Share

BIO ENERGY (WOOD CHIP) Green Energy, Future Trend on carbon credit

Last updated: 24 Dec 2025
1263 Views

Wood Chip Usage in Thailand

In Thailand, wood chips and pellets are a significant renewable energy source, primarily used in industrial boilers to replace fossil fuels like coal, sourced from agricultural waste (rubberwood, bagasse, rice husks) and fast-growing trees, with the government promoting usage through incentives, though challenges like moisture control, production cost, and supply chain logistics persist for maximizing this sustainable energy transition. 
 
Key Uses & Sources
Industrial Boilers: Wood chips and pellets are used as fuel in factories for heat and power, often mixed with coal or as a complete substitute.
Biomass Power Plants: These plants use various biomass, with wood chips and rubberwood making up a portion of the feedstocks, alongside other agricultural residues.
Feedstock Sources: Common materials include rubberwood, cassava stems, rice husks, sugar cane leaves, and fast-growing trees like Acacia. 
 
Advantages & Benefits
Fossil Fuel Replacement: Reduces reliance on coal and oil, lowering greenhouse gas emissions.
Waste-to-Energy: Utilizes agricultural byproducts and residues, turning waste into valuable energy.
High Efficiency: Pellets offer high density, low moisture, and consistent quality for efficient combustion. 
 
Challenges & Considerations
Moisture Content: High moisture in raw chips (especially during rainy seasons) increases costs for drying and reduces efficiency.
Production Costs: High costs for production and machinery (often imported) can hinder expansion.
Supply Chain: Managing seasonal fluctuations in agricultural supply and ensuring consistent quality remain key issues. 
 
Government Support
Incentives: The Thai government supports using wood pellets for heat by subsidizing boiler upgrades for factories.
Promotion: Encourages fast-growing tree plantations to secure feedstock for domestic use and export. 

Future Trend of Wood Chip Usage in Thailand

The future trend of wood chip usage in Thailand is strongly positive, primarily driven by the biomass energy sector for both domestic use and export, as well as continued use in the pulp and paper industry. Key factors shaping this trend include: 
 

Key Drivers
Government Policies and Renewable Energy Targets: The Thai government actively promotes biomass as a renewable energy source to reduce greenhouse gas emissions and enhance energy security, as outlined in plans like the Alternative Energy Development Plan (AEDP2015).

Cost-Effectiveness: Wood chips and the pellets made from them are a cheaper alternative to imported fossil fuels for industrial heat production.

Abundant Raw Materials: Thailand has a consistent, year-round supply of biomass feedstock from agricultural waste (like rice husks and bagasse) and fast-growing trees such as rubberwood, eucalyptus, and acacia, which are ideal for wood chip production.

Strong Export Demand: There is significant and growing international demand for wood pellets, especially from Japan and South Korea, where they are used for electricity production to meet renewable energy targets. Thailand's exports of wood pellets reached 700,000 tons in 2023, accounting for 58% of total production. 
 
Usage Trends
Biomass Power Generation: The primary growth area is in the use of wood chips and pellets as fuel for biomass power plants, with a projected surge in domestic demand.
Industrial Heat Production: More industrial boilers are expected to switch from fuel oil and firewood to wood pellets and chips due to cost and efficiency benefits.

Pulp and Paper Industry: Wood chips remain a critical raw material for the pulp industry, with a potential shift towards higher-quality hardwood chips like Eucalyptus to improve efficiency and product quality. 
 
Challenges and Opportunities
Certification Requirements: Meeting international sustainability standards, such as the Forest Stewardship Council (FSC) certification required by key export markets like Japan, remains a challenge for small-scale Thai producers.
Technological Advancements: The industry is seeing a trend toward more intelligent and energy-efficient production lines to increase output and reduce consumption.
Supply Chain Management: While feedstock is abundant, efficient logistics and supply chain management, especially for sourcing from smallholders and aggregating materials, needs continuous improvement. 
Overall, the outlook is for a robust and expanding wood chip and pellet market in Thailand, positioning the country as a major player in the Asian bioenergy trade

------

if you have demand on wood chip in Thailand or other country ,Please don't hesitate to let SO OK TRADING know, We can support on supply of woodchip with reliable quality and competitive price

 


Related Content
“Wood Pellets: Renewable Energy of the Future — Transforming Global Energy Amid the 2026 USA–Iran War, CBAM, and Net Zero”
Impact of the 2026 Gulf War: As Oil Prices Surge, CBAM Takes Effect, and the World Accelerates Toward Net Zero With fossil fuels becoming a global risk, Wood Pellets (biomass fuel) are emerging as the new answer for industries worldwide. ✅ Oil prices soar to $125 → Businesses turn to renewable fuels ✅ CBAM enforcement begins → Factories must adapt to stay competitive ✅ Net Zero by 2050 → Wood Pellets truly help reduce greenhouse gas emissions ✅ Thailand’s strong potential → Production, exports, and domestic use strengthen energy security
8 Mar 2026
“Oil Shock 2026: Energy Crossroads on the Global Stage — From War to Diplomacy, Volatile Prices Every Business Must Watch” : SO OK TRADING : 6 MAY 2026
“Global Oil 2026: From War to Diplomacy on the World Stage” Oil prices have started to decline as U.S.–Iran peace signals emerge and the Strait of Hormuz reopens. The market breathes easier, but volatility remains high. Brent: $107–108 WTI: $100–102 Analysts warn: if peace talks collapse, prices could rebound sharply to $120. Energy businesses should lock in costs early and explore alternative energy sources to navigate uncertainty. SO OK TRADING | FAST • SHARP • RELIABLE
6 May 2026
“2026 Global & Thai Economy Outlook: AI, Clean Energy, and the Rise of Strategic Commodities” Article by SO OK TRADING
2026 is shaping up to be a pivotal year for both the global and Thai economies. The world is being driven by Artificial Intelligence (AI) and Clean Energy, alongside the rise of strategic commodities such as gold, silver, copper, and aluminum. While global growth continues, risks from trade wars and geopolitical tensions remain strong headwinds. Thailand, meanwhile, is still in a transition phase, where attracting more Foreign Direct Investment (FDI) and boosting Research & Development (R&D) are critical to avoid falling behind. In this article, SO OK TRADING explores the 2026 outlook for the global and Thai economies, highlighting new opportunities across rising industries — from digital technology and integrated healthcare to clean energy and niche lifestyle markets that are expanding rapidly. 2026 marks a pivotal transition for the global and Thai economies. Driven by Artificial Intelligence (AI) and Clean Energy, the world is witnessing the rise of strategic commodities — gold, silver, copper, and aluminum. While global growth continues, Thailand remains in transition, seeking FDI and stronger R&D to capture opportunities in medical hub, green manufacturing, and lifestyle markets.
17 Feb 2026
This website uses cookies for best user experience, to find out more you can go to our Privacy Policy and Cookies Policy
Powered By MakeWebEasy Logo MakeWebEasy