Wood Chips Biofuel - A low-cost and widely available biomass fuel
Published On: October 6, 2025

Transitioning to clean, sustainable energy isn’t just a trend but a necessity for today’s industrial sector. As fossil fuel costs rise and environmental regulations tighten, reducing carbon footprints is a top priority. That’s why biomass fuel, also known as biomass energy or alternative fuel, is emerging as a cost-effective, eco-friendly solution. However, a successful shift requires a reliable, high-quality, and cost-efficient partner like SCG International, a trusted alternative fuel supplier.

What is Biomass Energy and Why is It Important Today?

Biomass energy refers to energy derived from organic materials like agricultural residues, forestry by-products, and industrial scraps. These are converted into biofuels used for heat or electricity. Examples of biomass energy include a wide range of organic materials such as fast-growing energy crops, wood industry residues, palm kernel shells, and agricultural waste like rice husks and straw.

Benefits of Biomass Energy

  • Renewable and Sustainable:
    Converts natural waste materials into energy, reducing dependence on finite fossil fuels.

  • Lower Greenhouse Gas Emissions:
    Biomass generally releases fewer emissions than fossil fuels and doesn’t increase atmospheric CO₂.

  • Waste Utilization:
    Turns agri-waste like husks and sawdust into valuable energy, reducing landfill and incineration.

  • Long-term Cost Savings:
    Initial setup may be costly, but long-term energy costs decline with biomass.

  • Regulatory Readiness:
    Many countries incentivize the use of renewable energy. Switching to biomass supports strategic compliance.

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Types of Biomass Fuel Used in Industry

In the industrial sector, choosing the right biomass fuel not only cuts energy and carbon costs but also plays a key role in heat generation efficiency, combustion stability, and enhancing the company’s sustainability image.

For those in need of reliable solutions, SCG International offers a wide range of biomass fuels designed to meet the needs of both small and large-scale industries, including the following:

Shredded Wood Biofuel / Wood Chips

Commonly known as Wood Chips, it is made from wood scraps or softwood like eucalyptus that are chopped into small pieces. It can be used directly as fuel without further processing, making it ideal for medium-to-large boilers in food processing plants, rice mills, wood processing factories, or biomass power plants.

Pros
– Low, stable cost compared to fossil fuels.

– Easily sourced domestically—from eucalyptus, rubberwood, fruit trees, and other economic timber.

– Delivers high and clean heat with a calorific value of 2,400–3,500 kcal/kg.

– Supports local economies through job creation.

Cons

– High moisture content: Shredded Wood Biofuel /Wood Chip typically contains 15%–40% moisture. Without proper drying, combustion efficiency drops significantly. Additionally, sourcing wood from various origins can result in inconsistent heating values.

– Requires high-quality storage: To prevent mold and degradation, shredded wood needs a proper storage system, which may lead to higher handling and storage costs.

Wood Pellet Biomass / Biomass Briquettes

Made from agricultural residues such as rice husks, sawdust, and bark, these materials are compressed into briquettes or pellets to reduce moisture and increase energy density. They are ideal for facilities that require consistent thermal energy, such as animal feed factories, ceramic manufacturers, or businesses with limited storage space.

Pros
Provides consistent and efficient heat output when used in the right system, thanks to its uniform shape and high density. The calorific value ranges from 4,600 to 6,000 kcal/kg.

– Maximizes agri-waste value and boosts farmer income.

Cons

Requires compatible feeders or furnaces designed for the specific pellet/stick size.

– Slightly more expensive than shredded wood biofuel

Black Pellet

Black pellet is a torrefied wood briquette produced by heating wood in low-oxygen conditions, resulting in a water-resistant, high-energy biofuel. Its heat value is comparable to coal but with lower carbon emissions, making it ideal for industrial power plants requiring high thermal energy.

Pros

– High heat value close to coal: Black pellet biofuel offers a calorific value of approximately 4,300–5,260 kcal/kg, making it an efficient alternative to coal in various industrial applications.

– Low moisture and volatiles: With minimal moisture content and low volatile matter, black pellets are easy to store and safe to handle.

– Reduces CO₂ emissions: Compared to coal, black pellets emit significantly less carbon dioxide, contributing to better air quality and reduced environmental impact.

Cons

High cost due to advanced processing.

– Often requires importation or specialized tech

Palm Kernel Shell Biofuel

Palm kernel shells are small, coal-like, dry shells from oil palm seeds. They are a suitable biofuel for palm oil mills, oil production plants, and general industries in Southern Thailand, as well as for compact boiler systems designed for small-sized pellet fuels.

Pros
High heat value: Palm kernel shell biofuel provides a calorific value of around 3,800–4,400 kcal/kg, which is comparable to coal.

– Easy to transport: Its small, dry form makes it simple to handle, with low ash content (less than 3–4%).

– Efficient use of resources: As a by-product of the palm oil industry, it helps reduce waste and dependence on fossil fuels.

Cons

Potential for emissions: Incomplete combustion may lead to soot or air pollution, which can affect health and the environment.

– Unstable domestic supply: Local production volumes fluctuate and may not meet demand, requiring imports from external sources to ensure availability.

Agricultural Waste

Includes rice husks, corn stalks, sugarcane leaves, etc. Burned directly in rural biomass plants or renewable energy projects.

Pros

– Local feedstock: promotes the circular economy.

– Reduces open-air burning: lowering air pollution.

– Low cost and widely available: Agricultural waste is abundant in farming areas, with Thailand alone generating tens of millions of tons of such residues each year.

Cons

Inconsistent quality: Agricultural waste quality varies by season and growing region, leading to interruptions in fuel production due to an unstable feedstock supply.

– High moisture content: Excess moisture reduces combustion efficiency, necessitating the use of proper drying systems or high-quality storage facilities.

SCG International: A Trusted Alternative Fuel Supplier

Man feeding biomass fuel into a boiler

Confidently make the shift to clean energy with SCG International, your reliable alternative fuel supplier. We offer high-quality biomass fuel solutions—from Shredded Wood biofuel, wood pellet biomass, to black pellet biofuel and palm kernel shell biofuel—customized to your industrial needs.

  • With over 45 years of experience in supply chain solutions, SCG International has deep expertise in sourcing biomass fuel from reliable sources across the globe. We help clients access cost-effective, high-quality biomass energy, while reducing complexity in procurement and logistics.

  • Our internationally certified supplier network is supported by on-the-ground teams who conduct rigorous quality inspections, ensuring every stage of the supply chain meets strict standards for product quality, sustainability, and reliability.

  • We provide alternative fuels that are certified by global standards such as FSC and GGL, with full traceability and ethical sourcing. Our products are suitable for various industrial applications, including cement, packaging, power generation, and industrial boilers. We also offer comprehensive combustion performance testing services.

  • End-to-end supply chain management—from sourcing to final delivery—through a smooth, flexible system that adapts to changing business needs with speed and efficiency.

From sourcing to final delivery, we manage the entire end-to-end biomass fuel supply chain with a smooth and flexible system—ensuring timely delivery and responsiveness to your changing business needs, while maintaining convenience and operational efficiency.

Explore how we can help you transition to cleaner, sustainable energy. Visit us at SCG International to speak with our energy experts today.

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SCG International Corporation

With over 45 years of experience in international raw material trading, we have developed deep expertise across industries ranging from industrial supply, construction, home & living, paper & packaging, food & beverage, recycled materials, to energy. This extensive knowledge makes us a trusted partner in global supply chains, enabling us to provide valuable insights and reliable market information. Our blog reflects this commitment, offering content drawn from decades of experience to help you confidently navigate the complexities of supply chain management.