The European Union will have consumed a record 2022 million tons of wood pellets in 24,8, according to a report submitted to the USDA Foreign Agricultural Service's Global Agricultural Information Network. Consumption is expected to grow to 25,6 million tons this year.
The report attributes much of last year's growth in wood pellet consumption in the EU to increased domestic use. Additional consumption this year is also expected to come mainly from housing demand, supported by Member State incentives and the implementation of the Third Renewable Energy Directive (REDIII).
The report notes that EU demand for wood pellets has significantly exceeded domestic production over the past decade, leading to increased imports of wood pellets, mainly from the US, Russia, Belarus and Ukraine. Last year, the EU imported an estimated 5,89 million tons of wood pellets worth $1,32 billion. A ban on the import of wood pellets from Russia in mid-2022 has led to additional demand for products from other regions.
The EU is expected to consume 25,6 million tons of wood pellets this year, compared to an estimated 24,8 million tons in 2022 and 22,951 million tons in 2021.
EU imports of wood pellets are estimated at 2023 million tonnes in 6,2, down from 6,888 million tonnes in 2022, but up from 5,318 million tonnes in 2021.
According to the report, there is currently no data available on the number of EU-based wood pellet factories for 2022 and 2023. However, in 2021 there were an estimated 774 wood pellet factories in the EU, compared to 753 in 2020. Total capacity is currently estimated at 27,2 million tons, up from 25,6 million tons last year and 25,6 million tons in 2021. Capacity utilization is forecast at 76,1 percent this year, compared to 76,6 percent last year and 76,7 percent in 2021. Domestic production is expected to reach 20,7 million tons this year, compared to 20,3 million tons in 2022 and 19,631 million tons in 2021.
The EU is currently expected to export 2023 million tonnes of wood pellets in 1,5, up from 1,487 million tonnes in 2022, but down from 2,208 million tonnes in 2021.
Italy was the largest consumer of wood pellets in the EU last year with 3,4 million tonnes, followed by Germany with 3,2 million tonnes and the Netherlands with 2,95 million tonnes.
Germany is the largest producer of wood pellets in the EU, with production of 3,57 million tons last year, followed by Latvia with 2,15 million tons and France with 2,05 million tons.
The Netherlands is the largest importer of wood pellets in the EU, with 3,104 million tonnes imported last year, followed by Denmark with 2,66 million tonnes and Italy with 1,916 million tonnes.
The US was the largest supplier of wood pellets to the EU last year, with around 3,125 million tonnes, followed by Russia with 1,021 million tonnes and Ukraine with 401.000 tonnes. The largest EU-based importer of US wood pellets in 2022 was the Netherlands with 1,873 million tonnes, followed by Denmark with 560.000 tonnes and Belgium with 489.000 tonnes.
A full copy of the report is available at USDA FAS GAIN.
Source: biomass magazine
