Europe has seen high demand for wood pellets given an increase in in local consumption. Russia – currently the third largest exporter of wood pellets to the EU, following the U.S. and Canada, is expected to increase wood pellet production and exports to the region.
In 2015, Russian wood pellet production is expected to increase 15%, reaching 1.36 million metric tons, with 1.02 million metric tons of that volume being exported. The increased production is driven mostly by the strong demand from EU. In the mid-term, domestic demand for wood pellets is expected to increase 10-20% annually.
It’s estimated that about 97 pellet plants are in operation in 2015 in Russia, which has a capacity use of 85%. Besides, four new wood pellet facilities are under construction in the country that have a combined capacity of 500,000 metric tons.
Russia’s 2014 pellet exports stood at 880,000 metric tons, which mark a 13% increase from 2013, according to the Russian Customs Service. Of this, about 382,000 metric tons were exported to Denmark, 218,000 metric tons to Sweden, and 57,000 metric tons to Italy.
Russia’s largest pellet facility – Vyborgskaya Forest Corp., has an installed capacity of 1 million metric tons. However, the plant is only operating at an estimated 50% of its total capacity due to some interruption in raw material supplies and legal issues.
At CMT’s Biomass Trade & Power Europe on 22-24 February, 2016 in Copenhagen learn more about rise of Russia as a major wood pellet supplier to Europe.
Contact Ms. Hafizah at email@example.com or call +65 6346 9218 for further details.