Wood Resource Quarterly reports that even though there is a global slowdown, there is still an increasing demand for wood pellets, and new pellet production plants are being built.
The report indicates that the EU target of having a minimum target of 20% renewable energy by 2020, is driving growth in this sector. The quickest growth is expected to come from Sweden (who already consumes 20% of the world’s wood pellets), Germany, Denmark and the UK. Annual growth in Sweden alone is expected to be between 8 and 10%. There are currently more than 450 pellet production plants in Europe, and more are in the pipeline. The increased demand and new pellet production capacity will require them to import more biomass as raw material. Source: Wood Resources International, www.woodprices.com