The European energy landscape has experienced significant turbulence over the past 18 months, resulting in substantial effects on wood pellet markets. The conflict in Ukraine led to a gas shortage in Europe, causing gas and power prices to soar. In response, wood pellets, a cost-effective alternative for residential heating, saw a surge in demand, leading to sharp price increases for both pellets and the raw materials used in their production, particularly sawdust and low-grade roundwood. In certain European regions, pulp and panel mills found themselves in direct competition with pellet and bioenergy plants for the same feedstock.