China 2024 Biomass Pellet Mill Industry Development Status and Trends

Biomass pellet is a new type of clean fuel that can be burned directly by utilizing agricultural waste as raw material and made into granular form through the process of crushing, mixing, drying and extruding. The biomass pellet mill industry has experienced rapid development and change since its inception in China in 2006. The development of this industry is not only driven by the national environmental protection policy, but also closely linked with the market demand for efficient and environmentally friendly energy. With the increasing pressure on environmental protection and the continuous consumption of non-renewable energy, biomass pellets have become one of the key development areas of the future energy industry. China's biomass pellet production mainly meets the domestic market consumption and a small portion of exports. 2023 China's biomass pellet industry production is 8.18 million tons, exports 25,000 tons.

 

Biomass power generation is an important field of biomass pellet application. In recent years, although biomass power generation is not as notable as photovoltaic power generation and wind power generation, China is actually developing in biomass power generation.In the first quarter of 2024, the country's biomass power generation added 630,000 kilowatts of new installations, and the cumulative installations amounted to 44,770,000 kilowatts, a year-on-year increase of 7%. Biomass power generation amounted to 51.8 billion kWh, up 6% year-on-year. In the context of the national energy saving and emission reduction policies continue to strengthen, the biomass pellet market continues to expand, good prospects to attract many domestic and foreign enterprises to join the market competition.

 

First, the main characteristics of the biomass pellet industry

Competition pattern is gradually clear:

In the initial stage of biomass pellet mill industry, due to the relatively low technical threshold, a large number of small and low-end manufacturers emerged in the market. However, with the development of the industry, some enterprises have gradually formed competitiveness and taken the leading position in the industry through technological innovation and brand accumulation. These enterprises have not only made remarkable achievements in the domestic market, but also gradually expanded to the international market.

Regional distribution is relatively centralized:

From the point of view of geographical distribution, biomass pellet mill equipment manufacturers are mainly concentrated in Shandong, Jiangsu, Zhejiang and Shanghai. The number of enterprises in these regions accounts for nearly half of the total number of the country, forming a more obvious industrial agglomeration effect. Manufacturers in these regions have their own characteristics in technology, quality and market positioning, such as Shandong's Lu system of enterprises focus on practicality and price advantage, Jiangsu and Shanghai's Suzhou-Shanghai system of enterprises pay more attention to quality and appearance.

Gradual maturity of technology:

The development of biomass pellet mill technology has gone through the stage of introduction, digestion and absorption to independent innovation. Early biomass pellet mill is mostly evolved from feed pellet mill, through continuous technical improvement and innovation, the reliability, output and quality of the equipment have been significantly improved. At present, the domestic biomass pellet mill technology has been relatively mature, and some high-end equipment has the strength to compete with international advanced products.

Market demand continues to grow:

With the increasing national efforts to combat air pollution and environmental protection, biomass energy, as an important part of clean energy, has received widespread attention and application. As an important form of biomass energy, biomass pellets have the advantages of high calorific value, low cost, and less polluting components after combustion, and the market demand continues to grow. This provides a broad market space for the development of biomass pellet mill industry.

--> Working Principle of Pellet Mill and Pellet Plant

Second, the development trend of biomass pellet mill industry

Technological innovation and industrial upgrading:

With the continuous development of the market and the intensification of competition, biomass pellet mill enterprises need to continuously carry out technological innovation and industrial upgrading in order to improve the quality and performance of products. In the future, biomass pellet mill will pay more attention to the development of intelligence, automation and integration to meet the user's demand for high efficiency, energy saving and environmental protection.

Market expansion and internationalization:

With the gradual saturation of the domestic market, biomass pellet mill enterprises need to actively expand the international market. By participating in international competition, enterprises can not only improve the quality and performance of their products, but also understand the needs and trends of the international market, which will provide strong support for the future development of the enterprise.

Industry chain integration and synergistic development:

The development of biomass pellet mill industry needs the synergistic cooperation of upstream and downstream enterprises in the industry chain. In the future, biomass pellet mill enterprises will pay more attention to the cooperation and win-win situation with raw material suppliers, biomass fuel producers and end users, and improve the competitiveness of the whole industry chain through industry chain integration and synergistic development.

Policy support and regulatory guidance:

National support policies for the biomass energy industry will continue to promote the development of the biomass pellet mill industry. In the future, the government will introduce more specific support policies, including tax incentives, government subsidies, user grants, etc., to encourage the application and promotion of biomass energy. At the same time, the government will also strengthen the formulation of industry regulations and bylaws to standardize the process of industry development and achieve rapid development.

To sum up, as China formally integrates the goals of peak carbon dioxide emissions and carbon neutrality into the grand blueprint of economic and social development and ecological civilization construction, the biomass energy and materials industry has ushered in an unprecedented historic opportunity. In this context, the biomass pellet plant industry shows broad prospects for development and deep market potential, the rapid changes in technology and the continued expansion of the market, together with the industry will usher in a more brilliant and bright future.