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Citation: Lee, H.-H.; Hsu, C.-M. Total
Quality Management Enhances Wood
Pellet Utilization for Sustainable
Energy. Sustainability 2025,17, 1562.
https://doi.org/10.3390/
su17041562
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Article
Total Quality Management Enhances Wood Pellet Utilization for
Sustainable Energy
Hsu-Hua Lee and Chin-Mao Hsu *
Department of Management Sciences, Tamkang University, New Taipei City 251301, Taiwan;
132576@o365.tku.edu.tw
*Correspondence: 811620060@o365.tku.edu.tw
Abstract: The global transition to renewable energy has accelerated the adoption of wood
pellet biomass as a sustainable alternative to fossil fuels. This study explores the role of Total
Quality Management (TQM) in optimizing wood pellet utilization for sustainable energy
production. By integrating TQM principles—including process optimization, supply chain
management, and technological innovation—enterprises can enhance production efficiency,
ensure consistent pellet quality, and reduce carbon emissions. Compared to coal, wood
pellets offer a lower-emission fuel alternative, with a calorific value of 4000–4600 kcal/kg,
producing significantly fewer pollutants while supporting cleaner industrial applications.
Although coal has a higher energy density, TQM-driven improvements in pellet production
increase combustion efficiency, reducing the fuel quantity required for equivalent energy
output. This research analyzes Taiwan’s wood pellet market, identifying challenges such as
fluctuating costs, resource availability, and environmental concerns. Through case studies
and policy analysis, this study proposes strategies to increase the proportion of wood pellet
energy in Taiwan’s electricity mix, aligning with global sustainability goals and promoting
net-zero emissions in the power sector.
Keywords: wood pellets; Total Quality Management (TQM); technological innovation;
sustainable development
1. Introduction
The rising global demand for renewable energy is a major catalyst for the growth of
the wood pellet market. Facing the pressing issues of climate change and the need to cut
carbon emissions, there is a worldwide shift from fossil fuels to cleaner energy alternatives.
Wood pellets, produced by compressing biomass materials, offer a sustainable energy
option [
1
]. As nations work towards energy diversification and aim for carbon neutrality,
the renewable energy sector, including wood pellet bioenergy, is receiving significant
attention and is poised for future market growth.
The growing public awareness regarding climate change and the imperative for cleaner
energy solutions is propelling significant growth in the wood pellet market. As a carbon-
neutral substitute for fossil fuels, wood pellets offer a unique benefit; the carbon dioxide
emitted during their combustion is offset by the carbon absorbed during the growth
of their biomass [
2
]. This characteristic renders wood pellets particularly appealing to
environmentally conscious consumers and industries alike. Furthermore, the increased
utilization of wood pellets not only lessens the reliance on finite fossil fuel resources but
also mitigates the air pollutants linked to conventional combustion techniques, thereby
further stimulating market expansion.
Sustainability 2025,17, 1562 https://doi.org/10.3390/su17041562
Sustainability 2025,17, 1562 2 of 19
Wood pellet biomass energy is a crucial form of renewable energy with significant
implications for energy development and environmental protection. This study aims
to explore the application of solid wood pellet biofuels in Taiwan’s power plants for
sustainable development and net-zero carbon emissions. It mainly examines the feasibility
of replacing current power generation methods with wood pellets to meet carbon reduction
policy goals. When choosing to use wood pellets as fuel, factors such as cost and availability
must be considered. The cost of wood pellets varies by region, depending on raw material
and transportation costs, and market supply and demand also affect their cost. Additionally,
it is essential to ensure a sufficient supply to maintain continuous use.
According to data from Taiwan’s Ministry of Economic Affairs Energy Administration
(TMEAEA) (Table 1), the proportion of renewable energy in total electricity generation
increased from 5.568% in 2019 to 9.519% in 2023. This indicates that Taiwan has made
significant progress in promoting renewable energy development. This growth reflects
Taiwan’s important efforts in increasing green energy supply, reducing reliance on fossil
fuels, and advancing energy transformation. This not only helps improve environmental
quality and reduce carbon emissions but also promotes energy autonomy and sustainable
development [3].
Table 1. Taiwan energy indicators.
Year Proportion of Renewable Energy Generation in Total Electricity Generation
2019 5.568%
2020 5.424%
2021 6.024%
2022 8.288%
2023 9.519%
According to data from Taiwan’s Ministry of Economic Affairs Energy Administration
(TMEAEA) (Figure 1), the total renewable energy generation in Taiwan increased from
12.7 billion kWh in 2016 to 26.9 billion kWh in 2023. Looking at the structure of renewable
energy generation, the share of conventional hydropower decreased from 51.5% in 2016 to
14.7% in 2023; the share of biomass and waste decreased from 28.3% in 2016 to 13.9% in
2023; the share of solar photovoltaics increased from 8.7% in 2016 to 48.0% in 2023; the share
of wind power increased from 11.4% in 2016 to 23.2% in 2023; and the share of geothermal
energy increased from 0% in 2016 to 0.1% in 2023 [3].
Sustainability 2025, 17, 1562 2 of 19
resources but also mitigates the air pollutants linked to conventional combustion tech-
niques, thereby further stimulating market expansion.
Wood pellet biomass energy is a crucial form of renewable energy with significant
implications for energy development and environmental protection. This study aims to
explore the application of solid wood pellet biofuels in Taiwan’s power plants for sustain-
able development and net-zero carbon emissions. It mainly examines the feasibility of re-
placing current power generation methods with wood pellets to meet carbon reduction
policy goals. When choosing to use wood pellets as fuel, factors such as cost and availa-
bility must be considered. The cost of wood pellets varies by region, depending on raw
material and transportation costs, and market supply and demand also affect their cost.
Additionally, it is essential to ensure a sufficient supply to maintain continuous use.
According to data from Taiwan’s Ministry of Economic Affairs Energy Administra-
tion (TMEAEA) (Table 1), the proportion of renewable energy in total electricity genera-
tion increased from 5.568% in 2019 to 9.519% in 2023. This indicates that Taiwan has made
significant progress in promoting renewable energy development. This growth reflects
Taiwan’s important efforts in increasing green energy supply, reducing reliance on fossil
fuels, and advancing energy transformation. This not only helps improve environmental
quality and reduce carbon emissions but also promotes energy autonomy and sustainable
development [3].
Table 1. Taiwan energy indicators.
