Liberator

All of the pellets

pellets

  • Heating granules or pellets are the ecofriendly biofuels made of turf or wooden and agricultural wastes
  • Cortex, wood dust, woodchip and other waste-wood as well as industrial wastes are the raw materials for pellets production
  • Pellets are ecofriendly fuel. Neither chemical gluing connectors are used during the production of fuel granules
  • Maximum burning efficiency — remained ash constitutes from 0.5% to 5%
  • Burning of pellets is CO2 free
  • Storage. The amount of storage space for pellets can be reduced several times comparing to storage space for other types of fuel
  • Due to high heating value of pellets, the consumption of pellets is necessary for heating a house of 150 sq.m. constitutes nearly 9 tons a year
  • Fuel cost savings of approximately 30%

trend

  • Over 3.5 mln of people are engaged in alternative energy sector globally
  • Global investments in the renewable energy sources sector amounts to approximately $170 bln
  • Global consumption of wooden granules will rise more than 1.7 times and from 27 mln tones to 47.3 mln tones per year within the period of 2014-2020 (according to the Pöyry consulting company analysts’ forecast)
  • Stable growth of in average 7% in pellets annual consumption by the EU is predicted by analysts

 

In 2013, over 50% of renewable energy sources fell to the share of new energy sites set in operation in the EU and the USA. Nowadays the number of people, engaged in global alternative energy sector, amounts to 3.5 mln and their number is rocketing every year. Global investments in the renewable energy sources sector constituted approximately $170 bln. It is predicted that investing will increase in 2014. The number of countries is expected to enlarge the investments by 50%, and the quantity of the installed capacity will grow not less than a third within the same period.

Pöyry consulting company analysts forecast that global consumption of wooden granules within the period 2014-2020 will rise more than 1.7 times, from 27 mln tones to 47.3 mln tones per year. The EU countries will face a steady growth in consumption of pellets in average 7% per year, from 16.2 mln tones in 2014 to 23.8 mln tones in 2020 (Table 1)

FORECAST WORLD CONSUMPTION OF PELLETS 2014-2020 G. *

Index 2014 2015 2016 2017 2018 2019 2020
Forecast on global consumption of pellets, mln t 27,0 29,2 33,0 36,0 39,0 42,0 47,3
Forecast on consumption of pellets in the EU, mln t 16,2 16.4 18,8 20,1 21,4 22,7 23,8
Growth ratio of global consumption, % y/y 12,5 8,1 13,0 9,1 8,3 7,7 12,6
Growth ratio of consumption in the EU, % y/y 4,0 5,8 14,6 6,9 6,5 6,1 4,8
diagrama
Fig. 1. Forecast on the regional structure of global pellet production in 2015* *According to data by Pöyry consulting company / http://www.poyry.com
diagrama2
Fig. 2. Forecast on the regional structure of global pellet consumption in 2015* * Source: Pöyry “Wood Pellets – Becoming A Global Commodity”, April 2011

Western Europe is an undoubtful world leader in production and consumption of pellets. Considering the deficit of its own production to satisfy domestic demand, Europe is a net importer of this fuel. The main EU exporters are North America (Canada, the USA), Eastern Europe and Russia (Table 2).

PRICING PELLET* BALANCE BETWEEN DOMESTIC PRODUCTION AND CONSUMPTION PELLET BY REGION , MLN . TONS .

Table 2

Country/Region 2010 2015 2020
North America 1,5 4,2 5,4
South America 0,1 2,9 4,2
Western Europe -3,1 -5,7 -10,8
Eastern Europe 1,3 1,4 1,5
Russia 0,5 1,3 1,4
China 0 0 0
Japan and Korea -0,1 -3,4 -4,4
Oceania / Africa 0,2 0,3 0,7
diagrama3

Expert organizations forecast that the most significant rise in pellet production will occur in South and North America (Canada and the USA) within the period of 2010-2020. Balance between domestic production and consumption of pellets will grow more than 3.6 times in North America and 2.8 times in Russia. South America will face an incredible growth as well. At the same time, consumption will rise significantly in Western Europe; the above-mentioned balance will grow 3.5 times within the same period (from 3.1 mln tones in 2010 to 10.8 mln tones in 2020). Besides, Japan and Korea are going to face an increase in consumption and import of pellets (Table 2).

Three world principle centers of pellet consumption will have established by 2020 – Western Europe, Eastern-and-Asian region (China, Japan and Korea) and North America (Fig. 3).

Fig. 3. Heating pellets global demand, mln tones.*
*Source: BioenergyInsight, July 2011 – Pöyry, actual values;
**Forecast values


The principle manufacturers of pellets in the EU are Sweden, Italy, Germany, Austria and Poland. These countries produce 56% of total volume in the EU. The key consumers of pellets in the EU are Sweden, Denmark, the Netherlands, Italy, Germany, Belgium and the UK. They consume 81% of pellets in Europe correspondingly (Fig. 4) .   .diagrama4

Fig. 4. Volumes of production and consumption of pellets in Europe*

The average price on pellets remains the highest one in the EU, and these countries will preserve the tendency of its annual growth (Table 3). Table 3

PRICING PELLETS *

Markets 2010 2011 2012 2013 2014 2015 2016
Russia exw, EUR/t 120 115 150 135 127 132 130
Ukraine exw, EUR/t 78 75 105 99,1 104,6 110,1 115,6
EU, EUR/t 125 133 135 139,5 142,8 146,1 149,4
*Sources:
Federal State Statistics Service of Russian Federation;
Ukrainian biofuel exchange, http://bio-ex.com.ua;
http://www.internationalforestindustries.com
The purchase price of pellets in Ukraine in 2013-2014 amounted at approximately 100 EUR/t. For comparison, the price for this fuel in the EU in average amounts to 140 EUR/t and 180 EUR/t in Germany with delivery. It is worth mentioning that retail sale of pellets is even more profitable – the price for pellets packed in sacks amounts to 250 EUR/t.