The European Union consumed a record 24.8 million metric tons of wood pellets in 2022, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. Consumption is expected to grow to 25.6 million metric tons this year. The report attributes much of last year’s growth in EU wood pellet consumption to increased residential use. Additional consumption this year is also expected to come primarily from residential demand supported by member state (MS) incentives and the implementation of the third Renewable Energy Directive (REDIII). The report notes that EU demand for wood pellets has significantly outpaced domestic production over the past decade, resulting in increased imports of wood pellets, primarily from the U.S., Russia, Belarus and Ukraine.