PRE ICO

White Paper

Project "Wood Pellets"

BLOCKCHAIN - OPTION IN THE INDUSTRY OF MANUFACTURE OF WOOD PELLETS AND ECO MINING

100%

Environmentally friendly, non-waste production of a closed cycle from renewable energy sources and application of the latest IT technologies

Forest resources - forest area 71 967 ha

Logging plant
capacity 120 000 m3/year

Wood pellet plant
capacity 120 000 tons/year

Cogeneration station
electric power 10 MW
heat capacity 27.7 MW

Date – Center for Mining
10 MW 84375 TH/s

Greenhouse complex
1 million spruce seedlings/year

END OF THE PRE ICO

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Soft Cap

250 000 EUR

Hard Cap

1 000 000 EUR

Received investment 0.000 ETH

0 EUR to 02.04.2018 00:00 MSK (GMT+3)

To become a member of the WPClub investor club, you must acquire at least 500 tokens. What are the privileges of the club members? You can see on the club page.

Discount 75%

Price 1 ETH = 0 EUR to 02.04.2018 00:00 MSK (GMT+3)

You have to pay 0.00000000 ETH (0.00 EUR)

Contract number

Instructions "How to create an Ethereum wallet?"
Terms and Conditions!

For investment, send the Ether to the official smart contract of the crowdsale. You can not transfer it from the exchangers, only ETH wallets. With the transaction, please put GAS LIMIT 200,000.

Soft Cap
0 - 250 000 EUR

Discount 75%

Hard Cap
250 000 - 1 000 000 EUR

Discount 50%

Reverse buyout under company regulations

1 Euro = 1 WPC

​The Universal Problem

Forest - a source of raw materials for all wood manufacturing or processing enterprises. A lot of logging and woodworking enterprises leave about 25-40% of the waste wood and wood material after the work is done, the further destiny of which is simply destroyed by the burning method, so the processing of wood waste is so important, its use in production will not only preserve primary wood material but will also reduce waste wood, which will significantly reduce deforestation. Considering the problems of the timber industry complex, specialists constantly declare the need for the development of deep processing of wood raw materials.
Despite the fact that Russia has a quarter of the world's forest fund, it accounts for only 3% of the world market for deep processing products. Only 15% - 20% of timber in Russia undergoes deep processing. We live in a world where humanity is indifferent to our planet and the environment. As the researchers explain, carbon dioxide (CO2) in the Earth's atmosphere in 2016 reached its maximum concentration. Its content has increased by 50% compared with the average level over the past 10 years. The business model of crypto mining largely depends on three factors: equipment, electricity and cooling devices.

​Invest in a real enterprise

The basis of the WOOD PELLETS project is the introduction of a model of intensive forest management with the improvement of the breed and quality of the forest fund, using environmentally friendly, non-waste production, based on deep processing of wood and biofuel (wood pellets), without additional negative environmental impacts, using renewable sources of energy for the joint generation of electricity, heat and cold for the company's own needs and the launch of an eco-mining farm, which is an automated and integrated production of the closed cycle using its own resource base.

Transparency

Transparency – We are completely open to you and ready to provide public video
monitoring form objects on the website.

Guaranteed profit

Investing in WPCoin in the early stages of the project will result in a profit of 300%.

Finished products

Each investor can receive finished products of WPCoin. Exchanging WPC for the
appropriate amount of wood pellets, based on a calculation of 1 ton of wood pellets per
100 WPCoin on FCA terms.

Payments

Payments will be made monthly in the crypto currency of Ether (ETH), on the purse
from which the investment was made, which gives high guarantees of obtaining your
profits on time.

Demand

High demand for wood pellets is provided by the legislation of developed countries in
the field of ecology. The growth in demand is due to the entry into force of the Kyoto
Protocol.

Compensation

Special Program The Government of the Russian Federation compensates up to 80%
of actually incurred costs when transporting wood pellets to foreign markets to the
destination point.

Eco Mining

Mining using renewable energy sources on biomass, where some of the heat is diverted
to create a cold (immersion cooling).

