CaliPharms Inc (KGET)

[twosecure]

WOOD PELLET MARKET

Wood pellets are the most common product on the international biomass market. The global production of wood pellets has shown an exponential growth: from 2 million tons wood pellets in 2001 to 4 million ton in 2006, to 9 million in 2008 and 15 million in 2010. Over the years, the level of professionalism in the sector has risen, as has the average production capacity and capital investment per wood pellet plant. Additionally, increasing amounts of wood chips, briquettes, and pellets from agricultural residues are used for energy production.

The European Union is the engine of the wood pellet market. In 2010, the EU consumed 9.8 million tons of wood pellets of which 2.2 million tons were imported. Although this is a large amount, it corresponds to only 0.2% of the EU gross energy consumption. Considering the 20/20/20 targets, several research institutes made prognoses stating continuous growth of the wood pellets market. A conservative estimation is a consumption of 24 million tons of wood pellets in 2020, of which 11 million will be imported.

Currently, wood pellets are mainly imported from the U.S., Canada, and Russia. Emerging wood pellet exporters are Australia, South Africa and countries in South America. A progressive estimate suggests that the annual demand for woody biomass could rise to 305 million tons in 2020.

http://www.wwrgroup.com/en/biomass-market/the-wood-pellet-market

GLTA the KGET shareholders