White Papers Supply Chain Challenges: BIOMASS | Page 2

INTRODUCTION
Over the last decade, biomass of various kinds has become an
increasingly commonly used fuel for electricity generation, particularly
in the European Union, which mandated ambitious threshold targets
for the share of renewables in total electricity generation.
Wood chips and pellets have taken
a large share of biomass production,
not just in Europe, but also parts of
Asia as well. In fact, according to the
US International Trade Commission,
production of wood pellets in the
US for export to these locations
increased 400% between 2008 and
2014 to help meet the increased
demand. The US International Trade
Commission further states that,
“estimates of global wood pellet
consumption vary, but are currently
in the range of 22 – 25 million metric
tons (Mt) annually. This projected to
rise to between 50 and 80 million Mt
by 2020. At 19 million Mt in 2013,
the EU accounted for 85 percent
of global consumption of wood
pellets.” 1
This white paper examines some of
the challenges around managing
and
optimizing biomass supply
chains and discusses Generation
10’s Commodity Manager as a
comprehensive software solution to
these challenges.
1. https://www.usitc.gov/publications/332/wood_pellets_id-039_final.pdf
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