Brazilian pellet exports rise in 2020
Brazilian wood pellet exports hit new highs in 2020, as deliveries to the UK nearly trebled and the number of export destinations rose.
Brazil exported 361,000t of wood pellets in 2020, up by 65.6pc on 2019. Fourth-quarter exports more than doubled on the year to 114,000t, and were up by 14pc on July-September. December exports totalled 25,000t, up by 8.7pc on the year.
Exports hit fresh highs for three of four quarters, with only April-June deliveries weaker on the year.
Export growth was underpinned by a rise in deliveries to the UK, following a sharp fall in 2019. Shipments to the UK rose to 187,000t in 2020, up from 64,000t a year earlier.
Brazilian producer Tanac operates a 400,000 t/yr facility in the south of the country and began delivering under a contract with UK utility Drax in October 2017, although these exports have never reached the full contracted volume.
Italy, the world's largest importer of residential-grade wood pellets, was the second-largest recipient of Brazilian cargoes in 2020. Fourth-quarter exports to Italy rose by 22.6pc on the year to 65,000t, while full-year 2020 exports grew by 11pc to 171,000t, as Brazil increased its premium wood pellet production capacity.
There were 13 operational EN plus pellet production facilities in Brazil at the end of 2020, up from 10 at the end of 2019. And Brazil widened its export portfolio, shipping pellets to 15 countries in 2020, compared with just eight in 2019.
Rio Grande was Brazil's busiest wood pellet export port in 2020, with throughputs of 192,000t, against 68,000t in 2019. The majority of exports from Rio Grande were destined for the UK.
Throughputs at Brazil's second-busiest pellet port, Sao Francisco do Sul, fell by 10.9pc to 114,000t.
Wood pellet handling at the port of Itajai in the state of Santa Catarina rose to 52,000t in 2020, up from just 9,000t in 2019.
The average fob Brazil wood pellet price fell by 5.3pc on the year to $154.86/t in 2020, and by 7.6pc on the year to $155.26 in the fourth quarter, as growth in industrial grade exports outpaced that of typically higher-priced EN plus material.
Related news posts
Taiwan's Taipower ends Hsinta biomass conversion plan
Taiwan's Taipower ends Hsinta biomass conversion plan
Singapore, 10 July (Argus) — Taiwanese state-owned utility Taipower has terminated its plan to convert a coal-fired generation unit into a dedicated biomass unit at its Hsinta power plant in Kaohsiung city. Taipower had set up a task force in 2022 to facilitate the usage of biomass by converting the fuel used at the Hsinta unit 1 from coal to wood pellets. But Taipower has decided to terminate the plan to follow "government instructions", it said. The four coal-fired units at the Hsinta power plant will remain "at readiness" in line with national security reasons, following government instructions, Taipower said. Taipower's related sectors will continue to evaluate suitable locations for the use of wood pellets, the company added. The plan to convert the 500MW coal-fired unit was in March pushed back to up to 2030 . The coal-fired unit was part of two units decommissioned in late 2023. The plant has a nameplate capacity of 4.3GW. The unit was planned to be converted by 2025, but this was subsequently delayed to 2027. Taiwan has already decided to stop building new coal-fired power plants by 2025 and build a zero-carbon fuel supply system, according to Taiwan's Pathway to Net Zero Emissions in 2050 report. Taiwan currently generates over 40pc of its electricity from coal, with its coal-fired power plants generating 119.9TWh out of a total 281.4TWh in 2023, according to data from Taiwan's energy bureau. The country imported 58.9mn t of thermal coal last year, down by 6.9pc from 2022. Taiwan imported 4.99mn t of thermal coal in May , little changed from a year earlier but up from 4.91mn t in April, preliminary data released by Taiwanese customs last month show. Taiwan bought 22.7mn t of imported thermal coal between January-May, slipping from 23mn t a year earlier. By Andrew Jones Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU’s centre-right EPP mulls Green Deal tweaks
EU’s centre-right EPP mulls Green Deal tweaks
Brussels, 3 July (Argus) — The European Parliament's largest group, the centre-right EPP, is working to complete the bulk of its strategy programme on 4 July at a meeting in Portugal. Key elements in the party's 2024-29 policy agenda include significant changes to the bloc's climate and energy policy for 2030. A draft of the five-point policy plan lists revising CO2 standards for new cars and vans to "allow for the use of alternative zero-emission fuels beyond 2035". The EPP also calls for a new e-fuel, biofuel and low-carbon fuel strategy "with targeted incentives and funding to accompany the EU hydrogen strategy". Additionally, the EPP wants the incoming European Commission to create a "single market for CO2" with a market-based framework for carbon capture and storage (CCS) and carbon capture and utilisation (CCU), through an accompanying legislative package similar to that adopted for the EU's gas and hydrogen markets. The strategy document discusses a "Green Growth Deal" aiming to achieve the EU's 55pc emission reduction target by 2030 — from 1990 levels — and climate neutrality by 2050, while boosting the EU's competitiveness and ensuring technological neutrality. The draft document