Author: Kritika Bhardwaj
Bioenergy Europe, the leading association for promoting sustainable bioenergy, has recently released its 2022 Pellets Report. This report provides a comprehensive overview of the European pellets market and its outlook for the coming years. The report focusses on the demand, supply, and pricing of pellets. The report also analyses the competitive landscape in the pellets sector, including the key players and their strategies. In addition, the report provides an overview of the regulatory environment in the European pellets market, including the European Union’s Renewable Energy Directive, the Energy Efficiency Directive, and the Renewable Energy Sources Act.
The results of the report indicate that the market is expected to continue to grow in the coming years, driven by the increasing demand for renewable energy sources.
Jérémie Geelen, a market intelligence officer at Bioenergy Europe, recently commented on the current state of the pellet market in Europe. He stated that recent geopolitical developments have caused significant market disruption in terms of price and supply. Geelen explained that there is a need for investment to increase production capacity in Europe and provide quality fuel to all users who have decided to invest in improving their heating system by switching to pellets-based appliances. Geelen further elaborated on the importance of this investment, noting that it would help to ensure that the pellet market can remain competitive and meet the growing demand for pellets. He also highlighted the need for increased transparency in the market to ensure that consumers are aware of the costs associated with using pellets and can make informed decisions.
The analysis found that the wood pellets market is projected to grow at a compound annual growth rate of 4.7% from 2021 to 2022. This growth is primarily driven by the increasing demand for renewable energy sources, such as wood pellets, in many countries worldwide. In addition, the expanding availability of wood pellets due to advances in production technology contributes to the market’s growth. The analysis also found that Europe’s wood pellets market is expected to dominate, with the region accounting for over 60% of the global wood pellets market. However, there is still significant potential for further expansion of sustainable wood pellet production worldwide and in Europe, but barriers to investments and logistics need to be overcome.
The production of wood pellets requires significant investments in both capital and resources. These investments can be challenging to obtain, especially in developing countries with limited infrastructure and resource access. Furthermore, the logistics of transporting wood pellets can be challenging due to their size and weight. These logistical challenges can increase the cost of production, making it difficult to profit from wood pellet production. Despite these challenges, the potential for further expansion of sustainable wood pellet production is still significant. Governments and organisations can help to reduce the barriers to investment and logistics by providing subsidies and other incentives to producers.