On June 20, Bioenergy Europe released its Statistical Report on Pellets and its Policy Letter. The report analyzes the development of the global pellet market over the past year, with an in-depth look at the European market.
“While we have made significant progress, the growth of our industry is hampered by the EU's continued dependence on fossil fuels. It is crucial that we accelerate the transition to renewable energy sources to stabilize energy prices and effectively combat climate change,” said Jean-Marc Jossart, Secretary General of Bioenergy Europe.
After two remarkable years marked by record consumption and production, as well as record sales of pellet-based appliances, the global pellet industry has faced significant challenges in 2023. Pellet production and consumption stagnated worldwide, breaking a two-decade trend of continuous growth. Despite slight contractions in the market, the European Union remains the largest pellet producer and consumer in the world. The EU produces 44% of global pellets and consumes 50%.
The challenges for the European pellet industry are threefold: higher input costs, declining industrial demand and a very warm winter. Electricity, a key cost for pellet production, remains more expensive after the energy crisis, which has led to increased pellet prices. Higher pellet prices and a volatile energy market have led to electricity-only producers significantly reducing production. Finally, record high temperatures during winter reduced the need for heating, reducing demand for pellets.
Despite these challenges, the use of pellets for heating in the residential market remained strong. In 2023, the share of residential and commercial pellet consumption reached 59%, the highest in a decade. Pellet heating is a good option for households, especially in rural areas rich in biomass and less well connected to the energy grid. Biomass heating reduces heat-related electricity demand during the period of the year when renewable electricity production is often lower and less efficient. By reducing the load on the electricity grid, bioenergy can complement electrification, reduce electricity needs, increase energy efficiency and ensure the EU's energy security.
To combat climate change and increase Europe's energy autonomy, the EU's new leadership must ensure sensible implementation of the Green Deal while continuing to replace fossil fuels with renewable energy sources such as bioenergy from wood pellets. To this end, Bioenergy Europe has made three proposals for the new EU leadership, called “3 Steps Towards the Energy Transition”. The European bioenergy sector is ready to scale up and move forward for a more sustainable, affordable and innovative Europe.
You can download the 'Statistical Report on Pellets 2024' here.
Source: bioenergyeurope.org
