The latest statistical report on the wood pellet market in Europe, published by the European bioenergy association, Bioenergy Europe, offers the information necessary to understand its recent evolution, the factors that have influenced consumption and production, and the financial implications. underlying...
Wood pellets are an essential component within the technologies offered by bioenergy. Thanks to their high energy density and their uniformity demonstrated thanks to certifications, they have become a competitive energy source that is also contributing to meeting the climate and energy objectives of the European Union.
Production and consumption of pellets in the EU
In 2023, pellet production in the EU reached 20,7 million tonnes, while consumption amounted to 21,9 million tonnes, reflecting a slight deficit covered by imports from reliable partners such as the United States and Brazil. The EU continues to lead both in global production and consumption of pellets, despite the interruption of imports from Russia due to sanctions imposed in 2022.
The wood pellet market in Europe has shown a remarkable capacity to adapt to disruptions that had not been previously known. While industrial consumption has temporarily decreased due to fluctuating prices, residential and commercial use has remained solid.
Reduces industrial pellet consumption
Total pellet consumption in Europe (EU-27 + UK) decreased for the first time in two decades, going from 32,1 million tonnes in 2022 to 30,1 million tonnes in 2023. This contraction is mainly attributed to volatility in the prices of industrial pellets caused by the energy crisis resulting from the invasion of Ukraine in 2022. Although prices have stabilized, they are still higher than the historical average, affecting the profitability of the use of pellets for electricity production.
Stability in the residential pellet market
In contrast, the pellet market for the residential and service sectors has shown notable stability. In 2023, residential and commercial consumption represented 59% of the total, the highest percentage in a decade. This relative increase is due to a significant decrease in industrial consumption, especially in the United Kingdom and the Netherlands, where consumption fell by approximately 900,000 tons.
Winter 2023-2024 was characterized by a marked decrease in heating degree days (a unit used to measure the level of winter severity) with reductions of 10% in Spain, 15% in Belgium and almost 22% in Austria. It is notable to note that this trend of lower heating demand due to milder winters has not negatively impacted residential pellet consumption, which indicates the resilience of the residential market in the face of climate variations.
Quality certification ensures consumer confidence
The quality certification of ENplus® biofuel has been key in the consolidation of the pellet market. This certification scheme ensures quality from the factory to the final consumer, which is beneficial both to users, who obtain an efficient biofuel, which reduces emissions and prolongs the useful life of heating equipment, and to the environment.
Continuing to ensure the sustainability and quality of the product is vital for the pellet market to continue growing in the future and contributing to a cleaner and more efficient energy system.
Some recommendations for policies that favor the pellet market
To encourage sustained growth of the pellet market and maximize its contribution to the EU's energy and climate goals, Bioenergy Europe recommends that, when implementing the European Green Deal and the Anti-Deforestation Regulation (EUDR), administrative burdens be minimized; It also considers it necessary that support for the renewal of heating systems with renewable technologies includes pellet equipment; and that progress is made in the recognition that the use of pellets in the industry together with carbon capture and storage (BECCS) are vital to achieving carbon neutrality by 2050.
Fountain. Bioenergy Europe Statistics
https://bioenergyeurope.org/statistical-reports/