Yea
r
Proportion of Renewable Energy Generation in Total Electricity Generation
2019 5.568%
2020 5.424%
2021 6.024%
2022 8.288%
2023 9.519%
According to data from Taiwan’s Ministry of Economic Affairs Energy Administra-
tion (TMEAEA) (Figure 1), the total renewable energy generation in Taiwan increased
from 12.7 billion kWh in 2016 to 26.9 billion kWh in 2023. Looking at the structure of re-
newable energy generation, the share of conventional hydropower decreased from 51.5%
in 2016 to 14.7% in 2023; the share of biomass and waste decreased from 28.3% in 2016 to
13.9% in 2023; the share of solar photovoltaics increased from 8.7% in 2016 to 48.0% in
2023; the share of wind power increased from 11.4% in 2016 to 23.2% in 2023; and the share
of geothermal energy increased from 0% in 2016 to 0.1% in 2023 [3].
Figure 1. Taiwan 2016–2030 renewable electricity generation.
Figure 1. Taiwan 2016–2030 renewable electricity generation.
According to data from Taiwan’s Ministry of Economic Affairs Energy Bureau (
Table 2
),
the proportion of solid biomass power generation to renewable energy generation has sig-
Sustainability 2025,17, 1562 3 of 19
nificantly decreased from 1.0% in 2019 to 0.6% in 2023. This change may reflect adjustments
in the energy structure and the rapid development of other renewable energies, such as
the growth of solar and wind power. These data can help us understand the trends and
challenges Taiwan faces in renewable energy development [3].
Table 2. Proportion of solid biomass generation in total electricity generation.
Year Solid Biomass Generation
2019 151,434 MWh 1.0%
2020 141,366 MWh 0.9%
2021 153,172 MWh 0.9%
2022 118,278 MWh 0.5%
2023 171,191 MWh 0.6%
The proportion of solid biomass (mainly wood pellets) in electricity generation has
shown a declining trend from 2019 to 2023. This decline may be attributed to several factors:
1.
Sustainability Concerns: The Drax Power Station in the UK heavily relies on imported
wood pellets from North America for electricity generation, claiming it to be a carbon-
neutral renewable energy source. However, many environmental organizations and
scientists have questioned this claim, arguing that burning wood pellets may produce
carbon emissions comparable to or even higher than coal [4].
2.
Changes in Policies and Subsidies: The UK government may have adjusted its subsidy
policies for biomass energy, particularly after concerns over the sustainability of wood
pellets. This reassessment may have led to a reduction in government support for this
energy source [5,6].
3.
Carbon Emission Considerations: Although Drax Power Station has phased out coal-
fired power generation, its biomass energy production still has a significant impact
on carbon emissions. This has led to growing concerns about its role in the UK’s
decarbonization efforts [4].
In summary, the declining proportion of wood pellets in electricity generation may
be driven by concerns over sustainability and carbon emissions, as well as policy and
subsidy adjustments.
There has been a significant decrease in the proportion of solid biomass energy gener-
ation relative to renewable energy generation, dropping from 1.0% in 2019 to 0.6% in 2023.
How can enterprises implement the principles of Total Quality Management (TQM) for
continuous improvement, adopt appropriate technological innovations, and assist in the
development of the wood pellet industry? The goal is to increase the share of solid biomass
energy in the total renewable energy generation, address issues caused by wood pellets in
power plants, and achieve the enterprise’s sustainable development goal of net-zero carbon
emissions. These are the objectives of this research study.
1.1. Introduction to Wood Pellets
Wood pellets, also known as biomass pellets, are a type of fuel made from processed
wood materials. They are commonly used in power generation, heating, and industrial
production. The manufacturing process of wood pellets is straightforward and includes
steps such as grinding the wood materials, compressing them into pellet form, cooling, and
packaging. Wood pellets are efficient and clean and, because they come from renewable
wood resources and have relatively low carbon emissions during combustion, they are
considered an environmentally friendly and sustainable energy source. Škrbi´c, S. et al.
(2020) [
7
] argues that biomass can be used as a substitute for fossil fuels and their study
emphasizes the environmental advantages of biomass energy compared to fossil fuels,
Sustainability 2025,17, 1562 4 of 19
especially in terms of the reduction of carbon dioxide (CO
2
) emissions. Similar to wood
pellets, corncob biomass is a carbon-neutral fuel, releasing roughly the same amount of
CO2during combustion as the plants absorbed while growing.
Wood pellets are primarily sourced from sawdust and wood shavings, which are
byproducts of the lumber, woodworking, and paper industries; waste wood, which includes
construction waste, old furniture, and wooden packaging materials; agricultural residues,
such as corn stalks, rice straw, and other agricultural waste; and forest residues, which
includes branches, bark, and naturally fallen trees from forest management and logging
activities [8,9].
Lin and Wu (2023) [
10
] suggest that deadwood collected in Canada and trees removed
after a 10-year period can be used as wood pellet fuel to replace fossil fuels or converted
into biochar for soil improvement, among other uses. The use of biochar ensures that the
carbon in the carbon-containing materials is re-mineralized and stored almost permanently.
According to the Global Industry Insights (GII) 2024 announcement, the global forecast
data for the wood pellet market from 2024 to 2030 show that the market size for wood pellets
is expected to reach USD 9.37 billion in 2023, USD 9.87 billion in 2024, and
USD 13.67 billion
by 2030, with a compound annual growth rate of 5.54%. GII believes that Grade B wood
pellets, wood pellets with a diameter of 10 to 12 mm, and black wood pellets are suitable
for large-scale industrial applications, such as power plants [11].
1.2. The Production Process of Wood Pellets
The wood pellet production process involves several key steps. First, low-value timber
is stripped of bark using a peeling machine. The stripped wood is then chipped and cleaned
before being dried and ground into a fine powder. The powder is then pelletized under
high pressure to form the final wood pellets. After pelletizing, the pellets are cooled using
a conveyor and ventilation system. Finally, the cooled pellets are sorted, separated, and
packaged for storage and transport. The main equipment used in the process includes
crushers, sieves, feeders, mixers, rotary kilns, ventilation systems, and power systems. The
goal of the process is to produce solid biomass fuel from raw wood materials through
pretreatment, grinding, pelletizing, cooling, and packaging.
The calorific value of wood pellets is one of the important indicators of their quality.
Different types of wood pellets have varying calorific values, generally above 4000 kcal/kg.
Consumers can choose the wood pellets that suit their needs by comparing the calorific
values of different products. According to data from Lixiang Wood Pellet Factory, the heat
values of different wood pellet types are shown in Table 3[9].
Table 3. Heat values of different wood pellet types.
