{"id":77907,"date":"2019-08-02T09:41:51","date_gmt":"2019-08-02T09:41:51","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/current-trends-in-europes-industrial-wood-pellet-market\/"},"modified":"2025-09-18T17:17:58","modified_gmt":"2025-09-18T17:17:58","slug":"current-trends-in-europes-industrial-wood-pellet-market","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/current-trends-in-europes-industrial-wood-pellet-market\/","title":{"rendered":"Current trends in Europe\u2019s industrial wood pellet market"},"content":{"rendered":"

In markets such as the United Kingdom, Belgium, and the Netherlands residential use is negligible and the demand for wood pellets is dominated by large scale power plants. The governments of these countries opted to fulfill their obligations for renewable energy use in 2020 mainly by the use of biomass for the generation of electricity. As these countries lack a sufficient domestic production of pellets they are largely dependent on imports.<\/strong><\/em><\/p>\n

The conversion of large electricity plants to fire biomass instead of coal is a key factor in the UK Government\u2019s plans to reach renewable energy targets. The main support mechanism within the UK\u2019s energy policy that has enabled the conversions is under the Levy Control Framework and called \u2018Contracts for Difference\u2019. This involves the government paying a premium above the market price of the electricity generated by the biomass power plant. The largest user of pellets in the United Kingdom recently converted a fourth unit of their plant from coal to biomass combustion. Each of these four units combusts 2.3 mmt of wood pellets per year. The second largest user was scheduled to start their operations in May 2018, but this plant is not operational yet. At full capacity the power generation of this plant will utilize about 1.4 mmt of pellets.<\/p>\n

Another company is schedule to start using pellets early 2020. The expected maximum use of this plant is about 1.0 mmt. It should be noted that for power generation, these three plants use wood pellets as their main feedstock but other biomass such as elephant grass and willow also may be used. For 2019, the total use of pellets in the United Kingdom is forecast at 8.5 mmt.<\/span><\/p>\n

\"\"<\/a>Sweden and Denmark set high targets for renewable energy use in 2020, 49 and 30 percent respectively. Both goals have already been reached, with a major part obtained from biomass. In 2018, Swedish pellet consumption picked up from a low level in 2016 and 2017. Pellet consumption increased despite rising prices for pellets. Danish consumption of pellets has increased significantly. Because the power sector is phasing out coal, several combined heat and power (CHP) plants have been converted to using pellets. A large portion of the pellets is imported. Danish pellet imports jumped from 2.0 mmt in 2016 to 3.8 mmt in 2018. The pellets were mainly sourced from the Baltic Region (1.7 mmt), but also from the United States (0.6 mmt) and Russia (0.4 mmt).<\/p>\n

Other sources of imports that have significantly increased in the past year include Portugal, Germany and Canada. In 2019, Denmark will further replace its coal use by biomass, mainly in the form of chips. Finland has a target of 38 percent for renewable energy use in 2020. A large share is covered by the use of wood chips, but only a limited portion is wood pellets.<\/p>\n

Also in France, there is a potential for industrial use of pellets. The development of renewable energy power is supported by two complementary systems: feed-in tariffs and tenders. In 2016, imports of pellets from the United States were high because of a single new biomass plant. However, the objective of this plant is to use 100 percent of local pellets in 2019, and as a result, imports from the United States fell in 2017 and 2018. Local wood is favored in subsidized facilities.<\/p>\n

Current Belgian industrial use is estimated at about 1.3 mmt per year. Of this, some 1.2 mmt is used for electricity production to the grid, while small private units are operated in the agricultural and other industry sectors for heating purposes.<\/p>\n

In the Dutch Energy Accord co-firing of biomass is capped annually at about 3.5 mmt of wood pellets. In the Accord it was furthermore decided that biomass will be subject to specific sustainability criteria.<\/p>\n

During 2019, one Dutch power plant is expected to scale up, while another is forecast to start by the end of the year. Because of the resumption of co-firing, the import of wood pellets is forecast to increase to about 1.0 mmt in 2019. Important for the realization of this expansion is dependent upon the approval of the certification programs, which demonstrate sustainability. Besides co-firing projects, other biomass projects, which use solely biomass, have received funding from the Dutch Government. They include the use of a wide variety of woody biomass types such as wood chips and pellets but also non-woody biomass types. With the further upscaling of the co-firing and opening of other biomass heat and\/or power plants, companies will have to source more biomass from abroad, likely in the form of pellets.<\/p>\n

Besides Western Europe, in Central Europe the use of biomass for power generation is also growing. In Hungary, many previously coal-fired power and heating plants began to use renewable energy sources instead of fossil fuels. The feedstock includes a wide variety of agricultural and forestry biomass types, mostly sourced locally. This is supported by subsidies for electricity production with biomass utilization. At the same time, Hungary's National Renewable Energy Action Plan prefers more efficient and smaller heating centers that are close to biomass sources and can meet the local energy or heating demand.<\/p>\n

Besides wood pellets, large quantities of wood chips and briquettes are used in the EU. The EU sector estimates the current EU consumption of wood chips at 15-20 mmt and expects it to grow to 28 mmt in 2020. Growth in demand is supported by increased investments in medium sized combined heat and power (CHP) plants. The main wood chips consuming EU MSs are: Germany, Finland, France, Sweden and Poland.<\/p>","protected":false},"excerpt":{"rendered":"

In markets such as the United Kingdom, Belgium, and the Netherlands residential use is negligible and the demand for wood pellets is dominated by large scale power plants. The governments of these countries opted to fulfill their obligations for renewable … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":61835,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[3291,4165],"class_list":["post-77907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-eu","tag-wood-pellet-market"],"acf":[],"yoast_head":"\nCurrent trends in Europe\u2019s industrial wood pellet market - 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\/current-trends-in-europes-industrial-wood-pellet-market\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Current trends in Europe\u2019s industrial wood pellet market - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"In markets such as the United Kingdom, Belgium, and the Netherlands residential use is negligible and the demand for wood pellets is dominated by large scale power plants. 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