Ethereum ERC20

Our token is developed on the Ethereum platform according to ERC20 standards, which
allows us to place a token on popular exchanges.

Forest resources

Forest area 71 967 ha

Logging plant

capacity 120 000 m3/year

Wood pellet plant

capacity 120 000 tons/year

Cogeneration station

electric power 10 MW
heat capacity 27.7 MW

Date – Center for Mining

10 MW 84375 TH/s

Greenhouse complex

1 million spruce seedlings/year

The program of participation in the club WP

> 500 WPC

> 5 000 WPC

> 50 000 WPC

> 500 000 WPC

Invest in real business and get a percentage of the income of enterprises, see the conditions of the club program on the page of the WPC club.

News

PIX Bioenergy – Pellet Continental

Pellet Continental Europe – The heating season has been good in terms of pellet demand due to the exceptionally cold winter weather. The availability of pellets has, on the other hand, been somewhat inadequate, especially in the UK market, and spot prices have reportedly moved up.

There is new capacity being added in Canada as the market newcomer La Granaudière is planning a new facility in Quebec with the start-up planned by the end of 2019. Pinnacle Renewable Holdings Inc. is aiming at converting the former particle board mill at Smithers, BC, to a wood pellet plant with the start-up already in Q3/2018.

Based on Eurostat, Hawkins Wright Forest Energy Monitor reports that the EU pellet imports increased by 5% in 2017 compared to 2016. The largest exporter of pellets within the EU was Estonia with over 1.2 Mt.

Spring has been quite cold so far in many parts of Central and Eastern Europe. The PIX Pellet Continental index for medium-scale use moved up by 1.21 euros, or by 0.56%, to 218.63 EUR/ton.

Industrial wood pellet markets – 2018 to 2025

Feb. 1, 2018 – Global pellet markets have increased significantly over the last decade, mostly because of demand from the industrial sector. While pellet heating markets make up a significant amount of global demand, this overview will focus on the industrial wood pellet sector. Chart 1 shows FutureMetrics’ forecast for heating pellet demand by country.

Pellet heating markets have been challenged in recent years by low alternative heating fuel costs (oil and gas prices) and warmer than average winters in North America and Europe. FutureMetrics expects that a combination of higher oil prices and de-carbonization policies will return demand growth to trend in the 2020s.

For the last several years, the industrial wood pellet sector was as large as the heating pellet sector, and is expected to become significantly larger over the next decade.

The industrial wood pellet market is driven by carbon emissions mitigation and renewable generation policies. Industrial wood pellets are a low carbon renewable fuel that easily substitutes for coal in large utility power stations.

Pellets can be substituted for coal in two ways, either a full conversion or co-firing. For a full conversion, an entire unit at a coal station is converted from using coal to using wood pellets. This requires modifications to the fuel handling, feed systems, and burners. Co-firing is the combustion of wood pellets along with coal. At lower co-firing ratios, minimal modifications to existing pulverized coal facilities are required. In fact, at lower blends (under about seven per cent) of wood pellets, almost no modification is required.

Chart 2 shows the historical actual demand and FutureMetrics’ demand forecast for industrial wood pellet markets. Aggregate demand in 2017 is estimated at 15.9 million metric tonnes.

As shown in Chart 2, demand in the U.K. and EU is expected to plateau by 2020. However, major growth is expected in Japan and South Korea in the 2020s. We also expect Canada and U.S. to have some pulverized coal power plants using industrial wood pellets by 2025.

Pellet demand
New large utility co-firing and conversion projects in Japan, the EU and U.K., and South Korea, and many smaller independent power plant projects in Japan, are forecast to add about 24 million tonnes per year to current demand by 2025. Most of the expected growth is from Japan, and South Korea.

FutureMetrics maintains a detailed project-specific database on all the projects that are expected to be consuming wood pellets.Most of the supply of pellets for planned new demand in the EU and U.K. has already been arranged with major existing producers. However, the Japanese and S. Korean markets offer opportunity for new capacity that is, for the most part, not in the pipeline as of today.

