European Wood Pellet Consumption Expected To Triple By 2020

The European Union recently published its annual biofuels report for 2013 with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. The report reveals that the EU is the world’s largest wood pellets market, with a consumption of about 14.3 MMT of pellets in 2012. Driven by the EC mandates and Member State incentives, the […]

The European Union recently published its annual biofuels report for 2013 with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. The report reveals that the EU is the world’s largest wood pellets market, with a consumption of about 14.3 MMT of pellets in 2012.

Driven by the EC mandates and Member State incentives, the demand is expected to expand further to about 17 MMT in 2014.

Consumption forecasts for 2020 range from 35 MMT for Western Europe (Pöyry) to 50 – 80 MMT for the total EU (AEBIOM). Future consumption will however, depend on a range of market and policy factors.

Germany and Sweden are the largest pellets producers in the EU. In 2011, Swedish production fell by about 300,000 MT. The production cut has been partly replaced by competitive imports from the Baltic Region and Russia. During 2010, 2011 and 2012, Swedish imports have been increasing rapidly, mainly to the large – scale users.

In the other major producing EU Member States, production is expected to remain stagnant or increase only marginally. The weak investment climate and the limited availability of feedstock supplies are constraining further capacity and production growth. The major raw material for pellets has traditionally been sawdust and byproducts from sawmills.

From IHB (The Timber Network): http://www.ihb.de/wood/news/Pellets_Europe_production_33933.html

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