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Vietnam's Energy Market

VIETNAM WOOD PELLETS – A RENEWABLE SOURCE OF ENERGY

by Viego Blog 5 October, 2024
5 October, 2024 1554 views

Vietnam wood pellet industry has emerged as a significant player in the global renewable energy market. Wood pellets, made from compressed sawdust and wood waste, serve as a sustainable alternative to fossil fuels.  This eco-friendly fuel is gaining popularity for its cost-effectiveness, sustainability, and versatility, making Vietnam a key supplier in the global green energy movement. In this article, we will learn more about the Vietnam Wood Pellets.

What is Wood Pellet

Wood pellets are a renewable energy source made from various wood industry waste byproducts, such as branches, treetops, sawdust, and shavings. These materials are compressed under high pressure into pellet form. Once cooled, the finished pellets are packed into large sacks and stored, ready for shipment. The majority of wood pellets produced in Vietnam are exported, and the country has now become the world’s second-largest producer, following the United States.

Vietnam has advantages in producing wood pellets

Applications of wood pellets

Residential Heating/Domestic Heating
Wood pellets are an excellent fuel choice for homeowners due to their high combustion efficiency, ease of storage, and cost-effectiveness. They are commonly used in pellet stoves, boilers, and furnaces, providing consistent warmth while reducing dependency on fossil fuels.

Wood pellets are an excellent choice for residential heating

Power Generation
Wood pellets serve as fuel for thermal power plants and biomass gasification power generation. Biomass power plants burn wood pellets to produce steam, which drives turbines to generate electricity. This renewable energy source helps decrease reliance on fossil fuels and lowers greenhouse gas emissions.

Biomass Industrial Boilers
Wood pellets are widely used as the primary fuel in industrial boilers, replacing coal, heavy oil, and natural gas, which contributes to a reduction in air pollution. Additionally, wood pellets are free of sulfur and phosphorus, which helps reduce corrosion and extends the lifespan of boilers.

Animal Bedding
Wood pellets are used for comfortable and moisture-controlling animal bedding. Their high absorbency makes them an ideal bedding material for animals such as horses, poultry, and small pets. By absorbing moisture and controlling odors, wood pellets create a cleaner and healthier environment in animal stalls.

Vietnam Wood Pellet Biomass Market

The majority of wood pellets produced in Vietnam are exported, with over 95% of the total export volume going to South Korea and Japan, where they are primarily used as fuel for power generation. A small portion is used domestically in Vietnam for fueling boilers, kilns, and similar applications.

According to the General Department of Forestry in 2019 and the Vietnam Timber and Forest Products Association (VIFOREST), Vietnam has around 80 pellet factories, with a total production capacity of nearly 4.5 million tons. These factories are mainly located in the Southeast region, followed by the Northeast region.

In 2023, Vietnam exported wood pellets to 22 countries and territories, with South Korea and Japan being the largest markets. Exports to these two countries accounted for 96.6% of the total volume and 96% of the export value. The European Union was the third-largest importer, receiving 155.11 thousand tons of wood pellets worth $25.91 million, making up 3.3% of the volume and 3.8% of the value. Other export destinations included Taiwan (China) and several other markets.

Does Vietnam have wood pellets certified with FSC?

Yes, Vietnam wood pellets are certified with FSC (Forest Stewardship Council) for certain export markets. Specifically, wood pellets shipped to Japan must be produced from FSC-certified domestic plantation timber. This raw material is commonly sourced from extensive plantation forests, particularly in the Central and Northern regions of Vietnam.

Vietnam Common Wood Pellet Types

Wood pellets are made from various tree species, such as acacia, eucalyptus, rubber, and pine. Listed below are some of the common types of wood pellets produced in Vietnam:

General Specification of Wood Pellets

– Diameter: 8mm
– Length: Up to 40mm
– Moisture content: Maximum 10%
– Ash content: Maximum 3%
– Calorific value: Minimum 4000 kcal

Rubber wood pellet

Rubber wood pellets are made from rubberwood, a renewable resource sourced from rubber tree plantations. 

Rubber wood pellets from Vietnam. Source: Viego Global

Acacia wood pellet

Acacia wood pellets are produced from acacia trees, commonly found in Vietnam’s plantation forests.

Acacia wood pellets from Vietnam. Source: Viego Global

Mixed wood pellet

Mixed wood pellets are crafted from a blend of different types of wood, including species such as acacia, eucalyptus, rubber, and pine. This combination enhances the pellets’ combustion efficiency and energy output. Mixed wood pellets are versatile and suitable for various application. Their balanced properties make them an attractive option for both local and export markets, providing a sustainable and eco-friendly fuel source.

Mixed wood pellets from Vietnam. Source: Viego Global

Viego Global – Your trusted sourcing partner in Vietnam

Given that Vietnam has big capacity of wood pellets, it is not easy to find a trustworthy wood pellets supplier to work with, however. Let’s answer the questions below before conducting your sourcing:

  • Are you going to import wood pellets from Vietnam?
  • Are you finding a Vietnamese trusted supplier for wood pellets?
  • Are you finding Vietnamese wood pellets source of supply with high quality and competitive price?

If your answer is yes for all, please feel free to contact us at Whatsapp line +84 56 264 6315 or email hello@viegoglobal.com

Being present at the economic centre of Vietnam, Viego Global can greatly help you professionally source and execute order, providing maximum benefits to our clients in terms of delivering a wide range of products at the best competitive pricing. Please contact us HERE for further support about Vietnam Wood Pellets – A Renewable Source Of Energy.

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