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Expectations for the European pellet markets 2023

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Our new regular column from Bioenergy Europe begins with Manolis Karampinis, business development & membership director at Bioenergy Europe and manager, European Pellet Council (EPC) giving an outlook on this year’s pellets market.

2022 was an extraordinary year for the pellet industry and – as it seems – the start of a turbulent period that will probably require a few more years to be resolved. The sector proved its resilience during the COVID-19 pandemic and experienced significant growth rates in 2021. However, Russia’s hostility towards Ukraine led to increases in energy prices, which also affected pellets. Pellet prices, both for industrial spot markets and residential markets, doubled or tripled after many years of relatively stable levels.

One could ask why an energy crisis that is primarily led by fossil fuels has spilt into a renewable resource such as wood pellets. There are multiple reasons for this. Pellet producers experience increased production costs: electricity (the prices of which in European markets are mostly driven by high natural gas prices) and transportation. Raw materials costs are also increasing, as the...

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