellet production region, with a production ratio of more than 45%; followed by Europe, with a market share of about 35%. In terms of consumption, Europe has become the world's largest wood pellet consumption market, and in many countries and regions such as the UK, France, Germany and Italy. Wood pellets have been widely used in industrial heating, residential and other fields, and the market penetration is at a high level. However, in contrast, in Asia, Indonesia, Malaysia, Vietnam and other countries as the main output countries of wood, wood pellets market sales are always at a low level, and in the future, driven by the European market and the domestic application demand, there is still a large development potential. (Read more: 1TPH Complete Wood Pelleting Plant in Italy >>)

  • Supply in Raw Materials

In recent years, with the expanding domestic and international market demand, many countries in the world have increased the investment in the wood pelletizing business. As a major timber producing country, Indonesia's log production, wood products production, and non-wood forest products production increased in the first half of 2021 compared to the same period in 2020, which also provided relatively sufficient production raw materials for the wood pellet production. (Read more: Wood Pellet Machines for Sale >>)

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  • Wood Pellet Manufacturers

In the global scope, there are a number of enterprises engaged in wood pellet production, including a number of large wood chip pellet suppliers such as Enviva, Pinnacle, DEVOTION, PFEIFER, Rentech, RWE, Pinnacle, Protocol Energy and so on. In the Indonesian market, although many excellent domestic wood pellet producers have emerged, they are still in a weaker position in terms of popularity and market competition, which also provides favorable conditions for foreign enterprises to enter into the Indonesian market. And there are also many wood pellet machine manufacturer in the market that can provide reliable and efficient wood pelletizing machinery for your biomass wood pellet making business in Indonesia. 

  • Investment Environment

Indonesian market analysts say that wood pellets, as waste wood, are applied as biofuel, which not only solves the waste of resources, but also can meet the demand of energy consumption in various countries, so the application demand is high in the world. In the Asia-Pacific region represented by Indonesia, although it is the main export region of wood, it does not pay much attention to the development of wood pellet industry, and the domestic market sales and demand are low. In the future, driven by the North American and European markets, the Asia-Pacific region is expected to become the main driving force for the development of the wood pellet industry, and the investment potential of the Indonesian market is also quite huge.

Biomass Pellet Wood Pellet Plant Supplier

ABC Machinery, as a leading biomass processing machine supplier, can provide complete solutions for your biomass pellet business in Indonesia. We have rich experiences in biomass pelletizing sector and we have helped our customers to set up highly efficient biomass pellet plant projects in many regions, like South Korea, Japan, Thailand, Vietnam, Malaysia, Pakistan, Portugal, Italy, Serbia, Chile, Peru, ect. Importantly, we have a team of engineers who is specialized in providing biomass pelletizing plant for Indonesia Market and would visit our customers in Indonesia regularly. If you are interested in, just contact us any time!

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