Production and Consumption of

Wood Pellets in the European Union

Arnold Dale
Ekman & Co AB

WPAC conference
November 2015
Halifax, Nova Scotia, Canada
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common voice of the European bioenergy sector
with the aim to develop the market for
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Estimated world wood pellet production (million tonnes)
Source: IEA Bioenergy Task 40, Hawkins Wright, EPC Survey
World pellet market overview in 2014 (million tonnes)
Source: EPC Survey, Hawkins Wright, FAO
WORLD PELLET TRADE
Source: EPC Survey, Hawkins Wright

Producing 13,5 million tonnes but consuming 18,8 million tonnes, the EU is
the biggest pellet importer in the world.
Imported pellets are mainly for industrial use (Power plants and CHPs)
The imported pellets are mainly sourced from the USA and Canada
Russia & CIS countries are gaining importance in EU pellet supply to both the
Industrial and residential sectors
Trade from North America to EU has slightly increased from 4,69 million
tonnes in 2013 to 5,15 million tonnes in 2014 showing a very different trend in
USA than Canada.
US exports to EU have increased 41 % with 3,89 million tonnes, while
Canadian exports have reduced 34%.
Exports from Russia & CIS countries to EU have increased around 20 % from
2013 to 2015 to reach 950.000 tonnes.
The Baltic states and Russia produced 4.15 million tons during 2015
World industrial pellet consumption for power
and CHP in 2014 (percentage) Source: EPC Survey, Hawkins Wright, Ekman &Co

1% 4%
1%
1%
5%

6% UK
Korea
Denmark
48% Belgium
15% Sweden
Poland
Holland
Japan
Other EU

19%
Top 10 wood pellet consuming countries by end-use
in 2014 (million tonnes) Source: EPC Survey, Hawkins Wright, Ekman & Co

3 CHP
Heat
2
Power
1

0
Overview of European wood pellet production in 2014
 Division of total EU28 exports 2014 (percentage)
Source: Eurostat

Rest of EU28, Latvia

19% Latvia, 20% Portugal

Germany

Estonia
Poland, 3% Austria

Holland, 4% Portugal , 12% Romania

Lithuania
Sweden, 4%
Sweden
Lithuania, 5%
Holland

Romania, 6% Germany, 10% Poland

Austria, 7% Rest of
Estonia, 10% EU28
 World wood pellet production shares in 2014
Source: Hawkins Wright, EPC Survey
China Rest of Rest of
5% Asia World
4% 1%
Russia &
CIS Globally 27,1 million tonnes
6% of pellets produced in 2014.
13,5 million tonnes produced
EU28 in the European Union
50%
North North America slightly
America increased its production
30% Russia & CIS and Asia have
shown an important growth
in their production

Other
Europe
4%
Forests in Europe
Ports of the Baltic Sea Region
 Forest growth in Latvia 1930-2015
Source:

Annual natural increment 27 mln. m

Annual fellings 10-12 mln. m
Annual fellings per capita ~ 5 m
Annual wood consumption per capita 0,9 m
In previous 14 years the amount of standing wood in forests of Latvia
has increased by approx. 125 mln m3 (+23%)

 Latvian Forest Deviation of Tree Species

19.40% 13.30%

Other
Spruce
Birch
Pine

38%
29.30%
The Baltic states and Russia produced 4.15
million tons in 2014
Estonia had a limited pellet production a few years
ago but has very quickly become a large pellet
producer and the 4th biggest EU pellet exporter in
2014.
Estonia produced 1 million tons in 16 mills
Pellet production in Latvia has boomed making
the country the 3rd largest pellet producer and the
biggest exporter in the EU
Latvia produced 1.35 million tons in 23 mills
175,015 km2(

67,523 sq mi Lithuania produces mainly bagged pellets for the

residential market and most of the production is
exported
Lithuania produced 300 000 tons in 10 mills
Total Baltic states production in 2014 was 2.65
million tons
Russia produces around 1.5 million tons in 90
mills
Total production from the Baltic states and Russia
4.15 million tons in 2014
Who are the main producers in the Baltic states?

AS Graanul Invest is a privately owned

company, established in 2003, and
focuses on forestry, development of
bioenergy and the production of
renewable energy. Annual production
capacity of 853 thousand tonnes
Latgran, established in 2004, produced
497 thousand tonnes of pellets in its
four factories in 2014
Granuul acquired Latgran in 2015
Combined capacity will produce 1.8
million in 2015 making Granuul the
largest producer in Europe
Many small and medium sized
producers
The European wood pellet market
Conclusions
The European wood pellet market is the worlds largest market this will not
change
Europe is still the worlds largest wood pellet producer with 50% of global
production, but North America may overtake Europe in time
Contrary to expectations production volumes in nearly all European countries
are showing healthy increases
Consumption the power market has levelled off
Consumption in the CHP and heat markets are showing good growth
More and more wood pellet manufacturers are selling into both the heat and
power markets
It looks like 2016 will be a tough year for industrial pellet producers
 ONE OF THE WORLDS LEADING SALES AND MARKETING
ORGANIZATIONS FOCUSING ON THE GLOBAL FOREST INDUSTRY.