Europe and England
Early growth (2010 to the present) in the industrial wood pellet sector came from western Europe and the U.K. However, growth in Europe is slowing and is expected to level out in the early 2020s. The remaining growth in European industrial wood pellet demand will come from projects in the Netherlands and U.K.

Demand by the Dutch utilities is still uncertain, as coal plants have delayed final investment decisions around co-firing modifications until they are given assurances that their coal plants will be able to continue to operate. Most analysts, including FutureMetrics, expect these issues to be resolved and Dutch demand will likely grow by at least 2.5 million tonnes per year over the next three to four years. It is possible that Dutch demand will increase to up to 3.5 million tonnes per year if all four of the coal stations that have been awarded subsidies proceed with their plans.

Two U.K. projects, EPH’s 400MW Lynemouth power station conversion and MGT’s Teeside greenfield CHP plant, are currently either in commissioning or under construction. Drax recently announced that it will convert a fourth unit to run on pellets. How many hours that unit will run in a year is unclear at this time. However, given that the investment decision has been made, FutureMetrics estimates that unit 4 will consume an additional 900,000 tonnes per year. Each converted unit at the Drax station can consume about 2.5 million tonnes per year if they run at full capacity all year. FutureMetrics projects total new probable demand in Europe and England at 6.0 million tonnes per year.

Japan
Biomass demand in Japan is primarily driven by three policy components: The Feed in Tariff (FiT) support scheme for renewable energy, coal thermal plant efficiency standards, and carbon emissions targets.

The FiT offers independent power producers (IPPs) a set price for renewable energy over an extended contract period – 20 years for biomass energy. Currently, under the FiT, electricity generated from “general wood,” which includes pellets, imported woodchips, and palm kernel shell (PKS), receives a subsidy of 21 ¥/kWh, down from 24 ¥/kWh prior to Sept. 30, 2017. However, the scores of biomass IPPs that have received the higher FiT are locked in at that rate (about $0.214/kWh at current exchange rates).

Japan’s Ministry of Economy Trade and Industry (METI) has produced a so-called “Best Energy Mix” for 2030. In that plan, biomass power accounts for 4.1 per cent of Japan’s total electricity production in 2030. This is equivalent to over 26 million metric tonnes of pellets (if all the biomass were wood pellets).

In 2016, METI released a paper describing best available technology (BAT) efficiency standards for thermal plants. The paper develops minimum efficiency standards for power generators. As of 2016, only about one-third of Japan’s coal generation comes from plants that meet the BAT efficiency standard. One way to comply with the new efficiency standard is to co-fire wood pellets.

Plant efficiency is normally calculated by dividing energy output by energy input. So, for example, if power station uses 100 MWh of energy input to produce 35 MWh, that plant is operating at 35 per cent efficiency.

METI has allowed energy input from biomass co-firing to be deducted from the input. If the same plant described above co-fires 15 MWh of wood pellets, the plant’s efficiency under the new calculation would be 35 MWh / (100 MWh – 15 MWh) = 41.2 per cent, which is above the efficiency standard threshold. FutureMetrics has calculated the tonnage of wood pellets that will be required by Japanese power plants to bring the lower efficiency plants in to compliance in the recently released Japanese Biomass Outlook report by FutureMetrics. The report contains detailed data on the expected demand for wood pellets, palm kernel shell, and wood chips in Japan and the policies that are driving that demand.

The FutureMetrics’ forecast for pellet demand by the smaller independent power producers (IPPs) is about 4.7 million tonnes per year by 2025. This is based on analysis of about 140 IPPs that are detailed in the Japanese Biomass Outlook.

Total potential demand in Japan from utility power plants and from IPPs could exceed 12 million tonnes per year by 2025.

South Korea
Demand for industrial wood pellets in S. Korea has grown rapidly in recent years, a trend that could continue over the next several years. In 2017 S. Korean pellet imports were about 2.25 million metric tonnes.

S. Korea is guiding the power generation industry with a Renewable Portfolio Standard (RPS). The RPS program requires the 13 largest power companies (with installed power capacity larger than 500 MW) to steadily increase their renewable energy mix from two per cent in 2012 to 10 per cent by 2024.

