Solid biofuel market in the EU forecast to grow significantly by 2020

Current indices show that the amount of consumption of wood pellets and briquettes might grow approximately one and a half times by 2020, to 35 million tonnes.

The same statistics show that this growth might reach 24 million tonnes by 2015, as the European consumers use solid biofuel both in the industrial production of heat and energy and for private households, according to the Ukrainian Biofuel Portal

This increase represents an attempt to save the market from the economic and political factors of instability. Also, there is the current curve to use conventional substitutes for fuel, which work with renewable sources of energy. Solid biofuel is the main type of biofuel used in Europe.

Wood pellets and briquettes are mostly consumed in the private sector, because they are affordable and have good quality characteristics. Thus, the governments of the Member States of the EU have decided to make a project based on replacing coal and natural gas from private households to wood biofuel.

Germany, Italy, Denmark and the UK are the biggest European consumers of wood biofuel, and together with another 24 countries in the EU, they make for 80% of the world imports of wood biofuel, according to Eurostat.

Still, there is a high cost of production, together with a deficit in raw materials. This way, the European manufacturers of wood biofuel can’t meet the big demand. Moreover, the German and Swedish manufacturers announced a reduction of production, causing the inner trade of wood biofuel to decrease. Countries as the USA, Canada, Russia and Ukraine are now exporting more wood pellets and briquettes.

At this time, Poland, Germany, Slovakia and the Czech Republic are the main buyers for Ukrainian wood pellets, but also Italian and Baltic business representatives increased their demand for wood coming from Ukraine. Thus, the rates for the transportation, the need for certification and production prime costs are the most important factor for Ukraine to take into consideration.



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