Types of Particles Heat Value
Pine wood pellets 4300 kcal/kg
Hardwood pellets 4600 kcal/kg
Elm wood pellets 4300 kcal/kg
Maple wood pellets 4600 kcal/kg
Birch wood pellets 4300 kcal/kg
Beech wood pellets 4600 kcal/kg
Oak wood pellets 4600 kcal/kg
Camphor wood pellets 4300 kcal/kg
Corn straw pellets 3700 kcal/kg
Straw pellets 3200 kcal/kg
Rice husk pellets 3800 kcal/kg
Palm kernel pellets 4000 kcal/kg
Sustainability 2025,17, 1562 5 of 19
Wooden pellet specifications and standards significantly impact their performance
and safety. When purchasing wooden pellets, it is crucial to understand the product’s
specifications and standards and select products that meet your needs and comply with
national and regional standards for safety and environmental protection. Beyond common
wood pellet specifications, there are also specialized requirements, such as dust-free and
residue-free wood pellets. Dust-free pellets undergo processing or filtering to remove
sawdust and dust, resulting in a better combustion efficiency and reduced air pollution.
Residue-free pellets are produced by removing impurities like bark and branches, making
them purer and safer.
One million watts of electrical energy produces 935 kg of carbon, while heavy oil
produces 375 kg of carbon and wood pellets produce only 35 kg of carbon. Steam is
transported to the factory area via pipelines, requiring 2–3 cubic meters of steam tanks,
while about 780,000 tons of wood pellets are needed, each costing NTD 5000 per ton, which
can reduce costs by around 30%. From the perspectives of business models and economic
benefits, wood pellet renewable energy has considerable potential and advantages.
2. The Development of Wood Pellets Implements the TQM Spirit,
Continuously Innovating Technology
Technological advancements have been pivotal in boosting the efficiency and growth of
the wood pellet market. Innovations in pellet manufacturing—such as enhanced machinery
and automation—have significantly increased production capacity and cost-effectiveness.
Continuous progress has also led to the production of high-quality pellets with consistent
energy content, making them more appealing for various applications like residential heat-
ing, industrial processes, and power generation, thereby contributing to market expansion.
Additionally, extensive research and development in pellet combustion technology have
resulted in cleaner and more efficient combustion methods. This addresses emission con-
cerns and facilitates the broader adoption of wood pellets as a mainstream energy source,
thus driving market growth.
2.1. Technological Innovation and Intelligent Manufacturing
With the continuous advancement of technology, the production technology for wood
pellet renewable energy will keep innovating. Intelligent manufacturing will become the
future development trend, leading to more intelligent production equipment and systems
being applied to the production of wood pellet renewable energy. For example, intelligent
control systems will be able to automatically monitor key parameters in the production
process and adjust and optimize based on real-time data, thereby improving production
efficiency and product quality. Additionally, the application of artificial intelligence tech-
nology will enable production equipment to autonomously learn and optimize production
processes, further enhancing the level of production intelligence.
According to a study by Liu et al. (2021) [
12
], the application of smart manufac-
turing technologies in the wood pellet renewable energy industry will bring significant
benefits. The research found that by introducing smart manufacturing technologies, the
production efficiency of wood pellet renewable energy can be increased by over 30%, while
the consistency and quality of the products have also been significantly improved. This
indicates that smart manufacturing will become one of the key factors in enhancing the
competitiveness and achieving sustainable development in the future of the wood pellet
renewable energy industry.
Upgrading production technology will bring significant development opportunities
to the wood pellet renewable energy industry. By introducing advanced technologies such
as automated production lines and intelligent control systems, it is possible not only to
Sustainability 2025,17, 1562 6 of 19
enhance production efficiency and product quality but also to reduce production costs, in-
crease the competitiveness of enterprises, and achieve sustainable development. Therefore,
strengthening the research and application of production technology has become one of the
important strategies for the development of the wood pellet renewable energy industry.
Enviva Biomass, one of the world’s largest wood pellet producers, focuses on supply-
ing high-quality wood pellet fuel for power plants and industrial users.
A. TQM Applications:
i. Supply Chain Quality Control:
a.
Integration of all stages in the supply chain, including raw material procure-
ment, manufacturing process monitoring, and final product inspection.
b.
Strict inspections of raw material sources to ensure compliance with sustain-
able forest management standards, such as FSC certification.
ii. Continuous Improvement in Manufacturing:
a.
Deployment of automated equipment to monitor key parameters (e.g., pres-
sure, temperature, and pellet density) during production and the application
of Statistical Process Control (SPC) to reduce deviations.
b.
Regular employee training and quality improvement programs to ensure
energy density and moisture content meet specified standards.
B. Results:
Enviva has achieved a high level of product consistency, earning international market
trust for its low-ash, high-energy-density pellet products.
2.2. Strengthening Environmental Protection and Sustainable Development
Carbon dioxide (CO
2
) and other greenhouse gases are the primary drivers of global
warming. The combustion of traditional fossil fuels (e.g., gasoline and diesel) produces
sulfur dioxide (SO
2
), nitrogen oxides (NO
x
), and particulate matter (PM2.5), which are
harmful to human health [13]. Actively applying clean production technologies to reduce
emissions and pollution in the production process is one of the important ways to achieve
the sustainable development of wood pellet renewable energy. Clean production technolo-
gies, including methods such as energy saving, emission reduction, and recycling, can
effectively lower energy consumption and emissions in the production process, thereby
reducing the negative impact on the environment.
Firstly, by adopting energy-saving and emission-reduction technologies, it is possible
to reduce energy consumption and carbon emissions during the production process of
wood pellet renewable energy. For example, using high-efficiency heating equipment
and energy recovery technologies can lower energy consumption and improve energy
utilization efficiency. At the same time, introducing clean combustion technologies and gas
purification equipment can reduce emissions during the combustion process, decreasing
pollution to the atmospheric environment.
Secondly, strengthening the conservation and recycling of raw materials and pro-
moting the circular economy are of great significance in reducing resource waste and
environmental pollution. By optimizing the use of raw materials, increasing material effi-
ciency, and reducing waste and consumption, we can achieve better resource management.
At the same time, encouraging the development of recycled materials and using waste as
production inputs can lead to comprehensive resource utilization and reduce the extraction
and consumption of natural resources. Recycling industrial waste is crucial for reducing
environmental pollution and saving raw material costs. Converting these wastes into wood
pellet bioenergy not only decreases the consumption of natural resources but also lowers
production costs and increases production efficiency [14].
Sustainability 2025,17, 1562 7 of 19
Scandbio, the largest wood pellet producer in Northern Europe, leverages TQM to
enhance operational efficiency.
a. TQM Applications:
i. Comprehensive Process Management:
a.
Conducted preventive maintenance on production equipment to ensure
stable processes and reduce downtime.
b.
Used quality control matrices to combine quality data from each process
with customer feedback for continuous improvement.
ii. Integration of Environmental and Social Responsibility:
a.
Adopted the ISO 14001 [
15
] Environmental Management System to min-
imize emissions during production and improve biomass raw material
utilization rates.
b. Results:
Products met multiple international standards (e.g., ENplus certification), making
Scandbio a key supplier in the European market.
