Development of wood pellets processing industry for renewable energy

Abstract

Wood pellets are environmentally friendly fuel with zero carbon emissions that have been recognized by the United Nations. This study aims to provide data and information to the development of wood pellets as a renewable energy. The study was carried out in Ciamis Regencies in 2017. These locations have a lot of potential for sawn timber and plywood industries, and wood pellet trading activities. The study employed descriptive analysis coupled with economic and financial analyses. The study shows that the wood pellet industry development needs to focus on the improvement and management of the value and supply chains. There are 5 stages in development wood pellet industries, comprising: 1) observation and identification, 2) regional planning and developing supporting infrastructure, 3) technology planning, building production and training facilities, 4) pelletizing, and 5) designing institution for production and marketing. A potential source of raw material for the processing of wood pellets are feasible to be developed in Ciamis.in terms of social, economic, environmental and policy aspects. The potential market for wood pellets in West Java are tempe and tofu industries, textile industries, farm and food industries. All of these illustrate the good prospect for developing wood pellets for the renewable energy business.