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Fall in woodchip sales hits biomass industry hard

The global recession has hit wood chip sales due to a reduced demand for paper.

Global sales of wood chip fell by 26% during the first half of 2009 compared with the same period a year ago.

As a result of the fall in sales, volumes fell to 25 million tonnes, the lowest level since 2002.

The biggest market for wood chips is in Japan whose pulp mills account for 53 per cent of globally traded hardwood chips and 15 per cent of softwood chips.

Japan had the largest single drop to shipments and saw imports drop by 34% compared with last year.

The largest exporter, Australia, saw shipments fall from 3.1 million tonnes to 2.3 million tonnes now, Uruguay’s export tally fell by 65% and South Africa’s by 40%.

On a brighter note the demand for woody biomass is growing in the UK and Europe because wood-based biofuels generate between two and nine times less carbon emissions than agriculturally based biofuels.

A number of biomass plant will be built over the summer in the UK so the government can generate 15% of the UK’s energy from renewable sources by 2020.




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