For power companies to meet their RPS targets they can: (1) Invest in renewable energy installations themselves and receive renewable energy certificates or RECs based on the MWhs generated from renewable sources, or (2) purchase RECs in the RPS marketplace to meet their obligation.

If the power company fails to accumulate the required number of RECs based on the RPS mandate, they pay a fine. The penalty is equal to 150 per cent of the average market price of the RECs for that year for each REC they are deficient.

REC prices in S. Korea have been very high in recent years. FutureMetrics analysis shows that at current REC prices, S. Korean utilities can significantly increase the profitability of generating electricity by co-firing pellets.

But the market price for RECs can vary significantly, unlike the guaranteed FiT in Japan; this creates a difficult problem for the market. Most pellet producers and project lenders/investors will not commit to the capital expense of a new pellet plant without a long-term offtake agreement. To date, S. Korean utilities have not engaged in long-term offtake agreements. Demand growth has spurred rapid growth in production capacity in Vietnam to satisfy S. Korean tenders. But that demand is already pushing the limits of Vietnam’s capacity to produce low cost pellets, which are mainly produced from residuals from the wooden furniture industry. It is difficult to conceive of how pellet production capacity can keep up with the expected growth in the S. Korean demand without long-term agreements. Yet, with the risk of falling REC prices, S. Korean utilities cannot engage in long-term agreements.

Based on data from announced co-firing and full-firing projects, S. Korean demand is expected to reach about nine million tonnes per year by 2024 if REC prices remain high enough to compensate for the expected higher cost of pellets as competition in the region increases. The pellet market into S. Korea is already tightening. Pellet prices in Vietnam have risen from around $95 to $133 per tonne (FOB Vietnam) in the last six months.

Summary
There is a high degree of confidence around the continued development of European industrial pellet markets. Japanese demand, once IPP projects are up and running and large utilities receive FiT benefits, should also be stable and is likely to grow as forecast. Future demand in S. Korea is more difficult to estimate due to the uncertainty in prices of RECs. Overall, FutureMetrics estimates the potential new demand for industrial wood pellets through 2025 is in excess of 26 million tonnes per year.

Global softwood lumber trade reaches record-high in 2017: WRQ

March 21, 2018 – International trade of softwood lumber is on pace to a new record high in 2017 if the trend from the first six months of 2017 continues in the second half of the year, reports the Wood Resource Quarterly.

Of the 10 largest lumber-exporting countries in the world, Russia, Finland, Austria and Ukraine increased shipments the most year-over-year during the first half of 2017. Russia alone, has accounted for 22 per cent of global lumber trade so far in 2017, which is up from 15 per cent 10 years ago, according to the WRQ. Canada’s seven consecutive years of expanding shipments may reach an end this year with export volumes having declined 2.2 per cent during the 1H/17.

Lumber markets – North America
U.S. softwood lumber production in 2017 reached the highest level seen in 10 years. The biggest increase came in the southern states, but other regions of the country also had healthy production gains year-over-year. The higher domestic production levels resulted in decreased demand for imported lumber as U.S. lumber consumption was up by only one percent from 2016. The strong market for lumber in the US led to record high lumber prices in both the US and Canada in late 2017 and early 2018.

Lumber markets – Northern Europe
Softwood lumber production in Finland reached a ten-year high of 11.9 million m3 in 2017. The higher production was driven by expanding lumber exports, particularly to China. High demand for lumber from Europe, Asia and the U.S. in late 2017 pushed export prices in the Nordic countries to their highest levels in almost three years.

Lumber markets – China
Over the past two years, prices for imported softwood lumber to China have been steadily rising and in January 2018 reached their highest levels since March 2015. Lumber supply from Russia and North America has generally been the lowest cost lumber imported to China, while lumber from Chile, Sweden and Finland typically is at the higher end of the price spectrum.

Russia and Canada continue to be the major suppliers, but their total market share has shrunk from 81 per cent in 2015 to 76 per cent in 2017, with particularly Nordic mills increasing their presence in this fast-growing market.

