Introduction to the current situation of the biomass particle industry
As one of the earliest companies in China to enter the biomass particle production industry, our company has witnessed the ups and downs, prosperity, and awkwardness of the biomass particle industry over the years.
In 2008, the first 5-ton sawdust dryer designed and manufactured by our company was installed and commissioned in Fushun, Liaoning Province, and put into operation. At that time, the sawdust particle industry was an emerging industry in China. Our company's HYG series multi ring drum dryer had excellent performance, stable production, and received praise from the using company. Both parties established lasting trust and friendship.
In 2008, granular raw materials were a by-product of wood processing, and the cost of raw materials was very low. The produced granules were exported to Europe, Japan, South Korea and many other countries because of the high quality of raw materials in the raw material producing area, and the imported granulator was used as the granulator. The profit is considerable, and in the early years, the production enterprises of sawdust particles had a very good life, with low raw material costs, good sales markets and prices. Since 2008, the country has implemented corresponding subsidy policies, which have also brought more profits to the production enterprises. However, with the development of the sawdust particle industry, the cost of raw materials is getting higher and higher. Due to the low cost threshold for investment and factory establishment in the particle industry, more and more enterprises are entering the particle industry, and the prices of raw materials are constantly rising. Of course, there are many reasons for the increase in raw material prices. Overall, raw materials are becoming more expensive, and production costs are getting higher. At the same time, the price of domestic particles has dropped from the peak of 1300 yuan/ton to 800 yuan/ton, and in some regions, the price is even lower than 700 yuan/ton. Further reducing profit margins, the quality of raw materials cannot be guaranteed for the sake of production, and the quality of particles is gradually decreasing. Many factories are unable to meet the export European standards for the quality of particles produced. Profits have decreased, state subsidies have decreased or even withdrawn, making life increasingly difficult for related particle factories. Many small factories and even some large-scale factories have stopped production because they are not profitable.
The sawdust particle industry is very awkward. On the one hand, the Ministry of Environmental Protection of the People's Republic of China says that solid biomass formed energy such as sawdust particles is renewable energy and zero carbon emissions, which needs to be vigorously supported. On the one hand, it actually indicates that sawdust particles are not clean energy and are restricted in many regions. The relevant policies and regulations, as well as the classification of types, have not been clearly identified for many years, and the standards in different regions are completely different. Especially in the past two years, environmental protection issues have become prominent, and environmental protection bureaus in various regions have gradually tightened their requirements. Many regions have explicitly stated that biomass particles do not belong to clean energy and are prohibited from use. In April 2017, the Ministry of Environmental Protection just issued a list of highly polluting fuels, and biomass particles were finally removed from Class 1 and Class 2 zones and placed in Class 3 zones, but they still do not belong to clean energy. Alternatively, local environmental protection bureaus still do not have clear instructions that biomass particles can be used as energy in areas with strict environmental requirements. This seriously affects market expectations, and if there are no users or the market is limited by environmental regulations, it is very unfavorable for the development of the biomass energy industry.
The variety of biomass particles is very complex, and their raw materials come from various biomass powders such as sawdust, straw, and rice husk. One type represents the best pure sawdust raw material, with a high ignition value of 3800-4300kcal/kg and a low ash content of>1%, suitable for use as fuel in various furnaces. Another type, such as straw particles, has a low ignition value of 2500-3400kcal/kg and a high ash content (rice husk ash content of up to 16%, which is prone to coking), making them unsuitable for small furnaces as fuel. The selling prices of particles from different types of raw materials vary greatly, but the processing costs are almost the same, with prices even doubling. Biomass particles, which are afraid of moisture and have a small stacking density of 0.6t/m3, require a large amount of space and suitable storage methods for large-scale storage. They were first sold to ordinary residential consumers in Europe and could be sold at higher prices. In China, some particles of materials cannot be burned in small stoves and cause severe coking. Ordinary people cannot afford to consume high-quality particles, and except for a few areas with strict environmental requirements, environmental protection rarely focuses on civilian coal, almost blocking retail channels. Storage, stable supply, cost of use, and environmental requirements in industrial use face multiple challenges, which is very embarrassing for the biomass market.
I hope that in the future, the country will introduce specific policies and regulations to regulate the biomass energy industry, giving biomass enterprises a clear sky and a prosperous future.
