“The EU’s medium- and long-term goal is to use bioenergy only when it is truly needed – for example, to stabilize the grid or in combination with other renewable energy systems and electricity for heating and cooling. It must be ensured that more bioenergy is produced from the same amount of biomass,” Dr. Biljana Kulisic of the European Commission emphasized at the 33rd European Pellet Conference in Wels last week.
In 2022, bioenergy accounted for 144 million tonnes, or 58%, of renewable energies in the EU. 70% of this quantity was solid biomass, 16% was gaseous, and 11% was liquid biomass. In the industrial sector, more than 80% of solid biomass is used.
Pellets from agriculture and plantations
Agropellets have great potential: Canadian wood pellet mills aren’t necessary located where demand is the strongest. Mills specializing in agropellets could help close this gap © Jean Blair, 2019
According to Kulisic, one of the European Commission’s goals is to shift the focus from wood biomass to biomass with shorter carbon cycles, i.e. by replacing or supplementing wood pellets with agropellets, for example. At the conference, discussions with industry representatives revealed that this is not very realistic, though. The production of agropellets, usually from straw, is possible but costly. Furthermore, the economic viability depends heavily on the material quality, and agropellets cause boilers to wear and tear much more than wood pellets do. Advantages of certified wood pellets include their homogeneity, high technical quality, and lower wear on the combustion chambers compared to pellets from agricultural byproducts.
A study by Prof. Dr. Shahabaddine Sokhansanj of the University of British Columbia shows that the use of agropellets can be economically viable in the highly agricultural provinces of central Canada – a region with little forested areas and virtually no wood pellet production. Due to the long distances, the transport wood pellets, for example from the west coast to Manitoba, Alberta, or Saskatchewan, is not economically viable. Canada produces 94 million tonnes of crops a year. Around 20% (19 million tonnes) of crop residues (leaves, stems) can be used for bioenergy. Sokhansanj estimates the total costs (excluding drying), from harvesting and storage to the transport to the biorefinery, at CAD 86/t (€55/t).
Pellets from plantations are another alternative. Biomass Trust offers the possibility to import certified, sustainably produced, and chlorine-free eucalyptus pellets from Brazil into the EU. The US-based company has developed a patented method for eliminating harmful chlorine emissions during combustion. Initially, an annual production output of 120,000 tonnes is planned, with a potential increase to up to 400,000 tonnes a year, which will be supplied by 32 Brazilian production facilities. “The rotation period of eucalyptus is only five to seven years, it has excellent carbon storage properties, and at US-$5 to US-$11 per tonne, its production costs are significantly lower compared to those of pine (US-$32 to US-$48/t). We are the future of the wood pellet sector,” Biomass Trust managing director Dr. Javier Farago Escobar confidently declared.
Recovering Italian market
In southern Italy, in particular, demand for wood pellets and, as a result, sales decreased over the past five years © AIEL
Italy needs to import half of its annual pellet demand (85% of which is bagged pellets). Its main supplier is Brazil, followed by Austria and Germany. Overall, the number of supplying countries is falling, while Brazil’s share in total Italian imports is steadily increasing. Around three years ago, Brazil overtook Austria and Germany as the main supplier of certified pellets. In 2024, Italy imported substantially smaller volumes from Germany than in previous years. “Welcome back, normal market,” Dr. Matteo Favero of the Italian Agroforestry Energy Association (AIEL) commented. Demand reportedly recovered somewhat in 2024, and quality is once again playing a greater role – even though the share of non-certified pellets continues to grow. “Austrian pellet producers have reason to be pleased,” Favero said. The number of suppliers fell from 289 (2022) to 233 (2023) and totaled only 187 last year. At the same time, there are fewer pure traders, while the remaining suppliers provide larger quantities.
