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Wood Pellets


The World’s Most Preferred Biomass Fuel


Wood pellets are becoming the most popular biomass fuel worldwide. Grand View Research predicts the global wood pellet market will reach $17.33 billion by 2027, with a CAGR of 6.85% from 2022 to 2027. Many wood pellets are exported to Europe, South Korea, and Japan. Domestic manufacturers must meet strict requirements from partners. Thuận Hải will explain these standards.

1. What Are Wood Pellets?

Wood pellets, also known as sawdust pellets, are a popular biomass fuel made from 100% natural wood like wood chips, tree trunks, and sawdust, without any additives. These are leftover materials from lumber and agricultural products.

Wood Pellets

Since wood pellets are made from wood waste, they are safe to use, utilize available materials, and are highly effective as fuel. Wood pellet(s) are gradually replacing fossil fuels like gas, oil, and coal due to their eco-friendly nature.

2. Composition and Technical Specifications of Wood Pellets

Wood pellets consist of 100% natural wood, pressed into a uniform shape. A typical wood pellet has specifications such as moisture content, ash content, and calorific value. Exported wood pellets need to disclose sulfur, nitrogen, and chlorine levels. These indicators vary by export region.

3. Applications of Wood Pellets

Wood pellet(s) have various applications in industries and daily life. In industries, wood pellet(s) serve as:

  • Fuel for industrial boilers, replacing traditional fuels like coal, gas, and oil.
  • Heat source in power plants for electricity generation.
  • Energy for spas, saunas, and heating systems in pools and public facilities during winter.
  • Heating system fuel, replacing electric and coal heaters.
  • Sterilization and pasteurization in food and beverage factories.
  • Heating for year-round swimming pools, and hot water systems in recreational areas, hotels, and schools.
  • Fuel for industrial kitchens in large restaurants and hotels.


Using wood pellet(s) saves costs and protects the environment. One ton of wood pellet(s) produces energy equal to 120 gallons of oil but costs 42% less, or 170 gallons of propane but costs only 67%. Wood pellet(s) also produce less smoke, benefiting users’ health.

4. Market Potential of Wood Pellets

Wood Pellets

Global Market Insight estimates the wood pellet market will reach $12 billion in 2023, with a CAGR over 17.5% from 2024 to 2032. The rising demand for renewable energy in Europe and Asia-Pacific, along with global economic and political changes, boosts wood pellet demand.

In Vietnam, wood pellet export value rose to nearly $800 million in 2022. In the first 10 months of 2023, export revenue surpassed $250 million. Vietnam’s main markets are South Korea and Japan, accounting for over 90% of annual exports.

5. Wood Pellet Standards in Various Countries

5.1 South Korea

Viên nén gỗ

South Korea is Vietnam’s top wood pellet export market with standards for industrial and residential use. Industrial pellets are classified as I1, I2, I3, while residential pellets are labeled A1, A2, or B. The minimum calorific value (NCV) is 16.5 GJ/t or 3,943.60 kcal/kg. Ash content must be ≤ 5%.

Wood Pellets

5.2 Japan

Japan is a potential market with stricter requirements. The ash content must be ≤ 2%, the lower, the better. Japanese partners often require FSC certification, which only large factories can provide.

5.3 Europe

Viên nén gỗ

Europe is the most demanding market with stringent quality standards. Industrial pellets require a maximum ash content of 1% and must be packed in 15kg PP bags. Residential pellets need a maximum ash content of 0.5 – 0.7%. European exports must have FSC and Enplus quality certifications.


Wood pellets are increasingly becoming the preferred biomass fuel globally due to their eco-friendly nature and cost-effectiveness. With the market projected to reach $17.33 billion by 2027, the demand for wood pellet(s) is rising, particularly in Europe, South Korea, and Japan. Made from 100% natural wood waste, wood pellets serve as a sustainable alternative to fossil fuels, offering significant applications in industrial boilers, power generation, and heating systems. The global shift towards renewable energy sources, coupled with strict quality standards in major export markets, underscores the growing importance of wood pellet(s) in achieving environmental sustainability and energy efficiency.



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