Production and Consumption of Wood Pellets in the … · Production and Consumption of Wood Pellets...
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Production and Consumption of Wood Pellets in the European Union Arnold Dale Ekman & Co AB WPAC conference November 2015 Halifax, Nova Scotia, Canada
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Estimated world wood pellet production (million tonnes) Source: IEA Bioenergy Task 40, Hawkins Wright, EPC Survey
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World pellet market overview in 2014 (million tonnes) Source: EPC Survey, Hawkins Wright, FAO
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WORLD PELLET TRADE Source: EPC Survey, Hawkins Wright
• Producing 13,5 million tonnes but consuming 18,8 million tonnes, the EU is the biggest pellet importer in the world.
• Imported pellets are mainly for industrial use (Power plants and CHPs) • The imported pellets are mainly sourced from the USA and Canada • Russia & CIS countries are gaining importance in EU pellet supply to both the
Industrial and residential sectors • Trade from North America to EU has slightly increased from 4,69 million
tonnes in 2013 to 5,15 million tonnes in 2014 showing a very different trend in USA than Canada.
• US exports to EU have increased 41 % with 3,89 million tonnes, while Canadian exports have reduced 34%.
• Exports from Russia & CIS countries to EU have increased around 20 % from 2013 to 2015 to reach 950.000 tonnes.
• The Baltic states and Russia produced 4.15 million tons during 2015
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World industrial pellet consumption for power and CHP in 2014 (percentage) Source: EPC Survey, Hawkins Wright, Ekman &Co
48%
19%
15%
6%
5% 1% 1%
1% 4%
UK Korea Denmark Belgium Sweden Poland Holland Japan Other EU
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Top 10 wood pellet consuming countries by end-use in 2014 (million tonnes) Source: EPC Survey, Hawkins Wright, Ekman & Co
0
1
2
3
4
5
6
CHP Heat Power
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Overview of European wood pellet production in 2014
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Division of total EU28 exports 2014 (percentage) Source: Eurostat
Latvia, 20%
Portugal , 12%
Germany, 10%
Estonia, 10% Austria, 7%
Romania, 6%
Lithuania, 5%
Sweden, 4%
Holland, 4%
Poland, 3%
Rest of EU28, 19%
Latvia
Portugal
Germany
Estonia
Austria
Romania
Lithuania
Sweden
Holland
Poland
Rest of EU28
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World wood pellet production shares in 2014 Source: Hawkins Wright, EPC Survey
EU28 50%
Other Europe
4%
North America
30%
Russia & CIS 6%
China 5%
Rest of Asia 4%
Rest of World
1%
• Globally 27,1 million tonnes of pellets produced in 2014.
• 13,5 million tonnes produced in the European Union
• North America slightly increased its production
• Russia & CIS and Asia have shown an important growth in their production
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Forests in Europe
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Ports of the Baltic Sea Region
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Forest growth in Latvia 1930-2015 Source:
¡ Annual natural increment 27 mln. m³ ¡ Annual fellings 10-12 mln. m³ ¡ Annual fellings per capita ~ 5 m³ ¡ Annual wood consumption per capita 0,9 m³ ¡ In previous 14 years the amount of standing wood in forests of Latvia
has increased by approx. 125 mln m3 (+23%)
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Latvian Forest Deviation of Tree Species
13.30%
38%
29.30%
19.40%
Other Spruce Birch Pine
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The Baltic states and Russia produced 4.15 million tons in 2014
• Estonia had a limited pellet production a few years ago but has very quickly become a large pellet producer and the 4th biggest EU pellet exporter in 2014.
• Estonia produced 1 million tons in 16 mills • Pellet production in Latvia has boomed making
the country the 3rd largest pellet producer and the biggest exporter in the EU
• Latvia produced 1.35 million tons in 23 mills • Lithuania produces mainly bagged pellets for the
residential market and most of the production is exported
• Lithuania produced 300 000 tons in 10 mills • Total Baltic states production in 2014 was 2.65
million tons • Russia produces around 1.5 million tons in 90
mills • Total production from the Baltic states and Russia
4.15 million tons in 2014
175,015 km2 (
67,523 sq mi
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Who are the main producers in the Baltic states?
• AS Graanul Invest is a privately owned company, established in 2003, and focuses on forestry, development of bioenergy and the production of renewable energy. Annual production capacity of 853 thousand tonnes
• Latgran, established in 2004, produced 497 thousand tonnes of pellets in its four factories in 2014
• Granuul acquired Latgran in 2015 • Combined capacity will produce 1.8
million in 2015 making Granuul the largest producer in Europe
• Many small and medium sized producers
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The European wood pellet market Conclusions
• The European wood pellet market is the world’s largest market this will not change
• Europe is still the worlds largest wood pellet producer with 50% of global production, but North America may overtake Europe in time
• Contrary to expectations production volumes in nearly all European countries are showing healthy increases
• Consumption the power market has levelled off • Consumption in the CHP and heat markets are showing good growth • More and more wood pellet manufacturers are selling into both the heat and
power markets • It looks like 2016 will be a tough year for industrial pellet producers
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ONE OF THE WORLD’S LEADING SALES AND MARKETING ORGANIZATIONS FOCUSING ON THE GLOBAL FOREST INDUSTRY.