Wood pellets are usually made from compressed sawdust and wood shavings. However, they can be made from most biomass material (e.g. straw, forestry residues, specially grown energy crops etc.) and hence have the potential to be sourced from locally unused material, which can then give considerable benefit to the local economy.
Wood pellets are now a major fuel source used in many parts of Europe (Sweden, Austria, Norway, Germany, Denmark, France) as well as in the US and Canada. Wood pellets are made to a strict standard in terms of size, moisture content and energy density. This is a major advantage over the main biomass alternative, wood chips, which can vary significantly in size and moisture content between suppliers and from batch to batch. The low moisture content of wood pellets also reduces the relative cost of fuel transportation since less water is present, and they are easier to transport and store than wood chips.
Wood pellets improve the economics of biomass fuel transportation. A 20m3 trailer/lorry will contain about 12-13 tonnes of wood pellets with about three times as much energy as the same trailer with wood chips. The market value for wood pellets is likely to settle at around 80-90% of the price of heating oil for the same energy, perhaps £70-80/tonne. Therefore, the 20m3 trailer/lorry of wood pellets will have a commercial value of £900-£1000. Check the fuel cost comparator for typical current prices.
Wood Energy Ltd, Registered in England and Wales, Company No. 04269709 Registered address: Wood Energy Ltd, Pinkworthy Barn, Oakford, Tiverton, Devon EX16 9EU Tel: +44 (0) 845 070 7338, Fax: +44 (0) 845 070 7339