Reduced pellet supplies in Western Europe has vastly increased prices

By Erin Voegele
Biomass Magazine
October 31, 2022
Category: Finance & Economics
Region: International

FutureMetrics published a new white paper explaining how reduced pellet supplies in Western Europe and the U.K. resulting from sanctions on Russia has produced a supply shock that has vastly increased prices. …Last year, Russia, Belarus and Ukraine produced 15 percent of global trade in wood pellets. A significant portion of those pellets were destined for heating markets in Western Europe. …Due to the resulting supply shock in Europe, prices for pellet fuel have risen to previously unseen levels in every country that uses pellet fuels for heat and/or power generation. Strauss cites data showing that industrial pellets are trading on the spot market at more than $453 per metric ton. …Prior to this supply shock, estimates showed that demand for pellet fuel could exceed 75 million metric tons per year by 2030.

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