DBFZ work out IEA study on wood pellet market in more than thirty countries

A study conducted for the International Energy Agency (IEA) provides a comprehensive inventory of the wood pellet industry and the markets more than 30 countries in terms of regulatory frameworks, production capacities, consumption and price development, trade, logistics as well as country-specific standardization. The study can be obtained free of charge in English at www.ieabioenergy.com.

Driven by rising demand, the global production of wood pellets has risen rapidly over the last ten years. While the production volume in 2006 was estimated at 6-7 megatons (Mt), it already exceeded 26 Mt in 2015/2016. Further growth in demand is expected in the coming years for applications in two market segments. On the one hand, certified wood pellets are burned in coal-fired power stations and in converted coal-fired power plants to reduce greenhouse gas emissions during the generation of electricity. On the domestic side, wood pellets are used as a solid fuel mainly in automated furnaces and boilers. In the future, according to the assessment of the authors, wood pellets could also represent a renewable resource for "green chemistry" and biobased materials.

European Union as region is the largest pellet producer in the world

Due to an increasing demand, especially in Europe, the EU as region was by far the largest producer of wood pellets (54% by 2015), followed by North America (2015: 35%). Canada recorded the world's most dynamic development and was able to increase exports from 1.6 Mt in 2015 to 2.4 Mt in 2016. Seen on a country-by-country basis, the United States clearly dominates pellet production with 7.4 Mt in 2015 and 6.3 Mt in 2016, but is faced with a growing competition from Europe, Russia and the Baltic States. Other major producers are Germany with 2.2 Mt and Sweden with 1.5 Mt. Asia, the Russian Federation, Australia and Latin America play even smaller roles in global pellet production (2015: 11%), but are growing. In terms of national pellet consumption, the United Kingdom was at 6.7 mt, followed by the United States (2.8 mt) and Italy (2.1 mt).