emphasises the need to transition "away from fossil fuels towards clean energy", also by ramping up international hydrogen production. And the draft advocates for a "simple, technology-neutral, and pragmatic definition for low-carbon hydrogen" in upcoming technical legislation from the commission. More controversial points include postponing application of the EU's deforestation regulation and addressing problems related to its implementation. The EPP also wants to split the EU's industrial emissions directive into "industrial and agricultural parts", conduct a "full-scale" inquiry into why farmers are not receiving fair prices for their products, and require robust impact assessments for the economic viability of farms for any new animal welfare proposals. The group's members of parliament are meeting until 5 July. Commission president Ursula von der Leyen is also attending. She was [recently nominated](https://direct.argusmedia.com/newsandanalysis/article/25825320 by EU leaders for re-election. The EPP programme will significantly influence policy priorities that von der Leyen would support, if she is approved by an absolute majority of 361 votes at a session in Strasbourg on 15-18 July. But von der Leyen may need to drop more controversial points to secure a majority with liberal, centre-left and green support. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Fire-hit biomass plant in Japan to start up in 2025
Fire-hit biomass plant in Japan to start up in 2025
Tokyo, 3 July (Argus) — Japan's 75MW Sodegaura biomass-fired power plant, operated by Osaka Gas, will begin commercial operations around April-September 2025, following delays caused by a silo fire in January 2023. The fire at the Sodegaura plant in Chiba prefecture happened during test runs, and Osaka Gas said on 3 July that the cause was the combustion of wood pellets stored for more than six months in two silos. The company has now put in place measures to reduce the risk of fires, including a nitrogen injection system that can prevent temperature increases. Other measures include bringing pellets out of silos to lower their temperature every three months or so, with the exact duration depending on the season and other conditions. The plant was initially supposed to begin commercial operations by the end of February 2023, but start-up was delayed by the fire. Osaka Gas only managed to put the fire out completely in May 2023. The company finished removing all remaining pellets from the silos in April this year — the pellets had absorbed sprayed water and swelled. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
New Dutch government clarifies energy policies
New Dutch government clarifies energy policies
London, 2 July (Argus) — The Dutch king today formally confirmed the new right-wing cabinet under prime minister Dick Schoof, ending a seven-month coalition negotiation since the parliamentary elections in November. Lengthy coalition talks between election winner Geert Wilders of the far-right populist PVV, the centre-right New Social Contract (NSC) party under Pieter Omtzigt, incumbent centre-right party VVD and farmer's citizen movement BBB were only concluded on the basis that Wilders would not become prime minister. Instead, all parties confirmed former civil servant Schoof as prime minister in late May. The PVV secured the most seats in elections in November 2023 and had proposed far-reaching changes to energy policy in its election manifesto, which focused on abolishing decarbonisation targets. But many of these proposals would have run counter to binding EU policy and legislation, and the more moderate coalition partners NSC and VVD may have contributed to softening those ambitions in the energy sector. The initial coalition agreement between the parties published in May shows energy and climate policy roughly in line with the outgoing government, albeit with a stronger focus on domestic security of supply and scaling back some climate policies that were in advance of European policy. The new government plans to split the ministry for economic affairs and climate into two, although the ministry for economic affairs retains the directorates for climate and energy as well as Groningen and extractive industries. The position of state secretary for mining, formerly held by Hans Vijlbrief, has been cut from the ministry. And a new ministry for climate and green growth has been formed, although both ministries share the same general secretary, civil servant Sandor Gaastra. The new economy minister Dirk Beljaarts (PVV) said today he would focus on a "stable, predictable business climate" to allow businesses to "count on government". The climate and green growth minister will be Sophie Hermans, previously parliamentary leader of the outgoing prime minister's party VVD, which may indicate greater alignment with the outgoing government's policies in this area. The new climate and green growth ministry oversees only one civil service directorate, on financial-economic affairs, which is also part of the economy ministry. Outgoing climate and energy minister Rob Jetten encouraged Hermans to "continue on the green course" started in the last government, highlighting the independence from Russian gas and continued investments into renewables and insulation as large achievements of the outgoing government. By Till Stehr Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more