Wood pellets are the most advanced manner to use biomass, and in general, are made from sawdust or refined and dried wood shavings, which is then compressed.

The use of pellets by the industrial sector is stronger in countries where power generation is based on biomass, such as in Sweden, Denmark, Holland, Belgium and the United Kingdom. Countries such as Germany, Italy and Austria, as well as North American countries, focus their demands on residential heating. In both cases, incentive mechanisms have been paramount for the growth and positioning of these demands (ABIB, 2013).

The global pellets market should reach US$ 9 billion in 2020 (Pellet Supply Chain Summit International Conference, 2013), where Europe is the largest consumer market. The European Union projects that approximately 20% of all the energy produced in the block will come from renewable resources by 2020 (ABRAF, 2013).

Brazil has great potential to use forest biomass in pellet production to meet the domestic and international demand, although production is still modest. Europe has 52% of the industrial facilities and the USA has 41% (European Pellet Center, 2013).

There are projects in Brazil, some experimental and others aiming at industrial scale, with the purpose of consolidating this new arena of products in Brazil.

Some advantages: