EU wood pellet fuel market tend to relying on import
During the past few years, the EU’s requirement of restriction of relying on fissile fuel and reducing carbon dioxide emissions which made the renewable energy are in the peak period of most successful market development in the EU. Though most of the wood industry is struggle with the effect of financial crisis, wood fuel industry has made new record every year.
During the short period of 6 years, wood pellet fuel consumption has increased 3 times (increased from 46 million ton of 2006 to 143 million ton of 2012). During the same period, the production has increased 3 times (from 3.5 million to 10 million). The import has increased 5 times (from 0.8 million of 2006 to 4.4 million of 2012). So far, the market potential is not up to the limit and the future expectation has beyond the recent development.
The EU biomass pellet fuel report of 2013 has estimated that EU’s wood pellet consumption is between 50 million-80 million until 2020. (it is 14.3 million ton in 2012). The advantages of wood pellet in the room heating system, as well as many power generations are trying to reduce the use of coal and turn into the renewable energy, which are the main factors beneficial to this hot trend.
Therefore, the EU’s wood pellet fuel market is facing the dilemma: the wood pellet fuel in EU has higher cost that cause to the increasing of import, especially from the North America, which has less materials cost than the EU. In addition, the German and Sweden, the two largest producers had slow down or reduce their production. The result is that the wood pellet fuel trade inside the EU countries had decreased 12%, and the purchase from the South American had increased 44% at the same time.
Recently, the American and Canada has enlarged their production capacity which has obtained an important share in the EU’s wood pellet market. The combined market share has increased from 28% in 2011 to 37% in 2012. The front seven mouth in is up to 43% of all time record in 2013. But the export in USA has faster increasing speed than Canada. Last year, the UAS delivered almost 2 times of wood pellet fuel to the EU countries during the short period of one year, which has become the main resource for wood pellet fuel in EU. In addition, wood pellet fuel delivered from the USA to the EU from January to July in 2013 has increased 74% than in 2012, and the total amount is 16.7 million.
The USA announced that the new sawdust pellet plant project is ready to deliver 1.5 million ton good in EU in the future period of years in 2013. The UK’s Drax company has founded two sawdust pellet plant in the USA (one in the Luis Anna and one in Missy Siby), the combined production ability is about 0.9 million every year. In addition, a Canada company, Viridis Energy Company has begun to product sawdust pellet fuel in the factory in MiddleMusquodoboiin from August, and the output is up to 1.2 million every year.
Bluefire Renewables Inc has integrated one cooperate wood pellet mill into the Mississippi Fulton factory. The new design integrated the production of 9000000 gallons of ethanol per year with 400000 t wood pellet fuel. The company said, the wood pellet will be sold in EU’s renewable energy market with long-term contract.
The prospect in the future few years has closely related with the inside demand ability of the EU countries and other factors. Although the projected demands have increased 4-6 times, the wood pellet fuel production in EU can not keep up with the pace of development evidently, which are rely on import partly. Due to the recent announcement of project of wood pellet fuel factory in USA, the market has estimated that USA is going to account for half of EU’s import until 2014, which are 25% of the total consumption.
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Biomass Wood Pellet Fuel Market Analysis of The Netherland
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