2.3. Quality Management Optimization
Quality management optimization is a crucial means to enhance the stability and
consistency of wood pellet renewable energy products. By applying advanced quality man-
agement techniques such as quality control charts and Six Sigma, the production process
can be comprehensively monitored and analyzed, allowing for the timely identification
and resolution of issues. This ensures the stability and consistency of product quality and
improves the competitiveness of enterprises. Therefore, strengthening the research and
application of quality management technologies has become one of the important strategies
for the development of the wood pellet renewable energy industry.
Introducing a quality management system in wood pellet production helps monitor
and control various production stages to achieve the following objectives: Raw materials
such as wood chips, sawdust, or agricultural residues are reduced in size through chipping
or grinding to ensure pellet uniformity, which is essential for effective pelletizing [
16
];
the temperature and moisture content must be carefully regulated during production,
with moisture levels maintained between 10–15% to ensure pellet quality and combustion
efficiency [
8
]; a stable feeding system ensures uniform material distribution during the
conditioning process, leading to consistent pellet quality [
17
]; and high-quality wood pellets
typically have an ash content of 0.5% to 1%, with a lower ash content indicating a better
pellet quality [9].
Firstly, the application of quality control charts helps enterprises achieve compre-
hensive monitoring of the production process. By regularly testing and recording key
parameters in the production process and using quality control charts for statistical analy-
sis, it is possible to intuitively understand the variations in the production process, promptly
identify abnormalities and issues, and take corresponding measures for adjustment and
improvement. This helps to reduce variability in the production process and ensure the
stability of product quality. Secondly, the application of quality management tools like Six
Sigma can help enterprises achieve continuous quality improvement. Six Sigma is a quality
management system that combines statistical analysis and management methods. Its core
idea is to improve product consistency and quality levels by controlling defect rates in
products and processes to very low levels. By comprehensively analyzing and optimizing
the production process, production efficiency can be continuously improved, production
costs can be reduced, and product pass rates and customer satisfaction can be enhanced.
Sustainability 2025,17, 1562 8 of 19
HTM International Holding Ltd. Taiwan Branch (Cayman Islands) is a Taiwanese
green energy company that specializes in producing wood pellets as an alternative fuel for
local power plants.
A. TQM Applications:
i. Product Quality Tracking System:
a.
Developed a digital quality management platform to monitor key parame-
ters in real-time, such as density, ash content, and calorific value.
b.
Established an issue-tracking system to analyze root causes of product
defects and conducted regular internal audits.
ii. Employee Engagement and Training:
a.
Organized quality improvement team activities to encourage production
line workers to suggest improvements.
b.
Conducted TQM-related professional training to enhance employees’ aware-
ness and skills in quality management.
B. Results:
HTM International Holding Ltd. Taiwan Branch (Cayman Islands) successfully pro-
vided stable wood pellet supplies to local power plants, significantly reducing equip-
ment failure rates and gaining recognition for efficient combustion performance.
2.4. Improvement of Energy Utilization Efficiency
An important step towards achieving sustainable development, in the context of
increasingly strained global energy resources, is to enhance energy efficiency. For the wood
pellet renewable energy industry, improving energy efficiency not only reduces production
costs but also decreases the consumption of natural resources, thereby realizing a green
and low-carbon production model.
Firstly, choosing high-efficiency heating equipment is key to improving energy uti-
lization efficiency. Heating equipment plays a crucial role in the production process of
wood pellet renewable energy, but traditional heating equipment suffers from low energy
utilization efficiency and high energy consumption. Therefore, selecting high-efficiency
heating equipment will be a critical part of energy conservation and reduction. For example,
new types of heating equipment with high thermal efficiency and energy-saving functions,
such as efficient hot air stoves or biomass boilers, can be used. By optimizing combustion
processes and increasing energy utilization, energy consumption can be reduced, thereby
lowering production costs.
Secondly, recovering and utilizing the heat generated during the production process is
also an important way to improve energy efficiency. In the production process of wood
pellet bioenergy, a large amount of heat is often generated, but most of this heat is wasted.
By recovering and reusing this heat, not only can energy waste be reduced, but production
costs can also be further lowered. For example, by installing a heat recovery system,
waste heat from the production process can be converted into hot water or steam for
heating production equipment or for heating purposes, thus achieving effective energy use
and recycling.
Improving energy utilization efficiency is crucial for the wood pellet renewable energy
industry. By using high-efficiency heating equipment and recycling the heat generated
during the production process, energy consumption can be effectively reduced, which in
turn lowers production costs and helps achieve sustainability goals. Therefore, enhancing
research and application of energy utilization efficiency has become one of the important
strategies for the development of the wood pellet renewable energy industry.
Sustainability 2025,17, 1562 9 of 19
Drax Power Station, the UK’s largest biomass power plant, transitioned from coal to
wood pellets as a clean energy source.
A. TQM Applications:
i. Supplier Qualification:
a.
Established a supplier assessment system to ensure compliance with ISO
9001 [18] and environmental standards.
b.
Conducted regular sampling and on-site audits of suppliers to ensure stable
raw material quality.
ii. Optimization of Combustion Systems:
a.
Adopted Six Sigma methodologies to optimize boiler combustion systems,
reducing energy loss from incomplete combustion of wood pellets.
b.
Implemented cross-department quality improvement programs to reduce
maintenance costs caused by pellet quality variability.
B. Results:
TQM implementation helped Drax reduce fuel costs and achieve over 80% reductions
in CO2emissions.
2.5. Taiwanese Companies’ Application of TQM and Smart Manufacturing in Wood Pellet
Fuel Production
Taiwanese companies are integrating Total Quality Management (TQM) and smart
manufacturing into wood pellet fuel production to enhance product quality, improve
production efficiency, and ensure environmental sustainability. Below is a breakdown of
how these methodologies are applied, along with specific implementation steps.
2.5.1. Application of TQM (Total Quality Management) in Wood Pellet Production
TQM emphasizes total participation, continuous improvement, and customer orienta-
tion. Taiwanese companies implement the following steps to enhance the quality of wood
pellet fuel:
1. Establishing Quality Standards
•
Setting quality specifications for wood pellets, such as pellet size, calorific value,
ash content, and moisture content.
•
Adopting international standards (e.g., ENplus, ISO 17225-2 [
19
]) to ensure mar-
ket compliance.
2. Supply Chain Quality Management
•
Selecting high-quality wood and biomass materials, avoiding contaminated or
chemically treated waste wood.
•Implementing a supplier evaluation system to ensure raw material consistency.
3. Quality Control in Production Process
•
SPC (Statistical Process Control): Real-time monitoring of moisture, density, and
combustion efficiency to reduce defective products.
•
FMEA (Failure Mode and Effects Analysis): Identifying potential failure points,
such as controlling machine temperature during compression to prevent pellet
breakage or excessive moisture.
