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European Pellet Market Outlook

According to a recent article in the peer-reviewed journal Biofuels, Bioproducts & Biorefining (Biofpr), the wood pellet market is booming in Europe. In 2009, pellet production in Europe was greater than 10 million metric tons from approximately 650 pellet plants. Like most energy fuels, wood pellet prices are increasing.

After Europe, North America has the largest pellet production capacity, which grew from 1.1 million metric tons in 2003 to 6.2 million in 2009.

The report indicates that EU 2020 policy for renewable energy sources and greenhouse gas (GHG) emission will drive the market development. With these policies in place, the authors forecast that the demand, in Europe alone, for woody biomass will vary between 105 million metric tons to 300 metric tons — a 10 to 30 fold increase over the next nine years.

With this type of growth, the report states, “Public support is needed to cover the additional costs of capital investment, operation and maintenance of renewable energy equipment, and pellet fuel feedstock, in comparison with their fossil fuel alternatives.”

Watching from afar, there are several observations we can make about the contrasts in perspective — First, with such wide-spread adoption of the use of woody biomass fuels, public perception of wood heating must be quite positive. Secondly, with the rich natural resource supply here in North America, where is the U.S. policy and mindset on this topic?

Sadly, here in the U.S., woody biomass is still the forgotten step-child in the alternative energy discussion.

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