For the first time in history, Germany's 163 wood pellet producers have collectively surpassed 1.5 million tons of production, maintaining the upward trend of recent years. In fact, existing plants are being expanded and new ones are being built across the country.
According to the German Bioenergy Association (DEPV), the figure reflects the growing demand for renewable energy from European citizens. (graphic by DEPV-DEPI)
Almost all the pellets are ENplus A1
Over 96.% of the pellets produced in Germany are ENplus®A1 certified. They come from softwood and a high percentage (86.%) are made from sawmill by-products, although wood damaged by fire or pests is also used.
More pellet boiler installations
The German government subsidizes the installation of biomass heating systems with up to 45% of the cost, both for individuals and for companies and industries.
In addition to these significant public subsidies for renewable energy, Germany will raise the price of CO2 emissions from heating and transport to €25/ta from 2021. And from 2026 onwards, it will no longer be possible to heat buildings with fossil fuels.
These circumstances are fueling interest in pellets and, in fact, boiler manufacturers are confirming increases in their sales of the 150% in the first half of 2020.
Optimistic future
Martin Bentele, CEO of DEPV, is optimistic and expects that by 2030, more than one million units will be in operation with a fully guaranteed pellet supply. Annual pellet production could exceed 3 million tons, according to Bentele.
In this context, the DEPV also assumes that exports will decrease in the medium term. In the first half of 2020, 211,000 tons of bagged pellets were exported, a slightly lower quantity than in previous years.
The average price remained stable and low in the first half of the year at €247.41/t (equivalent to 4.95 c€/kWh).
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