Go Greener with KMEC Biomass Pellet Mill & Pellet Plant

Global Development of Wood Pellet Market-2

There are some European countries possessing whopping abilities of export such as Germany, Austria, Poland, Finland, Italy and other Baltic countries as well as Portugal and Spain. In particular, the abovementioned countries demand a large amount of supreme quality wood pellets for domestic heating system, with Italy as the crucial one of this kind. The increasingly important demands for heating material boost the trade and business among the EU, to the small extent, Germany, Austria, Danmark and France are mainly included.

Wood Pellets

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On the other hand, the development of heat-power combination across European continents and North America has catalyzed the import of biomass pellets from other regions such as Asia and South America. The CN code and regulations upon pellet fuel has been put into use since 2009 across Europe, and just in 2010 there were 2.6 million tons pellets were imported from non-European countries and the pellet trade just between European countries has reached 4 million tons. The demands from Europe also stimulates productions in North Amarica and Russia. Those countries like Canada, the US and Russia have been investing biomass pellet plants with huge interests and the increase in pellet fuel production is going rapid. As of now, they are still ranking the largest exporters of wood pellets to Europe. Besides, other countries are also attempting to export pellet fuel to cater to the European ambition of pellet consumption. The main importers of pellet fuel were mainly Liechtenstein, Norway, Switzerland and Iceland.

Since 2010, biomass pellet production across Canada has exceeded 2 million tons and another 15 large-scale pellet plants would since then be set up. Nonetheless, in the US, the production of pellets surpassed 4.3 million with 750,000 tons exported to Northern Europe and Italy for co-firing power plants and domestic use.

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Russia holding the largest amount of wood resources in the world possesses about 20 million tons of biomass resource which can be potential raw material for pelletization. Due to the great quantity of export, the domestic market barely consumed 30% of its production, with the estimated production capacity of 3 million tons in 2010. However, the actual production yield in 2010 was just 1 million tons, 70% of which were exported to other European countries. Therefore, Russia played a big role in pellet fuel supply. But the striking point for Russia remains logistics in terms of the vast territories.

Among European countries, Baltic region and Ukraine would become the big players and suppliers in the pellet market. In contrast to the European market for wood pellet heating, Canada and the US have not yet developed the consumer awareness, sophisticated appliances or incentive programs necessary to create significant and sustained demand in the consumer, institutional or cogeneration market sectors.  Apart from the above, Latin America and Australia will stand out to be competitive suppliers as well. It is worthy of mentioning that Ukraine possessing rich agro-waste will be a titan producer of agro pellets for fuel, with Danmark and Poland as the main market.

This fact sheet is a short introduction to wood pellets and will be helpful to those who are interested in using or producing wood pellet fuel. 

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Over the past few years,Markets for wood pellets are well established, especially in the northeastern United States. Rising prices for fossil fuels such as fuel oil and natural gas are leading to increased interest in wood pellet heating.