Pellet fuel (wood pellets) is the source of energy and heating fuels for many homes and businesses in Vietnam. Vietnam is a country with inefficient 3rd world wood processing industries where there are enormous amount of waste produced in the wood processing manufacturing sectors. These waste wood products usualyy include sawdust, shavings, wood chips, scraps of odd shaped wood parts, twigs and branches.
Previously, this waste was discarded by burn-offs or used for raw fuel in local homes. Current thinking is about processing this abundant amount of raw waste material in into wood pellets for energy usage (fuel). Wood pellets are considered a form of biomass energy.
Wood pellets used as fuel has a very high energy output, from 4,200 to 4,600 Kcal / Kg/. There is also a very small amount of ash: <1%.
Silopcorp follows current good business practices in producing clean energy, thereby reducing the use of fossil fuels that adversely affect the environment. There are also high economic benefits from cost savings
Silopcorp determined that wood pellet production would be a key business development and priority. The company has therefore the resources to exploit the ample sources of wood raw material in Vietnam and produce fuel pellets from wood waste.
Investment in Wood Processing Plants
The company has invested in two processing plants in Vietnam that will come online in 2014.
(1) Phu My Industrial Zone, Tan Thanh District, Ba Ria-Vung Tau; early 2014 is when the plant is expected to come into operation.
(2) Bac Dong Phu Industrial Zone, Dong Phu District, Binh Phuoc area where in early 2014 the plant is expected to go into operation.
Expected output of 60,000 tons to 80,000 tons / year.
Silopcorp’s Target Markets
Wood pellets are very popular in Europe, Japan, Korea and North America.
Japan, Korea, Europe and for local domestic consumption in Vietnam.