2811/2023 Wood Pellets: A New Energy Source for the Future

Energy is essential for the development of society. However, with the increasing demand for energy, traditional fossil fuels such as coal, oil, and natural gas are becoming increasingly depleted and causing negative environmental impacts. As a result, the development of cleaner, more sustainable energy sources is becoming a top priority.
What are Wood Pellets?
Wood pellets are small, cylindrical pieces made from compressed wood waste, such as sawdust, shavings, and bark. They serve as a renewable and environmentally friendly source of energy. Wood pellets are considered to be a substitute for fossil fuels thanks to their carbon neutrality. Compared to traditional firewood, wood pellets have higher energy content due to their structural density. Using this type of fuel ensures a longer burning time, high heat output, and environmental friendliness. Wood pellets are often cheaper than oil or gas, making them a cost-saving solution. Wood pellets are made from a variety of raw materials. Choosing the right raw material is an important step in ensuring the quality of the finished product. Some common raw materials used to make wood pellets are sawdust, natural wood, sawdust, and wood flour.

 


Advantages of Wood Pellets
- Low cost, high energy;
- Convenient for transportation due to small size;
- Easy to use and clean;
- Saves storage space;
- Does not cause air pollution or environmental impact (no additives are used in the production process);
- Waste can be used as clean fertilizer.
The Situation of Wood Pellet Export in Vietnam
Wood biomass pellets are becoming a promising export item in Vietnam due to the increasing demand for fuel for industrial production and thermal power plants around the world. According to statistics from the General Department of Customs, in the first 7 months of 2023, wood pellet export reached $380 million. South Korea and Japan are the two main export markets for Vietnam's wood pellets. The export value of this product from Vietnam to these two countries has always accounted for nearly 100% of the total quantity and value of exports during the period from 2019 to the present. Thanks to its advantages such as helping to reduce carbon emissions, saving costs, and increasing efficiency of use compared to fossil fuels, wood pellets are widely used in the industries of power generation, heating, and cooking in countries such as Europe, Japan, and South Korea. These are all large consumption markets for wood pellets as they have policies encouraging the use of renewable energy.
Wood Pellet Exploitation Activities at CICT
With a loading capacity of 14,000 tons of wood pellets per day, CICT is the largest seaport in the North for exporting wood pellets. The port's export process of wood pellets, especially the process of controlling impurities stored in the warehouse, always meets the most stringent requirements of companies from Japan, South Korea, and Europe. CICT provides comprehensive supply chain solutions for partners in logistics, including port services, warehousing, wood pellet loading and unloading, transportation services, and customs clearance. CICT also provides a variety of methods for exploiting wood pellets, including:
- Using a combination of STS cranes with open-bottom containers/grabs/lifting frames with a current lifting capacity of up to 14,000 tons of goods per day.
- Using a conveyor belt to load or a ship crane according to customer needs.

The STS crane system combined with an exclusive open-bottom container in the Cai Lan area for export always receives high appraisals and trust from customers. This is the main method of loading wood pellets at CICT, accounting for up to 80% of production due to its large capacity (14,000 tons per day) and ease of exploitation.

 

Using STS Crane combine with Open-bottom container

Using conveyor system

 
Currently, CICT is operating two main warehouse systems, one inside the port and two outside the port. The indoor warehouse system has an area of 8,000 square meters with a capacity of up to 40,000 tons of goods. This is the most modern warehouse system in the Cai Lan area, operated professionally with the highest standards.
In recent times, a number of partner delegations specializing in wood pellet exports such as Duong Linh, Erex... have come to survey the export service capacity of CICT Port, opening up many cooperation opportunities in the future.

 


With the synchronous investment in equipment, port infrastructure, loading methods, and personnel..., CICT is gradually upgrading the full-package logistics service chain, developing a bridge connecting wood pellet resources with businesses in the northern region, attracting more wood pellet export and import businesses through CICT Port.