WRI: European Wood Pellet Market Predicted to Witness Robust Surge

SEATTLE (Scrap Monster): The pellet industry in Europe is the largest in the world and is expected to continue its strong growth at least until 2025, says Wood Resources International (WRI).

There are several key factors that are likely to drive growth. Biomass is expected to have a key role to play in helping the EU meet its ambitious targets for renewable energy supply. Among all forms of biomass, pellets offer significant advantages.

The demand for pellets is expected to grow by 30-40% over the next five years. In order to cope with the demand surge, the regional pellet production might have to increase by up to ten million tons, said WRI.  The demand is expected to remain strong in both the industrial and residential sectors. Incidentally, Europe accounts for almost three-fourths of the world’s total pellet demand.

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According to the report, wood residues will remain an important feedstock, especially in northern and western Europe. However, they will be insufficient to meet the future fiber demand from the growing wood pellet sector. This essentially points to the fact that new fiber sources are very much needed. As per data, the share of sawmill residue in total feedstock has dipped from 97% in 2010 to 72% in 2020 in Western Canada.