•
TPM (Total Productive Maintenance): Regular maintenance of pelletizing ma-
chines, drying equipment, and cooling systems to reduce downtime and enhance
productivity.
4. Customer Satisfaction and Continuous Improvement
Sustainability 2025,17, 1562 10 of 19
•
Establishing customer feedback mechanisms to monitor combustion performance
and market demands, making necessary adjustments accordingly.
•
Using the PDCA (Plan–Do–Check–Act) cycle for continuous improvement in
production and quality management.
2.5.2. Application of Smart Manufacturing in the Wood Pellet Industry
Smart manufacturing leverages the IoT (Internet of Things), AI (Artificial Intelligence),
big data analytics, and automation to improve efficiency, reduce energy consumption, and
minimize human intervention. The implementation steps include:
1. Building a Digitalized Production System
•
IoT sensors monitor real-time raw material moisture, calorific value, and ash
content to ensure quality consistency.
•
A MES (Manufacturing Execution System) tracks production data to enhance
transparency and reduce defects.
2. Automation and AI-driven Production Optimization
•
AI-powered automatic adjustment of pelletizing parameters: Adjusting com-
pression pressure and temperature based on raw material variations to improve
combustion efficiency.
•
Predictive maintenance using AI: Analyzing production equipment data to pre-
dict failures and perform preventive maintenance, reducing machine downtime.
3. Energy and Environmental Management
•
Energy Management System (EMS): Real-time monitoring of electricity and
thermal energy usage to optimize energy efficiency.
•
Carbon emission monitoring and reduction: Using a blockchain to record carbon
footprints in the production process, ensuring compliance with international
environmental regulations and facilitating carbon credit trading.
4. Smart Warehousing and Logistics
•
AGVs (Automated Guided Vehicles) and robotic arms streamline material han-
dling and storage, improving efficiency.
•
Big data analytics predict market demand, optimizing the supply chain and
inventory management to reduce overproduction and stock accumulation.
2.5.3. Case Studies of Taiwanese Companies
1. Ying Di Enterprise Co., Ltd.
•
Implements AI + IoT monitoring systems to ensure the consistent calorific value
and combustion stability of wood pellets.
•
Establishes smart manufacturing processes to reduce waste in production and
improve energy efficiency.
2. Kaojay Enterprise
•
Utilizes FMEA and AI-powered fault prediction to minimize maintenance costs
and production risks.
•
Adopts smart warehousing systems to automate distribution and improve supply
chain management.
3. Jenpey Enterprise
•
Employs IoT technology to monitor production, reducing biomass material
wastage and improving resource utilization.
•
Introduces carbon emission tracking technology to align with ESG (Environmen-
tal, Social, and Governance) standards.
Sustainability 2025,17, 1562 11 of 19
Taiwanese companies apply TQM to enhance wood pellet quality stability and ensure
compliance with market and environmental standards. Meanwhile, smart manufacturing
technologies, such as IoT, AI, and automation, improve production efficiency, reduce costs,
and lower carbon emissions. These advancements enhance Taiwan’s competitiveness in
the wood pellet industry while promoting green energy development and aligning with
global sustainability trends.
Looking ahead, the industry can further integrate with international markets, expand
export opportunities, and leverage carbon trading and smart energy management to move
towards a more efficient and eco-friendly energy supply model.
3. Taiwan Has Proposed Relevant Policies to Encourage and Support the
Development of Wood Pellet Renewable Energy
Government incentive policies are instrumental in fostering the growth of the wood
pellet market. Numerous nations have integrated wood pellets into their renewable en-
ergy frameworks, actively promoting their utilization. The market has benefited from a
variety of subsidies, incentives, and advantageous regulations designed to encourage both
producers and consumers to adopt wood pellets. Furthermore, governments frequently
establish renewable energy targets and implement strategies to diminish dependence on
non-renewable energy sources, thereby further stimulating market expansion. Concurrently,
policies focused on waste management and forest conservation promote the use of wood
residues and sustainable forestry practices, which also serve to enhance the development
of the wood pellet market.
Taiwan’s Ministry of Economic Affairs has introduced a series of policy documents
and regulations to encourage and support the development of wood pellet renewable
energy. For example, the Taiwan Energy Bureau has established the Renewable Energy
Development Act and the Renewable Energy Development Incentives Measures, which
provide certain rewards and support for the production, utilization, and promotion of
wood pellet renewable energy. Additionally, Taiwan’s Ministry of Economic Affairs is
actively promoting research and development as well as technological innovation in wood
pellet renewable energy, encouraging enterprises to increase investment and improve the
quality and performance of their products.
Secondly, Taiwan’s Ministry of Economic Affairs has increased its policy support for
the wood pellet renewable energy industry. For example, by providing land, subsidies,
and tax incentives, it aims to attract domestic and international companies to invest in
and build wood pellet production plants in Taiwan. This promotes the development and
growth of the industry, while also enhancing regulation and management of the wood
pellet renewable energy market to ensure market order and protect consumer rights.
Examples of Taiwanese Companies in the Wood Pellet Fuel Sector
Here are some examples of companies in Taiwan involved in the wood pellet fuel
industry:
Ying Di Enterprise Co., Ltd. [20]:
Established in 1990, Ying Di Enterprise focuses on the manufacturing of wood pellets
and the development of pelletizing equipment. They utilize agricultural by-products to
create biomass energy and have successfully obtained MIT Smile Label certification as the
first domestic company in Taiwan to achieve this recognition for wood pellets.
Kaojay Enterprise [21]:
Founded in 2011, Kaojay Enterprise specializes in the production and trade of wood
pellets, contributing to the green energy industry. Their products can replace traditional
fuels such as petroleum coke, diesel, and coal, making them suitable for various industrial
Sustainability 2025,17, 1562 12 of 19
applications, including die casting plants, asphalt heating, and steam equipment, offering
an environmentally friendly and low-pollution alternative.
Jenpey Enterprise [22]:
Jenpey Enterprise transforms agricultural and forestry waste—such as sawdust, rice
husks, and bark—into solid biomass fuel (wood pellet rods), enhancing energy regeneration
and promoting the transition of wood materials from a linear economy to a circular economy.
Additionally, the Taiwan Biomass Energy Wood Pellet Association [
23
] is dedicated to
supporting the development of the wood pellet industry, including recycling, distribution,
pelletizing, and academic research. They actively promote biomass energy wood pellet fuel
as a source of renewable green electricity, creating value in the circular economy.
These companies and organizations play a crucial role in advancing Taiwan’s efforts
in renewable energy and circular economy development.
