Today: 06/12/2023 17:51:00 (GMT+7)

Thriving wood pellet production for export

(BGO) – The Russia – Ukraine conflict causes high demand for wood pellet as the production material and heating fuel, helping boost up the consumption and production of wood processing products from planted forest in Vietnam and Bac Giang.

Wood waste is enthroned

Recently, the furniture manufacturing and wood processing facilities have had more orders because all wood wastes are bought at high price as the fuel for industrial boiler and material for wood pellet production for export.

Thriving wood pellet production, export demand, Bac Giang province, wood processing industry, high demand, production material, heating fuel

The wood processing facility of Nguyen Duc Song operates at maximum capacity.

Nghiem Van Muoi, Director of Hung Muoi Company Limited in Nam Duong commune (Luc Ngan district) said the wood waste from wood peeling industry can reach over 40 percent which used to be burned or burried causing economic loss and environmental pollution in the past. However, it has been recycled and sold at 400,000 to over 500,000 VND (17 – 21 USD) per tonnes. This amount helps the business keep the operation and extend the production.

In October 2022, Nguyen Duc Song in Nua Quan village, Dao My commune (Lang Giang district) invested over 3 billion VND in wood processing facility in Bo Man village, Huong Vi commune (Yen The district). Under maximum capacity, his two facilities can consume about 3,750 tonnes of material acacia woods with total waste of over 600 tonnes per month.

“All the wood waste were burned previously but now I can earn 240 million VND more each month from buying it. This amount is big enough for me to pay salary for worker and save the waste burning cost,” Song said.

To take advantage of the wood waste, in 2022 Nguyen Van Duc in Bo Man village invested over 2 billion VND in wood waste processing factory then linked with the wood processing facility of Nguyen Duc Song to buy the waste. Currently, his factory consumes and supplies 50 tonnes of wood waste to several industrial garment companies in Bac Ninh and Thai Nguyen province.

Risk of environmental pollution and fire

Bac Giang now has 992 forestry processing facilities mostly from domestic planted wood to produce peeled board, woodchip, plywood, coppha and household furniture.

Thriving wood pellet production, export demand, Bac Giang province, wood processing industry, high demand, production material, heating fuel

The wood pellet production line of Huarong Industry Company Limited.

In 2022, the province exploited over 1 million cubic meters of wood which was equivalent to 1.2 million of tonnes and huge quantity of wood waste. Sometimes, this kind of side product was bought at 550,00 VND per tonnes, accounting for 40 percent of material acacia wood.

Because of the smooth export of wood pellet with high profit, many producing factories have mushrooms in Bac Giang. The Department of Planning and Investment informed that the province has 5 projects to build fuel wood pellet factories (under construction and operation) with total productivity of over 100,000 tonnes per year.

The export value of wood pellet continuously grew from 145 million USD in 2017 to over 500 million USD in 2022. The wood pellet market is considered “hot growth” because severe Russia – Ukraine conflict and cold winter in European countries cause high demand of heating fuel.

Moreover, Republic of Korean and Japan (making up over 90 percent of wood pellet from Vietnam) also increase the demand for the product.

The thriving production of wood pellet helped recycle the waste in wood processing industry, protect the environment, create added value for export turnover. However, the state management organizations highly recommended the investor and business to avoid the risk in this field.

Many facilities took advantages of backward production line, leading to environment pollution. Also, the huge outdoor gathering of wood waste raise high risk of fire.

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Thriving wood pellet production, export demand, Bac Giang province, wood processing industry, high demand, production material, heating fuel
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