Lumber market – Japan
Although lumber imports to Japan fell in the 4Q/17, the total volume for the year was up slightly for the second consecutive year. The biggest changes in supply over the past few years have been reduced shipments from Canada and increased imports from Finland and Sweden. Compared to most other major markets of the world, domestic and import prices for lumber have been surprisingly stable.

Lumber market – Northern Africa/Middle East
The Middle Eastern and North African (MENA) lumber markets grew fast from 2007 to 2015, reaching a peak of imported lumber of about 11.5 million m3 in 2015. Since then, import volumes have fallen by over 20 per cent to an estimated nine million m3 in 2017. This decline came as the result of financial and political uncertainties in many countries in the region. Additionally, Finland and Sweden began redirect their sales to meet growing wood demand in China and other European nations.

UK Experiencing Record Wood Pellet Shortage

The United Kingdom is currently seeing a 50 percent decrease in the supply of wood pellets across the continent by most European bagged wood pellet suppliers, leaving the local market fluctuating in price.

The UK is a major player in the wood pellet industry; as a country, it imports more than it exports, making it vulnerable to drastic price changes when the industry struggles to reach equilibrium between its supply and demand.

Silo manufacturers in the United Kingdom and similarly structured European nations should expect to see fluctuations in the market with consistently high prices until the month of April.

There are many reasons that contribute to this shortage of wood pellets. One of the main reasons causing this shortage is the unusual weather patterns being seen across Europe. The Latvian nation has experienced so much flooding that the government has declared a state of disaster. This flooding has allowed Latvian suppliers to be excused from non-supply penalties in their contracts, leaving the market without wood pellets to sell.

This problem isn’t exclusively occurring in Latvia, either; it’s happening across Europe. The unseasonably warm and wet weather means that the ideal, frozen conditions required for smooth timber operations has been paused. Without the frozen ground, machinery used in timber production could get stuck, break down or move very slowly.

Even once the weather returns to more favorable conditions, there is a generous time gap between when the timber is felled to when a pellet can be produced and sold. Those involved in the wood pellet market should have patience for the market to return to its normal equilibrium.

Another reason for the serious wood pellet shortage is the development of biomass fueled power stations. Previously, there was an abundance of wood pellets, and any given wood pellet silo had access to more than enough to sell. However, with the development of biomass fueled power stations, the demand for the same material, wood pellets, has increased significantly. Now, there are two markets competing for the same material, leaving fewer wood pellets to go around to every silo, fuel station and other supplier around Europe.

Those involved in the wood pellet industry, whether consumer, producer or supplier, should expect the market to begin to return to normal in April of this year.

Road map

2017 Q2-Q4 - Development of the project base

Negotiating with suppliers

Website launch

2018 Q3 - ICO

Preparatory work

Purchase of machinery

Start of construction works

Purchase of production equipment

2019 Q3-Q4 - Launch of the complex

Sales start

Ransom of the tokens

​Contact us

182250, Pskov Region, Sebezhtsky, Sebezh, street. V. I Margo 32

info@woodpellets.io

+ 371 29120386

Our pages in social networks

Our Team

Sergey Savin

PROJECT CEO.. Building, optimization and automation of business processes. Production of
innovative processes. Advanced communicative and negotiation skills. Ability to work in a
multitasking mode. Expert in development of solutions for successful completion of transactions.

Mikhail Burenin

GENERAL DIRECTOR OOO “Langan”, the head and specialist in financial analysis.
International experience in identifying risks and analyzing markets, creating and implementing
processes for effective business management. Extensive experience of managing a business in
trading and industrial spheres.

Stanislav Smirnov

HEAD OF THE SECTOR IT. Considerable experience in the formation and coordination of large
teams located in different countries, business restructuring, management of large and
international IT projects. Information support of the project. Large exchange experience.

Elmar Grischoulenok

MANAGER. Extensive experience in organizing and managing woodworking enterprises, an
expert on international trade relations between Russia, Asia, Europe, America. Has extensive
business experience in trading and production spheres.

​Partners