4. Use of Wood Pellets in Power Plants to Replace Existing Fuels
As energy demand continues to rise, traditional fossil fuels are facing increasing pres-
sure. In this context, green and renewable biomass fuels have become a crucial alternative
energy option. Among these, wood pellets, as a major type of biomass fuel, are widely used
in biomass power generation and have become an important driver for the development of
clean energy.
Biomass fuel power generation utilizes biomass resources, such as agricultural and
forestry waste, to produce electricity. Biomass, including wood pellets, is a green, renewable,
and low-carbon energy source widely used for power generation and heat supply.
Wood pellets are a common biomass fuel with several advantages. They have a
high combustion efficiency due to their stable shape, size, and high density, resulting in
a higher heat output. Wood pellets also have a high calorific value, typically exceeding
4000 kcal/kg, which enhances power generation benefits. Additionally, their low moisture
content, typically below 10%, reduces steam emissions and minimizes pollution.
Wood pellets are processed through compression, drying, and other methods, helping
to reduce pollutant emissions and further improving their environmental impact. They
have a small volume, making them easy to store, transport, and burn, and can be used
in various applications, including boilers, stoves, and automatic feeding systems. The
fuel produced has a storage life of three to six months and can serve as an alternative to
traditional steam boiler fuels.
Wood pellets are widely used in power generation, heating, and industrial production.
In power generation, wood pellets can be used in biomass power plants to replace tradi-
tional coal-fired power, achieving clean and environmentally friendly energy. In heating,
wood pellets can serve as biomass fuel for home heating and industrial heating, effectively
reducing dependence on fossil fuels. Additionally, wood pellets can also be used in indus-
trial production processes such as chimney combustion and drying, providing clean and
green energy support for industrial production.
Biomass combustion refers to the burning of organic materials to produce energy
through thermal conversion, involving steps such as combustion, dehydration, or stabi-
lization. The most commonly used raw material is wood, but it also includes residues
and by-products from paper mills or sawmills, such as bark residues, sawdust, and wood
shavings. Additionally, energy crops specifically grown for combustion and even urban
solid waste can be used as fuel. Wood pellets, in particular, have become a primary fuel for
biomass power plants due to their ease of handling and use in applications like combined
heat and power (CHP) [24].
Sustainability 2025,17, 1562 13 of 19
5. Power Plants in Taiwan and the United Kingdom
5.1. The Use of Wood Pellets in Power Plants in Taiwan
Electric power is the mother of industry, and thermal power generation plays a very
important role in driving Taiwan’s economic development. To align with the government’s
energy diversification policy, Taipower’s thermal power generation uses coal, heavy oil,
and natural gas as fuels, with coal-fired steam turbines being the mainstay and natural
gas-fired combined cycle units as supplementary. To meet peak load power demands,
there are also gas turbine units powered by light diesel. According to Taipower (2024) [
25
],
there are currently 14 thermal power plants. The existing thermal power plants can be
modified to use wood pellets as an alternative to coal. Referring to the transformation
of the Drax power plant, the largest power plant in the UK, Taiwan should first address
regulatory aspects, such as wood pellet quality standards and relevant regulations for the
forestry industry.
Using solid biofuels for power generation is one of the current international focuses
in the development of bioenergy. Taiwan also established and announced the national
standard for ‘Solid Biofuels’ (CNS 17225-1 [
26
], CNS 17225-2 [
27
], CNS 17225-6 [
28
]) in
March 2021, detailing the specifications and grades for wood and non-wood pellet fu-
els. Additionally, in 2021, the methods for testing sulfur and chlorine content, calorific
value, and elemental content in primary solid biofuels were successively announced. This
demonstrates that Taiwan is promoting policies to align the quality of biofuel pellets with
international standards.
Taipower’s Hsingda Power Plant plans to convert Unit No. 1 from coal-fired to a
‘biomass energy demonstration unit’ to meet the green energy needs of a nuclear-free
homeland. It is expected that by 2026, the unit will switch from burning coal to burning
wood pellets for power generation. Therefore, the fuel quality must be high and stable,
making a reliable source of wood pellets crucial for ensuring stable operation.
Taiwan Power Company has stated that transitioning from coal to exclusively burning
biomass will not involve major changes to the units, but the boiler equipment and systems
will need to be modified. Although the installed capacity of Unit 1 at Hsingta Power Plant
is 500,000 kW, biomass has a lower calorific value compared to coal and cannot generate as
much power as coal. The actual power generation will depend on the final improvements to
the boiler system and adjustments to operational parameters. The challenge with biomass
is not its cost but the stability of the supply of “wood pellets,” and due to its lower calorific
value, more fuel is required, necessitating additional storage space, which is expected to be
accommodated in the existing coal storage facilities.
Due to the active promotion of carbon reduction policies benefiting wood pellets
and the fact that renewable energy sources cannot fill the gap in the short term, the
price of wood pellets is expected to rise due to surging demand. Wind energy, solar
power, and large-scale energy storage solutions will take at least ten years or longer to
eliminate most traditional coal-fired power plants, so wood pellet biomass is currently
gaining global momentum. Countries and regions like the European Union and the United
Kingdom have not only received millions of dollars in government subsidies but also
support from regulatory agencies. This trend of rising wood pellet prices is expected to
continue. However, wood pellet producers’ supply capabilities are not unlimited, as they
are restricted to using by-products or unsuitable raw materials from major customers in
the forestry industry. Therefore, despite the significant growth potential of the wood pellet
industry, there are limitations. Future supply and demand shortages may further drive up
the cost of purchasing alternative fuels.
Sustainability 2025,17, 1562 14 of 19
To achieve substantial and sustainable carbon reduction and encourage cement produc-
ers to use alternative fuels, in addition to the enforcement of policies, a primary condition
is that the economic benefits of alternative energy must be tangible.
According to the energy value conversion standards announced by the Energy Bureau:
A.
The calorific value of coal is 6000 kcal per kg.
B. The calorific value of wood pellets is 4400 kcal per kg.
The calculation shows that the calorific value ratio of coal to wood pellets is
6000/4400 = 1.36363
. In other words, to replace 1 ton of coal with wood pellets and produce
the same amount of heat, you would need 1.36 tons of wood pellets.
Spelter and Toth (2009) [
29
] proposed that wood pellets not only have consistent and
uniform biomass supply characteristics, but the energy density produced from pellets is
twice that of unprocessed wood. Ehrig and Behrendt (2013) [
30
] explained that, technically,
existing coal-fired power plants can fully replace coal with 100% wood pellets as an alter-
native fuel, or choose to co-combust coal and wood pellets. Furthermore, co-combustion is
currently one of the most direct and easily adoptable technological strategies.
The advantages of co-firing wood pellets with coal are currently an effective carbon
reduction technology strategy. Veijonen, K. et al. [
31
] proposed in 2003 that co-firing wood
pellets and coal has the following advantages: (1) Due to the different calorific values of the
two fuels, co-firing coal is a method with higher energy utilization of biomass compared
to direct combustion of wood pellets. (2) It allows for the direct use of existing factory
infrastructure, thereby reducing additional capital expenditures for new infrastructure.
