Pellet demand
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The current state of the European wood pellet market
While the EU produces about 50% of world production, EU demand represents about 75% of the market. In 2015, total EU consumption was 20.5 MMT of which about 65 percent was used for heating and 35 percent for power. Residential use for heating is a relatively stable market compared to industrial use for power generation. About 60 percent of the pellet demand is estimated to be for household use. However, the past three winters have been relatively mild and coupled with the low prices for fossil inputs, has tempered the use of pellets for residential heating. Based on a report recently filed with the USDA Foreign Agriculture Service’s Global Agricultural... Continue reading
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October 14, 2016
The current state of the European wood pellet market
While the EU produces about 50% of world production, EU demand represents about 75% of the market. In 2015, total EU consumption was 20.5 MMT of which about 65 percent was used for heating and 35 percent for power. Residential use for heating is a relatively stable market compared to industrial use for power generation. About 60 percent of the pellet demand is estimated to be for household use. However, the past three winters have been relatively mild and coupled with the low prices for fossil inputs, has tempered the use of pellets for residential heating. Based on a report recently filed with the USDA Foreign Agriculture Service’s Global Agricultural... Continue reading
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Doubling in US wood pellet exports due to high European demand
Wood pellet exports from the United States nearly doubled last year, from 1.6 million short tons (approximately 22 trillion Btu) in 2012 to 3.2 million short tons in 2013, says a new report of the U.S. Energy Information Administration (EIA). More than 98% of these exports were delivered to Europe, and 99% originated from ports in the southeastern and lower Mid-Atlantic regions of the country. As recently as 2008, the U.S. Forest Service estimated that approximately 80% of U.S. wood pellet production was consumed domestically. However, because of strong demand growth in Europe, wood pellet exports have been the driving factor in the growth of domestic wood pellet production in recent years. Growth of U.S. wood pellet exports has been concentrated in southeastern states, which have advantages in terms of abundant material supply and relatively low shipping costs to Europe.... Continue reading
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October 14, 2016
The current state of the European wood pellet market
While the EU produces about 50% of world production, EU demand represents about 75% of the market. In 2015, total EU consumption was 20.5 MMT of which about 65 percent was used for heating and 35 percent for power. Residential use for heating is a relatively stable market compared to industrial use for power generation. About 60 percent of the pellet demand is estimated to be for household use. However, the past three winters have been relatively mild and coupled with the low prices for fossil inputs, has tempered the use of pellets for residential heating. Based on a report recently filed with the USDA Foreign Agriculture Service’s Global Agricultural... Continue reading