{"id":76296,"date":"2018-08-31T06:45:02","date_gmt":"2018-08-31T06:45:02","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/forecast-booming-expansion-of-wood-pellets-production-in-russia-expected-by-2025\/"},"modified":"2025-09-19T08:48:50","modified_gmt":"2025-09-19T08:48:50","slug":"forecast-booming-expansion-of-wood-pellets-production-in-russia-expected-by-2025","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/forecast-booming-expansion-of-wood-pellets-production-in-russia-expected-by-2025\/","title":{"rendered":"Forecast: Booming expansion of wood pellets production in Russia expected by 2025"},"content":{"rendered":"

While Russia\u2019s wood pellet production is relatively young, it accounts for a six percent share of world wood pellet exports. Russia ranks 8th in the world for total wood pellet production, with three percent of total world wood pellet production. According to FAOSTAT, production of wood pellets in Russia is forecast to increase significantly by 5 MMT by 2020, and by 8 MMT by 2025.<\/em><\/p>\n

However, Russian Ministry of Energy and Industry analysts forecast that production will increase at a slower pace, between 10 and 12 percent annually. Stabilization of world prices for wood pellets in CY 2018, after a downward trend in 2015 due to a drop in oil prices, will also be a driver for stimulating exports from the Russian producers.<\/p>\n

The growing interest from the European Union for biofuels, particularly wood pellets, will continue to be a major incentive for Russia to increase production of wood pellets. Also, recently Asian countries, such as Japan and South Korea, have become more interested in Russian wood pellets and as this interest grows it will also contribute to an expansion of Russian wood pellet production. Currently, Russia is the third largest exporter of wood pellets to the EU, after the United States and Canada.<\/p>\n

\"\"<\/a>Production<\/strong><\/p>\n

According to Rosstat (Russian Federal Statistical Service), Russia produced 1.34 MMT of wood pellets in CY2017, more than 30 percent increase from CY 2016. However, sources report that production statistics for wood pellets are incomplete. The statistics primarily capture large-capacity factories, and mid-sized and smaller facilities which operate as part of larger wood processing plants, do not report their production. Inaccurate wood pellet production statistics also could contribute to the high difference in production in CY2013 and CY 2014. As a result, it is believed the actual wood pellet production is underreported by Rosstat.<\/p>\n

Some estimate production of wood pellets in Russia in CY 2017 at 1.75 MMT, an increase of 32 percent over production in CY 2016. Such a significant increase in production is attributed to launching new production facilities and continued strong demand from the European Union and new markets in Asia, such as Japan and China. In addition, the government initiative to provide compensation to wood pellet exporters up to 80 percent to cover transportation and certification expenses, as well as participation in the exhibitions and fairs. However, the lack of a domestic standard for pellets, poor transport infrastructure, a lack of warehouses, and the product\u2019s seasonality are challenges to further growth of the wood pellet sector in Russia. Industry sources believe that Russia will require large investments in order to upgrade its facilities and expand its production capacity. Domestic demand can also absorb some of the increased, near-term production; however, experts do not forecast further development of local market in the near-term.<\/p>\n

Analysts estimate that currently 10 large wood pellet producers manufacture more than 60 percent of total Russian wood pellet production about 60 percent of total production of wood pellets in Russia. In 2017, the North Western Federal District and Siberian Federal District accounted for almost 70 percent of total production of wood pellets in Russia. The provinces located in these federal districts are situated in proximity to the borders of EU and Asian markets.<\/p>\n

According to experts from the Lesonline.ru portal, there are about 20 wood pellet facilities in Russia with production capacity from 30,000 to 70,000 MT that have had stable operations since 2010. Reportedly, in CY2017 these larger facilities reached operation capacity between 90 to 95 percent. However, analysts project a trend away from large facilities with an increasing number of facilities with smaller capacity, up to 20,000 MT. However, the share in overall pellet production from the smaller facilities accounts for only 14 percent. Given the current economic situation, the number of smaller-capacity facilities is forecast to increase because they have more mobility in sourcing raw materials and can easily market their production locally. In addition, recent government initiatives to support exporters and call for improving ecology and environments are likely to stimulate producers of forestry processing industries to construction wood pellet production facilities.<\/p>\n

There are a number of projects for building wood pellet facilities, mostly with foreign investments, that are under way or have recently started operations. For example, Japanese company Shinnen Corporation Ltd. is planning to invest into wood pellet production facility Republic of Buryatiya in 2018, with annual potential production capacity of 300,000 MT of wood pellets. The pellets will be exported to Japan. Since 2017, another pellet production facility with annual capacity of 70,000 MT launched its operation in Khabarovsk province, BM Group, Italian industrial group of companies, invested 9.5 billion rubles into the project. Verkhnepashinsky Forestry Complex-JSC \u201cSibles Project\u201d completed renovation of its forestry facility in Krasnoyarsk province. Reportedly, production of wood pellets is estimated at 170,000 MT in 2017. Most of the products will be destined to the Asian markets.<\/p>","protected":false},"excerpt":{"rendered":"

While Russia\u2019s wood pellet production is relatively young, it accounts for a six percent share of world wood pellet exports. Russia ranks 8th in the world for total wood pellet production, with three percent of total world wood pellet production. … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":57858,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[3307,3311,3501],"class_list":["post-76296","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-production","tag-russia","tag-wood-pellet","topic-wood-energy","area-russia"],"acf":[],"yoast_head":"\nForecast: Booming expansion of wood pellets production in Russia expected by 2025 - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/forecast-booming-expansion-of-wood-pellets-production-in-russia-expected-by-2025\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Forecast: Booming expansion of wood pellets production in Russia expected by 2025 - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"While Russia\u2019s wood pellet production is relatively young, it accounts for a six percent share of world wood pellet exports. 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