(3) Co-firing is the fastest way to achieve the use of renewable biomass. However, co-
firing also faces some technical issues, such as a reduced overall combustion power due
to the lower calorific value of wood pellets, carbon depletion, and issues with slagging
and corrosion in co-firing systems. To rapidly advance the application of wood pellet
fuels, Austria among European countries has developed clear policies to accelerate the
research and development of industrial burners and home stoves specifically for wood
pellets, particularly focusing on improving the combustion efficiency of wood pellets and
reducing the ash emissions after combustion.
5.1.1. Economic Benefits from Carbon Emission Reduction
A. Analytical Method:
i. Using the Social Cost Model to Calculate Carbon Reduction Benefits:
a. Formula:
TCRB = RCE ×SCC (1)
TCRB = Total Carbon Reduction Benefits
RCE = Reduced CO2Emissions
SCC = Social Cost of Carbon per Ton
b. Parameters:
Reduced CO
2
Emissions = (Coal Emission per Unit
−
Wood Pellet Emission
per Unit) ×Fuel Consumption
Social Cost of Carbon (based on IPCC or regional policies, typically NTD40–
NTD100 per ton).
B. Example:
a. Coal emission: 2.3 tons CO2/ton
b. Wood pellet emission: 0.35 tons CO2/ton
c. Annual wood pellet usage: 100,000 tons
d. Social cost of carbon: NTD50 per ton
Sustainability 2025,17, 1562 15 of 19
C. Calculation:
Reduced CO2Emissions = (2.3−0.35) ×100,000 = 195,000 tons
Carbon Reduction Benefits = 195,000 ×50 = NTD 9,750,000
5.1.2. Economic Benefits from Fuel Cost Savings
A. Analytical Method:
i. Cost Comparison Model:
a. Formula:
TFCS = (CC−WPC) ×FD (2)
TFCS = Total Fuel Cost Savings
CC = Coal Cost
WPC = Wood Pellet Cost
FD = Fuel Demand
b. Parameters:
Coal cost (per ton)
Wood pellet cost (per ton)
Fuel demand to produce equivalent energy output (based on calorific value).
B. Example:
a. Coal price: NTD100/ton
b. Wood pellet price: NTD150/ton
c. Coal calorific value: 6000 kcal/kg
d. Wood pellet calorific value: 4400 kcal/kg
e. Annual energy demand: 100,000,000 kcal
C. Calculation:
Coal Consumption =
100,000,000
6000 =16, 667 tons
Wood Pellet Consumption =
100,000,000
4400 =22, 727 tons
Cost Difference = (16,667 ×100) −(22,727 ×150) = NTD 1,666,700−NTD 3,409,050 = −NTD 1,742,350
While wood pellets may have higher fuel costs, carbon reduction benefits should also
be considered.
By using the above quantification methods, the economic benefits of wood pellets can
be assessed precisely, including carbon reduction benefits and fuel cost savings. Based
on the analysis, while wood pellets may have higher fuel costs than coal, their significant
environmental and societal benefits demonstrate substantial economic value and allow for
a rapid return on investment.
5.2. Power Plants in United Kingdom
Drax Power Station provides 11% of the UK’s renewable energy and is the largest
power station globally using woody biomass. Located in North Yorkshire, UK, Drax Power
Station was established in 1967. It was originally a large coal-fired power plant, capable of
burning up to 36,000 tons of coal daily, supplying electricity to over two million households.
Through a gradual transition, by 2020, it had fully converted into a biomass power plant,
burning wood pellets primarily imported from the United States. The station has a total
Sustainability 2025,17, 1562 16 of 19
generating capacity of 3960 megawatts, with biomass accounting for 2.6 GW and carbon
for 1.29 GW (Figure 2), and it supplies approximately 6% of the UK’s electricity [32].
Sustainability 2025, 17, 1562 16 of 19
Thus, although Drax Power Station has phased out coal-fired generation, its biomass
energy production still has a significant impact on carbon emissions.
Figure 2. The proportion of carbon and biomass energy in the electricity generation of the Drax
Power Station in the UK.
Wood pellets are the primary fuel source for biomass power generation in the UK.
Additionally, local Miscanthus grass and coconut shells from Southeast Asia also contrib-
ute some of the raw materials. Nevertheless, the supply of biomass fuel in the UK remains
insufficient. The UK’s Commiee on Climate Change predicts that to meet domestic de-
mand, 1.4 million hectares of land will be needed to grow energy crops by 2050. This is
not only to address climate change but also to further reduce dependence on oil. As a
result, the UK is set to become the world’s largest buyer of biomass fuel. The Drax Power
Station in the UK began developing the use of compressed wood pellets to co-fire with
coal in 2003 and successfully completed the conversion of its first unit to run entirely on
compressed wood pellets in 2013.
The Drax Power Station has four 645 MW biomass-fired units that use renewable
fuels throughout their entire life cycle. Compared to coal, these units reduce the carbon
footprint of electricity by at least 80%, generating about 14 terawa-hours (TWh) of elec-
tricity, which is equivalent to supplying power to approximately 5 million households.
The UK’s underground energy network system used to transport pipelines that ex-
tracted fossil fuels from the geological layers beneath the North Sea seabed, distributing
them across the UK for combustion. With the continuous development and application of
the new BECCS technology, a similar underground pipeline system can soon be used to
transport captured emissions to industrial areas around factories and power plants far
from cities. This system will store the carbon produced by burning wood pellets in geo-
logical reservoirs beneath the North Sea, permanently and safely locking them under-
ground. Additionally, the carbon can be injected into oil and gas formations or saltwater
aquifers to enhance oil recovery.
The International Energy Agency (IEA) website indicates that BECCS (Bioenergy
with Carbon Capture and Storage) technology, when used in conjunction with bioenergy,
helps heavy industry, transportation, and other sectors achieve net-zero targets. As of
2022, BECCS technology removes approximately 2 million tons of carbon dioxide annu-
ally, and it is estimated that this figure could grow to 5 million tons by 2030 [36,37].
6. The Future Development Direction of Wood Pellets in Power Plants
in Taiwan
Most wood pellets produced by Taiwanese manufacturers have a diameter of 6–8
mm. To ensure a stable supply for power plants, manufacturers should increase the pro-
duction of 10–12 mm wood pellets. Given the large quantities required for power genera-
tion, the current production capacity might need to source more raw materials or import
carbon
1.29
biomass
energy
2.60
carbon biomass energy
Figure 2. The proportion of carbon and biomass energy in the electricity generation of the Drax
Power Station in the UK.
