European Union: EU Wood Pellet Annual

  |   Attaché Report (GAIN)   |   E42022-0049

In 2021, EU wood pellet consumption hit a new record of 23.1 million metric tons (MMT) mainly due to increased residential use in Germany and co-firing of wood pellets with coal in the Netherlands. In 2022, EU demand is expected to further grow to 24.3 MMT, based on expansion of the residential markets, mainly in Germany and France, boosted by support programs for the installation of biomass boilers and the high price of fossil fuels. EU demand for pellets has significantly outpaced domestic production for the past ten years, and it has resulted in increased imports from mainly Russia, the United States, Belarus, and Ukraine. Following Russia’s invasion of Ukraine, the wood pellet imports from Russia were banned by the EU beginning in April 2022. The broader biofuels market reporting is contained in the separate FAS GAIN report: EU Biofuels Annual 2022.

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