Taiwan has postponed plans to convert one of its largest coal boilers to burn wood pellets, according to a report filed with the USDA Foreign Agriculture Service’s Global Agricultural Information Network. Opportunities for wood pellets remain in the country’s paper and petrochemical industries.&nbsp;As part of its effort to achieve net-zero emissions by 2050, Taiwan had previously announced plans to increase the renewable share of its total power capacity to 20% by 2026. Biomass was to account for 3% of total renewable energy production.&nbsp;To help reach those goals, state-owned power producer Taiwan Power Co. (Taipower) considered the feasibility of converting one large coal boiler to burn wood pellet fuel. <a href="https://biomassmagazine.com/articles/report-taiwan-power-producer-to-open-tender-in-2024-for-17m-metric-tons-of-wood-pellets">In a GAIN report filed in late 2023</a>, the government of Taiwan predicted the project could translate into a $300 million opportunity for U.S. pellet producers.&nbsp;The new report indicates Tawain has been reviewing and amending its energy policies since the new administration took office last year. The new team has decided to temporarily shelve the plan to convert coal-fired boilers to burn wood pellets. The report, however, stresses that trade opportunities for wood pellets remain for Taiwan’s paper and petrochemical industries with fluidized bed systems, which are required to adopt carbon reduction targets to cut their emissions.&nbsp;The report cites industry estimates that show petrochemical and heavy industries may consume more than 800,000 metric tons of wood pellets annually to generate power. Taiwan currently produces approximately 300,000 to 400,000 metric tons of non-industrial grade wood pellets per year. Limited production potential necessitates the reliance on imported wood pellets to meet increasing demand.&nbsp;Currently, Taiwan imports very few pellets from the U.S. Data published by the USDA FAS indicates only 19 metric tons of U.S. wood pellets were exported to Taiwan last year, accounting for only a fraction of a percent of the 10 million metric tons wood pellets exported from the U.S. in 2024.A full copy of the report is available on the USDA FAS GAIN <a href="https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Taiwan%20Wood%20Pellets%20Market%20Update_Taipei%20ATO_Taiwan_TW2025-0015">website</a>.

2025-06-19 - Report: Taiwan pauses plans to convert coal facility to wood pellets (Biomass Magazine)

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Taiwan has postponed plans to convert one of its largest coal boilers to burn wood pellets, according to a report filed with the USDA. Opportunities for wood pellets remain in the country’s paper and petrochemical industries. 

Report: Taiwan pauses plans to convert coal facility to wood pellets

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