The total installed capacity of the Drax Power Station is 3960 megawatts (MW), with
2640 MW coming from biomass energy and 1320 MW from coal [
32
]. However, the coal-
fired units were shut down in 2021, meaning that the station now primarily generates
electricity from biomass energy [33].
In 2022, the four biomass units at Drax Power Station generated a total of 12.7 terawatt-
hours (TWh) of electricity [
33
,
34
]. However, according to a report by Ember, in 2023, Drax
Power Station emitted 11.5 million tons of CO
2
, making it the largest single emitter of
carbon dioxide in the UK [35].
Thus, although Drax Power Station has phased out coal-fired generation, its biomass
energy production still has a significant impact on carbon emissions.
Wood pellets are the primary fuel source for biomass power generation in the UK.
Additionally, local Miscanthus grass and coconut shells from Southeast Asia also contribute
some of the raw materials. Nevertheless, the supply of biomass fuel in the UK remains
insufficient. The UK’s Committee on Climate Change predicts that to meet domestic
demand, 1.4 million hectares of land will be needed to grow energy crops by 2050. This
is not only to address climate change but also to further reduce dependence on oil. As a
result, the UK is set to become the world’s largest buyer of biomass fuel. The Drax Power
Station in the UK began developing the use of compressed wood pellets to co-fire with
coal in 2003 and successfully completed the conversion of its first unit to run entirely on
compressed wood pellets in 2013.
The Drax Power Station has four 645 MW biomass-fired units that use renewable fuels
throughout their entire life cycle. Compared to coal, these units reduce the carbon footprint
of electricity by at least 80%, generating about 14 terawatt-hours (TWh) of electricity, which
is equivalent to supplying power to approximately 5 million households.
The UK’s underground energy network system used to transport pipelines that ex-
tracted fossil fuels from the geological layers beneath the North Sea seabed, distributing
them across the UK for combustion. With the continuous development and application of
the new BECCS technology, a similar underground pipeline system can soon be used to
transport captured emissions to industrial areas around factories and power plants far from
cities. This system will store the carbon produced by burning wood pellets in geological
reservoirs beneath the North Sea, permanently and safely locking them underground.
Additionally, the carbon can be injected into oil and gas formations or saltwater aquifers to
enhance oil recovery.
The International Energy Agency (IEA) website indicates that BECCS (Bioenergy with
Carbon Capture and Storage) technology, when used in conjunction with bioenergy, helps
Sustainability 2025,17, 1562 17 of 19
heavy industry, transportation, and other sectors achieve net-zero targets. As of 2022,
BECCS technology removes approximately 2 million tons of carbon dioxide annually, and
it is estimated that this figure could grow to 5 million tons by 2030 [36,37].
6. The Future Development Direction of Wood Pellets in Power Plants
in Taiwan
Most wood pellets produced by Taiwanese manufacturers have a diameter of 6–8 mm.
To ensure a stable supply for power plants, manufacturers should increase the production
of 10–12 mm wood pellets. Given the large quantities required for power generation, the
current production capacity might need to source more raw materials or import wood from
abroad. Wood pellets made from white wood can achieve net-zero carbon emissions. It
is crucial to ensure that the wood pellets come from high-quality wood materials. If the
factory burns pellets made from top-grade fuel, there will be no chemical pollution to the
air from boiler combustion. Regular inspections of the boiler heating equipment can be
replaced with spot checks, which can significantly improve the chances of obtaining ESG
certification for the company.
In light of this, Taiwanese manufacturers should upgrade their processes, manufac-
turing techniques, and boiler technology for producing wood pellets to meet the power
generation needs of power plants and comply with environmental requirements.
A.
Advanced technology is used in the manufacturing process to enhance the efficiency
of the pellet mill, ensuring stable and reliable product quality. The produced wood pel-
lets are compatible with most heating systems, including boilers and hot air furnaces,
while also being highly focused on energy conservation and environmental protection.
B.
Improve boiler technology to be compatible with A1-grade wood pellets. A1-grade
wood pellets are known for their high heat output and low ash content, and are
primarily composed of wood residues from wood processing industries. Due to
their excellent combustion efficiency, A1-grade pellets are mainly used in residential
heating systems. Additionally, they help reduce carbon emissions and align with the
global shift towards green energy.
C. Improve manufacturing techniques to produce more white wood pellets. White wood
pellets burn cleanly and produce less ash, making them suitable for indoor use or in
areas with strict air quality regulations. Due to their lower bark content, white pellets
have a lighter color and are typically made from hardwoods such as oak or maple,
which will increase the production cost of the wood pellets.
7. Conclusions
This study underscores the critical role of Total Quality Management (TQM) in en-
hancing wood pellet utilization for sustainable energy production. By integrating process
optimization, supply chain management, and technological innovation, enterprises can
improve production efficiency, ensure consistent pellet quality, and significantly reduce
carbon emissions.
The research findings highlight that wood pellets, despite having a lower energy
density than coal (4000–4600 kcal/kg vs. 6000 kcal/kg), provide environmental advan-
tages due to lower sulfur and heavy metal content. Additionally, TQM-driven efficiency
improvements in pellet production contribute to better combustion performance, allowing
wood pellets to serve as a viable alternative to fossil fuels in electricity generation.
Taiwan’s wood pellet market, though still developing, plays a growing role in the
country’s renewable energy transition. This study identifies fluctuating costs, supply chain
challenges, and policy adjustments as key barriers to industry expansion. However, smart
Sustainability 2025,17, 1562 18 of 19
manufacturing and quality control systems can enhance pellet standardization and improve
fuel reliability for power plants and industrial applications.
Furthermore, replacing coal with wood pellets in power plants offers a measurable
reduction in CO
2
emissions, aligning with global sustainability targets and Taiwan’s net-
zero carbon policies. Future research should explore advancements in pellet production
technology, the economic feasibility of large-scale implementation, and the development of
hybrid energy models combining biomass with other renewables.
The adoption of TQM strategies and smart manufacturing can optimize wood pellet
utilization, positioning it as a key contributor to sustainable energy solutions, supporting
carbon neutrality and energy diversification in the global renewable energy landscape.
Author Contributions: C.-M.H. was involved in the conception, design, drafting, editing, and
revision of the final work of the paper, H.-H.L. was involved in the analysis, reviewing, and final
cross-checking of the manuscript critically for important intellectual content. The authors agree to be
accountable for all aspects of the work in ensuring that questions related to the accuracy or integrity
of any part of the work are appropriately investigated and resolved. All authors have read and agreed
to the published version of the manuscript.
Funding: This research received no external funding.
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Not applicable.
Data Availability Statement: The data that support the findings of this study are available on request
from the corresponding author.
Conflicts of Interest: The authors declare no conflicts of interest.
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